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FEATURES

o. As per this definition,_______________________________________________________

c. In short, Germany is Capital abandant rf, PK/PL for Germany < PK/PL for India.

1' .-[ Recall

Let’s assume !f isoguont shcws 100 kgs of wheat.

Factors of production regyired to produce wheat ore labour and Capital. X~oxis represents labour and Y~oxis represents Capital.

Ali the points on isoguont //’ will represent 100 kgs of wheat. Thas, the output on each point of isoguant remains constont. However, inputs keep varying. Thus, isoąuant is set of combinotion of inputs which help in producing given guantity of output (in this case, 100 kgs). At point E, OP units of capitol and 06/ units of labour ore reguired to produce 100 kgs of wheot.

Hcweoer, if producer decides to use morę labour, then he will reguire less Capital. Thus, ot point F, producer reguires OT units of labour and OS units of capitol and the output will stiU be the same ia. 100 kgs.

To sum up, isoguont represents various combinations of inputs for a given guantity of output.

In case of complex questions, we have provided 'Smart Recap' for quick recap of that question.

Type of ToT	Economist	Component considered	Major limitations
Net Barter		Price index: exports & imports	Ignores guality of goods & productńity of factors of production, Considers only tongible goods
Gross Barter	Taussig	6/uantity index: exports & imports	Ignores guolity & wolue of goods, considers unrelated trade items
Income	Oorronce	Price index: eyports & imports 6/uantitu index: exports	Ignores foreign receipts through other sources, does not consider adverse impoct of exports
Single foctora1	Prof. Viner	Price index: export & import Productiwitu index: export	bifficult to construct productbjity index for export sector, ignores cause of productwity changes