Attributes of a good Teacher

Q. What are the attributes of a good teacher? 

 Ans. To be a good teacher the following competencies are required;

• Good listener.

• Reading skills.

• Effective communication skill.

• Understanding of the subject.

• Comprehensive skills.

• Learning skills.

• Discipline.

• Can adopt different strategies to make the students understand.

• Accessible.

•  Hopeful and always tries to inspire students by doing, not preaching. 

Before the class these questions must be asked to keep improving.the quality of the lectures. 

 

• Are you accessible (e-mail etc.)?

• Did you inquire from the students why they want to pursue studies?

• Did you inform what the students will achieve after they complete the course?

• Did you involve students in assigning the task of class activity?

• Did you work enough in understanding the subject matter and are able to present the subject matter in a logical way?

• Do you relate your teachings with the current environment?

• Do you maintain an objective and respectable position with your students?

• Are you able to respond to the questions clearly in class?

• Do you have a good command over the subject?

• Do you keep yourself updated with the recent developments of the subject?

• Can you show the interconnections between different subject matter and the courses?

• Are you comfortable with IT – enabled classroom teaching?

• Do you share extra reference sources after your routine sessions?

These questions can go on....But what is important is that a teacher must be curious as a child.,always ready to learn new things and constant urge to grow and be better and better everyday.

👩👍

monetization??

The road to recovery is to print a new currency ?

The global financial crisis had lasted only 12 years. In 2020, the world will once again face an economic crisis. After the second Covid wave and its impact on the rate of economic recovery, sudden demands for a budget deficit arose. Income inequality has increased globally due to Covid for the second consecutive year. 

The root cause of this crisis is the global Covid-19 pandemic. Its impact on the economy is different from that of the global financial crisis. However, traditional macroeconomic theory and the model were again found to be inadequate, and economists turned once again to the work of Keynes and recent Post Keynesian scholars.

Keynes believed that the velocity of circulation of money fluctuates and is often underutilized due to the economic recession. The effect of the money supply on interest rates and the effect of interest rates on aggregate demand provides a mechanism by which changes in the money supply affect the level of economic activity.

So can we increase the aggregate demand of the economy by increasing the money supply?

According to Keynes, if interest rates fall due to an increase in the money supply, the investment rate will increase and increased investment will lead to an increase in income through the multiplier. If this happens, the total expenditure (i.e. the multiplier) will increase aggregate demand) and, as a result, real national income (gross output) increases.

The question now is how to increase the supply of money?

The two determinants of money supply are: High powered money and money multiplier.

High powered money is the currency issued by the govt. and the RBI. 

Money multiplier is the degree to which the money supply increases because of the increase in high powered money. 

Therefore the money supply can be increased by increasing the high powered money. 

When the currency-deposit ration decreases i.e. people keep more money in banks as deposits. 

Currency- reserve deposit ration falls. It means the reserves ratio to be kept compulsorily (CRR) falls.

How can the money be raised through printing? Printing of new currency by RBI is considered as the last option. The govt. tries to manage its deficit through borrowings and investment in increasing the revenue through taxes and a smart disinvestment policy.  

Monetisation happens when RBI buys bonds from the Govt. directly. This measure creates new money but it does not increase the nominal GDP. Currently the Govt. expenditure has increased manifolds. The fiscal deficit is around 6.8% to 7% of GDP whereas the revenue sources have not expanded.

Interest rates

At its monetary policy meeting ending on 7th April, the Reserve Bank of India (RBI) kept its rates unchanged, which was in accordance of market expectations. The RBI left the reverse repurchase rate, the repurchase price and the marginal standing facility fee at 3.35%, 4.00% and 4.25%, respectively.

The decision of no change was mainly due to the result of a gradual and uneven recovery in the economy amid particularly strong inflationary pressures, pushed predominately because of supply chain disruptions, and rather improved food costs. Moreover, the Bank stated that regardless of easing fuel prices in February core inflation rate increased whilst consumers’ inflationary expectations multiplied slightly over the three months horizon. Overall, inflationary pressures were situation to balanced risks as more suitable agricultural output must control food prices, whilst they have an impact on a higher commodity prices and logistical hurdles ought to increase prices some other place in the economy. The current rise in Covid-19 cases and tighter lockdown measures in some foremost economies weighed on the banking sectors short-term outlook. However, the resilient rural sector backed by a well deserving financial stimulus is expected to give a push to the economic recovery at the earliest. 

Commenting on the RBI’s latest meeting, Barnabas Gan, an economist at UOB, noted: 

“India’s growth prospects will therefore depend largely on how COVID-19 evolves. Thus far, macroeconomic indicators have been recovering, and the outlook is also expected to improve further with the rollout of the vaccine programme across the country. However, we are worried over the renewed surge in COVID-19 cases, which in turn could inject a considerable downside risk to RBI’s (and UOB’s) GDP growth outlook of 10.5% in FY2021/22. We keep to our view for RBI to hold policy rate unchanged for the whole of 2021, although a risk of a rate cut in the second half of 2021 may be possible should COVID-19 stays unchecked in India.”

Investment

Investment is driven by the expectations from future. India has always been a great investment option for the investors. For an impressive recovery, India needs a good amount of long – term investment. The post COVID-19 seems quite promising, as the vaccination drive is finally centralised, after much of political drama by the states. Instead of confrontation, the states need to co-operate to overcome the post COVID-19 after effects. They need to keep their house in order because sooner or later the pandemic will subside. This is the time to invest in the health and health infrastructure of their respective states and look after its people, create utilities at war footing and to deliver to the poorest of the poor. Such dedicated efforts from each state will pay hugely not only in terms of a better infrastructure but more importantly, people of such states will march ahead and help the state to perform well in every indices. If the state is indifferent today, people will indifferent tomorrow. The state machinery needs to impress the people and then the sentiments of the people to do their bit towards the state’s financial recovery will be a soothing reality. This is how investment will get a boost in every state and finally India as a nation will find it easy to restore its pre level COVID-19 statistical spot.       

