Give meaning of balance of trade.
Balance of Trade is simply the difference between the value of exports and value of imports. It denotes the differences of imports and exports of a merchandise of a country during the course of year. Balance of Trade (BOT) for a country refers to the record of visible trade transactions of the country with the rest of the world.
Is the following, revenue expenditure or capital expenditure in the context of government budget? Give reason.
(i) Expenditure on collection of taxes.
(ii) Expenditure on purchasing computers.
Define externalities. Give an example of negative externality. What is its impact on welfare?
Recently Government of India has doubled the import duty on gold. What impact is it likely to have on foreign exchange rate and how?
