PAPER-III

ECONOMICS

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

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. What is meant by the concept of inclusive growth Examine the success of Government's economic policies in achieving the objective of inclusive growth in India.

2. 'Development of Infrastructure is prerequisite for speedy economic development.' Discuss in the context of Indian experience.

3. Discuss the various developmental issues in the context of debate between developed and developing countries pertaining to global warming.

4. Critically examine the performance of the organised industrial sector in India since the Economic Reforms of 1991 with respect to employment generation.

SECTION II


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

5. Outline Koyck's distributed lag model. Explain briefly Adaptive Expectations and Partial Adjustment Models as rationalisations of the Koyck Model. Also state estimation problems involved in this model.

6. State Order and Rank conditions for identification in a simultaneous equations system. Consider the identification of equations in the following demand and supply model for money

Mt d ß0 ß1Yt ß2 Rt ß3 Pt µ1t

Ms t alpha alpha 1 Yt µ2t


Which method would you use to estimate the parameters of the identified equations
Why

7. Define 'Stationary' and 'non-stationary' stochastic processes. Explain unit root test.

8. Discuss Cournot's model of duopoly. How Stachelberg model is an improvement over Cournot's model Discuss.

9. Explain the use of Linear Programming in Economic Analysis. In this context explain the economic interpretation of Dual Linear Programming solution, taking a simple resource allocation problem of a firm as an example.

10. Discuss the main features of Kaldor's model of Economic Growth.

11. Explain the significance of multilateral trading agreements as a move towards free trade.

12. What is meant by international debt crisis Explain the factors responsible for the international debt crisis in the recent past.

13. Define the term equilibrium foreign exchange rate. Discuss foreign exchange arbitrage and covered interest arbitrage.

14. Critically discuss the trends in productivity of food crops during the last two decades.

15. Examine the role of co-operative credit institutions in providing credit for the development of Indian agricultural sector.

16. "Agriculture always remains on top of Agenda in the W.T.O. meetings." Elucidate.

17. Suggest suitable measures for Indian agriculture to attain W.T.O. standards.

18. "Women empowerment is an important pre-requisite for an overall economic development." Discuss.

19. "Fiscal Reforms in India are far from practical applicability." Illustrate your answer with respect to Goods and Services Tax (G.S.T.).


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


20. Define 'diamond-water' paradox with respect to utility and scarcity.

21. Distinguish between short-run and long-run laws of production. Explain graphically long-run laws of production using isoquants.

22. Explain the effectiveness of repo rate and reverse repo rate in curbing inflationary pressures in Indian Economy.

23. What is relevance of human development index to the developing countries

24. What is the concept of deficit in Balance of Payments

25. State Weber's Theory of Industrial location.

26. 'Public Expenditure is an ever-increasing Government activity.' Elaborate.

27. Explain Theory of Demographic Transition.

28. What are Null and Alternative Hypotheses Distinguish between Type I and Type II errors.

Note This section contains five questions of five marks each based on the following passage. Each question should be answered in about thirty words. ×5 25 Marks)

29. Answer the below questions according to the passage


"Consider a commodity such as bread. It has many characteristics, of which yielding nutrition is one. This can often with advantage be split into different types of nutrition, related to calories, protein, etc. In addition to nutrition-giving characteristics, bread possesses other characteristics as well, e.g., helping get­togethers over food and drinks, meeting the demands of social conventions or festivities. For a given person at a particular point in time, having more bread increases, up to a point, the person's ability to function in these ways… But in comparing the functionings of two different persons, we do not get enough information by looking merely at the amounts of bread (and similar goods) enjoyed by the two persons respectively. The conversion of commodity-characteristics into personal achievements of functionings depends on a variety of factors personal and social. In the case of nutritional achievements it depends on such factors as

metabolic rates, body size, age, sex if a woman, whether pregnant or lactating), activity levels, medical conditions (including the absence or presence of parasites), access to medical services and the ability to use them, nutritional knowledge and education, and climatic conditions …"


30. Explain how poverty is associated with consumption patterns in the society.

31. Explain the concept of nutrition and the purposes it serves in an economy.

32. How does poverty, famines, starvations depict the economic and personal characteristics of individuals

33. How does freedom of choice in decision-making enhances the capability of individuals

34. Explain the factors that help to convert commodity characteristics into personal achievements.