70 Days WAR Plan

Day#58 Static Flash cards Revision [70 Days WAR Plan]

Laptev sea; Foreign Currency Non-Resident (Bank) account; Rhode Island; Externality in the context of Economy; Adverse effects of flipping of earth’s magnetic field; Limitations of GDP; Arafura Sea; Banda sea; Flores sea; Inverted Duty Structure; Sema tribes; Tangkhul tribes; Flow Variables and Stock Variables; Kara sea; Chukchi sea; East Siberian sea;
By IT's Core Team
May 18, 2019




Give brief information on location of: (1) Kara sea, (2) Chukchi sea and (3) East Siberian sea.

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Answer & Enrich Your Learning:

Kara sea:

  • The Kara Sea is part of the Arctic Ocean north of Siberia.
  • It is separated from the Barents Sea to the west by the Kara Strait and Novaya Zemlya, and the Laptev Sea to the east by the Severnaya Zemlya archipelago.
  • It is named after the Kara River, which is now relatively insignificant but which played an important role in the Russian conquest of northern Siberia.
  • Kara Sea is one of the Coldest Seas in the World.
  • The Kara Sea is in contact with several seas including the Barents Sea and the Laptev Sea.
  • Other rivers such as Yenisey, Kara, and Taimyra flow into the Kara Sea.
  • The Kara Sea is also in contact with the Arctic Basin.
  • Its main ports are Novy Port and Dikson and it is important as a fishing ground although the sea is ice-bound for all but two months of the year.


Chukchi sea:

  • Chukchi Sea, sometimes referred to as the Chukotsk Sea or the Sea of Chukotsk, is a marginal sea of the Arctic Ocean.
  • It is bounded on the west by the Long Strait, off Wrangel Island, and in the east by Point Barrow, Alaska, beyond which lies the Beaufort Sea.
  • The Bering Strait forms its southernmost limit and connects it to the Bering Sea and the Pacific Ocean.
  • The principal port on the Chukchi Sea is Uelen in Russia.
  • The International Date Line crosses the Chukchi Sea from northwest to southeast.
  • It is displaced eastwards to avoid Wrangel Island as well as the Chukotka Autonomous Okrug on the Russian mainland.
  • The sea is named after Russia’s Chukchi people, who still live along its western shoreline.
  • Alyatki and Uelen are the significant ports.
  • The sea is navigable between July and October both eastward and westward from the shallow Bering Strait, and ice-bearing currents flow south eastward along the Siberian coast.
  • Seals of several species and walrus are indigenous, and whales and many seabirds are summer visitors.


East Siberian sea:

  • The East Siberian Sea is a marginal sea in the Arctic Ocean.
  • It is located between the Arctic Cape to the north, the coast of Siberia to the south, the New Siberian Islands to the west and Cape Billings, close to Chukotka, and Wrangel Island to the east.
  • This sea borders on the Laptev Sea to the west and the Chukchi Sea to the east.
  • Chief ports are Pevek, in the Chukchi autonomous okrug (district), and Ambarchik, in Sakha (Yakutia) republic; navigation is limited to August and September.
  • This shallow sea is frozen-solid for most of the year, and only navigable during the ice-free months of August and September.





Define the following terms: (a) Flow Variables, (b) Stock Variables.

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  • A flow is a quantity which is measured with reference to a period of time. 
  • A stock is a quantity which is measurable at a particular point of time.

Enrich Your Learning:

Difference between Flow Variables and Stock Variables

  • The distinction between a stock and a flow is very significant since national income itself is a flow.
  • The basis of distinction is measurability at a point of time or period of time.
  • Both stocks and flows are variables.
  • A variable is a measurable quantity which varies (changes).

Flow Variables:

  • Flows are defined with reference to a specific period (length of time), e.g., hours, days, weeks, months or years.
  • It has time dimension. National income is a flow.
  • It describes and measures flow of goods and services which become available to a country during a year.
  • Similarly, all other economic variables which have time dimension, i.e., whose magnitude can be measured over a period of time are called flow variables.
  • For instance, income of a person is a flow which is earned during a week or a month or any other period.
  • Likewise, investment (i.e., addition to the stock of capital) is a flow as it pertains to a period of time.
  • Other examples of flows are: expenditure, savings, depreciation, interest, exports, imports, change in inventories (not mere inventories), change in money supply, lending, borrowing, rent, profit, etc. because magnitude (size) of all these are measured over a period of time.

