M.A. (Semester III) (CBCS) Examination Mar/Apr-2018
Economics (Paper III)
MICRO ECONOMIC ANALYSIS
Time: 2½ Hours
Max. Marks: 70
Instructions: All questions are compulsory. Figures to the right indicate full marks.
Q.1
Choose the correct alternative.
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IS-LM model introduced by
Hicks-Hansen
Keynes
Marshall
Samuelson
Marginal propensity to consume is always
Zero
Positive but less than unity
Negative
Positive but more than unity
Social accounting is concerned with the activities of man and human institutions as
Statistical Classification
Social Classification
Economic classification
None of these
APC in underdeveloped countries is
Low
High
Medium
None of these
Narrow concept of money is
M1
M2
M3
M4
National income is income of country measures during a period of
Two year's
Three year's
One year's
None of these
Investment function shows, the relationship between investment and MEC is
Inverse
Proportional
Equip-Proportional
None of these
Change in Consumption (ΔC)Change in Income
Marginal propensity to consume
Marginal propensity to saving
Average propensity to consume
None of these
In case of liquidity trap, the demand for money is
Perfectly elastic
Perfectly inelastic
Relatively elastic
Unitary elastic
10) Permanent income hypothesis was given by
Keynes
Milton Friedwan
Tobin
Lerner
11) One rupee currency is issued by
State bank of India
Reserve Bank of India
Ministry of Finance
All of the above
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SLR-HW-132
12) Transaction demand for money varies
Positively with income
Negatively with rate of interest
Positively with rate of interest
Negatively with income
13) The methods of calculate of National Income are
Saving, Exchange and Income Method
Production, Depreciation and Income Method
Production, Income and Saving Method
Production, Income and Expenditure Method
14) Social accounting method is related to the name of
Fisher
Dr. Marshall
Richardson
Keynes
Q.2
Write answer in short. (Any seven)
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What is Consumption function?
Define national income.
What is Average Propensity to Consume?
What is supply of money?
What is meant by macro economic analysis?
Who developed the life cycle hypothesis of consumption function?
What is the value of money?
What is velocity of money?
Give the formula of money multiplier.
What is liquidity preference?
Q.3
Write short notes. (Any Two)
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Budget deficit and money supply
IS-LM model
Circular flow of national income in two sector economy
Permanent income hypothesis
Q.4
Write answer any one of the following.
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Discuss fully the concept of marginal efficiency of Capital, state its determinants.
Explain the concept of money supply, what are the determinants of money supply.
Q.5
State the Keynes of psychological low of Consumption, What are its implications?
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