UPSC Mains Economics Optional PYQs, 2016-2026

According to Michal Kalecki, how the degree of monopoly and the level of investment interact to determine the functional distribution of income between wages and profits?

Show how the aggregate demand curve is derived in the classical system. Mention its special property.

Discuss the term structure of interest and the rule of arbitrage inherent in this.

Differentiate between public goods and private goods. What is a 'Free Rider' problem?

What is the crowding-out effect in Fiscal Policy? How can foreign capital mitigate the crowding-out effect?

Under what conditions, does a market reach equilibrium? Analyse the differences in stability between Old and Walrasian approaches.

20 marks

Critically examine the statement, "Pareto optimally does not give a sufficient basis for ordering economic states from the perspective of social welfare". Can an economy with extreme inequality be considered Pareto efficient?

5 marks

The following data are given for a duopoly market: P = 00 — 0-5 (q; + C,=5q C, = 05 45 Suppose the duopolists recognise the mutual interdependence and decide to act as one group to maximize the total profit of the industry. Find out q,, P and the profits of the firms denoted as 7, & 7.

5 marks

The following values for an economy are given: C= 0:8 (I-bY t = 0-25 I = 900 — 50, G = 800, L = 0-25Y - 62-5r Mf a, = 500, P= I 3 The variables have their usual meaning. Find the following: (i) The equilibrium values of Y and r (ii) Slopes of IS and LM curves (iii) Expression of government expenditure multiplier for income in terms of slopes of savings function, investment function and money demand function (iv) If the government expenditure goes up by 240, how much will be the rise in Y in terms of the multiplier derived in the part (iii) above?

20 marks

Show how automatic full-employment is guaranteed in the classical model. (ii) How does Keynes show the possibility of underemployment equilibrium in the labour market?

5 marks

Give an outline of the new classical policy ineffectiveness proposition.

5 marks

Explain the instruments through which the government of any country tries to successfully carry out its three major roles namely, Allocation, Distribution and Stabilization.

20 marks

Discuss the relative effectiveness of capital expenditure versus revenue expenditure in stimulating economic activity.

5 marks

Discuss the major difference of Friedman's restatement of quantity theory of money from the Keynesian demand for money.

"Import tariffs typically result in a net welfare loss for a country". Do you agree? Justify your answer by applying an import tariff for a small economy and a large economy.

In what sense trade can act as an engine of growth? Elaborate.

Throw light on the changing role of markets in economic development of developing countries. How it has affected planning process? Discuss.

Analyse the role of Research and Development (R&D) in fostering economic growth and strengthening competitiveness in a knowledge-based economy.

Explain the "Single Undertaking" principle used in the Doha Round and its implications for WTO negotiations.

Discuss the major differences between Old and New international trade theories.

20 marks

Explain the effect of a monetary expansion on exchange rate in the short and the long run under perfect capital mobility.

Explain whether the parallel imports violate provisions of TRIPS and affect the pricing policy of a patent holder MNC. Give reasons why all rich nations do not follow this?

5 marks

Analyse the role of human capital as a driver of economic development in developing countries. How can education and healthcare investment overcome the "Low productivity trap" in developing nations?

20 marks

Compare Gunnar Myrdal's "backwash effects" with Simon Kuznets' "structural transformation" in the context of developing economies.

5 marks

Explain the factors contributing to the rise of MNCs. Discuss whether their efficiency is driven by superior technology or anti-competitive practices.

5 marks

"Earth provides enough to satisfy every man's needs, but not every man's greed". Analyse this statement in the context of environmental degradation and the rights of future generations. To what extent does the rapid, industrial-driven depletion of non-renewable resources constitute a violation of intergenerational equity.

What strategies are required for Agriculture Sector transformation to ensure rapid economic development of a developing country? Discuss.

5 marks

What are the various approaches to Human Development? Elaborate Basic Needs Approach.

Critically examine the 'drain theory' as propounded by Dadabhai Naoroji. How did it explain the root cause of poverty in colonial India?

"Commercialization of agriculture in British India was a forced process rather than a natural one." Elucidate with reference to cash crops like indigo.

Assess the efficacy of land tenurial system reforms in post-Independent India in addressing intermediary abolition.

"The Green Revolution ensured food security but exacerbated regional disparities." Give your views.

What are the different methods of measurement of poverty in India? Which one do you think is most appropriate and why?

Evaluate the success of land reforms in post-Independent India. Why was the success limited in certain States while non-existent in others? Link land reforms to the broader agricultural transformation and explain.

20 marks

Analyze the relationship between the Green Revolution and capital formation in Indian agriculture. Did this strategy-led growth trickle down to small and marginal farmers?

5 marks

Compare and contrast the economic thoughts of 9. R. Gadgil and V. K. R. V. Rao regarding Indian economic planning and development strategies.

5 marks

Trace the trajectory of India's industrial policy from the Nehruvian model of 'Mahalanobis Strategy' to the liberalization era. How has the focus shifted regarding the role of the State and heavy industries?

20 marks

Provide a detailed analysis of the trends in National Income in India since Independence. Discuss the structural changes in the sectoral composition of the

Discuss the application of laissez-faire theory in colonial India. Why did the nationalist economists criticize this policy as a tool for deindustrialization?

Trace the evolution of the debate between the public and private sectors in India's industrial development from the Industrial Policy Resolutions to the 99 reforms.

20 marks

Discuss the significance of small-scale and cottage industries during 947-99l. What role did Indian States play during the above period in facilitating these industries?

5 marks

"Railways in India were the forerunner in facilitating modern industries." Discuss. Critically analyze the role of railways in the economic development of India.

15 marks

Analyze the impact of the TRIPS Agreement on the pricing and availability of generic drugs in the Indian pharmaceutical sector.

Distinguish between current account and capital account convertibility. Why has India been cautious regarding full capital account convertibility?

Explain the core objectives of the Fiscal Responsibility and Budget Management (FRBM) Act, 2003. Has it been successful?

How has the role of the Reserve Bank of India (RBI) shifted from stabilization policy to inflation targeting as a monetary authority? Explain.

How far is the Direct Benefit Transfer (DBT) scheme in India successful in achieving its objectives?

Critically examine the impact of the New Economic Policy on the Indian corporate sector. Discuss its effects on privatization, the surge in FDI, and the domestic industry with the entry of multinational corporations.

20 marks

Examine the implications of the WTO agreements on Indian agriculture with special reference to food security, subsidies and market access.

Elaborate on the indicative planning in India with its objectives. What role does the NITI Aayog play in this new framework? 5 + TT PePO.

"Economic development without employment generation is meaningless." Give your views. Critically analyze the phenomenon of 'jobless growth' in India in post-reform period, and its impact on poverty and social sector outcomes.

20 marks

Discuss the structure of fiscal federalism in India. How have successive Finance Commissions tried to address the vertical and horizontal fiscal imbalances?

5 marks

The economic reforms marked a paradigm shift in India's industrial strategy. In this context, discuss deregulation, delicensing, and their impact on industrial efficiency.

5 marks

Explain the Intellectual Property Rights (IPR) regime under the WTO. Discuss the specific implications of TRIPS and GATS on India's trade policy and domestic regulations.

20 marks

Analyze India's exchange rate regime post-99l. Discuss the move towards market-determined exchange rates, and the management of volatile capital flows.

5 marks

Discuss how decentralized planning may lead to inclusive growth in India. In this context, explain the role of 73rd and 74th constitutional amendments.

Show that when prices and income increase in the same proportion, there will be no change in quantity demanded for a commodity in Marshallian approach.

Interpret the slope of the IS curve. Why is IS curve normally negatively sloped?

10 marks

What is classical dichotomy? Is it the same as neutrality of money? Explain.

10 marks

What are the major reasons for market failure? Explain the role of the government in this context.

10 marks

What are the determinants of velocity of money in Fisher's equation? How does it differ from the Cambridge version of velocity of money?

10 marks

Derive Marshallian demand curve for an inferior good in a two-commodity framework by using income and substitution effects. Is this demand curve always negatively sloped? Explain.

20 marks

Seared Aaa Hera e

Consider a firm in a Duopoly market with product differentiation in which, Duopolist I faces a demand function given by: Pp, = 200 - 4q, - 242 The cost function of Duopolist I is: c, = Bq: Assume that Duopolist IT has; rd share of the whole market. Find out optimal price, output and profit for Duopolist I. Also find out the output of Duopolist I.

