12-Economy

Question 1

l.AdvancedlVIicroEconomics:

Answer 1

(a) Marshallian and Varrasiam Approaches to Pricedetermination.(b) Alternative Distribution Theories; Ricardo, Kaldor,Kaleeki.(c) Markets Structure : Monopolistic Competition,Duopoly, Oligopoly.(d) Modem Welfare Criteria :Pareto Hicks and Scitovsky,Arrow’s Impossibility Theorem, A. K. Sen’s SocialWelfare Function.ECONOMY 1

Question 2

2. AdvancelVIacroEconomics:

Answer 2

Approaches to Employment Income and Interest Ratedetermination : Classical, Keynes (IS)-LM) curve,Neo-classical synthesis and New classical, Theoriesof Interest Rate determination and Interest RateStructure.ECONOMY 2

Question 3

3. Money-Banking and Finance:

Answer 3

(a) Demand for and Supply of Money : Money MultiplierQuantity Theory of Money (Fi sher, Pique andFr iedman) and Keyne’s Theory on Demand forMoney, Goals and Ins truments of MonetaryManagement in Closed and Open Economies.Relation between the Central Bank and the Treasury.Proposal for ceiling on growth rate of money.(b) Public Finance and its Role in market Economy : Instabilisation of supply, allocative, of resources andin distribution and development. Sources ofGovemmentrevenue, forms ofTaxes and Subsidies,their incidence and effects. Limits to taxation, loans,crowding-out effects and limits to borrowings. Publicexpenditure and its effects.ECONOMY 3

Question 4

4. International Economics:

Answer 4

(a) Old and New theories of International Trade.(i) Comparative advantage,(ii) Terms of Trade and Offer Curve.(iii) Product Cycle and Strategic Trade Theories.(iv) Trade as an engine of growth and theories ofunderdevelopment in an open economy.(b) Forms of Protection : Tariff and quota.(c) Balance of Payments Adjustment : AlternativeApproaches.(i) Price versus income, income adjustmentsunder tixed exchange rates.(ii) Theories of Policy Mix.(iii) Exchange rate adjustments under capitalmobility.(iv) Floating Rates and their Implications forDeveloping Countries : Currency Boards.(v) Trade Policy and Developing Countries.(vi) BOP, adjustments and Policy Coordination inopen economy macromodel.(vii) Speculative attacks.(viii) Trade Blocks and Monetary Unions.(ix) WTO : TRIMS, TRIPS, Domestic Measures,Different Rounds ofWTO talks.ECONOMY 4

Question 5

5. Growth and Development:

Answer 5

(a) (i) Theories of growth : Harrod’s mode];(ii) Lewis mode] of development with surplus labour.(iii) Balanced Unbalanced Growth.(iv) Human Capitals and Economic Growth.(v) Research and Development and Economic Growth.(b) Process of Economic Development of Jess developedcourtries : Myrda] and Kuzments on economicdevelopment and structural change: Role of Agriculturein Economic Development of1ess developed countries.(c) Economic Development and International Trade andInvestment, Role of Multinationals.(d) Planning and Economic Development : changing ro]e ofMarkets and Planning, Private-Pu b1i c Partners hip.(e) Welfare indicators and measures of growth-HumanDevelopment Indices. The basic needs approach.(f) Development and Environmental Sustainabi1ityRenewab1eand Non-renewable Resources,Environmental Degradation, Intergenerationa] equitydevelopment.ECONOMY 5

Question 6

6. Indian Economics in Post-Independence Era :

Answer 6

Land System and its changes, Commercialization ofagriculture Drain theory, Laissez faire theory and critique.Manufacture and Transport: Jute, Cotton, Railways, Moneyand Credit.ECONOMY 6

Question 7

7. Indian Economy after Independence:

Answer 7

A. The Pre-Liberalization Era:(i) Contribution of Vakil, Gadgil and V.K.R.V. Rao.(ii) Agricultrure : Land Reforms and land tenure system,Green Revolution and capital formation in agriculture.(iii) Industry Trends in composition and growth, Role ofpublic and private sector, small scale and cottageindustries.(iv) National and Per capita income : Patterns, trends,aggregate and sectoral composition and changestherein.(v) Broad factors determining National Income anddistribution, Measures of poverty, Trends in povertyand inequality.ECONOMY 7

Question 8

B. The Post-Liberalization Era:

Answer 8

(i) New Economic Reform and Agriculture : Agricultureand WTO, Food processing, subsidies, Agriculturalprices and public distribution system, Impact of publicexpenditure on agricultural growth.(ii) New Economic Policy and Industry : Strategy ofindustrialization, Privatization, Di sinvestment~, Roleof foreign direct investment and multinationals.(iii) New Economic Policy and Trade : Intellectualproperty rights: Implications ofTRIPS, TRIMS, GATSand new EXIM policy.(iv) New Exchange Rate Regime : Partial and fullconvertibility, Capital account convertibility.(v) New Economic Policy and Public Finance : FiscalResponsibility Act, Twelfth Finance Commission andFiscal Federalism and Fiscal Consolidation.(vi) New Economic Policy and Monetary System. Roleof RBI under the new regime.(vii) Planning : From central Planning to indicativeplanning, Relation between planning and market~for growth and decentralized planning : 73rd and 74thConstitutional amendments.(viii) New Economic Policy and Employment : Employmentand poverty, Rural wages, Employment Generation,Poverty alleviation schemes, New Rural, EmploymentGuarantee Scheme.ECONOMY 8