Vocabulary from The Hindu Editorial 12th October 2018 for Staff Selection Commission(SSC) Combined Graduate Level, Combined Higher Secondary Level, Bank PO, Clerk and other state Government Examination.

The Hindu Vocab 12th October 2018

An economics fix

The Nobel to work on growth and long-run sustainability frames a crucial priority

American economists William D. Nordhaus and Paul M. Romer were jointly awarded the 50th economics Nobel prize this week in recognition of their work on economic growth and its long-run sustainability. The Nobel committee noted that the duo’s work “brought us considerably closer to answering the important question of how we can achieve sustained and sustainable economic growth”. The committee’s praise is fitting as both economists devoted their careers to the study of the various “externalities” or “spillovers” that affect economic growth in a market economy. Mr. Nordhaus, for one, has been a pioneer in the movement towards quantifying the impact of economic growth on the climate and, in turn, the impact of climate change on economic growth. To correct this problem, he recommended imposing appropriate carbon taxes to curb pollution that was detrimental to growth in the long run. Mr. Romer, on the other hand, studied the importance of technology in achieving economic growth. He proposed the endogenous growth model where technological progress is seen as the outgrowth of businesses and other entities investing in research and development. At the same time, he recognised ways in which the market economy may undersupply technological innovations. Consequently, he recommended the use of subsidies, patents and other forms of government intervention to encourage economic growth through increased investment in technology. In essence, the Nobel committee’s decision is a recognition of economic research concerning market failure.

Of course, critics have highlighted flaws in the works of these two noted economists. For one, it may often be impossible to arrive at an objective measure of the carbon tax rate or the ideal amount of pollution to allow in a developing economy. It is equally troublesome when one needs to determine how much subsidy, or other forms of government support, should be allotted towards research and development. Even though mathematical models have been devised to address these problems, they are only as good as the data fed into them. Further, such decisions regarding the perfect carbon tax rate or the ideal subsidy allocation are likely to be determined by political considerations rather than simply pure economics. So the threat of government failure may have to be taken as seriously as the effects of market failure. These concerns lead to questions about the real-world impact of the policies supported by the pair. Nonetheless, many would argue that Mr. Nordhaus and Mr. Romer’s works are an improvement from the past in that they try to use the market mechanism itself to address its failures. The Nobel committee has done well to recognise important work on issues that are particularly relevant to the developing world.

  1. Crucial(adj.): महत्वपूर्ण - decisive or critical, especially in the success or failure of something.
  2. Sustainability(noun): स्थिरता - The ability to be maintained at a certain rate or level..
  3. Praise(verb) : प्रशंसा - Express warm approval or admiration of; Express one's respect and gratitude towards (a deity), especially in song.
  4. Spillovers(noun) : दूसरे क्षेत्र में फैलना - An instance of overflowing or spreading into another area
  5. Pioneer(noun) : प्रथम अन्वेषक -A person who is among the first to explore or settle a new country or area.
  6. Curb(noun) : नियंत्रण - A check or restraint on something.
  7. Essence(noun): सार -The intrinsic nature or indispensable quality of something, especially something abstract, which determines its character.
  8. Fed(verb): खिलाना -past and past participle of feed Give food to.

Vocab from Some other articles

  • Scavenger (noun): मेहतर - An animal that feeds on carrion, dead plant material, or refuse.; A person who searches for and collects discarded items.
  • Rehabilitation (noun): पुनर्वास - The action of restoring someone to health or normal life through training and therapy after imprisonment, addiction, or illness.
  • Cognisable (adj.) : संज्ञेय - formal Perceptible; clearly identifiable.
  • Catastrophic(adj.) : आपत्तिजनक - Involving or causing sudden great damage or suffering.
  • Cog(noun): दांता - A wheel or bar with a series of projections on its edge, which transfers motion by engaging with projections on another wheel or bar.
  • Clamour(noun): कोलाहल - A loud and confused noise, especially that of people shouting.
  • Etching(noun): नक़्क़ाशी - A print produced by the process of etching.