Exam Details
| Subject | general economics | |
| Paper | paper 2 | |
| Exam / Course | indian economic service and indian statistical service examination (ies/iss) | |
| Department | ||
| Organization | union public service commission | |
| Position | ||
| Exam Date | 2014 | |
| City, State | central government, |
Question Paper
What is the main. difference between Mercantilists and Physiocrats with regard to the sources of wealth of a nation
1.(b) State the major components of official foreign reserve assets.
1.(c) List out the major conditions that must be satisfied for the take-off of an economy according to W. W. Rostow.
1.(d) State two shortcomings of the Lorenz curve as a representation of the degree of inequality.
1.(e) GDP is an important measure of economic power of a nation but GDP does not reflect its well being. Why?
1.(f) Portray the different forms of efficient market hypotheses in equity markets.
2. What is financial repression? How does it affect investment in the economy?
3. State the Stolper-Samuelson theorem.' Elucidate the logic of free trade underlined in the theorem.
4. Briefly explain the determination of the interest rate in the economy through the loanable funds theorem "
5. Why is the, long-run Phillips curve steeper than the short-run" Phillips curve in an economy?
6. Describe the following measures of inequality:
the range,
(ii) the Kuznets ratio, and
(iii) the Gini coefficient.
Point out the shortcomings between Kuznets ratio and Gini coefficient.
7. What are the elements of structural change models of economic development that emphasize the transition from 'subsistence agriculture to modem manufacturing and service economies ?
8. How would you explain a neat 'jobless growth' in a developing economy despite high rate of inflation and economic growth Discuss.
9. Suppose two countries form a free trade area and also decide on imposing a common tariff on their trade with the rest of the world. Demonstrate whether such a preferential trade agreement raises or lowers economic welfare.
10. Why did Solow argue that 1he capital-output ratio of -the Harrod-Domar model is endogenous? Elaborate the steady state of the Solow growth model.
11. Consider an open economy that is subject to a capital inflow due to a decline in interest rates abroad. The monetary authority absorbs the inflows as foreign exchange reserves. With the aid' of a diagram compare the impact of it on the current account if the monetary authority sterilizes and does not sterilize the inflows. [Assume that the prices are predetermined in the short-period.]
12. Keynes referred to the speculative motive for holding money as "the object of securing profit from knowing better than the (bond) market what the future will bring forth". How does it differ from Tobin's formalization of the speculative demand for money.
13. What is the net welfare loss due to the imposition of an export subsidy on a good? Demonstrate the impact of export subsidy on welfare with the aid of a diagram.
1.(b) State the major components of official foreign reserve assets.
1.(c) List out the major conditions that must be satisfied for the take-off of an economy according to W. W. Rostow.
1.(d) State two shortcomings of the Lorenz curve as a representation of the degree of inequality.
1.(e) GDP is an important measure of economic power of a nation but GDP does not reflect its well being. Why?
1.(f) Portray the different forms of efficient market hypotheses in equity markets.
2. What is financial repression? How does it affect investment in the economy?
3. State the Stolper-Samuelson theorem.' Elucidate the logic of free trade underlined in the theorem.
4. Briefly explain the determination of the interest rate in the economy through the loanable funds theorem "
5. Why is the, long-run Phillips curve steeper than the short-run" Phillips curve in an economy?
6. Describe the following measures of inequality:
the range,
(ii) the Kuznets ratio, and
(iii) the Gini coefficient.
Point out the shortcomings between Kuznets ratio and Gini coefficient.
7. What are the elements of structural change models of economic development that emphasize the transition from 'subsistence agriculture to modem manufacturing and service economies ?
8. How would you explain a neat 'jobless growth' in a developing economy despite high rate of inflation and economic growth Discuss.
9. Suppose two countries form a free trade area and also decide on imposing a common tariff on their trade with the rest of the world. Demonstrate whether such a preferential trade agreement raises or lowers economic welfare.
10. Why did Solow argue that 1he capital-output ratio of -the Harrod-Domar model is endogenous? Elaborate the steady state of the Solow growth model.
11. Consider an open economy that is subject to a capital inflow due to a decline in interest rates abroad. The monetary authority absorbs the inflows as foreign exchange reserves. With the aid' of a diagram compare the impact of it on the current account if the monetary authority sterilizes and does not sterilize the inflows. [Assume that the prices are predetermined in the short-period.]
12. Keynes referred to the speculative motive for holding money as "the object of securing profit from knowing better than the (bond) market what the future will bring forth". How does it differ from Tobin's formalization of the speculative demand for money.
13. What is the net welfare loss due to the imposition of an export subsidy on a good? Demonstrate the impact of export subsidy on welfare with the aid of a diagram.