The cost function of Duopolist I is

Assume that Duopolist IT has er share of the whole market. Find out optimal price, output and profit for Duopolist I. Also find out the output of Duopolist I.

15 marks

What is Scitovsky Paradox? Explain it in the context of Kaldor-Hicks compensation test.

15 marks

Define liquidity trap. Show that fiscal policy is fully effective in the horizontal part while the monetary policy is fully effective in the vertical part of the LM curve. Illustrate your answer graphically with economic reasons.

20 marks

How does the loanable fund theory become superior to the classical theory of interest?

15 marks

"The failure of classical full employment equilibrium paved the way for Keynes' theory of underemployment equilibrium." Discuss critically.

15 marks

Explain the effects of public spending on national income, if it is financed through government borrowings. (ii) Why do some believe that it is important to restrict the growth of public expenditure? Suggest how public expenditure might be controlled.

20 marks

Suppose that the market demand and supply functions are given

Find out the effects of imposition of specific sales tax of 18% on equilibrium price and quantity. (ii) Ina monopoly market, the demand and cost curves are given by

Suppose that the government imposes a tax of = 10 per unit. How will equilibrium price and quantity be affected?

15 marks

Define money multiplier and discuss its determinants. Explain in terms of money multiplier, how the banking system of an economy can control money supply.

15 marks

Define offer curve and explain its slope.

10 marks

What is J-curve effect? Explain it graphically.

10 marks

State Heckscher-Ohlin theory. Explain the Leontief Paradox in this context.

10 marks

Write down the implications of knife-edge problem in Harrod's model of growth.

10 marks

Write down the major limitations of HDI developed by the UNDP.

10 marks

Explain the price effect, protective effect, consumption effect, revenue effect and distributive effect of tariff in partial equilibrium framework.

20 marks

Define the concepts of trade creation and trade diversion. Explain their role in the context of gains from trade bloc.

15 marks

Do you think that perfect capital mobility under fixed exchange rate improves the effectiveness of fiscal and monetary policies? Explain.

15 marks

Analyse critically the role of human capital and Research and Development (R&D) expenditure on economic growth in the framework of endogenous growth model.

20 marks

"Increasing role of multinationals has reduced the significance of foreign aid during post-World Trade Organization (WTO) regime." Do you agree with this statement? Explain.

15 marks

Define the concept of natural growth in Harrod's model. What are the implications of deviation of actual growth from natural growth?

15 marks

Explain the role of World Trade Organization (WTO) in the present context. Discuss the merits and demerits of TRIMs and TRIPs.

20 marks

Do you think that economic growth and sustainable development are contrary to each other? Justify your answer.

15 marks

Explain the role of planning in the development process in the context of increasing significance of market economy.

5 marks

Distinguish between the Zamindari system and the Ryotwari system of land revenue under the British rule in India.

What were the major impacts of 'commercialisation of agriculture' on Indian farmers during the pre-Independence India? Discuss.

What were the economic consequences of the 'Drain of Wealth' theory as practised during the British rule in India? Analyse.

Why did the British lead to the destruction of India's traditional cotton industry? Discuss.

Describe the phases of colonisation in British India.

Is land reform necessary to improve agricultural productivity in India? Discuss.

20 marks

Critically analyse the constraints of public and private capital formation in Indian agriculture.

What were the thrust areas of economic planning during the pre-liberalisation era? Discuss.

5 marks

Examine the objectives and components of the Green Revolution in India.

20 marks

Why does inter-State disparity in income persist in India despite plethora of development initiatives undertaken by the Government of India? Analyse.

5 marks

Point out the main challenges faced by the small-scale and cottage industries in Indian economy.

What are the methods used in measuring poverty and inequality in India? Analyse.

20 marks

How have rural and urban economic development contributed to poverty. reduction in India? Discuss.

5 marks

What are the guidelines of the Decentralized Planning process in India? Describe.

Discuss the components of food processing schemes introduced by the Government of India.

Do you agree with the view that India's Foreign Trade Policy, 2023-2028 will boost country's trade surplus and generate employment? Give reasons.

What are the structural shortcomings of the 'Public Distribution System (PDS)' in India? Explain.

Justify the importance of 'Disinvestment Policy' of India.

What are the implications of the Goods and Services Tax (GST) reforms for Indian federalism? Discuss.

What are the causes of industrial backwardness in India? Critically evaluate the role of the New Industrial Policy, announced in July 99, towards correcting such backwardness.

20 marks

Examine the implications for India due to agreements on agriculture that are signed under the World Trade Organisation (WTO) in 995.

5 marks

Why is a National Employment Policy necessary for India? What are the initiatives taken by the Government to facilitate employment generation? Explain.

What is the sectoral composition of India's national income? Mention the most important source of national income in India.

20 marks

What are the advantages and disadvantages of full convertibility of Indian rupee? Do you believe that capital account convertibility is feasible under the present circumstances in India? Discuss.

5 marks

What is the strategy of the Reserve Bank of India (RBI) for exchange rate management? Discuss the recent changes in India's Exchange Rate Policy.

5 marks

How do the current Finance Commission's recommendations align with the Government's Fiscal Consolidation goals? Elucidate.

20 marks

Why was the public sector given a leading role in industrial development during the pre-liberalisation era? Explain.

5 marks

Discuss the initiatives launched by the Reserve Bank of India (RBI) to promote financial inclusion. 5 kkk 26BS—636

Differentiate between perceived demand curve and proportional demand curve in a monopolistic competitive market. Explain why the proportional demand curve is steeper than the perceived demand curve.

Discuss critically the phenomenon of classical dichotomy.

Show that ad valorem tax is preferable to specific sales tax from a firm's point of view in generating the same level of tax revenue.

Examine the role of treasury bills in controlling money supply.

Write down the major assumptions behind Neoclassical Loanable Funds Theory of Interest.

Derive Pareto optimality conditions in production in a two commodities-two factors-two producers framework. Show that Pareto optimality does not necessarily guarantee for equity.

20 marks

Write down the behavioural assumptions used in Marshallian and Walrasian approaches of market stability. Show that these two approaches become conflicting when both the demand and supply curves are positively sloped.

5 marks

Describe the short-run and long-run equilibrium of a firm ung monopolistic competition.

5 marks

Explain the concept of underemployment equilibrium with graphical illustration. Why full employment cannot be reached automatically in Keynes' approach? Analyse.

20 marks

Calculate the equilibrium national income and interest rate (r) by using an appropriate macroeconomic model from the information given below: Aggregate saving function: s=-40+0-5(Y —-T)+0-25r Tax function: T=20+0-2Y Investment function: J=20-0-25r Money demand function: L =0-4Y-0-5r Aggregate money supply: M =40 (rupees in crore); How will the equilibrium values change when money supply is increased by? 20 crore?

5 marks

Critically analyse classical theory of interest.

5 marks

Describe the mechanism of credit creation by commercial banks and its implications on multiplier effect. Analyse some of the limitations that can jeopardise the implications on multiplier effect.

20 marks

Distir suish between public goods and private goods. Explain how market failure >ccurs in the case of public goods. 7+8=5 What 3

What is the difference between Fisher's theory and Cambridge cash balance approach to quantity theory of money? What is the criticism of each? Which one is more relevant in present context? Justify.

5 marks

Critically examine 'per capita' GDP as a crude indicator of development.

Explain managed floating and sterilized interventions for exchange rate.

Discuss how carbon trading is helpful in reducing environmental degradation.

"Higher tariffs do not increase employment, they just redistribute the unemployed." Do you agree with the statement? Explain.

Explain how the equilibrium terms of trade are determined by using offer curves of the trading partners.

Discuss the elasticity approach and absorption approach for adjustments in balance of payments.

20 marks

By using Stolper-Samuelson theorem, discuss the possible effects of free trade on income inequalities in developing countries.

Explain how the elasticity of demand for foreign exchange is influenced by the elasticity of home demand for imports and by the elasticity of home supply of import-competing goods.

5 marks

Explain how the structural transformation, in the economy, takes place with surplus labour as per Lewis theory of economic development.

20 marks

What are the advantages and disadvantages of public-private partnership model for economic development? What are the key prerequisites for success of PPP model? Explain giving examples.

5 marks

Discuss the issues (pros and cons) in the debate over import substitution and export promotion strategy for developing countries. Which strategy would you favour and why? Explain.

5 marks

Describe the major components used in Human Development Index (HDI) by the United Nations Development Programme (UNDP). Write down the methodological limitations of this index. Suggest appropriate method to eliminate these limitations.

