Economics

Report on the Workshop on ‘Better Question Papers in Economics’

Model Question Papers for B.A. Economics

1. MONETARY ECONOMICS2. MACRO ECONOMICS3. MICRO ECONOMICS4. INDIAN ECONOMY - PROBLEMS, POLICIES AND

PROSPECTS5. STATISTICS6. FISCAL ECONOMICS7. ECONOMIC THOUGHT

MONETARY ECONOMICS

M C Q ( 4 x 1 = 4 marks)

1. Which of the following would not be considered as near-money?a) Time Depositsb) Saving and loanc) Treasury billsd) Demand Deposits

2. ‘High-powered’ money is:a) Only banks’ reserves with the Central Bankb) All bank loansc) Loans and security of banksd) Rupees held as legal bank reserves

3. In the Hekscher - Ohlin Theory, the most important cause of the difference in relative commodity prices and trade between nations is a difference in:a) Factor Endowmentsb) Technologyc) Tastesd) Demand conditions

4. Supply of money is:a) a stock conceptb) a flow conceptc) Both stock and flow conceptd) Neither a stock nor a flow concept

State whether the following statements are True or False

5. Scheduled Banks do not come under commercial banks (T/F)

6. Bank Rate Policy is one of the quantitative credit control methods (T/F)

Fill in the blanks:

7. Inflation is a situation is which the _______________ consistently rises (price level)

8. ____________________ is a Bankers’ Bank (Central Bank)

Match the following:

9. List A List B

1. Inflation a. Inflation + stagnation

2. Deflation b. Revival from deflation

3. Stagflation c. Decrease in price level

4. Recovery d. Too much of money chasing too few goods

e. Stability of price level

V. Short answer questions

1. State the functions of money2. What is value of money?

State Grasham’s Law3. Define neutrality of money4. Define classical Dichotomy5. What are the constituents of money supply?6. What are the stages of trade cycle?7. Name 4 term financing institutions in India?8. Define Real Balance Effect9. State Friendman’s Quantity Theory10. Name the instruments of quantitative credit control

Short answer Questions

11. State the advantages of paper currency12. Mention the features of the Gold standard13. Distinguish between ‘Demand-pull’ and ‘Cost-push’ inflation14. What are the assets of commercial banks?15. Enumerate the objectives of Nationalisation of commercial banks in

1969.16. What are the objectives of monetary policy?17. Distinguish between fixed and floating exchange rates.

Long answer Questions

18. Compare and contrast Fishers Equation and Cambridge Equations19. Evaluate the role of RBI in the agricultural and industrial development

of India20. Explain the Hawtrey’s theory of trade cycle.21. Explain the role of IMF in solving the problem of international

Liquidity

Unit/Type ofquestion

Objective typeA. Section

V. Short Short Long Total No. of Questions

Multiple Choice

Fill up True/False Matching

Unit I 2 1 3II 1 1 2

III 3 2 5IV 1 2 1 1 5V 1 1 1 1 4

VI 1 1 2VII 1 1

VIII 1 1 1 1 4IX 1 1 2X 1 1 2

Total No. ofQuestion

4 2 2 1 10 7 4 30

MACRO ECONOMICS

Section A (One mark each)

Answer all the questions

1. Which one of the following is a transfer income?a. The salary of MLAb. Company dividends to share holdersc. Rent from house propertyd. Unemployment allowance

2. Equilibrium of an economy need not be at full employment level who said this?a. Adam Smithb. Ricardoc. Karl Marxd. Keynes

3. Laissez faire policy is advocated bya. Adam Smithb. Samuelsonc. Hicksd. Keynes

4. Unemployment is severe duringa. Recessionb. Boomc. Depressiond. Recovery

5. GNP - Depreciation = G.D.P (True/False)

6. MEC is high when there is business optimism (True/False)

7. The measure of MPC is ______________.

8. Consumption function states the relationship between consumption and ________________.

9. Match the following (2 marks)

A B1. Aggregate Economics a. Marshall2. Disguised unemployment b. R.F. Khan3. Employment Multiplier c. Dvesenberry4. Demonstration Effect d. J.M. Keynes

e. Joan Robinson

Section B (2 x 10 = 20 marks)

Answer all the questions in 30-40 words each

10 Define trade cycle11. State Marshall’s definition of National Income12. What is full employment?13. What is the Pigou effect?14. State Keynes’ psychological law of consumption15. What is autonomous investment16. Give the measure of acceleration co-efficient17. What is leverage effect? 18. What do you mean by real sector?19. What is dear money policy?

