Paper 3 December 2007

7/23/2019 Paper 3 December 2007

http://slidepdf.com/reader/full/paper-3-december-2007 1/20

ECONOMICS

PAPER III

11i"'f-' t f i f-

III

NOTE:

This

paper is

of

two hundred

200)

marks

containing four 4) sections.

D 0107

Candidates

are

required to attempt the questions contained in these

sections

according to the detailed instructions given therein.

~ - . ; r v ; l wWm 200) ~ w t v ; ; t Ff;m 4) mt1 Wl f

it

~ q 1 ~ 1 1

.;rv;it

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f. i f., t l



Note:

SECTION-

I

~ '

Answer

the

five

questions from

the para

given

below_ Each

answer

should

not exceed

30 words_ Each question carries five marks_

(5x5=25

marks)

->)

-,-p:j

• ] f ( , : ~ ~

- iW W

R -,-p:j l Frwi\ i ' ; - ~ f ; _ ; p i t l 30)

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iB

' I

(5x5=25

~

Although l\1althus

was by no

means

the first

writer to speculate on demographic

problems,

he

was the first to

succeed in

devising a theory of population growth_ Ever

siru:e,

his

views have been

the

point of departure in every

discussion

of population

problems_

In

his own

dsy

however, the theory attracted attention, not so much as a

scientific contribution to the study of demography,

but as

a refutation of the

optimism

of

Godwin, Condercet

and

Owen

regarding the perfectibility of

human

society

by means

of social legislation_ More

important

for

our purposes,

]l..fa]thus theory

had

definite

analytical consequences that made it an

integral part

of classical economics long

after

the

vision that prompted ]l..fa]thus

had

receded to the background_ By emphasizing

the

rigid dependence

of population growth upon the food supply, the J\.falthusian theory

lent

support to

the

subsistence theory of wages and

prepared the way for

the

Ricardian

preoccupation with

the

land-using

bias of economic

progress;

by explainllig poverty in

tenns

of a

simple race

between population and the

means

of subsistence, it provided

thetouchatone for all

classical thinldng

about

economic policy. Any one of these

features

would have been

enough

to

make

ita influeru:e signilicant Putting

them

all together,

they fully account

for

]l..fa]thus

astonishing

success which, indeed, has

few

parallels

in

the

history of social scieru:e_

D-0107

'

P.T.O.



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1.

hy did l\1althus theory attract attention ?

lF- .ffi

%- f t r ; ; l ~

"' 'J:f 'l i J ~ <Pi'i fiF:n (

D 0107

'



2

Why did l\1althus theory

of

population

become

an

integral part of classical

economics

?

3. How

did l\1althus s theory lend support to

the subsistence

theory of

wages

?

lF- .ffi

#;" "' fin: #;" fqqj \1 <B <'R'.l"' %" 1

D 0107

P T O



4

How did

l\1althus theory

influence the

classical thinldng about economic

policy

?

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it

"'

iJ<;I)<.lili it

q t j <MRi'<lid

<:i'Ff iB

lim

.J<liV

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fiF:n

5

In what important respects did

l\1althus s theory

influence

Ricardo?

lim

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ftB-;ij

<B 'J'119 il fiF:n

D 0107

'



Note:

SECTION

~ I I

This

part

has

fifteen

(15) definitional questions of (5)

marks

each to e

answered

in upto (30) words_

5x15=75

marks)

B ' m i l ~ * u i T 15) '.R' %1 ~ P l

i' i-"li;;r

5)

~ ' & 1 ~ < 8

B<:

(30)

'lli iil j I

5x15=75 ~

6. Defirlf< revealed

preference axiom_

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<#

~ ' F J l it

D 0107

P T O



7

hat

s elasticity of substitution of factors ?

;p w

n;•Joil it 'i\w.wR <P - ;f;;r if'l1 '&

8

hat

s

consumption

ratchet?

'O'T't r;

if'l1 '&

D 0107



9

hat

is asset

demand

for money ?

' W

<

f;g'11 S

iP '&

10.

hat

is

Harrod-Tif<utral technical

progress

'&ils

( '10'1) <lW l

M<M'<li' '.Jl1

if' l

'&

D 0107

9

P T O



11

Defi

organic composition of capital and its relation to

rate

of profit.

•j_ O iT ~ n f l l . F l l ~ it i1<: <f t I

D 0107



13. What does

current account deficit mean

"i"l' j"Wli'l

i j 17 iB

i f f

ill'.l

'&

14.

