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ECONOMICS

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PAPER-III

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This paper is of two hundred (200) marks containing four (4) sections.
Candidates are required to attempt the questions contained in these sections
according to the detailed instructions given therein.

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NOTE:

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SECTION- I

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Note:

This section contains five (5) questions based on the following

paragraph. Each question should be answered in about thirty (30)
words and each carries five (5) marks_

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(5x5=25 marks)

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On the basis of the statement made by

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answer the following questions :

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The world was poor not because it lacked material resources, technical skill or the will
to work or even because it misallocated its employed resources, it was poor because
something was radically wrong. with the way men (classical economists) thought and
conducted their economic affairs__ classical theory is misleading and disastrous_

Explain the context as to why Keynes made the above statement ?

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J -0105

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P.T.O.

2.

Why government interference is T!ff<ded in the economy to curb fluctuations ?

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Does cutting down wage rate necessarily lead to increase in the level of aggregate
employment ?

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How savlligs could be a vice rather than a virtue ?

5.

In the light of the above does "food for work" programme in India stand justified?

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J-0105

P.T.O.

SECTION- II
"UI"'rn'- II

Note:

This section contains fifteen (15) questions each to be answered in

about tldrty (30) words_ Each question carries five (5) marks_

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Defirlf< substitution effect of a change in price on demand of one commodity_

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7.

How are selling costs different from production costs ?

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What is marginal eff:ideru:y of Capitsl?

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J-0105

P.T.O.

9.

What is psychological law of consumption ?

Distinguish between Warranted and Natural rates of growth.

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11.

Definf. Organic Composition of capital.

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What do you mean by moTif<tized deficit?

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J-0105

P.T.O.

13.

What is 'BanK Rate' ?

Identify non-tariff barriers.

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15.

What is meant by demographic transition?

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What are the components of 'narrow money' as used by RBI ?

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17.

What are non-perlonning banK assets?

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What do you mean by "disinvestrr\ent"?

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19.

Describe the constituents of PQU.

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Explain VAT.

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J-0105

P.T.O.

SECTION - III
~-III

This section contains five (5) questions from each of the electives I
specialisations_ The candidate has to choose only one elective I
specialisation and answer all the five questions from it_ Each question
carries twelve (12) marks and is to beansweredin about two hundred
(200) words_
(Ux5=60 marks)

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Explain the concept of auto-correlation in a mutiple regression modeL How would

you detect its preseru:e ? State its consequences on the estimated parameters_

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What is the "identification problem" ? State the conditions under which an equation is
"over- identifed" and "just identified"_

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What is chow test? Explain its uses in testing the stsbility of the estimated coefficients
in a multiple regression modeL

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Stste the assumptions of OLS model and show that OLS estimators are linear and
unbiased_

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25.

Comment on the nature of "causality" in &anomies and describe Granger's test of

causality involving a set of vectors of variables z, and X,. State the assumptions required
to make Granger's concept operational.
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"A consumer is said to be in equilibrium when the rate at which he is willing to substitute
X for Y is equal to the rate at which he can substitute X for Y". Explain.

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Discuss V.Von Stackelberg's model of duopoly. What are its implications ?

23.

Define feasibility of input-output system and describe atleast three criteria for
detennining feaseability.

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Explain Hicksian model of trade cycle.

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25.

Discuss the main features of Kaldor's model of economic growth.

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P.T.O.

Elective - III
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E:xamille the role and relevance of "IJ\.fF'' in the emerging international monetary system.
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"Stabilization of agricultural income in India depends upon stabilization of agricultural

prices". Comment.

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Discuss the main trends in food grain production in India during the last decade.
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Highlight the various issues raised by advaru:ed countries after the fonnation ofW.T.O.
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21.

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E:xamille the process of detennination of exchange rates under flexible exchange rate
system.
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Explain the impact on developing countries of distortions and asymmetries which have
appeared in the World Trade Organization after 1995.

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What are the regional trading blocks ? Comment upon the prospects of increasing
India's trade in the context of fonnation of regional blocks in the developed world with
special reference to European Union.

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Identify the major problems that are faced by fanners in India in respect of marketing
of their produce.

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Analyse the impact of W.T.O. on the Indian agriculture. Will it ensure sustainable
agrarian development ?
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Discuss the scope and limitations of contract fanning in India.

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Comment on the role of plaruUng in the changed economic scenario since 1991 in
India.

22.

Discuss the impact of economic refonns on the iru:idence of poverty in India since
1991.

23.

What do you mean by convertibility of rupee? Is capital account convertibility

advantagous in India under the present circumstances ?

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"Globalization is a serious threatto the survival of small scale sector in India" Evaluate.

24.

25.

State the steps taken by the Centre and State Governments to reduce the "revenue
deficit" in the recent years.

J-0105

P.T.O.

SECTION- IV

"UI"'rn'- I V
This section consists of one essay type question of forty (40) marks to
be answered in about one thousand (1000) words on any of the
following topics_ Tlds question carries 40 marks_
(40x1=40 marks)

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Describe the present trends in inter- state i~ualities_ To what extent the various
recommendations of Finance Commissions have helped in reducing regional imbalances
in lndia_
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Briefly describe the various indicators of economic development Which Onf< of these
you consider as the most appropriate and why ?
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Do you agree with the view that the various employment genf<rating programmes in
India have not shown the desired results ? Discuss_

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(in figures) _
Signature & Name of the Coordinator _

(Evaluation)

J-0105

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