'\

4..... ti./LS.S. Examination"Jol)

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E-JFT-L-HDB

GENERAL ECONOMICS - II

Allowed : Three Hours I !Maximum Marks: 200!

INSTRUCTIONS
The question paper consists of three Sections.
Candidates should attempt NINE parts of the
question in Section I, SEVEN questions from
Section II and TWO questions from Section Ill.
Candidates should attempt questions as per the
instructions given in each Section.
The number of marks carried by each question
is indicated in each Section.
Answers must be written only in ENGLISH.
Any assumptions made for answering a
question must be mentioned clearly.

SECTION I

1. Answer any nine of the following parts '':' about

50 words each : 5x9=45

(a) Why did Ricardo argue that a capitalist economy

would sooner or later reach a 'stationary state' ?

(b) Explain why most of the mainstream economists

before Keynes assumed that a capitalist economy
cannot have 'involuntary unemployment'.

E-JFT-l-HDB 1 [Contd.]

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 : {
!
: ;

(c) State and comment on the appiicabil ity of 'say's

law.

(d) How does NDP: at' factor cost differ. from GNP at
market prices ?

(e) Explain the concept of 'infla_tiol)ary gap':

(D List three reasons for not ,regarding GDP as an

measure of well being.

(g) Indicate how sustainabi lity considerat ions can be

brought . .,
n;tional accounting
,_,.
__
.' . . .

(h) "The notion that countries should specialise

based on their factor endowmen ts is too static a
view." Comment:

(i) Citing one -example -

.each, distinguis
.
h between
"

hedging, speculatio n and arbitrage trading in the

context ofderivati ves.

(j) Is the use of a Muftiple Exchange Rates (MER)

regime limited to that of a balance of payments
policy instrumen t ?

E-JFT-L-HDB 2 [Contd.] J

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 SECTION II

Answ er any seve n of the follow ing quest ions i'n abou t
. .

150 word s each

___ , . 15x7 =105

2.
"Adam Smit h's conce pt of 'In:visible Hand ' teach es us
that every thing in an econo my can be left to :mar ket
---f orc es." Discu ss.

3. Expl ain the specu lative dema nd for mone y and its
relati onsh ip t? the 'liqui dity trap'.

4. Disti nguis h betw een the role of the State m the

conte xt of Keyn esian unem ploym ent and the role of
the State in a devel op:ne nt conte xt.

5. How does Marx 's theor y of wage s differ from 'the iron
law of wage s' of Ricar do ?

6. Write a note on the doctr ine of 'big push ' in the

theor y of econo mic devel opme nt.

7. Wha t are the impli catio ns of the Phill ips curve for
econo mic polic y ?

8. Expl ain Sen's critiq ue of utilit arian appro ach to

econOmic devel opme nt.

E-JFT-L-HDB 3 [Con td.]

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 9. "Co nve ntio nal trad e theo ry fails to tak e into
acc oun t
strUctural ineq ual itie s amo ng natiOJ?S., -Discuss
.

10. Exa min e the 'rac e-to -the -top ' and , the
'rac e-to -the -bo ttom ' theo ries rela ting to Mu ltin
atio nal
Cor por atio ns (MN Cs) ope rati ng m dev elop ing
cou ntri es. Which, of the se, according to you
, is mor e
sup por ted by emp iric al evid enc e ?

'..
. ,.

E-JFT-L-HDB 4 [Co ntd .1

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 SECTION III

Attempt any two of the following questions in about

300. words each. 25><2=50

11. With respect to the role of the State in economic

development, compare the experiences of India and
China.

12. Examine the impact of policies of liberalizaiion,

. ' privatization and globalization on poverty and
-inequality.

13. Compare and contrast Keynes and Marx as

macroeconomic analysts of the capitalist economy.

E-JFT-L-HDB 5

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