Distinguish between Statutory

Uquidity

Ratio (SLR) and

Cash

Reserve Ratio Dill).

Q ~ F fi 1fqqf;uO

't$l

(SLR)

a \ < ~ 't$l

(CRR) i j i B1:

iJi t

1

D 0107

n P T O



15. What are

the mal l

features of

the

Industrial

Ucensillg

Policy of 99

?

16

Distinguish

between

stable

and

stationary

population

ft> n:

i l l < : ~ ~ ( ~ ill<

R¥Hf ) •Hfi Yll % ~

iJB :

~

D 0107



17.

Defi

Sen's-P

measure

of poverty.

f pff i #; 'f #; P- ll'T iB iJi t I

18. What

are

the

measures

of

regional

disparities

in

agriculture

?

j

iJH:1l'l1 'Rl<i'i

# ; ~ if'l1 '&

D 0107

P T O



19. Distinguish between

Open

Model and Closed

]l..fudels of

l.eontief Input-output

analysis.

When do

you say the

system is

viable

in

an

Open Model

?

9 W : ~

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~ < i t I illl'T

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'&%

<im

1 1 ¥ ~

l

' PW.r

'Ntl'i

'&

20. A finn has

the

following

total

cost and

demand functions

C(x)

~ 2 0

2x +3X' and

p ~ 5 0 x If anexcisetax of Rs.

t

per unit is imposed,

find

the tax

rate that

would fetch

maximum

tax

revenue

to

the

Government

?

'T<Ji

'Bl iB

<fid

fl R ill'R: liT; F f l C(x) ~ 20 +2x +

3:2

ill'R: p ~ 5 0 - x ' I " %" :<:f(q<lirS: rn

t iB ;p:w: 'l} 'li fl PP1

Ji Fl1

' , (il <8: <# <: <: i '1(11 flT'i' Jh iB iJlhJ<8l'1

illPI

l l'R: t r;;

I

D-0107



Note:

SECTION-

III

UI 'rn'- III

This

part has

five short-essay

type questions

of (12) marks

each to be

answered in upto

(200) words_

The candidste may select one elective

and

answer all five (5)

questions_

(Ux5=60

marks)

B \ -zyi;g i j 5) '-'Tq

f'qq;>Jl(l1ili

'.R'l ' 1

~ . R l

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fin:iT 'T<l'

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il 'li;;r

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I

(Ux5=60

~

Elective - I

21. Consider

the

following Regression ]l..fudels_

D-0107

A

(G\11),

~ 2 6 3 . 6 4 1 6 - 0 . 0 0 5 6 PGNP),-2.2316 FLR),

(11.5932) (0.0019) (0.2099)

A

(G\11),

~ 1 6 8 . 3 0 6 7 - 0 . 0 0 5 5 PGNP),-1.7680 FLR), +12.8686 TFR),

(32.8916) (0.0018) (0.2480)

(a)

How would you interpret the coefficient

of

TFR?

A Priori,

would you

expect

a

positive

or

nf<gative

relationship

between

OV

and

TFR ?

justify

your

answer_

(b) Have

the

coefficients

values

of

PGNP and

FLR

changed between

the

two

equations ?

If so what may be the reasons for such

a

change?

(c)

How would you choose between

]l..fudels 1 and 2 ? Which ststistical

test

would you use_ Show

the

necessary calculations_

Can

you fin

the s_e_

of

the

coefficient of

TFR_

CM

HR

Cl-tild

Mortality

Totsl

Fertility Rate

PGNP

HR

Per Capits GNP

Female

Uteracy

Rate

P.T.O.



A

(G\11), ~ 2 6 3 . 6 4 1 6 - 0 . 0 0 5 6

(PGNP),-2.2316(FLR),

s e ~

(11.5932) (0.0019) (0.2099)

R ~ o _ 7 0 7 7

A

(G\11), ~ 1 6 8 . 3 0 6 7 - 0 . 0 0 5 5 (PGNP),-1.7680(FLR), +12.S686(TFR),

se ~ (32.8916) (0.0018) (0.2480) ?