20 marks

Discuss the inverted 'U' shaped hypothesis by Kuznets in describing the relationship between inequality and economic growth. How is this hypothesis useful for developing countries?

5 marks

Distinguish between warranted rate of growth and natural rate of growth. Explain how knife-edge instability problem occurs in Harrod's model of economic growth.

Mention the items of 'Economic Drain' from India as conceived by Dadabhai Naoroji.

Discuss why the railway system developed by the East India Company went against the Indian interest.

10 marks

Discuss why 'Laissez Faire' was not good for India during the pre-independence India.

Describe why farmers derived little benefits from the commercialisation of agriculture in pre-independence India.

What are the implications of "PM-Kisan Samman Nidhi" scheme?

10 marks

What schemes are launched by the Government to deal with the problem of unemployment in India? Why the problem still persists?

20 marks

Why the Mahalanobis strategy of development was abandoned? What were its inadequacies?

5 marks

Explain the problems faced by the Jute industry during pre-independence India. Why the problem aggravated after partition of the country?

5 marks

Highlight the role of MSMEs in Indian Economy. What steps have been taken by the Government to enhance its contribution?

20 marks

Describe the trend in the growth rate of national income in India from 950 to 980 and its impact on poverty.

Discuss the inadequacies in the process of industrialisation in the pre-liberalised India.

5 marks

Discuss the changes made by the Government of India in the fiscal policy since liberalisation. How far these changes proved to be conducive to growth with social justice in the country? Discuss.

20 marks

For faster increase in farmers' income, is it necessary to link them with corporate -sector in India? Discuss.

5 marks

What are the main features of 'TRIMS'? How does it act against India's interest?

5 marks

Examine the alternative model of planning given by N. Vakil.

10 marks

Is service-led growth in India sustainable? Comment.

What are the implications of depreciating Rupee on Indian Economy?

Comment on FDI in Multi-brand Retail sector in India.

Is poverty 'capability deprivation'? Discuss.

Evaluate the policy of Government of India with regard to foreign investment in the country. Do you feel that there is a need for control of their activities?

20 marks

What steps have been taken by the Government of India to increase exports during the last 10 years? Have these yielded the desired result? Examine.

Why second green revolution was advocated for India? Mention the recom- mendation of the National Commission for Farmers in this regard.

5 marks

Distinguish between fiscal federalism, fiscal consolidation and cooperative federalism. Comment on the outcome of cooperative federalism in India.

20 marks

Whether the role of women in agriculture has changed after liberalisation in India? Comment.

5 marks

Explain the various estimates of rural poverty in India. What measures have been adopted by the Government to reduce it?

5 marks

What are the main objectives of monetary policy adopted by the R.B.I. during last 5 years? Discuss the steps taken by the R.B.I. to encourage investment and maintain price-stability during this period.

20 marks

Why in spite of massive expansion of institutional finance, contribution of non- institutional sources in providing agricultural credit is still predominant?

5 marks

What are the various forms of subsidies that go into agriculture sector in India? What is the justification for these?

5 marks

Examine the role of price elasticity of demand in determining the price set by a discriminating monopolist.

Explain the backward bending supply curve of labour as a choice between income and leisure.

10 marks

Explain the major differences between classical and Keynesian macroeconomics.

What is meant by internal rate of return in the theory of investment? What is its importance in deciding whether to accept investment project?

Explain why it is considered difficult for open market operations to affect both the availability and cost of credit at the same time.

10 marks

Explain the Cournot model of duopoly using reaction functions and interpret it as a Nash equilibrium.

20 marks

"Perfect competition is incompatible with increasing returns to scale." Examine the statement.

5 marks

Describe a model of oligopoly that explains price stickiness.

5 marks

"Under rational expectation hypothesis, systematic monetary policy is ineffective." Explain the above statement using a suitable model.

20 marks

In the IS-LM framework, the effectiveness of monetary and fiscal policies depend on the interest elasticity of investment. Explain.

5 marks

How important is speculative demand for money in achieving unemployment equilibrium in the Keynesian model? Discuss.

5 marks

Explain the concept of "sterilization" in the context of monetary approach to balance of payments.

20 marks

Tax burden is distributed between buyers and sellers in the ratio of elasticities of demand and supply. Explain.

Discuss Friedman's restatement of Quantity Theory of Money. Under what conditions, it reduces to classical Quantity Theory of Money? Explain.

"Factor intensity reversal is incompatible with Heckscher-Ohlin model." Examine this statement.

Why depreciation of a currency is inflationary? Explain.

Can Kuznet's hypothesis of an inverted U-curve be extended to analyse environmental degradation? Explain.

Explain how modified HDI is an improved measure of development over HDI.

How renewable energy use can help attain environmental sustainability? Explain.

Consider the market for good X for Country and Country 2. The supply and demand functions for are given as P=Q+70 and Q, while that of Country 2 are given as P=0+Q and P=ll0—- Q. Assume that there are two countries in the world and trade is balanced. Free trade price is stabilized in between autarky prices of both the countries. Based on the above information, (i) From the free trade price and zero transportation cost, if the importing country imposes an import quota of 50 units, determine the quantity of good X produced and consumed. Calculate the consumer and producer surplus and protection cost due to import quota. (ii) From the free trade price, assume that the importing country is small and consider an import tariff of Rs. 0 per unit on good X. Calculate the impact on consumer surplus, producer surplus and government revenue. Does this policy increase national welfare?

20 marks

"A continuous process of innovation and invention would give rise to trade even between countries with similar factor endowments and tastes." Examine the statement.

5 marks

Examine the significance of external economies and product variety in the context of international trade theory.

5 marks

Human capital and components of research and development are determining factors of economic growth. Explain using appropriate endogenous growth model.

20 marks

Explain the concept of steady-state in the context of Solow model.

What is the golden rule of capital accumulation? Explain it using a growth model.

How important is rent from extraction of renewable and non-renewable resources to distinguish between Net Domestic Product (NDP) and Environmentally adjusted Domestic Product (EDP). Will the distinction be valid if we have an economy with only renewable resources and the economy reaches the point of maximum sustainable yield?

"Balanced and unbalanced growth strategies are not substitutes but complementary to each other." Discuss.

"Income inequality is not a cause of concern as long as per capita income is rising." Critically examine this statement.

5 marks

Land system during the British rule was responsible for sustained poverty and stagnant growth in India. Comment.

How did K. R. V. Rao improve upon the earlier national income estimates of India?

Examine the impacts of Green Revolution on production and productivity in the agriculture sector.

Deceleration and structural retrogression have been the key features of industrial sector in India during 965-80. Give reasons.

Examine the factors responsible for acceleration in the growth of national income in the decade of 980s as against 960s and 970s.

Explain the main features of money and credit policies in India during the pre-Independence era.

20 marks

What are the factors contributing towards shift in sectoral composition in Gross National Product (GNP) in India during the pre-economic reform period? Discuss.

5 marks

Explain the main reasons for deceleration in agricultural growth in India during the post-economic reform period.

Discuss the role of D. R. Gadgil in economic planning and development in India.

20 marks

Explain the role of public sector in the Indian economy. Also point out its main problems faced during the period between 970 to 980.

Explain the concept of ceiling on agricultural landholding in India. Examine its rationality with respect to equity and efficiency.

5 marks

Explain the main causes of inequality in income distribution in India and examine how it affects welfare of the society.

20 marks

Describe the pattern and trends in national income in India during the pre- economic reform period.

5 marks

Explain the development of cotton industry in India during pre-Independence era. Also point out its growth constraints.

5 marks

Distinguish between explicit and implicit subsidies. Explain the trends in explicit subsidies on irrigation and fertilizer in India during post-economic reform period.

Examine the salient features of the Action Plan for Disinvestment, 2009.

What do you mean by horizontal fiscal disequilibrium in a federal setup and how did the Finance Commission correct such imbalance in India?

Show how Liquidity Adjustment Facility (LAF) in India emerged as an effective monetary policy instrument to control market fluctuations in the short run.

Examine the effectiveness of universal basic income as an approach to poverty alleviation in India.

Discuss the characteristic features of Agreement on Agriculture (AOA) under Uruguay Round of GATT and examine its impact on Indian agriculture.

20 marks

State the key features of the Targeted Public Distribution System (TPDS) in India. Do you believe that TPDS has been successful in achieving its objectives? Justify your answer.

5 marks

State the salient features of the Foreign Exchange Management Act (FEMA), 999 in India. To what extent it deviates from the Foreign Exchange Regulation Act (FERA), 979?

