CS (Main) Exam, 2029 URC-U-ECON reds (0e2-W2-1) "are: ate oe siftrram im : 250 Wer-aa wpe favre azar (aa FB P Praftitea AEs a geen gauche GE) Wal ons wer & sit ht evet # faites & cen feet oe often St Fwd #1 den at gai ute wei & ae BH we den 1 ot 5 aftard & ae art eit 4a wees vs 8 en a Ga Ate weil sen isi) wets w/a & fore fara sis see are fe me ¥) wet & see sah wigs are A Ra a ake, Rien sha one wwe | Fm re 8, site ga IER wT eR 3B WE-TE-sm (Me Wo Uo) yReT F Baye we Ake ea fen ara ake sg me 3 APRs ar fire rom fora me sem ae AE es ae AA welt A wean, el fae %, a1 sigaer fre arr Tea) ae /fraderm, set wed @, wer & aa G see 2% fe Ae oe nM sie weH/Sat RI seit & aed) A aor wage A sreh | a are aE A, A we} HR A ToT A are ae ae Te siera: Ra rar Bi we-ae-I yer A aTeh alg Gor ye aT we sit VY we wa aT aT TRC) ECONOMICS (PAPER-1) Maximum Marks : 250 QUESTION PAPER SPECIFIC INSTRUCTIONS (Please read each of the following instructions carefully before attempting questions) There are EIGHT questions divided in two Sections and printed both in HINDI and in ENGLISH. Candidate has to attempt FIVE questions in all. Question Nos. 1 and 5 are compulsory and out of the remaining, THREE are to be attempted choosing at least ONE from each Section. ‘The number of marks carried by a question/part is indicated against it. Answers must be written in the medium authorized in the Admission Certificate which must be stated clearly on the cover of this Question-cum-Answer (QCA) Booklet in the space provided. No marks will be given for answers written in a medium other than the authorized one. Word limit in questions, wherever specified, should be adhered to. Graphs/illustrations, wherever required, may be drawn/given in the space provided for answering the question itself. Attempts of questions shall be counted in. sequential order. Unless struck off, attempt of a question shall be counted even if attempted partly. Any page or portion of the page left. blank in the Question-cum-Answer Booklet must be clearly struck off. URC-U-BCON/11 1 [P-ro.wgus—A / SECTION—A 1, Praftifted wea wea ar set TT 150 weal H fare: Answer the following questions in about 150 words each = 10x5*50 (a) sarong Fe ere we BRI ara a A sean | sr ge SATA AL AEH = HA Fras aha Explain how equilibrium rate of interest and income are determined with the interaction of both product and money market. (oy sete aa fh sR wa eer Raia sea era we ATE) Distinguish between post-Keynesian approaches to horizontalist and structuralist theory of endogenous money supply. (o) aera saves wf & srkera HH year HS seat HA, sure FIFE Explain how renewable resources will play a role in future economics. (@) aR Fe ar te sheesh & aan a sea FP! te-Renfta stevafiet ¥ gfeae aftifaae te & at ae arch arena A Rasa FP) Mention the classification of assets held by a commercial bank. Discuss the problems faced by commercial bank due to rise in NPAs. (e) rare Rrara % ea i fists & deh arlene Para A aren Ff) Explain Myrdal’s cumulative causation theory as the theory for development. 2. (a) siete Rea aan Bhan 87 wefAfa Aire Ps arc GO wise TH SHUT KAA TA fe sa BI What is conjectural variation? Show how some models of oligopoly are derived on the basis of it. 18 (o) sefifa Ary Pe seme We RA RK PBs A A eee As Gi THe offal Pee eat Show that systematic monetary and fiscal policies are ineffective in controlling output and price level. 