Section C (6 x 5 = 30 marks)

Answer any five of the following in 200 words each

20. Explain the importance and limitations of Macro Economics.21. Describe the various types of unemployment22. Explain Say’s Law of Markets and bring out its implications23. Elucidate the concept of effective demand24. What are the factors promoting private investment25. Describe the working of accelerator26. Explain the objectives of monetary policy

Section D (20 x 2 = 40 marks)

Answer any two of the following in 1000 words each

27. Examine the applicability of Keynesian theory of employment to under developed economics

28. What are the leakages that make income multiplier less effective?29. Examine the various problems in the estimation of national income in

developing countries. How can they be overcome?30. Describe the subjective and objective factors determining

consumption function

Unit/Type ofquestion

Objective typeA. Section

V. Shortanswerquestions

Shortanswerquestions

Longanswerquestions

Total No. of Questions

Total Marks

Multiple Choice

Fill up True/False

Matching

Unit I 1 1 2 8II 1 1 1 1 4 24

III 1 2 1 4 11IV 1 1 1 3 9V 1 1 1 3 27

VI 1 1 1 3 23VII 1 1 1 3 9

VIII 1 1 2 21IX 1 2 1 4 12X 1 1 2 8

Total No. ofQuestion

4 2 2 1 10@ 2

marks

5/7@ 6

marks

2/4@ 20 marks

26/30

Total marks 4 2 2 2 20 30 40 100

MICRO ECONOMICS

Objective Type - 10 marks - Answer all questions

Multiple choice ( 4 x 1 = 4 marks)

1. Micro economics deals witha) Firm b) Industry c) Economy d) World

2. When total production is maximuma) the APL is zero b) the MPL is zeroc) the APL is negative d) the APL is declining

3. For a firm to be in equilibriuma) MC = MR b) AC = AR c) MR = AR d) AC = MC

4. Quasi - rent is a a) temporary earnings b) medium-term earningc) permanent earnings d) long-term earnings

True or False (2 x 1 = 2 marks)

5. Utility is essentially a subjective concept

6. Marginal cost is defined as the change in the average cost resulting from a one unit change in output

Fill up the blanks ( 2 x 1 = 2 marks)

7. Monopoly refers to ___________________

8. Interest is reward for ___________________

Match the following ( 4 x ½ = 2 marks)

9. a. Elastic demand (i) ep = b. Inelastic demand (ii) ep = 1c. Unitary elastic demand (iii) ep 1d. Perfectly elastic demand (iv) ep = 0

(v) ep 1

Non-objective

Very Short Answer - Answer all questions

Each question carries equal marks ( 10 x 2 = 20 marks)

1. State scarcity definition of economics2. What do you mean by consumer’s surplus?3. What does the budget line indicate?4. Define constant returns to scale in production?5. What is the difference between implicit cost and explicit cost?6. What is pure competition?7. What is oligopoly?8. What is functional distribution of income?9. Define Quasi - rent10. Distinguish between risk and uncertainties

Short Answer - Answer any five

Each question carries equal marks ( 5 x 6 = 30 marks)

11. State the differences between micro and macro economics12. Elucidate the properties of consumer’s indifference curve13. Bring out the relationship between total, marginal and average

revenue functions.14. Describe how price is determined under monopolistic competition.15. State the functions of trade unions.16. List out the different types of risks by knight in his theory of profit.17. What is liquidity trap?

Long Answer - Answer any two questions

Each question carry equal marks ( 20 x 2 = 40 marks)

18. Examine the Walrasian General Equilibrium analysis19. Evaluate Revealed preference theory20. Explain the price determination in monopoly and discriminating

monopoly21. Critically examine the Ricardian theory of rent.

Unit/Type ofquestion

Objective type Non-objective type Total No. of Questions

Multiple Choice

Fill up True/False

Matching V. Shortanswerquestions

Shortanswerquestions

Longanswerquestions

Unit I 1 1 1 1 4II 1 1 2

III 1 1 1 3IV 1 1 1 3V 1 1 1 1 4

VI 1 1 1 3VII 1 1 2

VIII 1 1 2IX 1 1 1 1 4X 1 1 1 3

Total No. ofQuestion

4 2 2 1 10 5/7 2/4 26/30

Marks 4 2 2 2 20 30 40 100

INDIAN ECONOMY - PROBLEMS, POLICIES AND PROSPECTS

MCQ - 4 marks

1. The U.N. experts (1951) have defined an under developed economy as one in which per capita real income is low when compared to that ofa) USA, Canada, Australia and W. Europeb) USA, Japan, UAE and Englandc) USA, Japan, W. Germany and Franced) USA, Japan, Canada and Australia

2. Economic causes of under development of India is/are: (1 mark)a) market imperfectionsb) Predominance of agriculture c) Lack of technical knowledged) All of these

3. According to the ‘vicious circle of poverty’, doctrine, poverty is widespread in LDCs because ofa) Low income and low savingsb) Low capital formationc) Low productivityd) All of the above

4. Regionwise, among the following, the state at the bottom of the ladder of PCI is:a) U.P b) J & K c) Punjab d) Tamil Nadu