5 marks

Briefly explain the growth and structure of India's foreign trade in the post- liberalization period.

20 marks

Critically examine the contribution of Special Economic Zones (SEZs) in promoting foreign trade in India.

5 marks

Discuss the salient features of India's New Foreign Trade Policy, 2023.

5 marks

State the main provisions of the 73rd and 74th Constitutional Amendment Act, 992. Do you agree that this Act has been successful in promoting the democratic decentralization in India? Justify your answer.

20 marks

Explain the reasons for sluggish growth in employment in India during the post-economic reform period.

5 marks

Explain the changes in wage structure in India in the post-economic reform period.

Explain briefly Chamberlin's concept of excess capacity in monopolistic competition.

Discuss the concept of 'liquidity trap' in the liquidity preference model of interest.

In demand for money, what are the major differences between 'transaction approach' and 'cash balance approach'?

Discuss the Factor Endowment theory of trade in terms of 'abundance in factor prices' and 'factor abundance'.

According to Hirschman, unbalanced growth can be through 'Social ' Overhead Capital (SOC) or 'Direct Productive Activities (DPA)'. Discuss.

20 marks

Consider a duopoly market, P = 00 - 20, MC = 0 and Q= q,+4, where P: Market price Q: Total output or the sum total of both firms' output q, & Firm 4 and Firm 28 output respectively MC:: Marginal cost Suppose Firm I is the market leader and Firm 2 is the follower. Firm decides its output first and then Firm 2 takes its output decision. Find equilibrium output, price and profit of both the firms.

20 marks

Do you think Firm have had the first mover advantage if it had gone for the price adjustment? Explain your answer.

A competitive equilibrium is both Pareto efficient and equitable. Do you agree? Justify your answer.

IS curve is the locus of equilibrium points in the commodity market. What do the points above and below the IS curve signify?

Compare the deposit multiplier with the money multiplier. Is there any impact on the money multiplier arising out of massive use of credit and debit cards? Justify your answer.

Discuss the effectiveness of the monetary policy in an open economy with flexible exchange rate and perfect capital mobility. Will this policy remain effective with fixed exchange rate also, while other things remain the same? Explain.

20 marks

State the canons of taxation. Do you think that direct taxes are less burdensome than indirect taxes in generating equal amount of tax revenue? Justify your answer.

20 marks

Give economic rationale for public expenditure on elementary education —amerit good.

What will be the shape of the aggregate supply curve in the Classical and Keynesian models? Give detailed explanation.

Stating major assumptions in the Kaldor model of disbribution, establish that share of profits in national income depends on the ratio of investment to total output.

Explain the quantitative methods of credit control adopted by the central bank.

Under Partial equilibrium analysis, discuss the consumption and revenue effects of tariffs.

Show that in Domar's growth model, in equilibrium, path of investment is exponential.

With appropriate examples, discuss the difference between the flow and the stock concept of renewable resources. Can the availability of one of these two resources be less for the consumption of future generations? Justify your answer.

5 marks

What do you mean by the warranted rate of growth? Explain the knife edge instability problem in Harrod's growth model.

Following Arthur Lewis, briefly state the sources of unlimited supply of labour and explain the mechanism of development of a dual economy of a less developed country.

20 marks

Distinguish between Gender Development Index (GDI) and Gender Empowerment Measure (GEM) in terms of their components and constructions.

Examine whether in Ricardian model, the theory of comparative advantage actually becomes a doctrine of comparative costs.

Distinguish between nominal and effective rates of protection in Standard Trade Model. Suppose ¢ nominal tariff on imported good j is 40%, © tariffrate on input i is 40%, ¢ = cost share of imported input i in the total cost of production of commodity j is 0-5%. - Determine the effective rate of protection and show that in this case nominal tariff rate is equal to the effective rate of protection.

20 marks

Illustrate Jagdish Bhagwati's doctrine of comparative Growth'.

State the functions of United Nations Conference on Trade and Development (UNCTAD). Do you think that UNCTAD has been successful in extending economic cooperation among the developing countries? Justify your answer.

20 marks

Why do developing countries rely on specifying a permissible level of pollution and impose it uniformly across all polluting units of the same kind? What are the problems associated with such a control method?

What are the major achievements and failures of COP (Conference of Parties)

Outline the factors that caused decline of handicrafts during British rule in India.

Discuss the features of targeted Public Distribution System in India and point out the obstacles in its implementation.

Point out the contribution of N. Vakil to Indian Economic Planning.

Describe the direct and indirect effects on women empowerment through 73rd and 74th Constitutional amendments.

10 marks

Examine the impact of land tenure system during British India on Indian agriculture.

Highlight the major features of National Income trend and its sectoral composition during the last five decades.

20 marks

Describe in brief the factors that led to the establishment of Reserve Bank of India (RBI) in the country.

Discuss, how the green revolution has affected the indigenous crops in India? What measures have been initiated by the Government in the later years to improve the productivity?

5 marks

Do you think that Multi Dimensional Poverty Index (MPI) is a better measure of poverty? Give reasons in support of your answer. What is the position of India in respect of MPI?

20 marks

Discuss the development of Jute industry during pre-independent India. What were the main problems faced by this industry?

5 marks

The small and cottage industries promote indigenous entrepreneurship'. Comment on the statement with respect to India.

5 marks

Do you subscribe to the view that private sector is a key driver to economic development of India? Give reasons in support of your answer.

20 marks

Discuss the rationale for continuance of power and irrigation subsidy in the agriculture sector in India.

Do you think that Indian development planning is a transition from centralised planning to indicative planning and subsequently to market based development? { Explain.

Discuss the prospects and challenges faced by Indian Agriculture due to World Trade Organisation (WTO) provisions.

10 marks

Analyse the challenges for economic recovery in India posed by sluggish growth in rural wage rates during the pandemic period.

10 marks

Do you think that flow of Foreign Direct Investment (FDI) would always be good for the growth of Indian economy? Critically analyse.

Discuss the desirability of increased public expenditure in India in recent years.

What is the objective of exchange rate management? Do you think that the present regime of exchange rate management has been satisfactory in terms of building adequate foreign exchange reserves in India? Discuss.

20 marks

Highlight the main features of National Policy for Skill Development and Entrepreneurship

What is the main purpose of General Agreement on Trade in Services (GATS)? What are the services covered under it? State the modes under which the services are supplied.

Critically examine the various poverty alleviation programmes in India since 970's.

20 marks

Differentiate between Current Account convertibility and Capital Account conver- tibility. What were the pre-conditions recommended by Tarapore Committee-I for adopting Capital Account convertibility.

Describe the main features of Monetary Policy, 2022. How far the objectives of this policy differ from the previous monetary policy?

What are the various methods of privatisation? Point out the methods adopted by the government for disinvestment in India. Comment on the proceeds from What in India.

20 marks

What are the expectations from Foreign Trade Policy 202l—26? Elucidate your answer.

8 marks

Point out the main features of Fiscal Responsibility and Budget Management (FRBM) Act. To what extent, it has been successful in achieving the targets?

5 marks

Compare and contrast Marshallian and Walrasian approaches of the stability in equilibrium.

Using generalised Lorenz dominance show that lower inequality represents a higher social welfare state.

Examine the relationship between business cycle and changes in autonomous expenditure.

Does government borrowing always crowd out the private investment? IIlustrate.

The slope of the IS schedule will become steeper if the government reduces the rate of proportional tax but will not change at all if the government reduces the level of a lump sum tax. True or false? Explain.

10 marks

Explain the differences between Cournot model of duopoly with similar product and differentiated product.

5 marks

What type of conjecture is involved in the existence of kinked demand curve? Do you think that kinked demand curve model is a price determination model in an oligopoly market? Justify your answer.

Examine how profit, wage and rent in Ricardian system move differently with the movements in level of income.

20 marks

Show that differences in underlying expectation lead to differences in Keynesian and classical aggregate supply curve.

Apply the theory of liquidity preference to explain why an increase in money supply lowers the interest rate. What does this explanation assume about the price level?

5 marks

Explain how the weaknesses of Keynesian speculative demand for money have been identified in Regressive Expectations model.

20 marks

Derive short-run aggregate supply curve following Lucas, when expectations are not realised, assuming that labour market clears. What will be its shape when expectations are fulfilled?

Describe high powered theory of money supply in brief. State the assumptions made in its construction.