Stock Variables:

  • A stock is a quantity which is measurable at a particular point of time, e.g., 4 p.m., 1st January, Monday, 2010, etc.
  • Capital is a stock variable.
  • On a particular date, a country owns and commands stock of machines, buildings, accessories, raw materials, etc. It is stock of capital.
  • Like a balance-sheet, a stock has a reference to a particular date on which it shows stock position. Clearly, a stock has no time dimension (length of time) as against a flow which has time dimension.
  • A flow shows change during a period of time whereas a stock indicates the quantity of a variable at a point of time.
  • Thus, wealth is a stock since it can be measured at a point of time, but income is a flow because it can be measured over a period of time.
  • Examples of stocks are: wealth, foreign debts, loan, inventories (not change in inventories), opening stock, money supply (amount of money), population, etc.
  • The distinction between flows and stocks can be easily understood by comparing the actions of Still Camera (which records position at a point of time) with that of Video Camera (which records position during a period of time).




Sema tribes and Tangkhul are major ethnic group of India. This group are part of which Indian tribe?

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Naga Tribe

Enrich Your Learning:

Sema tribes:

  • The Sumi or Sema Naga is one of the major Naga tribes of Nagaland.
  • Sumi Nagas mostly inhabit the central and southern regions of Nagaland; Zunheboto is the district of the Sumis and a major part of Dimapur district.
  • According to the 2011 census of India, Sumi Nagas number around 300,000 in population.
  • The two major festivals that are currently popular among them are: Tuluni and Ahuna.

Tangkhul tribes:

  • The Tangkhuls are a major Naga ethnic group living in the Indo-Burma border area occupying the Ukhrul district in Manipur, India and the Somra tract hills, Layshi township, Homalin township in Upper Burma and Tamu Township in Burma.
  • Despite this international border, many Tangkhul have continued to regard themselves as “one nation”.
  • Tangkhuls living in Burma are also known as Hogo Naga or Eastern Tangkhul or Somra Tangkhul.
  • Also Kokak Naga, Akyaung Ari Naga and Hogo Naga are included tribally within Tangkhul Naga tribe but their language are quite distinct.
  • Luira phanit, the seed sowing festival is the major festival where all the men and women wear the traditional dress and head gear.
  • Tangkhul Naga people originally came from Mongolia via Yunan province of China.




What is Inverted duty structure?

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  • Inverted duty structure is a situation where import duty on finished goods is low compared to the import duty on raw materials that are used in the production of such finished goods.

Enrich Your Learning:

Inverted Duty Structure:

  • An important drawback of commercial policy or the import tariff policy is the problem of inverted duty structure prevailing in different industries.
  • For example, suppose the tariff (import tax) on the import of tyres is 10% and the tariff on the imports of natural rubber which is used in the production of tyres is 20%; this is a case of inverted duty structure.
  • When the import duty on raw materials is high, it will be more difficult to produce the concerned good domestically at a competitive price.
  • Several industries depend on imported raw materials and components.
  • High tax on the raw materials compels them to raise price. On the other hand, foreign finished goods will be coming at a reduced price because of low tax advantage.
  • In conclusion, manufactured goods by the domestic industry becomes uncompetitive against imported finished goods.
  • What inverted duty structure brings to the home country is that its industries are less protected as the tariff on the imported finished commodities are low.
  • At the same time, the tariff on the import of raw materials used in the production of the finished goods domestically is high.
  • This discourages the local production of goods using the imported raw materials as the price of imported finisshed goods may seem more attractive.
  • The disadvantage of the inverted duty structure increases with the increased use of imported raw materials. An inverted duty structure discourages domestic value addition.

For India, there are several examples of inverted duty structure especially after the signing of the India-ASEAN FTA.




Find out the location of: (1) Arafura sea, (2) Banda sea, (3) Flores sea and (4) Laptev sea.

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Answer & Enrich Your Learning:

Arafura Sea:

  • The Arafura Sea lies west of the Pacific Ocean, overlying the continental shelf between Australia and Indonesian New Guinea.
  • The Arafura Sea is bordered by the Torres Strait and through that the Coral Sea to the east, the Gulf of Carpentaria to the south, the Timor Sea to the west and the Banda and Ceram seas to the northwest.
  • The sea lies over the Arafura Shelf, part of the Sahul Shelf.
  • It is the shallow sea of the western Pacific Ocean.


