SECTION-A
1. Answer any THREE of the following questions. Each answer should not exceed
200 words: 20-3=60
(a) What is meant by oligopoly? In what respects is it different from other forms
of market? Show that an oligopolist may face a kinked demand curve.
(b) What is inflation? Is cost-push an adequate explanation of inflationary
process?
(c) Explain Keynes' Absolute Income hypothesis. Give a critical evaluation of
this theory.
(d) Elucidate the concept of Social Welfare Function. Critically examine this
approach.
2. Describe the fiscal and monetary policies of economic stabilization. Make a
comparative analysis of their effectiveness in developed and developing economy.
60
3. "In the Keynesian system, aggregate demand determines the conditions of labour
market, whereas in the classical system, the labour market takes care of itself."
Explain this statement. 60
4. "Marginal Productivity Theory of Income Distribution is analytically sound but in
real life equally inapplicable." Discuss this statement. 60
SECTION B
5. Answer any THREE of the following questions. Each answer should consist of
not more than 200 words 20x3=60
(a) Explain how Neo-Classical growth theory removes the rigidity in Harrod-
Domar growth model in explaining the growth process.
(b) Discuss critically the role of International Monetary Fund in imparting
stability in international monetary system.
(c) Examine the efficacy of HDI as indicator of human welfare.
(d) Give salient features of WTO Agreement in relation to agriculture. In this
context explain the concept of TRIPS.
6. Examine the effects of quota and tariffs on terms of trade. Discuss the advantages
of quota over tariffs in the present day context. 60
7. Do you agree with the 'Limits to Growth' thesis? Is it relevant in the context of
developing economies? In this context discuss the concept of sustainable
development 60

8. Discuss the factors responsible for increasing government expenditure. In this
context evaluate the Wagnar's law and Peacock-Wisemen hypothesis as
explanations of growing public expenditure. 60
PAPER - II - 2005
Time Allowed: Three Hours Maximum Marks: 300
Candidates should attempt Questions 1 and 5 which are compulsory, and any THREE
of the remaining questions selecting at least ONE question from each Section.
SECTION-A
1. Answer any three of the following questions in about 200 words each:
20 x 3 = 60
(a) What was the impact of the Great Depression in 18731896 on India?
(b) Write a detailed note on the structure & determinants of rural poverty in India.
(c) Critically appraise the National Rural Employment Guarantee Scheme that
has recently been proposed by the Government of India.
(d) What is the role played by basics (wage goods) and non-basics (luxury goods)
in a model of development for a mixed economy?
2. Write an essay on the 'drain of wealth' controversy in India in the nineteenth
century. 60
3. What are the determinants of the distribution of income in India? 60
4. What would be the constituents of an optimal agricultural exports strategy for
India? 60
SECTION B
5. Answer any three of the following questions in about 200 words each:
20 x 3 = 60
(a) Write a detailed note on endogenous money and India
(b) Comment on the proposition that inflation in India is a monetary phenomenon.
(c) What has been the impact of import liberalisation on Indian Manufacturing
Industries since July 1991?
(d) What are the major characteristics of Value Added Tax (VAT) in India?
6. Justify the relevance of Banking liberalisation in India. 60
7. Weigh the pros and cons of inflation targeting as the objective of the Reserve
Bank of India (RBI). 60
8. Critically evaluate the process of 'trickle down' as a policy stance for Indian
economy. 60