Do you think that increase in Government spending through borrowing from public accompanied by fall in required reserve ratio generates recession in the economy? Illustrate your answer: (i) in a closed economy with fixed exchange rate. (ii) in an open economy with fixed exchange rate and without any capital mobility.

20 marks

Explain Rosenstein-Rodan's view that economic underdevelopment is the outcome of a massive coordination failure.

Explain how gender sensitive human development index can be constructed.

10 marks

Show that the economic integration is the pre-requisite to establish covered interest rate parity.

Under what condition Real Exchange Rate is synonymous to 'terms of trade'? Discuss.

10 marks

Do you agree whether sustainable use of energy ensures economic sustainability?

Evaluate Kuznets' inverted U shaped curve hypothesis of income distribution. Does it hold good for less developed countries as well?

5 marks

Does human capital cause economic growth? Explain how human capital formation can be enhanced.

5 marks

Explain how Harrod's warranted rate of growth is similar to Domar's required rate of growth. How has Solow improved upon Harrod-Domar's growth model?

20 marks

Discuss the theory of acquired advantage in international trade using suitable examples..

Do you think that movement of the nominal exchange rate of Rupee represents a corresponding movement of Indian goods vis-a-vis foreign goods? Explain your position.

5 marks

What are the different categories of trade blocks? Are trade blocks beneficial to less developed economies? Justify your answer.

20 marks

Tf the government raises taxes on labour income and interest income, explain how potential GDP and economic growth are affected.

Examine the effects of providing public service by a private agency at a lesser price than earlier one on (i) a closed economy with fixed wages. (ii) a closed economy with flexible wages.

What is Buchanan's criticism of Arrow's theorem? Show how A. K. Sen proved Arrow's theorem without the overall consistency of social choice to avoid the criticism of Buchanan.

Examine the factors that facilitated commercialisation of Indian agriculture during the British rule.

Do you think that the 'new guarantee' system was better than the 'old guarantee' system in the history of Railways in India? Give reasons.

Analyse the relevance of Gadgil formula in reducing horizontal imbalance of fiscal health.

Explain the principal causes of deceleration in industrial growth during the mid-960s to mid-970s.

Distinguish between absolute measure and relative measure of poverty. What kind of measure is used in estimating poverty in India?

Compare the main features of development of jute and cotton textile industry in India during the British period.

20 marks

Analyse the trends in the production of primary goods and capital goods in Indian industries during the pre-liberalisation period.

Critically analyse the performance of public sector enterprises during the pre-reform period.

5 marks

Do you think that effective land reforms are necessary but not sufficient conditions for raising agricultural productivity in India? Explain your answer.

20 marks

Examine how the domestic companies are competing with the MNCs in the post-liberalisation era.

5 marks

Analyse the impact of Green Revolution on agricultural output, employment and income distribution in India.

5 marks

Do you think that India experienced a major break in GDP growth and its sectoral composition during the 980s? Give reasons.

20 marks

Examine the relative role of demand side factors in determining national income in India.

5 marks

Do you think that non-income dimensions should be treated as complementary to income dimension in measuring poverty in India? Give reasons.

Examine the arguments to explain the theory of 'economic drain' from India in the second half of the 9th century.

Analyse the effectiveness of the major commitments of Agreement on Agriculture (AoA) of the Uruguay Round of WTO on Indian agriculture.

Analyse the new initiatives taken by the Government of India to boost food processing sector.

Discuss the strategies adopted by the RBI to promote financial inclusion in India.

Evaluate the role of MGNREGA in asset creation and poverty alleviation.

What are the major components of public expenditure on agriculture in India? Would you recommend any changes in the pattern of public expenditure on agriculture to stimulate agricultural growth?

20 marks

Analyse the significance of planning in the context of market-based development in India.

5 marks

Examine the procurement policy of the Government of India in the post-liberalisation period and its impact on agricultural prices.

Critically discuss the strategies formulated by the Government of India to increase private sector participation in public enterprises.

5 marks

Critically analyse the recommendations of the Twelfth Finance Commission on fiscal federalism.

Define capital account convertibility. Examine Tarapore Committee (I and II) recommendations on capital account convertibility of rupee.

20 marks

Analyse the effects of TRIPS Agreement on Indian agriculture.

How does the New Economic Policy change the structure of employment in India? Evaluate.

Explain how equilibrium rate of interest and income are determined with the interaction of both product and money market.

Distinguish between post-Keynesian approaches to horizontalist and ° structuralist theory of endogenous money supply.

Explain how renewable resources will play a role in future economics.

Mention the classification of assets held by a commercial bank. Discuss the problems faced by commercial bank due to rise in NPAs.

Explain Myrdal's cumulative causation theory as the theory for development.

What is conjectural variation? Show how some models of oligopoly are derived on the basis of it.

5 marks

Show that systematic monetary and fiscal policies are ineffective in controlling output and price level.

5 marks

What makes technical progress endogenous? Do you think that technology is a 'non-rival' good? (ij) Show that if the research becomes more successful, the growth rate will increase and hence the standard of living.

20 marks

Suppose that we have only two firms in the market with constant marginal costs of C; and C2 respectively such that C, > 02. What is the Bertrand equilibrium in this market? How is it different from the competitive equilibrium?

5 marks

"Even green energy is not always green." Do you agree? Illustrate your answer - taking biofuels as an example.

5 marks

You are given the data on the following variables in an economy: Government spending = 300 Planned investment = 200 Net exports = 50 Autonomous taxes = 250 Income-tax rate = 0-l Marginal propensity to consume = 0-5 / 3 [ P.T.O. Consumption (C) is 600, when income (Y) is equal to 500. Solve for autonomous consumption. (ii) Solve for the equilibrium levels of output denoted (respectively by Yu and Yj.) in the two scenarios—presence and absence of income tax in the economy. (iti) Solve for the change in net exports that would bring the equilibrium output level in the economy with the income tax to the level of Yj, that you found in fii). Specify both the magnitude and sign of the change. [Figures are in? '000 crore, obviously except tax rate and MPC]

20 marks

Many countries subsidize some of their export industries. Use a partial equilibrium model under perfect competition to illustrate the following effects of an export subsidy for a large country: (i) Welfare effects of an export subsidy (ii) Which group is winning and which is losing from the subsidy?

5 marks

Briefly state the Kaldor's theory of distribution in determining the share of profit and the share of wages in national income. Explain the mechanism behind Kaldor's model.

5 marks

Show how the idea of monopolistic competition becomes intrinsic to the endogenous growth theory as postulated by Romer.

State Arrow's five reasonable conditions which a social welfare function must satisfy.

In the context of international trade theory, discuss in detail the various stages of the international product life cycle.

Discuss the issue of compatibility between international trade and environment sustainability.

In the context of a developing economy, do you think that fiscal policy is more effective than monetary policy? Give reasons in support of your answer.

Explain how public-private partnership helps in the rapid economic development of a country.

In an economy, the government is trying to boost the local economy by a massive advertisement 'buy local—local is best'. (j) Assuming that the public tend to be persuaded by the campaign, what effect might this have on the economy's multiplier? (i) Critics argue that this is unfair and leads to distortions in free trade. Examine how the economy performs here under flexible exchange rate system.

What do you mean by Tobin's 'q' theory of investment? How would you modify the standard IS-LM functions in the presence of Tobin's 'q'?

5 marks

Explain how Keynesian speculative demand for money is restated in regressive expectation model. Point out its limitations.

20 marks

Describe Lewis model of development in an economy with unlimited supply of labour. Is Lewis model really capital-driven? Give reasons.

5 marks

Explain how trade blocks are important in the process of economic globalization. Illustrate your answer with suitable examples.

5 marks

Two firms produce homogeneous outputs with cost functions C; = gq?,Co= 243 and the inverse market demand function P =00—-(qg, +q2). Show that at the Cournot-Nash equilibrium, firm 2 makes higher profit than at the joint profit maximizing equilibrium. Explain why this is so.

20 marks

Explain the recent changes in the trade and investment flows among different countries in the world. Discuss the major factors that led to these changes.

5 marks

In an economy with only two commodities, two consumers and two producers with single factor of production, derive the necessary conditions for Pareto optimality in a 'perfect' economy.

Discuss different forms of subsidies. Explain how perverse subsidies are detrimental to the economy and environment in the long run.

Examine how the laissez-faire policy was responsible for the famine in the late 9th century India.

Assess the impact of land tenure system adopted by the British on the peasants and productivity of Indian agriculture.

10 marks

Comment on the role of the public sector during the early phase of industrial development in India.

