PAPER-III

ECONOMICS

Note This paper is of two hundred marks containing four sections. Candidates are required to attempt the questions contained in the section according to the detailed instructions given therein.

SECTION I
Note This section consists of two essay type questions of twenty marks each, to be answered in about five hundred words each. × 20 40 marks)


1. Differentiate between the terms liberalization, privatization and globalization. What are the opportunities and threats of globalization for a developing country like India

2. Discuss various measures of estimating absolute and relative poverty. Comment on the estimates of the poverty in India published by the Government. Suggest measures to alleviate poverty in India.

2. State in brief the reasons for the recent global financial crisis. In this context, discuss the relevance of Keynesian economic prescriptions.

3. What is sustainable development How far the agricultural reforms introduced after the year 2000 have been able to achieve sustainability Suggest pragmatic measures in this respect with reference to Indian agriculture.


Note This section contains three questions. From each of the elective/specialization, the candidate has to choose only one elective/specialization and answer all the three questions from it. Each question carries fifteen marks and is to be answered in about three hundred words. × 15 45 Marks)



4. Consider the following model and answer the questions

Yi= ß1+ ß2X2i+ …. ßkXki+ ui
Discuss the assumptions of the Ordinary Least Square method and derive the estimators of the parameters of this model.
Prove that the OLS estimators are linear, unbiased and possess the minimum variance.

5. Explain the problem of identification with the help of an example. Discuss the order and rank conditions of identifiability and examine the identification status of the following model
a + aY aT+ u
t 0 1t2t
bY+ V

t 0 1t-1
CY+ W

t 0 1t
G

ttt t Where Tand Yare endogenous variables, and Yand Gare exogenous
tttt t-1 t
variables.


5. What do you understand by ARIMA approach Explain how this approach is used in forecasting in the context of time series data. Use a suitable example.


3. Discuss the working of dynamic multiplier when investment spending is permanent.

4. Explain Solow's model of steady state growth in the absence of technical progress.

5. Explain the long run equilibrium of a firm in monopolistic competition with the help of subjective and market demand curves, as given by Chamberlin.


3. Explain main provisions of the WTO agreements relating to agricultural sector of India.

4. Explain different waves of globalization and their significance.

5. Examine foreign exchange trading and role of hedging and options in this regard.


3. Explain the growth and productivity trends in Indian agriculture since 1991. Also suggest measures to improve productivity of agriculture in India. a cnm 1991 l f mT f amicna cnI m mf cnI f mf cnIm 3 a cnm cnI amicna Rl l cln R a I
4. What are the types of agriculture markets Which market is beneficial to the farmers and consumers and why

5. What are the reasons of migration of agricultural labourers How far Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS) is helpful in reducing the incidence of migration of agricultural labour force cnm mcncln m

3. Examine how the liberalization and globalization have affected the performance of industrial sector in India

4. Examine the role of infrastructure in the process of development. How far do you agree with the view that the state of physical infrastructure in India is incompatible with a long term higher rate of growth m cn cnI mmcnf mfiI .l
5. Explain the main features of fiscal reforms undertaken in India during the last two decades. How far have these been successful in achieving the objectives of allocative efficiency and distributive justice

Note This section contains nine questions of ten marks, each to be answered in about fifty words. ×
10 90 Marks)

6.
What is meant by expansion path Show it diagrammatically in the case of a linear homogeneous production function.

7.
Define net investment. What are its components



8. Discuss the assumptions of Harrod-Domar model of economic growth.

9. "The incidence of indirect tax depends on the elasticities of demand and supply." Illustrate with diagrams.

10. What are the constituents of Balance of Payments accounts

11. How does a change in Bank rate affect liquidity in the economy

12. Briefly explain the concept of total factor productivity in manufacturing industry.

13. Suggest measures for removing regional disparities in Indian agriculture.

14. Assume that a monopolist sells his product in two separate markets and the demand functions are 12 X1, 20 3X2
12
The total cost function for his product is given by C 3 2X, where X X2.
1
Determine the prices that monopolist will charge and the quantities he will sell in each market to maximize his profit. Also calculate the maximum profit and the respective demand elasticities in each market.

SECTION IV
IV
Note Answer the five questions from the para given below. Each answer should not exceed

30 words. Each question carries five marks. ×
5 25 Marks)

Economic facilities refer to the opportunities that individuals respectively enjoy to utilize economic resources for the purpose of consumption, or production, or exchange. The economic entitlements that a person has will depend on the resources owned or available for use as well as on conditions of exchange, such as relative prices and the working of the markets. Insofar as the process of economic development increases the income and wealth of a country, they are reflected in corresponding enhancement of economic entitlements of the population. It should be obvious that in the relation between national income and wealth, on the one hand, and the economic entitlements of individuals (or families), on the other, distributional considerations are important, in addition to aggregative ones. How the additional incomes generated are distributed will clearly make a difference.

15.
How do various opportunities, that individuals enjoy, become economic facilities

16.
What are the factors on which economic entitlements of a person depend



17. Do you agree that the economic development of a country is reflected in the increase of economic benefits of its population How

18.
What is the importance of distribution pattern with reference to the relationship between national wealth and economic benefits of individuals

19.
In your opinion, what is relatively more important for economic development economic resources, utilization of these resources or distribution pattern of income