Banda sea:

  • The Banda Sea is a sea in the Maluku Islands of Indonesia, connected to the Pacific Ocean but surrounded by hundreds of islands, as well as the Halmahera and Ceram Seas.
  • Islands bordering the Banda Sea include Sulawesi to the west, Buru, Ambon Island, Seram, Aru Islands, Barat Daya Islands, to the Tanimbar Islands, the Kai Islands and Timor in the East.
  • It occupies a total of 180,000 square miles and opens to the Flores (west), Savu (southwest), Timor (south), Arafura (southeast), and Ceram and Molucca (north) seas.
  • The Banda Sea is divided into two basins separated by a ridge that is surmounted in places by coral reefs.
  • The North Banda Basin is 19,000 feet deep, while the South Banda Basin is 17,700 feet deep.
  • A volcanic ridge further divides the southern South Banda Basin from the Weber Basin, the deepest in the sea, at some 24,409 feet.


Flores sea:

  • The Flores Sea covers 240,000 square kilometres of water in Indonesia. The sea is bounded on the north by the island of Celebes and on the south by Sunda Islands of Flores and Sumbawa.
  • Flores Sea is the portion of the western South Pacific Ocean.
  • The seas that border the Flores Sea are the Bali Sea (to the west), Java Sea (to the northwest), and the Banda Sea (to the east and northeast).

The sea’s basin is divided into four physiographic areas.

  • In the west is a broad plateau at a general depth of 1,650 feet (500 metres); submarine mounts rise from this bank and are often capped by coral atolls.
  • In the south is the Flores Basin (just north of the island of Flores), where the sea plunges to its greatest depth, 16,860 feet (5,140 metres).
  • To the north of this trough, two ridges (the western reaching above water as Selayar Island) flank a shallower trough (maximum 11,060 feet [3,370 metres]) that stretches to the island of Celebes.
  • The last region, south of Teluk Bone, is on the east, bordering the Banda Sea. In the winter, surface currents trend southwest only to reverse themselves during the summer.


Laptev sea:

  • The Laptev Sea is a marginal sea of the Arctic Ocean. It is located between the northern coast of Siberia, the Taimyr Peninsula, Severnaya Zemlya and the New Siberian Islands.
  • It is bounded by the Taymyr Peninsula and the islands of Severnaya Zemlya on the west and by the New Siberian Islands and Kotelny Island on the east.
  • It is connected in the west with the Kara Sea and in the east with the East Siberian Sea.
  • Its northern boundary passes from the Arctic Cape and ends at the Anisiy Cape.





What are the limitations of GDP?

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  • GDP does not incorporate any measures of welfare.
  • GDP only includes market transactions
  • GDP does not describe income distribution.
  • GDP does not describe what is being produced.
  • GDP ignores externalities.

Enrich Your Learning:

  • Gross Domestic Product (GDP) is essentially an indicator of aggregate economic activity. In addition to that it is also frequently used to describe social welfare.
  • The idea behind this is that GDP tends to correlate with consumption, which in turn is commonly used as a proxy for welfare.
  • In other words, the more people consume, the happier they are supposed to be.

Limitations of GDP:

  • There are several limitations of GDP as a welfare indicator.
  • Most of them can be traced back to the fact that in essence GDP is not supposed to measure well-being.
  • As a result the concept does not account for various important factors that influence social welfare.

To keep things simple the most relevant limitations are listed below:

  • GDP does not incorporate any measures of welfare: GDP only describes the value of all finished goods produced within an economy over a set period of time.
  • GDP only includes market transactions: It does not account for domestic or voluntary work, even though these activities have a considerable positive impact on social welfare, as they complement the market economy and thus improve the standard of living. 
  • GDP does not describe income distribution: If there is a high degree of inequality when it comes to income distribution, the majority of people do not really benefit from an increased economic output because they cannot afford to buy most of the goods and services.
  • GDP does not describe what is being produced: Since GDP measures the value of allfinished goods and services within an economy, it also includes products that may have negative effects on social welfare. Think of a country with an extremely strong armaments industry that represents most of its GDP. 
  • GDP ignores externalities: Economic growth usually goes hand in hand with increased exploitation of both renewable and non-renewable resources. Due to this overuse, more and more negative externalities arise (e.g. pollution, overfishing) and social welfare will decrease as a result. This effect is not included in GDP at all.




Discuss the adverse effects of flipping of earth’s magnetic field.