10 marks

Analyse the impact of fertilizer subsidy on agricultural productivity growth during the post reform period.

10 marks

Examine how the currency policy of the British affected the growth of monetisation in the Indian economy during 19th century.

20 marks

Evaluate the development of the transport system in India during 1857 to 1947.

15 marks

Analyse the validity of the inverted 'U'-shaped hypothesis of Kuznets in the context of changes in inequality in India.

15 marks

What are the major problems faced by the Small Scale Industries (SSIs) if Examine the role of the MSMED Act, 2006, in enhancing productivity of Small Scale Industries in India.

20 marks

Critically examine the new manufacturing policy, 2011 for fostering industrial growth in India.

15 marks

Analyse the effects of colonialism on de-industrialisation in India. during the 18th century.

Analyse the trends in GDP growth and inequality during the first three decades of planning in India. Has the distribution of income in India become more equal during the post reform period? Suggest some policy measures that could help reduce income inequalities.

20 marks

Discuss the changes in sectoral composition of GDP with the changes in the sectoral components of employment in India since Independence.

15 marks

"While absolute poverty declines over the decades, the poverty gap between different social groups shows rising trend in India". Discuss.

15 marks

Evaluate the role of FDI in contributing economic growth of India.

10 marks

Do you think the food processing sector as the sunrise sector in India during the post-reform period? Justify your answer.

10 marks

Discuss the relevance of decentralised planning after the implementation of the 74th Constitutional Amendment Act, 1992.

10 marks

Do you think that Indian currency is fully convertible? Explain.

10 marks

Comment on poverty alleviation schemes undertaken by the Government of India for urban poor.

10 marks

Explain the trend in gross capital formation in agriculture in India during the post liberalisation period. Do you think that private investment has been crowded out by the public investment during this period?

20 marks

Examine the efficacy and resilience of the Public Distribution System in India for providing food security.

15 marks

What is intellectual property? Why does intellectual property need to be promoted and protected?

15 marks

Critically examine the role of the RBI in maintaining financial stability under the new regime of monetary system.

20 marks

Discuss the role of the Fiscal Responsibility and Budget Management Act, 2003, in improving the fiscal health of the State finances in India.

15 marks

Examine the recent trend in rural wages in India. Discuss the role of MGNREGA in determining this trend.

15 marks

Distinguish between Fiscal Federalism and Fiscal Consolidation. Discuss the fundamental changes in Indian fiscal federalism after introducing GST.

20 marks

Critically examine the strategy of disinvestment in improving the growth of the manufacturing sector.

15 marks

Describe the salient features of New Foreign Trade Policy (2015-20) in India. Examine its role in improving the current account balance.

15 marks

Under competition, the cost function is given as C(y) = y* +1, where y is output. Derive the inverse supply curve and show how the supply curve looks like.

What determines the degree of price discrimination under monopoly market?

How does 'carbon trading' help in reducing environment degradation?

How is Human Development Index calculated by UNDP? Can there be a better method of assigning weights to various indicators?

Show that in a simple Keynesian model, equal expansion in tax and government expenditure does not always lead to balanced budget theorem.

Tragedy of the commons' leads to over-exploitation of resources. Analyze.

15 marks

The following data are given for an economy: Consumption function, C=250+0-5 - 7" - 5007 Investment function, 75250-5007 Real money demand function, L /P=0-5Y —500r Nominal money supply, M = 7650 Price level, P =7 Tax = T = Government expenditure = G = 200 Here Y = Real income, r = Real rate of interest, L = Nominal money demand, P = Price level. (i) Find the equations for 78 and LM curves, and solve for Y and r. (i) Find out the multiplier formula for money supply change and then calculate the change in output if money supply changes by 50.

Nominal money supply, M = 7650

Here Y = Real income, r = Real rate of interest, L = Nominal money demand, P = Price level. (i) Find the equations for JS and LM curves, and solve for Y and r. (i) Find out the multiplier formula for money supply change and then calculate the change in output if money supply changes by 510.

15 marks

How can controls on foreign trade contribute to the development of developing countries?

20 marks

The role of income and substitution effect is crucial in producing backward bending labour supply curve when a tax is imposed on wages. Do you agree?

15 marks

In case of perfect capital mobility, explain the difference of the impact of an increase in money supply on GDP under two alternative exchange rate regimes—one fixed and the other flexible.

15 marks

Reflect on the inefficiency and socially undesirable aspects of monopolistic competition market situation vis-a-vis the perfect competition, both in the short and in the long run.

20 marks

What is the follower's problem in a duopoly model and how does it differ from the leader's problem?

15 marks

Can public-private partnership function effectively in the area of physical infrastructure?

15 marks

What are the features based on which the new trade theories are built that are distinctly different from the old theories?

20 marks

Explain how money multiplier will be affected if there happens to be partial hoarding by public in each round as well as excess cash reserve holding by banks over the minimum required.

In what sense is Friedman's quantity theory said to be a 'restatement' of Fisher's theory? Explain.

What criteria will have to be satisfied to obtain a Pareto efficient allocation?

Automatic stabilizers are supposed to mitigate cyclical fluctuations, but there exist limitations which dampen the effect of these stabilizers. Analyze.

What are the obstacles to international macro-economic policy coordination? Discuss.

How is the Marshallian equilibrium different from Walrasian equilibrium?

15 marks

Discuss the essential features of the growth models which incorporate research and development.

15 marks

In the contemporary world, many countries are not following Kuznets' pattern of structural change. Give reasons.

20 marks

Arise In what way does the concept of a positive optimal tariff apply to only large countries and not to small countries? Explain.

Keynesian demand for money is one of the key concepts of Keynesian theory of unemployment. Illustrate.

15 marks

Can multinational investment defeat the objective of inclusive growth? Give reasons for your answer.

20 marks

What makes monetary policy ineffective even in the short run? Explain.

15 marks

Trade can be growth-promoting or growth-inhibiting. Argue in terms of the established theories.

20 marks

What are the causes of market failure in agriculture? How may government intervention mitigate this?

15 marks

Account for the commercialisation of Indian agriculture during the second half of the 9th century and analyse its effects.

Do you agree that the development of Indian railways during the British Rule helped facilitate the process of industrialisation? Give reasons.

Highlight the main contributions of C. N. Vakil to Indian planning as opposed to that of the Mahalanobis Model at the time of the formulation of the Second Five Year Plan for India.

10 marks

How has the movement of agricultural prices during the post-liberalisation period been responsible for farmers' distress in India?

Evaluate the Competition Act, 2002, relative to the Monopolies and Restrictive Trade Practices Act.

Trace the development of the cotton textile industry in India during the British period. Discuss the major problems faced by the industry in different stages of its growth during this period.

20 marks

TI Explain the underlying causes and effects of deindustrialisation in India during the 19th century.

Examine the theory of "Economic Drain" in the second half of the century in India and discuss its economic effects.

"The progress in the implementation of tenancy and revenue reforms during the first three decades after independence in India was not satisfactory." Do you agree with this view? Do you think that the advent of the Green Revolution made such land reforms policy redundant?

Discuss the technological factors relating to the Green Revolution in India.

5 marks

Do you think that the fall in public investment in agriculture adversely affects the productivity growth of this sector in India? Give reasons.

5 marks

Explain the principal causes of deceleration in industrial growth during the mid 960's to mid 970's in India. Do you think that the reasons for the slowdown in industrial growth since the late 990s are basically different from those of the earlier deceleration? Answer with PmR er arguments.

20 marks

Examine the role of capital account convertibility in controlling deficit in the current account of India's Balance of Payments es

Would you advocate a programme of Universal Basic Income (UBI) to reduce extreme poverty in India? Discuss in detail.

5 marks

What reforms would you advocate to make the public distribution system (PDS) in India more effective?

Has India been able to exploit the potential of foreign direct investment (FDI) for export oriented production? Give reasons af: our answer.

Examine the trends in GDP at factor cost during the pre-reform period in India.

10 marks

How is the methodology followed by the Rangarajan Committee different from that of the Tendulkar Committee in measuring poverty in India?

Differentiate between plan and non-plan expenditure as used in the government budget. Is this distinction relevant for government finances in India today?

Discuss the disinvestment policy adopted by the Government of India as a part of structural adjustment programme of the IMF and the World Bank. Examine the impact of such a policy on industrial growth in India.

20 marks

Narrate the implications of the TRIPS Agreement with special reference to the pharmaceutical sector in India.

5 marks

Critically examine the role of WTO on agricultural exports in India.

