Micro-Economics: Analysis And Policy Paper-II External Correspondence Previous Year Question Paper Year 2006 : IInd Year

SECTION ‘A’

Q. 1. (a) State and explain Keynes’ Psychological law of consumption.

(b) Discuss the factors on which the propensity to consume depends.
Answer :

Q. 2, (a) Differentiate between autonomous and induced investment.
(b) If autonomous investment in an economy is Rs. 200 Cr. and the consumption function is C = 80 + -.6Y, what will be the equilibrium level of income ?
Answer :

Q. 3. Evaluate ‘Irving Fisher’s Quantity Theory of Money’. How does the Keynesian approach differ from Fisher’s approach ?
Answer :

Q. 4. With the help of outside diagrams distinguish between ‘Demand Pull’ and ‘Cost Push’ inflation. Do you agree that mild inflation is desirable for economic activities ? 15, 5
Answer :

Q. 5. Explain the following : 10, 10
(a) Leakages of multiplier;
(b) Difficulties of Barter system.
Answer :

SECTION’B’

Q. 6. Discuss the functions of a Commercial Bank. How is Commercial Bank different from the Central Bank? 15, 5
Answer :

Q. 7. Explain the quantitative methods of credit control adopted by the Central Bank. Between Bank Rate and Open Market Operations which is more effective instrument of credit control? Give reasons. 15, 5
Answer :

Q. 8. Explain the causes of growth of public expenditure in a developing country like India. Describe the effects of public expenditure on production and distribution. 10, 10
Answer :

Q. 9. Discuss the various objective of Fiscal Policy in a developing economy. What are its limitations ? 15, 5
Answer :

Q. 10. Write short notes on any two of the following: 10,10
(a) Incidence of lump sum tax in monopoly
(b) Merits and demerits of indirect taxes;
(c) Recommendations of Eleventh Finance Commis¬sion
Answer :

Home > B.A. Genral, Question Papers > Micro-Economics: Analysis And Policy Paper-II External Correspondence Previous Year Question Paper Year 2006 : IInd Year
  1. No comments yet.
  1. No trackbacks yet.