15, fo) cy sare rater em aT RE AT STE TT A eA a “ae” ae : R? (i) Wein Aire Pe aR ee setts aH A sire g, at gfe x sgh othe eefifere state () What makes technical progress endogenous? Do you think that technology is a ‘non-rival’ good? (i) Show that if the research becomes more successful, the growth rate will increase and hence the standard of living 20 URC-U-ECON/11 23. (a) ar sire Pe ea wr FR ehaa a BHM: C, TE Cy, FB KC >C,, ae a aan 8) ga ata A Ee erga war 8? ae afte eegeT a fea Wer fi 8? Suppose that we have only two firms in the market with constant marginal costs of C, and Cy respectively such that C, >C>. What is the Bertrand equilibrium in this market? How is it different from the competitive equilibrium? 87-15, (oy “ete aah Ah ite eer eh 1" aT erg TB? a feet A sere wT HAI AE oA aS ae Fifa) “Bven green energy is not always green.” Do you agree? Illustrate your answer taking biofuels as an example. 1s fo) sah ee afore 4 Aafia wit we sted Ramee: ‘waif aa = 300 ‘Frifira Frat = 200 We Praia = 50 aR = 250 aR R= 0-1 aia anita waft = 0-5 @ a sr (Y) 1500 % are &, sam (C) 600 81 Fa SHIT eq Fe FARE (i) 2 igri ordaraen 4 sre A sR GE squat # Ake Pia wae et (@RU: Yi, 3 Yio) 8g 8a AE (iy se are (i) A ara ¥2, % sre aH ATE oRleaa Age Pola ee A a aT BR ‘rate 3 oferta Bg et AN faa 3 armor wal eb hat rar ie [aftrat © '000 aig 4 €, wren: aH WE tho Fo Wo H He] You are given the data on the following variables in an economy : Government spending = 300 Planned investment = 200 Net exports = 50 ‘Autonomous taxes = 250 Income-tax rate = 0-1 Marginal propensity to consume ~ 0S URC-U-ECON/11 3 [P.T.0,() Consumption (C) is 600, when income (¥) is equal to 1500. Solve for autonomous consumption. (i) Solve for the equilibrium levels of output denoted (respectively by Yi, and Yj) in the two scenarios—presence and absence of income tax in the economy. (ii) Solve for the change in net exports that would bring the equilibrium output level in the economy with the income tax to the level of Y,, that you found in fii. Specify both the magnitude and sign of the change. [Figures are in © '000 crore, obviously except tax rate and MPC] 20 4. (a) ae Re ara Go Arala sche ad sles meen (aR) we wa EL we Pera Ber Raw Frater 3 Freer wordt aA ere wee fry pl witean sewle ee ira age ifs a seer oa (oe Praia weIPeA % wears waa (iy We Bae eR a ah Bae Fae BTR? Many countries subsidize some of their export industries. Use a partial equilibrium model under perfect competition to illustrate the following effects of an export subsidy for a large country : () Welfare effects of an export subsidy fi) Which group is winning and which is losing from the subsidy? 8+7=15 (&) The aa A arm sit ae Baa ain Rui FA By Been} fo Riera a day A oe Are) eae H mreG (ste) A GEAR A aC A care ACL Briefly state the Kaldor’s theory of distribution in determining the share of profit and the share of wages in national income. Explain the mechanism behind Kaldor’s model. 15, (fo) seRiia AiRre A trend afterel ar Rear dae arr afte rie GRR Rear A AR orang are 81 Show how the idea of monopolistic competition becomes intrinsic to the endogenous growth theory as postulated by Romer. 