5 marks

Why is monetary transmission not effective in India? In the context of the recent announcement by the RBI, compare the efficacy of external benchmarks in bank loans with internal benchmarks for improving monetary transmissions through the banking channel.

20 marks

What is fiscal federalism? Examine the role of the various Finance Commissions since 200] in reducing horizontal and vertical fiscal imbalances.

5 marks

Do you think that planning has a role in the context of market based development of India? Answer with arguments.

5 marks

What are the core objectives of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)? In what ways has a paradigm shift taken place with the implementation of MGNREGA?

20 marks

How does the strategy of industrialisation under the New Economic Policy promote productivity growth in manufacturing industries in India? Explain.

5 marks

Examine the relation between casualisation of employment and poverty in India.

5 marks

Does a monopolistically competitive market lead to excess capacity under price competition?

Explain some of the measures for assessing the monopoly power of a firm.

Using the IS-LM model, show how expected deflation may cause equilibrium output to remain at less than full-employment level.

Is stagflation a logical outcome of Keynesian orthodoxy? Give reasons for your answer,

What is high-powered money? Explain how changes in short-term monetary policy affect high-powered money and money multiplier.

Explain why in a duopoly model of collusion, each firm has an incentive to cheat the other.

Show how a dominant firm with a competitive fringe can act as a price leader in an oligopoly market.

5 marks

Give an outline of Kaldor's theory of distribution. Also explain the implications of an increase in the wage level and a reduction in the saving rate on the distribution of income.

In the simple Keynesian model, if consumption and investment are both functions of income, how would the multiplier be affected?

What is hysteresis? Explain the impact of hysteresis in Gradualist Monetarist. and Eclectic Keynesian frameworks, i5

How will you derive the real aggregate demand curve using the New Classical Theory?

20 marks

What is interest rate targeting? Explain using the concept of Taylor rule,

15 marks

In an open economy with high capital mobility, monetary management can be a successful tool to increase output. Explain.

The burden of tax depends upon the elasticity of demand and supply of a commodity or service. Explain with sultable examples.

20 marks

Under what conditions will devaluation create trade surplus and increase output in the simple Keynesian framework?

What are shadow prices? Why are these preferred over market prices. in project evaluation?

In Harrod's model of growth, Wf the expected growth rate exceeds the warranted growth rate, what will be the relation between the actual growth rate and the expected growth rate? EGT—pP-ECOnR/4 a [|

How do externalities lead to market failure? How can this situation be remedied?

Give an outline of a model of speculative attack under fixed exchange rate.

Explain, with the help of diagram, how Haberler's theory of opportunity cost is an imprevement over the comparative cost theory of Ricardo,

5 marks

A quota on import and an equal-import tariff are equivalent in a competitive market but not under monopoly. Explain.

5 marks

What is Doha Development Agenda? Explain how it negotiated TRIPS and TRIMS among nations.

20 marks

Development of human capital may lead to constant returns and propel an economy to self-sustaining economic growth. Explain,

5 marks

Kuznets hypothesis predicts decline in income inequalities in the long run. In recent decades do trends in income inequalities in developed and developing economics support this hypothesis? Give reasons for your answer.

15 marks

Examine Arthur Lewis model of economic development with unlimited supplies of labour. What is A. K, Sen's critique of that approach?

Explain why the market and the State have complementary roles in economic development.

How docs rural economic activity create environmental degradation in developing economies?

What policies would you suggest to combat negative environmental externalities? 20 oe £GE-P-ECOn /4+ 5 BS5—540

Do you agree with the view that the objective of industrial and commercial policies of British was to transform India as a complementary economy of England 7 Give reasons.

How did V.K. R. Vv. Rao improve upon the earlier national income estimates of India?

How did Gold Bullion Standard end with 'ratio controversy' in British India?

10 marks

Explain how multi-dimensional poverty index 5 computed.

10 marks

Elaborate on the phenomenon of 'missing middle' in Indian manufacturing sector.

10 marks

Examine the features of permanent land settlement as introduced by Lord Comwallis.

20 marks

Explain the problems faced by jute mills in India during the early years of their existence.

15 marks

British rule led to India's underdevelopment'. Do you agree? Give reasons in support of your answer.

15 marks

Reflect on issues and implications of structural transformation in India's national income.

20 marks

How would you justify the policy of land reforms in the light of the farm size - productivity debate in India?

15 marks

Analyse the salient features of 'interest subvention scheme' and its implications on the farm sector.

Comment on the new initiatives taken by the government to facilitate investment and ease of doing business.

20 marks

The chequered fiscal history of India of the last fifteen years has been a saga of fiscal prudence on the part of the States and fiscal profligacy by the Centre. Do you agree? Give reasons.

15 marks

Reflect on the relationship among economic growth, inequality and poverty in the post-reform penod in India.

15 marks

Do you agree that MGNREGA has been plagued with rampant malpractices, leakage of funds and diversion of resources? Give reasons.

10 marks

Horticulture is now the growth driver of Indian Agriculture. Discuss the issue in the broad context of rural diversification.

10 marks

Critically examine the relative contributions of public and private sectors in the pre-liberalisation period in India.

10 marks

Explain why the use of organic farming should be encouraged in India.

How can the organised manufacturing sector be revived as an engine of inclusive growth?

Do you agree that fiscal slippage in the recent past is structural in nature? Also suggest road map for fiscal consolidation in the next few years.

20 marks

The state-controlled section of India's banking sector continues to be a major problem for policy makers. Do you agree 7 Give reasons in support of your answer.

Do you think that the green revolution had limited impact on Indian agriculture? Justify your answer.

Demonetisation has been a radical and unprecedented step with short-run costs and long-term benefits. Give reasons in support of this statement,

20 marks

Throw light on the poverty debate in the pre-liberalisation era in India.

How the setting-up of NITI Aayog has changed the planning perspective in India? Explain.

Do you believe that capital account convertibility is feasible under the present circumstances in India? Explain.

Describe the salient features of TRIMS. How has it impacted the textile and clothing sector in India?

Why should FDI be preferred over? Comment on government's initiatives in this respect.

15 marks

Derive the expansion path for a firm operating with the Cobb-Douglas Production Function.

10 marks

"Under monopolistic competition a firm enjoys monopoly power without enjoying monopoly profit." — Explain.

10 marks

Show that in the complete Keynesian model only fiscal policy is effective during a period of depression.

10 marks

Explain the difference between the assumptions of New Classical and the New Keynesian approaches in managing individuals and markets.

10 marks

Show that full employment is the logical conclusion of the Classical macro model.

"Pareto optimality conditions are necessary but not sufficient conditions for social

Discuss briefly the circumstances where fiscal expansion leads to full crowding out.

Explain how the equilibrium employment and real wage would change in a typically classical model if, in the event of increase in supply of labour, money wage becomes rigid.

20 marks

How Chamberlin uses planned sales curve to explain equilibrium of a firm and group when the entry of firms is permitted?

15 marks

Demonetisation is expected to result in a fall in the ratio of currency to deposit. Using the money multiplier theory explain its possible impact on supply of money..

15 marks

Why do you expect a high correlation between the money supply and aggregate expenditure? Does this resolve the monetarist-fiscalist debate?

20 marks

What is financial repression? Mention some of its consequences.

15 marks

"Transaction demand for money is not always interest rate inelastic." Discuss.

15 marks

Explain the Keynesian. and classical extreme monetary assumptions for showing their effects on the slope of the LM curve.

20 marks

Distinguish between effective and differential tax incidence.

10 marks

Write a short note on gravity model of trade.

10 marks

Determine optimum tariff of a country with the help of offer curve.

10 marks

What is 'solow-residual'? What are its implications?

10 marks

What are the implications of trade in higher education under GATS for India?

10 marks

"The consumption and production effects of a tariff for a commodity depend on the elasticities of demand and supply respectively." Discuss.

15 marks

"Monetary Contraction is a better option than devaluation to improve balance of payments position of a developing economy under fixed exchange rate system." Discuss.

15 marks

Do you agree with the view that the honeymoon with free trade under W.T.O. is at an end? Give reasons for your answer.

20 marks

Petroleum is sold in the world market and priced in US dollars. RISCO in India must import petroleum to use it in its manufacturing. How are its profit affected when Indian rupee depreciates against the US dollar?

15 marks

State and discuss Arrow Impossibility theorem. How does Sen modify it for social

Show that Cobb-Douglas Production Function exhibits both Hicks and Harrod neutral technical progress..