State whether the following statements are True/False ( 2 marks)

5. The Chairman of the Planning Commission is the Finance Minister

6. The process of economic growth brings about a structural change in the economy in favour of the Tertiary sector.

Fill in the blanks (2 marks)

7. _____________________ point programme was introduced by P.M. Indira Gandhi

8. In Transport, the _________________ system in India is the second largest in the world

9. Match the following:

List I List IIa. Malhotra Committee 1. PSU Disinvestmentb. C. Rangarajan Committee 2. Insurance sectorc. Goswami Committee 3. Financial systemd. Narasimhan Committee 4. Industrial Sickness

5. Voluntary Disclosure of Income scheme

Non-Objective

V. Short Questions ( 10 x 2 = 20 marks)Answer all questions (Each questions carries 2 marks)Each answer should not exceed 30 words

1. State any 4 objectives of planning2. Define Rolling Plan3. Define Industrial sickness4. What is TDS?5. Define poverty line.6. Define quality of life.7. What is Transport Coordination?8. What is the second generation green revolution?9. List any 4 causes for labour unrest in India.10. List any 4 objectives of WTO

Short Questions ( 5 x 6 = 30 marks)

Answer any 5 questions (Answer should not exceed 200 words)

11. Explain the role of small-scale Industries in India.12. What are the non-economic factors influencing economic

development?13. Distinguish between agricultural and Industrial labour.14. Explain the concept of HRD.15. What are the causes of regional disparities?16. Enumerate the difficulties in the calculation of National Income in

India.17. What is the role of Technology in economic development?

Essay Questions ( 2 x 20 = 40 marks)Answer any 2 questions (Answer should not exceed 1000 words)

18. Discuss the salient highlights of the National Population Policy.19. Describe the factors responsible for disequilibrium in India’s Balance

of payments. Explain the remedial measures20. Discuss the New Industrial Policy, 1991 and subsequent

modifications.21. Assess the achievements and failures of planning in India.

Unit/Type ofquestion

Objective type Non-objective type Total No. of Questions

Multiple Choice

True/False

Fill up

Matching V. Shortanswerquestions

Shortanswerquestions

Longanswerquestions

Unit I 3 1 1 1 6II 1 1 2

III 1 1 1 3IV 1 1 2V 1 1 1 3

VI 1 1 1 1 3VII 1 1

VIII 1 1 1 3IX 1 1 1 1 4X 1 1 1

Total No. ofQuestion 4 2

2 1 10 5/7 2/4 26/30

Marks 4 2 2 2 20 30 40 100

STATISTICS

Part AAnswer all questions (8 x 1 = 8)

1. Primary data can be collected througha) Questionnaireb) Direct personal Interviewc) Scheduled) All the above

2. Positional Averagea) Meanb) Harmonic Meanc) Geometric Meand) Quartiles

3. S.D. is a measure ofa) Centre Tendencyb) Dispersionc) Skewnessd) All the above

4. Correlation depicts

a) Degree of association between x and yb) Cause and effect relationshipc) Absence of relationshipd) All the above

5. As the size of sample increases, the sampling error _____________

6. Skewess is a measure of lack of _________________

7. Statistics in singular means ‘Statistical data’ (True/False)

8. The following is the inclusive method of classification (Tue/False)

x f10 - 20 520 - 30 630 - 40 7

9. Match (4 x ½ = 2 marks)

1. Spearman a. Rank Correlation2. Irving Fisher b. Ideal Index number3. Lorenz curve c. Dispersion4. Ogive curves d. Median

e. Modef. Karl Pearson

Part – BVery Short answer QuestionsAnswer all questions (10 x 2 = 20)

1. State any two limitations of statistics2. State the sources of collecting secondary data3. Mention any two bases for the classification? (of data)4. List out the properties of Arithmetic Mean5. What is the use of co-efficient of variation?6. Define Kurtosis?7. Give the equation which brings out for relation between regression

and correlation?8. List out the components of Time-series9. What do you mean by random sampling?10. Define the GNP

Part - CShort answer questionsAnswer any five questions (5 x 6 = 30)

1. Prepare a blank table to show age wise and sex wise distribution of workers of XYZ company.

2. Draw a histogram for the following data and also estimate the mode

Class interval Frequency0 - 10 610 - 20 820 - 30 1130 - 40 940 - 50 6

3. Estimate Bowley’s coefficient of Skewness for the following data

x f20 - 29 530 - 39 1040 - 49 1550 - 59 1060 - 69 5

4. The following are the scores of the two batsmen x and y. Comment on their performance

x y25 2020 4030 2025 2520 3030 15

5. Two ladies were asked to rank 7 different types of lipsticks. The ranks given by them are given below:

Lipstick A B C D E F GNeelu 2 1 4 3 5 7 6Neena 1 3 2 4 5 6 7

Calculate Spearman’s rank correlation.