20 URC-U-ECON/11 4WE—B / SECTION—B S. Prafefar sala we a1 ae aT 150 wet A ae Answer the following questions in about 150 words each : 10x5=50 (a) (b) to) (@) fe) 2A ais ohirs eens ar aa Ay, FReS w es Sea wed BY ora ge FCT aafea State Arrow’s five reasonable conditions which a social welfare function must satisty. srariga aren fart & eal # seria sere ada & fake aot A afer Peder Afri In the context of international trade theory, discuss in detail the various stages of the international product life cycle. senhga Sra er gafaota aureftaa 3 rey aren fia At Paaear APE Discuss the issue of compatibility between international trade and environment sustainability. we ftorefia seioaen & wed A en ony ade’ € fe ya i A geen § caehha A safes sore 8? a8 at ae rer eGR AED In the context of a developing economy, do you think that fiscal policy is more effective than monetary policy? Give reasons in support of your answer. we ta} gon safle fara 4 arahe-Aoh ade Sa wer aed &, saver APE Explain how public-private partnership helps in the rapid economic development of a country. we adaaen 4, aan ew a8 fa Ot atta adh’ ao wre onbeaen a) Sent = WaT aw BI Team’ ye A we we a a aE A gE 8, seleraEN Bye Ge FET eT wera @ wan 87 (iy wrretas we ah at § fe ae agfia 8 ae Aw TI F Preueel a dha web ‘theo fig fs aS ne ea B eens aetna Arar eta A BL In an economy, the government is trying to boost the local economy by a massive advertisement ‘buy local—local is best’. f) Assuming that the public tend to be persuaded by the campaign, what effect might this have on the economy’s multiplier? (i) Critics argue that this is unfair and leads to distortions in free trade. Examine how the economy performs here under flexible exchange rate system. 8+7=15 URC-U-ECON/11 5 [P-T0.(6) () b) ) (b) ‘Sfia % ‘q’ Fde Reema a sagan amr aed 8? AP % fq” A safeala A as IS-LM Fert @ ary Fe fof staf Bt? What do you mean by Tobin’s ‘q’ theory of investment? How would you modify the standard IS-LM functions in the presence of Tobin's ‘q’? 15 aaron Aire fe Ered sre ga a, wR weeren atest HBR gaa Bi ea tot Pra AFL Explain how Keynesian speculative demand for money is restated in regressive expectation model. Point out its limitations. 20 hia 9m arg arch we afore 4 Para & fe Ate a aia Arq) eH Be aH ie wey: Sete 8? sre aTERL Describe Lewis model of development in an economy with unlimited supply of labour. Is Lewis model really capital-driven? Give reasons. 8+7=15 aren fie Re onlin areca A firm 4 aunts sas HA meal #1 set sw a Tage Sewell 8 ee Fife Explain how trade blocks are important in the process of economic globalization. Illustrate your answer with suitable examples. 18 a sf arma Gel C, = a?, C, =2q3 wen afte aT win Ge P = 100-(q, +42) AR “aera el oer seares arch Bi wafer rg Pe Gai Ar wget we we 2 aig BATH waa ATA Bega A Geer ger ar seu 8) save ae fs we Be we A ‘Two firms produce homogeneous outputs with cost functions C = g?, C2 = 243 and the inverse market demand function P = 100 -(q, +4)- Show that at the Cournot-Nash equilibrium, firm 2 makes higher profit than at the joint profit maximizing equilibrium. Explain why this is so. 20 fra fra Ral 3s mea oman ABN ware Asaf UR A omen Aone) ea UR a age arte areal A Rede Are Explain the recent changes in the trade and investment flows among different countries in the world. Discuss the major factors that led to these changes. 8+7=15 fed 2 agel, a soe wn ww sere as TA A a seaeel arch seleraeen FG ‘ree’ eforaeen A RA Team Bq sar Fuh aaa ARIEL In an economy with only two commodities, two consumers and two producers with single factor of production, derive the necessary conditions for Pareto optimality in a ‘perfect’ economy. 1s URC-U-ECON/11 6() Betta & fata wa A Asa Aer chy meneRal andorra wa wataeo bg etfare A 8 utars det §, aren Frei Discuss different forms of subsidies. Explain how perverse subsidies are detrimental to the economy and environment in the long run. 20 URC-U-ECON/11 7 21BS—S76