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Every Day, in a Third-Class Carriage of the Express Train

question 211

Multiple Choice

Every day, in a third-class carriage of the express train that rolls between Bombay and Ahmedabad, plainly dressed couriers carry precious cargo: diamonds. Rough gems are imported to Bombay from dealers in London, Antwerp, Tel Aviv, and New York, taken by these couriers to cutting and polishing centers in Gujarat state, and then
Carried back to Bombay to be reexported to the world. This system, based on trust,
Secrecy, and skilled low-cost labour, has been working for half a century. It has helped make India the world's premier center for diamond cutting and polishing. Nine out of every 10 stones sold in the world pass through India, making diamonds that country's
Largest export at $6.6 billion a year. This ability to use its skilled labour as a resource is an example of what Michael Porter would term:

Apply concepts of utility maximization to predict behavior under different economic scenarios.

Calculate future consumption or savings outcomes given changes in economic variables such as income, interest rates, and inflation.

Understand and predict the effects of storage and loss on future consumption in resource management scenarios.

Determine the equilibrium interest rate that balances consumption across different periods given a specific utility function.

Definitions:

Spiritual Security

The concept of protecting a nation's non-material cultural values, religious beliefs, and moral principles to ensure its societal integrity and identity.

Testability

The capacity to be subjected to empirical testing or experimentation to confirm validity.

Comparative Reasoning

The process of making decisions or drawing conclusions based on the comparison of different data sets or scenarios.