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
w
"- "i'R 3Wf>l
f. i f., t l
7/23/2019 Paper 3 December 2007
http://slidepdf.com/reader/full/paper-3-december-2007 2/20
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)
'lli iil (lili
- R;
I W1 '1'Ff <=fiB
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.
7/23/2019 Paper 3 December 2007
http://slidepdf.com/reader/full/paper-3-december-2007 3/20
•Hfi<Yll
yf;;;
iP &rnl>l .mT
R iJii'
fq:.jBl R
;i\<: "t<R:,
~ i ' ; - f ' q q j ( l ~
iB <'R'.l"' ft>:n,
ill R: iWfl<.Ri m %-
•1fl:J
'N'i'P 'Ffmr %-
nl'.l,
%lini\ <P
' lBl
%- i : ~ « n <Pn:
<R: tt>:n:
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
'
7/23/2019 Paper 3 December 2007
http://slidepdf.com/reader/full/paper-3-december-2007 4/20
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
7/23/2019 Paper 3 December 2007
http://slidepdf.com/reader/full/paper-3-december-2007 5/20
4
How did
l\1althus theory
influence the
classical thinldng about economic
policy
?
lF- .ffi
it
"'
iJ<;I)<.lili it
q t j <MRi'<lid
<:i'Ff iB
lim
.J<liV
'J'119 il
fiF:n
5
In what important respects did
l\1althus s theory
influence
Ricardo?
lim
W 1 lo\ iJ< .l l
lF- .ffi
it "'
ftB-;ij
<B 'J'119 il fiF:n
D 0107
'
7/23/2019 Paper 3 December 2007
http://slidepdf.com/reader/full/paper-3-december-2007 6/20
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_
~ f R
<#
~ ' F J l it
D 0107
P T O
7/23/2019 Paper 3 December 2007
http://slidepdf.com/reader/full/paper-3-december-2007 7/20
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
7/23/2019 Paper 3 December 2007
http://slidepdf.com/reader/full/paper-3-december-2007 8/20
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
7/23/2019 Paper 3 December 2007
http://slidepdf.com/reader/full/paper-3-december-2007 9/20
11
Defi
organic composition of capital and its relation to
rate
of profit.
•j_ O iT ~ n f l l < i
organic composition of capitsl) <f' 1
' a\<:
' 'P1 <iT<:<:
i
~ w < P l
<fT
v:rw:l <f t I
12 Distinguish
between
iru:ideru:e
and
shifting
of a tax.
<hl::
H
a\<:
<hl:: < ; > . F l l ~ it i1<: <f t I
D 0107
7/23/2019 Paper 3 December 2007
http://slidepdf.com/reader/full/paper-3-december-2007 10/20
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
7/23/2019 Paper 3 December 2007
http://slidepdf.com/reader/full/paper-3-december-2007 11/20
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
7/23/2019 Paper 3 December 2007
http://slidepdf.com/reader/full/paper-3-december-2007 12/20
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
7/23/2019 Paper 3 December 2007
http://slidepdf.com/reader/full/paper-3-december-2007 13/20
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 : ~
~ M i l l H l f f q ' f ' J ~ O \ it ~ ' R ill'R: <R\g i t ~ iJ'PR:
~ < i t I illl'T
ili?il
'&%
<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
7/23/2019 Paper 3 December 2007
http://slidepdf.com/reader/full/paper-3-december-2007 14/20
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
- (12) <iili '& I
'.R'l i
;ou-;: -,_;v;w;
i l -nl 'lli iil il 1
TJiiw•.iT
fin:iT 'T<l'
g_,_ Jf<121
il 'li;;r
'.R'if i B<: it
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.
7/23/2019 Paper 3 December 2007
http://slidepdf.com/reader/full/paper-3-december-2007 15/20
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
"
7/23/2019 Paper 3 December 2007
http://slidepdf.com/reader/full/paper-3-december-2007 16/20
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
<P
tt>.: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
7/23/2019 Paper 3 December 2007
http://slidepdf.com/reader/full/paper-3-december-2007 17/20
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 <P <i<Rl o/':1
m
fri\
m > ~
~ ~ ~ < P i <i<Rl o/':1 W<tr;
' PW.li
<P ft>.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
7/23/2019 Paper 3 December 2007
http://slidepdf.com/reader/full/paper-3-december-2007 18/20
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.
7/23/2019 Paper 3 December 2007
http://slidepdf.com/reader/full/paper-3-december-2007 19/20
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
7/23/2019 Paper 3 December 2007
http://slidepdf.com/reader/full/paper-3-december-2007 20/20
FOR
OFFICE
USE ONLY
Marks
Obtained
.
~
.
~
.
~
.
~
i ]i ]i ]i
z
:E§
z
:E§
z
:E§
z
:E§
'
'
n
' '
' ''
0
00
00
'
•
'
'
'
•
'
•
M
w i
'
00
n
'
'
@
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