To conclude, as a lot of indirect monetization is already happening in the Indian economy. To support the increase in govt. expenditure, it must not resort to direct monetization. It will increase liquidity in the system and therefore it should be the last resort, after all other options are timely exhausted. The immediate focus of the govt. must be to speed up its disinvestment programme and improve its export earnings. As in the COVID times the import of vaccines, medical equipment, supplies etc. has increased therefore our export performance needs to improve. The increase in govt. expenditure in export units will create employment opportunities and this is how investment will flow in export- oriented sectors and this would increase the aggregate demand.  

The effect of a change in the consumer's income on his total satisfaction is known as income effect. A consumer will be more or less satisfied when his income increases or decreases, keeping the price of goods he buys as constant.

The income effect may be defined, 

as the effect on the purchases of the consumer caused by changes in income with prices of goods remaining constant.

The consumer is in equilibrium at points Q, Q', Q'', Q'''  where his income increase but the prices of the commodities remain the same.

With the increase in income there is a parallel shift upwards in the income line. The new price line are shown as AB, A'B', A''B''......... respectively. Initially the consumer was in equilibrium at point Q, but with increase in income , the equilibrium points move upwards respectively. When all these equilibrium points are joined, we get the Income- Consumption Curve ( ICC) .

 

Q1. Define economics as clearly as you can. Is it a Dismal Science?

A1. Economics is a science that studies how to manage the limited means and unlimited wants. It helps people to choose between ends to derive the maximum satisfaction. It also studies, how the levels of income and employment, in a country can be increased and also what causes fluctuations in them. The study of economics promotes economic stability. With respect to underdeveloped countries, Economics is concerns itself with the study of Economic Growth.

The definitions in Economics were taken in a very narrow sense. Like when Adam Smith defined economics, then economists like Carlyle and Ruskin, said that his definition laid too much emphasis on Wealth. As if every activity done by man is to create wealth only. Thus, Economics came to be regarded as a ‘Dismal Science’. Later, Marshall came up with his definition of Economics and it was he who said that it is subject that studies man and wealth is secondary. It should no longer be considered as a science of selfishness but a study that brings about social welfare. This is how Economics gained great social acceptance.

 

Q2. “Economics is the science of wealth”. Do you agree with the definition? Give reasons for your answer.

A2. Adam Smith in his book ‘Wealth of Nations’, defined Economics as a ‘Science that treats of wealth’. It is not considered a correct view. There is too much attention given to wealth, as if wealth is everything. Little importance is given to man, for whom the wealth is created. It is because of this that Economics came to be regarded as a ‘Dismal Science’. It was later on , when Marshall came up with his definition where he emphasized that Economics is the study of man. Wealth is the end which

Marginal rate of Technical substitution ( MRTS)

It is the rate at which a factor of production can be substituted for another at the margin without affecting any change in the quantity of output is known as the marginal rate of technical substitution (MRTS).

If there are two factors X and Y, then the quantity of Y for which one unit of X is a substitute, if the output remains unchanged.

Autonomous investment VS Induced investment.

Autonomous investment

It is an investment which is independent of the general economic situations. It is income inelastic. 

Induced Investment

It is an investment which is dependent on the general economic situations in the country, like general price level, national income, national consumption etc. It is income elastic.

Marginal rate of substitution

What is marginal rate of substitution?

 The indifference curve analysis is based on the principle of marginal rate of substitution.

 

It is the rate at which an individual will exchange successive units of one commodity for another.

For example, if a consumer has more of apples than oranges, then he will be willing to give more of oranges for an extra unit of 

apple.

It is the ratio between the marginal utilities of two commodities, which guides the consumer's choice. 

Production Function

Production Function

Is the relationship between the physical inputs and output of a firm is often referred to as the Production Function. 

The Production function shows for a given state of technological knowledge and managerial ability, the maximum rates of output that can be obtained from different combinations of the productive factors during a given period of time. 

Production Function is simply a catalouge of different output possibilities.

LAW OF VARIABLE PROPORTION

Law of Variable Proportions.

This law explains the effects on output of variations in factor - proportions.

It refers to the amount of extra output produced by adding to a fixed input more and more of variable input. 

There are three stages to the law,

Stage 1: Increasing Returns Stage. The output increases at an increasing rate.

Stage2: Diminishing Returns Stage. The output increases at a diminishing rate. 

Stage 3: Negative Returns Stage. The Total Product declines and the marginal product becomes negative cutting the x - axis.

This the Total Product, Marginal Product and Average Product pass through three different stages.

COST AND COST CURVES

The Fixed capital of the firm,eg, equipment, machinery, building etc. is part of the fixed cost. The cost that does not vary with the change in output is called FIXED COST. 

VARIABLE COST is the cost that varies with output. For eg. labour, raw materials, fuel, power. As the output increases the variable cost also increases.

Total cost= Total Fixed Cost+ Total Variable Cost.

OR

                     TC= TFC+ TVC

TFC is constant and this cost is born by the producer even if his production is zero. Therefore, this curve is parallel to x axis.

TVC is a rising curve because as the output increases there is more requirement for variable input. 

TC is the total of both TFC and TVC.