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Supply of Basic Industrial Inputs:
Allowing their duty-free imports by exporters would require an elaborate machinery of customs and import licensing to ensure that the imports did not leak out into the domestic economy. Even now the machinery which allows limited export-related imports, does not function very satisfactorily. To extend it to manage large-scale imports of basic goods is not possible. Besides, there are inputs which cannot be imported. There are indirect inputs for which it would be impossible to work out any import our exporters to compete fairly with their counterparts abroad is to ensure that these basic goods are available to everyone?exporters, potential exporters and non-exporters?at international prices. There is another issue that needs resolution: rupee lending rates. Obvious comparisons crop up with foreign currency financing. However, while foreign currency loans are available at a spread over London, Inter-Bank Offered Rate (LIBOR) and US Treasury (UST) rate, the rupee funds will come only as a spread on Prime Lending Rates (PLR).
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If the Bank of England wanted to discourage investment spending and reduce aggregate demand, it could?
First Degree Price Discrimination - The monopolist sells different units of the commodity at different prices which differ from person to person. Second Degree Price Discriminat
Explain the axioms of completeness, transitivity and non-satiation using appropriate examples.
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Suppose the price elasticity of demand for extra dark chocolate truffles is -6. Hold other things constant , if price for Extra Dark Chocolate truffles is decrease by 3%, what wil
Iso-quant: The dots in the above Figure denotes the various combinations of (L, K) that the producer can pick up from form to produce. Among these combinations, there can be t
Determine the value of the marginal product of labor. Equilibrium in the Labor Market Each firm will hire labor up to the point at that the value of the marginal product of
1. Suppose the wage rate is w = 1. An agent is working 6 hours per day and consumes 5 units of goods per day. Suppose that the agent claims to be indifferent between his current
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