B.B.S.

First Year First Semester Improvement Examination 1992

Course No. 123 (Macro Economics)
Time : 3 Hours Full Marks: 40
(Figures in the right margin indicate full marks. Answer any five questions in English)
1. a) Define National Income. Discuss different concepts of National Income. 05
b) Discuss different methods of measuring National Income. 05

2. a) Determine the relationship between Savings and Investment. 02

b) State the Keynsian theory of Income and Employment. 08

3. a) What is money? 02
b) Bad money drives away good money out of market __ Discuss. 08

4. a) What is International Trade? 02

b) How the balance of trade is maintained in International Trade? 03
c) Discuss the Theory of Comparative Advantage Costs. 05

5. a) What do you mean by the Underdeveloped Economy? 02

b) What are the characteristics of Underdeveloped Economy? 04
c) Discuss the vicious circle of poverty. 04

6. Write short notes on the followings: (4 x 2.5) 10

a) Aggregate Income;
b) Aggregate Savings;
c) Inflation; and
d) Aggregate Demand.