UNIVERSITY OF HYDERABAD
Ph. D. PROGRAMME IN GANDHIAN ECONOMIC THOUGHT
Entrance Examination -June 2011
Maximum Marks: 75 Holt Ticket No. Time: 2 Hours
INSTRUCfIONS:
J. Read these instructions carefully before answering.
2.
Write your Hall Ticket Number in the space provided ahove on this page.

3.
This question paper has TWO parts.

4.
PART A consists multiple choice questions. Each correct answer


carries one mark. ti,e correct choice in tl'e box provided next tI,e
qllestion.
5. There for PART A. Each wrong carril-s

0.33 mark.•.
6. PART B carries 50 marks. Read further.instructions provided there.
Use ofcalculators is NOT pcnnitled.

8.
Iland over the question paper hooklet at the end ofthe examination to the
Invigilator.


9.
No additionol sheets will be provided. Rough work can be done in the question paper itselfIon the space provided for it at the end of the hooklet.


to. This question paper contains 18 pages, including this page and pages for the
rough work.

PART-A (25 marks)
Market demand for a good is perfectly inelastic, 35) and its market supply is upward sloping. where p is the price received by /inns. What happens to market price, Pm, when an ad valorem excise duty nf 16% is levied? It
II
A. increases by 16%
B. increases by
C. increases by 24%
O. decreases by
When a poor man ""ys that he would like to "ook seat on super luxury train "Palaec on Wheels" for a royal Rajasthan tour, it is a Ctl.<e of.
I
A. luxury
B. comfort
C. m:cessity
D. dcsire.
Early estimales from 2011 census show thaI compared to 2001 census:
II
A. number of females per 1000 males has increased and now there arc morc females
than in fXlpulation
R. number of females per 1000 mMes has increased "ut even now there are less
females than males in population

C. number of females per 1000 males has decreased further due to negligible growth
in absolute number of females in population
O. numher of females per 1000 males has remained constant.

Currently, the service sector constitutes of India's GOP:

A.
grealer than 70%
fi.60-70%
C.50-60%
D.40-50%



Arrange the following hooks in order of their /irst publication:

a.
An Essay on the Principle ofPopulation (Thomas Malthus)

b.
Dos Kapital (Karl Marx)

c.
Principles of Political Economy (John S Mill)




I
A. a·b-c
B.
C. cob-a
D. a-cob
Page-3
According to M K Gandhi in Hind Swamj, "India was lost" due to:
I
A. short comings and weakness oflndian people
B. the might ofthe British navy
C. treachery ofthe East India Company
D. strategic capabilities ofthe British generals
An implication (such as "P implies b /legated" hell
I
A. both the premise and conclusion arc true
B. the premise is true and the conclusion is false
C. the premise is false and the conclusion lmt:
D. both the premise and conclusion ar..: fdlse

Consider a project with tixed cost and a given expected incume stream
over the next 10 years, which is total hfe of the project. If the above do not change
hut the investor's ratc ofdi50COunt goes up. then.
I
1. MEC' goes up
B. MEC goes down
C. profitability (expected return) goes up
D. profitability (expected return) goes down.

Consider the fullowing qualities: persistence; Keenness uf Faith; Logical industriousness; and Verbal cOITltnunu.:ation. Vhich ofthese arc essential for a researcher?

A.
i. ii. iii. iv

H.
ii. iv •v

C.
ii. iii. iv, vi

n.
ii, iii. v. vi


Nai Taleem promoted by Gandhiji emphasized:
I
1. Liberal Education
B. Vocational Training
New Tecbnology
D. Gurukul system
Anna Hazarc went on indefinite fast in April 2011 against
II
A. Marginalization ofcivil society
B. inflation
C. corruption
D. social disharmony

The book kEconomy ofPermanence"' is writtcn by:

A. J. C. Kwnordppa
B. Dhardtan Kumarappa
C. Thorstein Veblen
D. C. F. Andrews

India"s I",de is of world trade.

A.
bclowO.75%


11.
C.
D. approximately
In the classical modeJ. unempl('lyment may occur in an economy due to,
J
A. real wage rigidity
B. nominal (money) wagc rigidity
C. excessive liquidity
D. lack of investment opportunities
Consider the following two scnlences:
Population ofIndia has increased significanlly over thc last dccade
Rate oflitcrdcy in India has increased significanlly ovcr Ihe last decdc

Choose the correct answer:
1. Both and Qarc true and P is correct cxplanation for Q
D. Both and Q arc true but P is not correct explanation for Q
c.
P is true but Qis false

D.
Both and Q are false


Which ofthc following can be dcscribed a gcneral equilibrium"
II I. Walrdsiao equilibrium
B. Marx"s simple reproduction scheme
C. BothAandB
D. Neither A nor B
Thc "construclive programmc" was described by Gandhiji as a training for
I I. self-respect movement
B. satyagraba movcment
C. swadcshimovemcnt
D. guerilla warfare
rage

Assume the following statements to be true:


SpecialiZlltion le:tds to increase in production.


Total productive capacity detcnnines wealth ofa notion.


Division of labour facilitates specialiZlltion.
Division oflabour is viable when the size of market is large.
Assume further that market exists only in two s1.:.Itcs of nature -it is either large or
small (and ;mall is nOllarge). Then.
A. Market size is irrelevant for economic pcrfllmlance.
n.
Division oflabour to lower producth·ity.