R ~ o _ 7 4 7 4

(a) iW'T TFR

#;- 'r'fl<li" i 8

fim

'NH ili'tit

(

~ i f f illl'T CM

if<: TFR

#;

~ 'Fll(l1ili" '11 +li lk 'H w<:Pl <P WW; ~ ' ( iJ<'l i "B<: <P '1""' <it I

(b) if'l1 FGNP

if<:

FLR #;- 'r'fl<li" "¥" <i\ofi {1'1O<Ji{Oif i j l f') ' (

" %"

iJ:n; ' (il B'\

f - . . .

'1

« 1 M ~

<li <f' 1 <liW'I

Z\l

(c)

il<PT '11 ¥1

1 ill'R: 2 #;-

~

i\i ;;p:fl

iJi'tit ( illl'T

iB"'l U i ~

iB

YJli1

iJi'tit ( i W ~

T( Fllcli ~ ~ i f f

illl'T

TFR

#,-

'}"\Ri"ilil s_e_

'11'-'fl <8:

i

C M :

H R

q j 'lf' <:<:

'fd ']JR""'l <:<:

PGNP

H R

. f o l ~ G N P

<T'W<ll

<:<:

22

Explain

the nature

of

Heteroscedastidty.

What

are

its consequences.

Explain

Gold

Feld-Quarndt test for

detecting

heteroscedasticity.

i \ 2 { i f H m ~ • r B i ' %m1tiFnftB) <P '.T<F%

~ i t

1 if'l1 ~ n Wi'l '& Z \ 2 { i f H n ~ • r B i '

'1(11 '-'Pl r

#,-

f;_;pj i;'F;g it"GgMlf.i-;g

~ W \ 1

23 What

is

structural

instability in

a Regression Model ?

How

do you test

it

by

using

DlJJ\.1JI..fY VARIABLES ?

gM''l'i'H

'11 ¥1 il fi<:'>+c'H

m...:a

if'l1

"\il#

(

il<PT B1'B -;g-,:fi- "'<iii

ili"

N i ~ T f j;JU

ili\

' I I

<iti'ri

24 Discuss

the

situation

of ]l..fulticoll:irlf<arity in

Regression Models

and

its

consequeru:es_

What are the

&.medial measures_

gM''l'i'H -;:f W'if

i j

~ 1 V l l 1

w;-:pjj <# ft>.Jf\1 if<:

~ ~ - , : f i B ~ iJi't 1 ~ ? P I

iB"l

-n-

'

(

25. Discuss

the tenns

SPURIOUS REGRESSION" and "COINTEGRATION"_ Hence

define

Dickey-Fullar test_

D 0107

OR I roW

"



Elective-

II

21 E:xplam the three fonns of price leadership.

i' ,-(\9 w

<B

~ i t I

22

How

do you convert a two-person-zero-sum

game into

a l inear programming

problem ? Illustrate with example_

illl'T

< i l - ~ M ' { P l M i \ T f l i F I

B i l l ~

'.i'HJfl:fTf P ~ i i\ j J<J

ili'tl

23 Explain the model of the interaction of the accelerator and multipler constructed by

Paul Samuelson_

24 E:xplam

how

stability of equilibrium s attained

in

Tlf<O classical growth model.

-;=l·<MRf

1

<lid

D•.J

i j

.:a lim

J<liH 'JffiW

' ,

~ W \

25.

E:xplam

the

role

of

aggregate

demand in

the detennination

of

income

in

the

e ~ s i a n

system_

w<:PiT 'J'IIFfT i j illP:I i ' ; - f q • j ~ i j f:1l1TI '1iTf

,P

> ~ iB iJi't I

OR I roW

Elective - III

Ri'lfif<l III

21

Examine

the operation of the present managed floating exchange rate system_ What

are the

problems with present

exchange rate arrangements

?

~ t t B ill '.:<: r ~ w < < '.r:q;_;]T

%-

<lii'Jfql\p:fi ,p iJi't

1

' ~ r ~ w <:<:

v:vw.r.W:

iP

f1'P?11'i i f f ' I

22 Briefly outline the evolution of the present international trading system_

<i<n:l'o/':1

i P:lH

'J'IIF T

%-

<P

UW

i j i':Al't

I

D 0107

P T O



23

What

are

foreign

exchange

markets

?

What

are its

various

fonns ? What are the

different

levels of participation in

foreign

exchange

markets

?

~

r ~ w

i :fJR i f f '&

~ i F " ' i l f¥\m

1i T '& ~

f q f ~ w l q;Jffi.'i i j u f l - R ; i"l;"f\m

«11: i f f

24 Explain the differeru:e

between eurocurrendes and eurobonds.