20 marks

"In view of economic uncertainties, Hirschman approach to economic development makes more sense." Discuss.

15 marks

"The trade-off between environment and development remains unresolved." Comment in view of the United States exiting from Paris Climate Agreement.

15 marks

Discuss the problem of intergenerational inequity arising out of internal public debt.

20 marks

Would you advocate that the income of rich farmers should be taxed in India? Give reasons.

"Subsidies are a source of inefficiency and corruption." Do you agree with the statement in the Indian context? Justify your answer.

What caused the problem of non-performing assets of Indian commercial banks and what cures are being suggested to solve the problem?

What were the considerations underlying the initiation of the railways and the road transport system in India in the 9*® century?

Write a brief note on the state of manufacturing in India in the i8th century and the subsequent de-industrialisation.

What is drain theory? How does it explain the backwardness of India in the 9*4 century?

20 marks

Do you think that the attitude of the British Government towards the Indian economy changed markedly at the turn of the 9t® century? Give specific instances supporting your argument.

What were the broad considerations underlying the different types of land settlements in India during the colonial rule? Discuss.

What is your assessment of the principal impact of the recent demonetization in India in the immediate and medium terms?

India has a vast potential to reap a demographic dividend. Explain the point and discuss the necessary measures to realise it.

What is the broad trend of the manufacturing sector's relative share in GDP in India over the last four decades? How do you view its performance and what actions does the government contemplate in this matter?

20 marks

India's economic growth is associated with rising inequality. How does it so happen and what actions need to be taken to mitigate the problem?

20 marks

Write a note on the broad trend of India's foreign trade and current. account balance during roughly the last one decade.

Critically examine the Disinvestment Policy of the Government of India.

Relative contribution of agriculture to the GDP of India has been going down steadily since Independence. Do you think this highlights a weakness of the economy? Explain.

Explain the concept and the underlying rationale of 'Universal Basic Income'.

What role are MSMEs playing in India's economic growth?

"Though economic liberalisation in India in the mid 90s aimed at industrial growth, actually the services sector led the economy." Elucidate.

Do you think the recent appreciation of Indian currency is harming India's exports? Can it have a beneficial side too? Explain in brief.

The various anti-poverty programmes have not achieved the desired socio-economic progress in India. Write down the major programmes and your broad based assessment of their weaknesses.

20 marks

What are the merits and demerits of the case of farmers' loan waiver in India? Explain.

5 marks

Even though India is self-sufficient in the production of foodgrains, Indian agriculture is faced with some major challenges. Elucidate.

What developmental role can FDI play in a backward economy? What policy has India been following to attract FDI and what safeguards should the country adopt?

20 marks

Give a brief account of the evolution of the concept of economic planning in India after Independence.

Explain GST. Analyse how it is going to impact Indian business.

The quality of employment, in general, in India is perceived to be alarming. How would you analyse the situation?

20 marks

Give a short analysis of the state of devolution of resources from the Centre to the States in India in the light of the idea of fiscal federalism.

How did per capita income in India behave since Independence? Has it improved the well-being of the people uniformly? Give specificreasons.

State Marshallian and Walrasian stability condition of market equilibrium. Do you think that existence of Marshallian stability necessarily ensures Walrasian stability and vice versa? Explain.

Explain kinked demand curve theory with the help of diagram.

What are the fiscal and monetary implications of vertical IS and vertical LM curves?

Examine Kaldor and Kalecki theory of distribution.

"The advent of New Classical Macro-economics has tended to upset the apple- cart of Keynesian and to a great extent, that of the Monetarists." Discuss.

20 marks

Write on Prisoners' dilemma and Nash equilibrium.

Discuss in brief Friedman's restatement of the quantity theory of money and find its similarity/difference with the classical quantity theory.

15 marks

Distinguish between Monetarist and Neo-Keynesian approaches to expectation-augmented Phillips curve.

20 marks

Should inflation targeting be main plank of monetary policy of a central bank in emerging market economies like India? Show its implications on investment and growth.

15 marks

What is a Lemon Market? What is the role of signalling and screening in it?

What is asymmetric intormation? How could it lead to adverse selection and market failure? Discuss.

20 marks

Illustrate the notion of perverse subsidy in the context of natural resource: sector.

15 marks

Examine the effects of public expenditure on the development process of an economy.

Differentiate between inter-industry and intra-industry trade. Can standard ' H-O model explain intra-industry trade? Discuss.

Explain Dunning's eclectic theory of FDI.

Explain Kuznets' inverted 'U' hypothesis. Is growth good for the poor? Explain.

Under what conditions economic growth reduces employment growth? Discuss.

Describe the growth path, which once the economy attains it, will give a higher level of per capita consumption than any other growth path for all time.

20 marks

"Technical progress in capital-intensive sector almost invariably reduces the real wage rate and increases the real return to capital. Technical progress in labour-intensive sector will lead to increase in real wage rate and decrease in the real return to capital." Explain.

15 marks

What is the stalemate in the WTO about subsidies in less-developed economies? Discuss.

15 marks

"The argument that export-biased growth may turn the terms of trade unfavourable to the country and hence may not be beneficial, is applicable in the case of a large country and not a small country." Explain.

20 marks

With the help of Salter-Swan diagram, define the zones of disequilibrium and assign policy prescriptions for the situations pertaining to unemployment and inflation vis-a-vis BOP deficit.

To counteract under-development stagnation, discuss Leibenstein's critical minimum effort theory.

10 marks

What are the elasticity and absorption approaches to BOP adjustment? Discuss.

20 marks

"Pollution-income progression of agrarian communities (clean) to industrial economies (pollution intensive) to service economies (cleaner) would appear to be false if pollution increases again at the end due to higher levels of income and consumption of the people at large." Discuss.

Indicate the Ricardo legacy which is inherent in the Lewis model of economic

Explain the salient features of 73rd and 74th Constitutional Amendments in India: and elaborate the impact of its implementation. Ones

Do you agree with the view that an increase in the productivity of agriculture as a result of Green Revolution was only short-term? Give reasons.

10 marks

What were the economic and non-economic rationale for adopting mixed-economy model in India?

10 marks

Discuss the basic features of the IInd five year plan in India.

10 marks

What were the economic consequences of discriminating protection in the trade policy during British Regime?

Discuss the manufacturing condition prevailed during pre-independence period. Do you feel that private sector did not come forward for investment due to fear of Nationalisation? Give reasons.

Critically examine condition of Agriculture and rural economy during the pre- independence era.

Discuss the Wage-Goods model of development as given by C.N. Vakil and / P.R: Bramhanand.

Critically examine the difference between absolute poverty and relative poverty. Between the two which is more appropriate? Give reasons.

20 marks

Explain the major tools for measuring inequality. Highlight the more appropriate method of measuring inequality.

15 marks

Examine the implications of Trade Related Intellectual Property Rights (TRIPS) on Indian Economy.

15 marks

What is 'Crony Capitalism'? Is it true that almost all Developing Countries are ) facing the threat of 'Crony Capitalism' in their development efforts?

20 marks

Examine the process of introducing and passing GST Bill in Parliament. How it helps in Fiscal Consolidation in the country?

15 marks

What were the major hurdles to development as experienced in India during first decade after independence? Discuss them and what steps were taken to remove them?

15 marks

"Partial Capital Account Convertibility cannot serve the purpose of integrating Indian Economy with World Economy". Critically examine.

10 marks

Critically examine the salient features of Fiscal Responsibility Act.

Examine the basic features of the National Food Security Act 2013.

10 marks

Bring out the salient features of New EXIM policy of Government of India.

10 marks

Monetary Policy in India is often criticised as ineffective because large part of the country is not yet monetised. Do you agree with the view? Give reasons.

20 marks

Trace the development of Non Banking Financial Companies in India since the liberalisation era and comment on their impact on the effectiveness of the interest rate policies of the RBI.

15 marks

Explain how Railways played an important role in unifying the people of India during pre-independence period.

15 marks

During post-independence era India assigned the role of 'Commanding Heights' to the public undertakings. Should this policy be continued? Give reasons for your answer.

20 marks

Critically examine the major changes in FDI policies of the Government of India since 1991.

15 marks

What are the basic features of new national rural employment guarantee scheme? What are the impediments in their implementation?

20 marks

"Agriculture Subsidy is both an Economic as well as Social issue, hence the Government finds it difficult to take a decisive decision". Comment on the above statement..

Discuss the changes in the sectoral composition of GDP in recent years.

15 marks