In 1817 Ricardo published his "Principles of Political Economy and Taxation", in which he presented the law of comparative advantage. According to the law of comparative advantage, even if one nation is less efficient than (has an absolute disadvantage with respect to) the other nation in the production of both commodities, there is still a basis for mutually beneficial trade. The first nation should specialise in the production of and export the commodity in which its absolute disadvantage is smaller (this is the commodity of its comparative advantage) and import the commodity in which its absolute disadvantage is greater (this is the commodity of its comparative disadvantage). Suppose U.K. has an absolute disadvantage in the production of both wheat and cloth with respect to the United States. Since U.K. labour is half as productive in cloth but six times less productive in wheat with respect to the United States, the United Kingdom has a comparative advantage in cloth. On the other hand, the United States has an absolute advantage in both wheat and cloth with respect to the United Kingdom, but since its absolute advantage is greater in wheat than in cloth, the United States has a comparative advantage in wheat. There are many exceptions to the law of comparative advantage. The theory of comparative advantage need not be based on the labour theory of value but can be explained on the basis of the opportunity cost theory (which is acceptable). It was left for Haberler in 1936 to explain or base the theory of comparative advantage on the opportunity cost theory.

1. Explain the law of comparative costs.

2. How do you explain U.K's absolute advantage in the production of both commodities

3. What are the exceptions of the law of comparative cost

4. How do you explain the gains from trade

5. How do you explain comparative advantage theory on the basis of opportunity cost theory

6. Define the Neumann-Morgenstern utility index.

7. What is meant by 'Pareto Optimality'

8. Explain the concept of Aggregate Demand.

9. What does Fleming-Mundell open economy model explain

10. Distinguish between disembodied technical progress and embodied technical progress.

11. Explain the labour-supply function as given in Ranis-Fei model.

12. Explain Wagner's law of public expenditure.

13. Distinguish between Multilateral Trade Agreements and Plurilateral Trade Agreements.

14. What do you mean by an 'Expansionary Monetary Policy'

15. List the major implications of economic reforms for industrial growth in India.

16. Differentiate between 'gross and net reproduction rate' of population.

17. How microplanning for environment leads to eco-preservation

18. What are the main causes of regional disparities in Indian agriculture

19. What is meant by level of significance

20. Point out the difference between static input-output and dynamic input-output models.

21. State and explain the properties of Least Square Estimation as given in the 'Gauss- Markow Theorem'.

22. Discuss the nature of heterosedasticity. What are its consequences and remedial measures

23. Develop a simultaneous equation model for the supply of and demand for doctors in India. Specify the endogenous and exogenous variables in the model.

24. What are the different models of Time Series Explain any one of them in detail.

25. Show that the simple regression line of y against x coincides with the simple regression line of x against y if and only if x2 1.

21. Derive the demand curve for a 'Giffen good' by using the indifference curve analysis.

22. Discuss Chamberlin's solution for the problem of profit-maximisation under nonprice competition.

23. Why does 'Knife-edge problem' arise in Harrod-Domar model How has this problem been circumvented in the subsequent growth analysis

24. What is meant by dynamic multiplier In what why is it different from static multiplier

25. Discuss Kaldor's model of economic growth.

21. Discuss the factors responsible for the rise and fall of the Bretton Woods system.

22. Explain multilateral trade agreements regarding Trade Related Investment Measures Trade Related Intellectual Property Rights (TRIPs) and anti-dumping.

23. What do you mean by 'regional trading blocks' Explain the impact of regional economic groupings on trade prospects of developing economies.

24. Discuss the international debt problem of the developing economies in 1980s. Explain the factors responsible for the rise of the said problem.

25. Distinguish between 'Spot and Forward Exchange' markets. Explain 'Interest Arbitrage' and the efficiency of 'Foreign Exchange Markets'.

21. Discuss the productivity trends in major food grain crops in India after the introduction of economic reforms. Explain the factors that account for these trends.

22. What are the factors responsible for instability of farm incomes in India What corrective measures, in your opinion, can be adopted to this effect

23. Discuss the factors that account for rural-urban and rural-rural migration of workers in India. Should the ongoing trends to this effect be reversed Elaborate.

24. Explain the structure of agricultural credit in India. Critically examine the institutional flow of credit to the agricultural sector in India.

25. Discuss the implications of Multilateral Trade Agreements in agriculture for the farm economy of India.

21. Discuss the relevance of economic planning in India in the post-reform era.

22. Discuss the trends of poverty in India during the post-reforms period. Is the existing poverty alleviation strategy effective Elaborate.

23. How has the process of globalization impacted the growth of industrial sector in India Elucidate.

24. What is meant by women empowerment Discuss the significance of women empowerment in the context of a developing economy like India.

25. Describe the major changes as have been brought about in Fiscal Policy in India in the post-reform period. Are these changes in the right direction

26. Explain the relationship between population, poverty and environmental degradation with special reference to India. What are the measures taken in India for environmental protection and preservation

27. Explain the Agreement on Agriculture of WTO. How does it affect India's agricultural sector Do you find any opportunities available to Indian agriculture under the WTO regime