Public debt refers to the borrowing by a country either from within the country or from abroad, from pvt. individuals or banking institutions etc. It may borrow from IMF or IBRD. Govt. is forced to borrow when its expenditure exceeds its revenue. Public debet may be classified into external debt & internal debt.
Differences
- Internal debt is the debt raised by the govt. from within the country by the sale of bonds and securities to banks, financial institutions, etc.
External debt is the debt taken from foreigners, foreign govt.s or foreign financial institutions.
- When internal debt is raised money is transferred from lenders to the govt. The govt. uses it for making payments to its servants, etc. The debt is considered beneficial if the amount borrowed amount is used for the benefit of the poor & betterment of the society.
When the lender country buys goods from the debtor country with the debt amount repaid, it causes real burden. This reduces the economic welfare in the debtor country.
Thus external debt is of greater burden than the internal debt.
Sunday, May 29, 2011
Tuesday, May 3, 2011
Deductive Vs Inductive methods
Deductive Vs Inductive methods
* Deductive method is also known as analytical, abstract & a priori method. This method was advocated by the Classical school of Britain. Inductive method is also called empirical, historical & a posteriori method. Inductive method was was used by historical school of Germany.
* Deductive method proceeds from General to Particular . We start from a few indisputable facts about human nature and draw inferences from them about concrete individual cases. Inductive method proceeds from Particular to general . It is a process where facts are collected, arranged & general conclusions are drawn.
* The important steps in deductive method are 1. Selection of problem, 2.Formulating assumptions, 3.Formulating hypothesis & 4.Verifying hypothesis. The important steps in inductive method are 1.selection of problem, 2.Collection of data, 3.Observation & 4.Generalisation.
* Example for Deductive method: Law of DMU states that as the stock of a good increases the MU from it decreases. The principle of progressive taxation is derived from this law.
Example for Inductive method: From the practical experience of several farmers Law of Diminishing returns emerged.
* Deductive method is also known as analytical, abstract & a priori method. This method was advocated by the Classical school of Britain. Inductive method is also called empirical, historical & a posteriori method. Inductive method was was used by historical school of Germany.
* Deductive method proceeds from General to Particular . We start from a few indisputable facts about human nature and draw inferences from them about concrete individual cases. Inductive method proceeds from Particular to general . It is a process where facts are collected, arranged & general conclusions are drawn.
* The important steps in deductive method are 1. Selection of problem, 2.Formulating assumptions, 3.Formulating hypothesis & 4.Verifying hypothesis. The important steps in inductive method are 1.selection of problem, 2.Collection of data, 3.Observation & 4.Generalisation.
* Example for Deductive method: Law of DMU states that as the stock of a good increases the MU from it decreases. The principle of progressive taxation is derived from this law.
Example for Inductive method: From the practical experience of several farmers Law of Diminishing returns emerged.
Wednesday, March 16, 2011
Re to Trupthi
Ans1. Six Ss - Swagat, Suchana, Suvidha, Suraksha, Sahyog & Samrachana.
Ans2. Priority sectors: RBI introduced the concept of priority sectors in 1980. Agriculture & Small scale industries are the important priority sectors. Since nationalisation more than 40% of the advances of the public sector banks is being received by these sectors.
Ans3. AGMARK: Agmark is the seal of quality issued to the authorised packers of agricultural products. The Govt. of India had set up Central Quality Control Laboratory at Nagpur and several grading centres throughout India. So far quality standards for over 180 products have been laid down. Examples: Ghee, Turmeric powder etc.
Ans2. Priority sectors: RBI introduced the concept of priority sectors in 1980. Agriculture & Small scale industries are the important priority sectors. Since nationalisation more than 40% of the advances of the public sector banks is being received by these sectors.
Ans3. AGMARK: Agmark is the seal of quality issued to the authorised packers of agricultural products. The Govt. of India had set up Central Quality Control Laboratory at Nagpur and several grading centres throughout India. So far quality standards for over 180 products have been laid down. Examples: Ghee, Turmeric powder etc.