C.
Large market implies greater wealth ofndtiol1.


D. None ofthe above.
When did M.K Gandhi write "Hmd
I
A. 1908
n.
1909

c.
1910
D.1914



Consider the following two statements for logical consistency:
Some trJders live underground. All traders are men. Therefore some mell live
underground.
Some men arc literate. Women arc not men. Therefore no woman is literate.

('hoose the currect umwcr:
I
A. Doth P and Qare logically true.
I.l.
Both P and Qarc logically false.
P is false bUI Q is true.


D.
P is true hut Q is false.


The Senate of a university in its decision making follows the majority rule: for any two alternatives x and y before it. the Senate considers "x at lea.. as good as
y" iff number of persons preferring x to y is greater than or equal to the
number ofpersons preferring y to x". This collective choice rule may violate:
II
A. reflexivity
B. transitivity
C. completeness
D. all ofthe above
Adam Smith's statement that relative value ofa pair ofcommodities (e.g. deer and beaver) is determined by relath'e amount of labour needed to produce them is stated for a society that is:

A. in an ad"anccd state
B. a feudal society
C. a colonial society
D. in an early and rudc stale
Let be a real valued linear function defined over a compact sci of points, S (which is a subset ofR"). Then functionl
I
A. attains its ma.ximum at a. boundary point of S.
B. attains its maximum only jf S is a con'ex set.
C. attains its ma.ximum in the intcri,lr ors.
D. may not attain its maximum.illY whcr.: in S.
A fcw years ago. there was a run on the Global Trust Bank in Hydernbad. Subscquenl1y this bank was mcrged wilh a public sector bank and then it
continued to normaJIy.]t indicates
I
A. "lbc depositors were irrational.
B. thcre was information asymmetry.
C. there was Jack of confidence in the bank management.
D. Ilor('orboth
Market for a commodity, whose share in the national economy is is
characterized by a downward sloping demand curvc and fixed supply -givcn that
marginal cost of production is zero and there is strict capacity constraint. With no taxcs. p. and are market equilibrium price and quantity respectively. a specific excise duty of Rs t per unit is Icvied and rcali7.ed taxes are fully Silent on welfare schemcs for the people. Assuming that wclfare can be measured in cquh'alcnt monctary units and ignoring distributional effects. choose the correct
option:
A. there is no change in aggregate wclfare.
B. there is nctloss in aggregate welfare.
C. there is net gain in aggregate welfare.
D. Answcr dcpends on values ofp* and t.
J
I
I
I
Instruction!' and J• There are 8 questions in this part. 2. The first question carries 5 marks and is eompolsol)·. 3. Answer any 3 (THREE) questions from the rc"n (Questions to 8). Each of these carries IS marks. 4. Each question is to he answered only in the space proyidcd for the purpose. Write the question number c1eurly hefore writing your 5. Answers are expected to be precise 3.l1J 10 the puim. The candidates arc a£h ised to avoid writing irrelevant and repetitive details. 6. The main emphasis in cvaluatinn will be on the nature and content l1fthe argument prc!Oentcd in suppo11 of the answer and not the length of the iln5wcr.

Q.I. Complete the following by filling the blank spaces with relevant information:
(This question is compulsory)
d The narne of the aothor of the much talked about paper on the pn>blem of giving of
"·har..lssment is Dr. who is
to the Ministry of Finance.
b. Which state has been in the limelight for its outstanding economic growth of more
than 10% per annum over past five years? (name the state).
c. Of the four ashrams, namely, Sabannati Ashram, Sewagmm. Phoenix Ashmm and
Tolstoy Farm. established by Gandhiji, was the first
to he established. and the last of these was
d. Among the cereal crops of India, has the highest current
production. and is the largest producing slate for this crop.
e. 'lbe Central Government recently gave clearance to Nuclear
Power Project in Maharashtra.
f. According to the CAG, the loss to the public exchequer could he as high as Rs.
due to fauhyl corrupt allocation of2-G spectrum.
g. is Minister for Human Resource Development,
Government ofIndia.


Answer any 3 (THREE) from the following questions in the space provided (on pp. 9 to 171:
Q. 2. Critically examine the relationship between economy and environment.
Q.3. What"'" the main inSlnJmenls monetary policy; and fiscal policy?

Q.4. Explain Gandhi's iews on education and its relation to economy.
Q. 5. Discuss desirable properties for a good index ofmequality measure.
Explain the weak binary relation (say based on I'areto ranking rule. Assuming all individual preferences to be reOexive, transilivc and complete, does R also
possess these prop..:rtics'! Provide dc-rivation vc IlJgical arguments in support of
your ans\"cr.
Q. What were the economic I'lOblcms faced by the farmers which led to the Champardn movement and what methods did Gandhiji adopt in response to this problem?
Comment on the statement: "By rel::J.ting economics with ethics. Gandhi makes Co.-eoDomics unscientific. After 011. science is falue free....
Q. 7. Examine the theoretical foundation of Keynesian consumption function; Milton Friedman's re-slatcment ofquantity theory ufmoney; and Say's law.
Q. 8. Find the cigco values and corresponding cigco vcctors for matrix:






o.SJ

ragt· 9
Q.No.
Answer