Match List - I with List - IIList - I List - II A. Effectiveness in private market in dealing with externalities I. Laffer curve B. Relationship between increase in tax rate and tax revenue II. Deadweight Loss C. Dominant strategy III. Coase Theorem D. Controlling prices through effective price ceiling and a price floor IV. Game Theory
A - III, B - I, C - IV, D - II
The Coase theorem explains private bargaining over externalities when property rights are clear and transaction costs are negligible (A–III). The Laffer curve relates tax rates to revenue (B–I); dominant strategy belongs to game theory (C–IV). Binding price controls can create deadweight loss in the standard competitive-market model (D–II).
Important Questions from Economy
- At the time of independence, which sector contributed the largest share to India's national income?
- Which of the following is an example of soft infrastructure?
- Which of the following statements regarding the estimation of India's national and per capita income during the colonial rule is correct?
What was one of the major characteristics of India's economy at the time of independence in 1947?
- The Fiscal Responsibility and Budget Management (FRBM) Act set limits on the fiscal deficit and public debt. What was the fiscal deficit target under the original FRBM Act by 2008-09?
