51 Write short notes any tow i Marginal productivity theory of profit ii

51 write short notes any tow i marginal productivity

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51. Write short notes any tow:- (i) Marginal productivity theory of profit (ii) Dynamic theory of profit (iii) Innovation theory of profit (iv) The Risk theory of profit (v) Uncertainty bearing theory pf profit UNIT – V: I NFLATION AND RECESSION 52. What is inflation? Discuss its effect on various sections of the society? 53. Why does inflation occur? What are the various methods to control inflation? 54. Distinguish between the following :- (a) Inflation and deflation. (d) Full and partial inflation. (b) Inflation and Reflation. (e) Stagflation (c) Deflation and Disinflation. 55. "Inflation is unjust and deflation is in expedient of the two perhaps deflation is worse." Elucidate. 56. Monetary policy is more effective in controlling inflation than fiscal policy. Discuss. 57. Explain the phenomenon of stagflation. Suggest measures to control it. 58. How does a Bank create credit? Examine the limitations on the power of a Bank to create credit. 4
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59. Do you agree with the view that every loan creates a deposit? Give reasons for your answers. 60. Describes the main function of Central Bank. 61. Briefly explain the methods by which the Central Bank controls the volume and creation of credit. 62. Distinguish between General credit control and Selective credit control and examine their relative merits. 63. Describe the functions of a Central Bank with reference to economic development of a country. ---------------------------------------------------------------------------------------------------------- SUGGESTED READINGS: Lipsey, R.G. and Chrystal, K.E.: An Introduction to Positive Economics, OUP Karl E. Case and Ray C. Fair, Principles of Economics, Pearson Education, Inc., 8th edition, 2007 N. Gregory Mankiw, Economics: Principles and Applications, India edition by Southwestern, a part of Cengage Richard T. Froyen, Macroeconomics , Pearson Education Asia, 2 nd edition, 2005 5
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