25. What caused

the

international debt problem of the developing nations in

the

1980s?

Why

did

it threaten the stsbility of international banking system ?

1980

il

r1<lilfil4<9 -t-$1 ~

~ ~ ~ .mn <B i < l ~

fiF:n

OR I roW

Elective- V

21. Comment on

the factors holding back the development of Indian agriculture

in

the

post-refonns era.

22

How the

entry of retsil-chains

would

affect the price-spread

between the fanner and

the urban consumer ?

23 Describe

the salient features of rural-urban migration

in

India and

in

brief, spell out its

impact

on

rural

labour

markets.

we

il p;:ft >W .PfJR

i"li"'Jl W

f q 4 ~ M v i \ <B

i"f li"'l

<li't ilh:, UW< ij

BR

q;Jffi.'i n

'1'1?1 iB

i":Ai"?l

I

D 0107



24.

Evaluate the role of NABARD in

monitoring

the

flow

of credit

to

the agricultural

sector

in Jndia.

w i j

-,p T

,jj;< iB ~ #;" '.T< 1lZf <# ' 1 i ~ 0 2 f : ' i i j NABARD <#

>lfl:J<B

iB

' 3 0 < - ' l i < l i ~

<Ji't I

25.

State the J\.farket access provisions under

VIITO agreement

How

would

these affect

the

Indian

agriculturists ?

v ww ~ " \ #

#;"

· ~

'T<ffin

~ l r 1 . , < + 1 ' i :Ai ?l 1 fin: '.FB<:

"'Zf

>u«f'b::

<8 ;:nuli-e

<Ji't;"iT

OR roW

Elective - V

fo l'lftf<l v

21. Describe the

change

in the role of P1aruUng

in

India

in

the wake of

economic

policy

shift since 1991.

22. Comment on the performance of the organized industrial sector in India in the past

two and

a

half

decades, particularly

with respect to employment

geTif<ration.

R1,Y.1 ~ <: $<B ij, w i j iJ<ITilf\-;<li ,;;.,. #;" f ~ ~ @ ~ '1 <: ~

<Ji't,

1'VT i\

fJJR #;"

w<:Pl i j I

23. Outline the trends

in

social

sector spending in

India. How far it is right to say that

Government is abdicating its social responsibility in the Tlf<W policy regime?

w il nHl.ii<li ffi "'f' il '.Pl %il <P i : f l l ~ l iJ:m <liZRI ~ M , N ' & % 1 ? 1 ~ i t "

.;; . E .

4

¥ 1 1 { 1 ~ < l i l " '

1

<J<:<fH

iJl'R

:zy.,,._,,., CFH<:i

'1'"1

<li'l

"f'lll1

24. Is there a virtuous circle linking infrastructure development

and

growth ? Substantiate

your answer.

25.

Enlist

the

compoTif<nts of GEM. How does it

vary with the

movement of

HDI

?

GEM # ; ~ iB <Ji't

I

" Zf lifn

J<li"H

HDI <# "i"R #;"

:nl'.l

'&1

D 0107

P.T.O.



Note:

SECTION- IV

UI 'rn'- I V

This

part

has

OTif<

question

of

40)

marks

to

be

answered

in

upto

1000

words_

40x1=40

marks)

B1

l T<l

W1 ;;r- _;f-n-

z

0)

<B

' 1 f:iruiB - _;v;w;

T<l

\fJR

1 0 0 0 ) ~ - i j ~ l

40x1=40 ~

26.

Outlirlf< the

various dimensions

of the

growing

environmental concerns_

How

far the

existing paradigm of development is

responsible for

the

environmental

crisis, if

any

?

What steps should be taken to

salvage

the situation?

10, 20, 10)

10, 20, 10)

Rj3JW:IT

omn t

on

the empirical relation between the movement of

real

per capita iru:ome

and

iru:ome inequality_

How far

the inverted-U shaped curve hypothesis stands

supported ?

In this context, how

would

you

explain the Augmented

Ku=ets curve?

15, 15, 10)

15, 15, 10)

D-0107



FOR

OFFICE

USE ONLY

Marks

Obtained

.

~

.

~

.

~

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:E§

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'

@

M 00

G

w

i

i

•

w w %

n TI %

'

%

%

i

;m

Total l\1arks Obtamed (in

words)

_

(in figures) _

Signature & Name of the Coordinator _

Evaluation)

Date_

D-0107

Documents

Paper 3 December 2007