Tuesday, March 15, 2011
Re to Aditya continued
Chapter IX
1. Methods of repayment of public debt
2. Internal Vs External debt
Chapter X
1. Causes for Inflation ( write any 3 or 4 factors for each of the three causes)
2. Measures to control inflation
1. Methods of repayment of public debt
2. Internal Vs External debt
Chapter X
1. Causes for Inflation ( write any 3 or 4 factors for each of the three causes)
2. Measures to control inflation
Re to Aditya
Chapter I
1. Circular flow of income
2. Characteristics of human wants
3. marshall's definition - Features + Criticisms
4. Partial Vs General
5. Micro - Subject matter + Importance
6. Macro - Subject matter + Importance ( Scope & Subject matter are the same )
Chapter II
1. Law of DMU - Limitations + Importance
2. Law of EMU - Limitations + Importance
3. Law of Demand ( Can be asked as relationship between Price & QD )
4. Exceptions to Law of demand ( under what circumstances can D curve have + slope )
5. Income demand
6. Cross demand
All these are the components of Essays from this chapter
Chapter III
1. Total outlay method
Chapter IV
1. Assumptions of IC tech
2. Properties of ICs
3. Shifts & changes in Budget line
To be continued ......
1. Circular flow of income
2. Characteristics of human wants
3. marshall's definition - Features + Criticisms
4. Partial Vs General
5. Micro - Subject matter + Importance
6. Macro - Subject matter + Importance ( Scope & Subject matter are the same )
Chapter II
1. Law of DMU - Limitations + Importance
2. Law of EMU - Limitations + Importance
3. Law of Demand ( Can be asked as relationship between Price & QD )
4. Exceptions to Law of demand ( under what circumstances can D curve have + slope )
5. Income demand
6. Cross demand
All these are the components of Essays from this chapter
Chapter III
1. Total outlay method
Chapter IV
1. Assumptions of IC tech
2. Properties of ICs
3. Shifts & changes in Budget line
To be continued ......
Friday, March 11, 2011
Re. to Katyayani
Dear Katyayani,
I am very sorry child! I haven't been seeing the blog as I thought U will all be busy with IPE.
Don't worry. U will do very well. Blue print is as follows.
Chap I - 1LAQ + 2VSAQs
Chap II - 2SAQs + 2VSAQs
Chap III - 1LAQ + 2VSAQs
Chap IV - 1LAQ + 2SAQs
ChapV - 1LAQ + 2SAQs + 4VSAQs
Chap VI - 1LAQ + 1SAQ + 1VSAQ
Chap VII - 2SAQs + 3VSAQs
Chap VIII - 1SAQ + 3VSAQs
Chap IX - 1SAQ + 3VSAQs
Chap X - 1 SAQ
Pl. call me tommorow after exam. I will explain to U in detail what U should revise now.
I will try to get Ur Phone no. from college.
Do well.
Sai Latha
I am very sorry child! I haven't been seeing the blog as I thought U will all be busy with IPE.
Don't worry. U will do very well. Blue print is as follows.
Chap I - 1LAQ + 2VSAQs
Chap II - 2SAQs + 2VSAQs
Chap III - 1LAQ + 2VSAQs
Chap IV - 1LAQ + 2SAQs
ChapV - 1LAQ + 2SAQs + 4VSAQs
Chap VI - 1LAQ + 1SAQ + 1VSAQ
Chap VII - 2SAQs + 3VSAQs
Chap VIII - 1SAQ + 3VSAQs
Chap IX - 1SAQ + 3VSAQs
Chap X - 1 SAQ
Pl. call me tommorow after exam. I will explain to U in detail what U should revise now.
I will try to get Ur Phone no. from college.
Do well.
Sai Latha
Optimisation
Dear students,
Please follow the following instructions.
+ Write at least four 2m answers per page. U will then be using 4 pages for VSAQs. Write 16 VSAQs.
+ Restrict the length of LAQ answers to 3 pages. All 3 LAQs put together can be alloted 10 pages.
+ Restrict the length of each 5m answer to one page. However 10 pages can be used for all the SAQs put together.
+ Read the question paper twice. First answer the questions U know very well.
+ Accommodate the diagrams & formulae as shown in model presentation.
First years download the model presentation from
http://www.mediafire.com/?sxmwusjofx5fl1e
Second years download it from
http://www.mediafire.com/?iyoh44ituyq4t4y
Wish U all Grand Success. May God be with U & help & guide U all throughout Ur Exams.
Sai Latha
Please follow the following instructions.
+ Write at least four 2m answers per page. U will then be using 4 pages for VSAQs. Write 16 VSAQs.
+ Restrict the length of LAQ answers to 3 pages. All 3 LAQs put together can be alloted 10 pages.
+ Restrict the length of each 5m answer to one page. However 10 pages can be used for all the SAQs put together.
+ Read the question paper twice. First answer the questions U know very well.
+ Accommodate the diagrams & formulae as shown in model presentation.
First years download the model presentation from
http://www.mediafire.com/?sxmwusjofx5fl1e
Second years download it from
http://www.mediafire.com/?iyoh44ituyq4t4y
Wish U all Grand Success. May God be with U & help & guide U all throughout Ur Exams.
Sai Latha
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