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Answer & Enrich Your Learning:

  • If Earth’s magnetic field were to decay significantly, it could collapse altogether and flip polarity – changing magnetic north to south and vice versa.
  • A flipped magnetic field could seriously disrupt communications systems and power grids.
  • It could also produce multiple north and south poles, and birds, whales and other migratory animals that use the field to establish a sense of direction could encounter problems.
  • As Earth’s magnetic shield fails, so do its satellites.
  • First, our communications satellites in the highest orbits go down.
  • Next, astronauts in Low-Earth orbit can no longer phone home.
  • And finally, cosmic rays start to bombard every human on Earth.
  • It’s bad, because earth’s magnetic field helps shield us from damaging solar and cosmic radiation, and a protracted flip means Earth might be slightly less protected from harmful space rays for longer than we would like.
  • Another interesting consequence will be that animals that use Earth’s magnetic field for navigation—including birds, salmon, and sea turtles—could get lost during their routine journeys. Eventually they will sort this out, and all other things being equal, life will go on.
  • If the magnetic field gets substantially weaker and stays that way for an appreciable amount of time Earth will be less protected from the oodles of high-energy particles that are constantly flying around in space.
  • This means that everything on the planet will be exposed to higher levels of radiation, which over time could produce an increase in diseases like cancer, as well as harm delicate spacecraft and power grids on Earth.




What is an externality in the context of Economy?

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An externality is an economic term referring to a cost or benefit incurred or received by a third party who has no control over how that cost or benefit was created.

Enrich Your Learning:


  • An externality can be both positive or negative, and can stem from either the production or consumption of a good or service.
  • The costs and benefits can be both private—to an individual or an organization—or social, meaning it can affect society as a whole.
  • Externalities are negative when the social costs outweigh the private costs.
  • Pollution emitted by a factory that muddies the surrounding environment and affects the health of nearby residents is a negative externality.
  • Positive externalities occur when there is a positive gain on both the private level and social level.
  • The effect of a well-educated labor force on the productivity of a company is an example of a positive externality.

Solutions for Positive and Negative Externalities:

Government Solutions:

  • Subsidies: Subsidiesare a form of support given to producers that help reduce the cost of production which results in an increase in production and consumption. Goods that governments want to increase the consumption of are subsidized. Subsidies should be provided for goods with positive externalities.
  • Indirect Taxes: An indirect tax is a tax applied to the manufacture or sale of goods and services. Indirect taxes discourage consumption of goods and services and is represented by a decrease in supply. The government should impose Indirect Taxeson products with negative externalities. Education and regulation are also ways of controlling the quantity consumed and produced.

Private Solutions:

  • Moral codes: Moral codes guide individuals’ behavior. For example: littering. The likelihood of being fined may be small, but moral codes provide an incentive to refrain from littering.
  • Charities: Charities channel donations from private individuals towards fighting to limit behaviors or promoting behaviors. For example: Donations to help protect the environment.




Give the location of Rhode Island.

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Rhode Island is a state in the New England region of the United States.

Enrich Your Learning:

Rhode Island:

  • Rhode Island, officially the State of Rhode Island and Providence Plantations, is a state in the New England region of the United States.
  • It is the smallest state in area, the seventh least populous, the second most densely populated, and it has the longest official name of any state.
  • Rhode Island is bordered by Connecticut to the west, Massachusetts to the north and east, and the Atlantic Ocean to the south via Rhode Island Sound and Block Island Sound. It also shares a small maritime border with New York.
  • Providence is the state capital and most populous city in Rhode Island.
  • It shares a narrow maritime border with New York State between Block Island and Long Island.
  • The mean elevation of the state is 200 feet. It is only 37 miles wide and 48 miles long, yet the state has a tidal shoreline on Narragansett Bay and the Atlantic Ocean of 384 miles.





FCNR (B) accounts can be opened by whom: NRIs OR OCIs?

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FCNR (B) accounts can be opened by NRIs.

Enrich Your Learning:

Foreign Currency Non-Resident (Bank) account [FCNR (B) account]

  • Foreign Exchange Management (Deposit) Regulations, 2000 permits Non-Resident Indians (NRIs) to have deposit accounts with authorized dealers and with banks authorized by the Reserve Bank of India (RBI).
  • FCNR (B) accounts can be opened by NRIs and Overseas Corporate Bodies (OCBs) with an authorized dealer. The accounts can be opened in the form of term deposits.
  • Deposits of funds are allowed in Pound Sterling, US Dollar, Japanese Yen and Euro.
  • Rate of interest applicable to these accounts are in accordance with the directives issued by RBI from time to time.
  • Repatriation of funds in FCNR (B) is permitted. Hence, deposits in these accounts are included in India’s external debt outstanding.
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