6. What are the uses of Index numbers?

7. Comment on the data collection process of N.S.S.

Long Answer Questions

1. Explain the various methods of computation of National income. Does it present a true picture of India?

2. Construct the Fisher’s Index Number for the following data. Prove that it satisfies TRT x FRT

Commodities 1999 2000Qty. Price Qty. Price

A 50 32 50 30B 35 30 40 25C 55 16 50 18D 40 20 45 20

3. Given the following equations and 2x = 9

Estimate x, y, y, r

3x - 2y = -13x - 8y = -13

-3x + 2y = +13x - 8y = -13-6y = -12_y = 12/6 = 2_x = 1

3x - 2y = -1 (1)3x - 8y = -13 (2)

From (1)

3x = -1 + 2y

x = - 1/3 + 2/3 y

From (2)- 8y = -13 -3x- y = 13/8 + 3/8 x

r = 2/3 x 3/8 = .25 = .5

Unit/Type ofQuestion

Objective type Non-objective type Total No. of Questions

Multiple Choice

Supply T/F Matching V. Shortanswerquestions

Shortanswerquestions

Longanswerquestions

Unit I 1 2 1 4II 2 1 3

III 1 2 3IV 1 1 1 3V 1 1 1 3

VI 1 1 1 1 4VII 1 1 1 1 4

VIII 1 2 1 1 5IX 1 1 2X 1 1 2

Total No. ofQuestion

4 2 2 4 10 5/7 2/4 26/33

Marks 4 2 2 2 20 30 40 100

FISCAL ECONOMICS

Objective type questions (4 x 1 = 4 marks)

1. The Greek work ‘FISC’ refers to a) Private Financeb) Public Financec) Public Treasuryd) Both Public and Private Finance

2. Revenue from Administrative Services comes under -a) Tax Revenueb) Non-Tax Revenuec) Public Debtd) Fiscal Policy

3. Civil expenditure is incurred for the maintenance of -a) Law and orderb) Industrial growthc) Health Servicesd) Defence

4. Dead weight debt refers to the -a) Debt for Development of Industriesb) Debt for Development of Agriculturec) Debt for Development of Roadsd) Debt contracted during war time

True or False

5. (a) Impact of Tax is on the person who bears the money burden at the first instance (T/F)

(b) In a federal set up there is likely to be Financial imbalance between the Governments (T/F)

Fill in the blanks

6. a) Under article 280 of the constitution of India, the Finance Commission is appointed by the ______________ of India.

b) In a balanced budget, expenditure ________________ to revenue

7. Match the following

1. Advalorem a. Balancing factors in federal Finance2. External loan b. Public expenditure3. Grants in aid c. Based on value of commodities4. Adolf Wagner d. Loan raised from abroad

e. Canons of Taxation

Very short answers (30 to 50 words) (10 x 2 = 20)

1. Define Fiscal Economics2. Define Taxable capacity3. Name the sources of Non-tax revenue4. What is forward - shifting of tax?5. What is principle of sanction in public expenditure?6. What do you mean by ‘sinking - fund’?7. What is deficit financing?8. Define Budget?9. What is fiscal Policy?10. What is local Finance?

Short Answers (5 x 6 = 30)

1. Distinguish between public and private finance2. State Adam smith’s Canon’s of taxation3. What are the merits and demerits of direct taxes?4. Write a note on ‘Sales tax’5. Account for the growth of public expenditure in India in recent times6. Point out the objectives of deficit financing7. State the recommendations of the Tenth Finance Commission

Long Answers (2 x 20 = 40)

1. Discuss the principle of ‘maximum social advantage’ as applied in the field of public finance. What are its limitations?

2. Explain various methods of redemption of public debt.3. Discuss the role of fiscal policy in India in the present context.

4. Explain how the financial adjustments are made between the centre and the State.

Unit/Type ofQuestion

Objective type Non-objective type Total No. of Questions

Multiple Choice

Supply T/F Matching V. Shortanswerquestions

Shortanswerquestions

Longanswerquestions

Unit I 1 1 1 1 4II 1 1 2 3 7

III 2 1 3 1 1 8IV 1 3 1 1 6V 1 1 1 1 1 5

Total No. ofQuestion

4 2 2 1 10 5/7 2/4 26/30

Marks 4 2 2 2 20 30 40 100

ECONOMIC THOUGHT

Section - A

Objective Type of questionAnswer all the questions

Choose the correct Answer ( 4 x 1 = 4)

1. Which of the following economists does not belong to classical school?a) Malthusb) Ricardoc) J.S. Milld) A.C. Pigou

2. Find out the Nobel Laureate among the following:a) Hicksb) Amertheya Senc) Dr. Ambedkard) Rajaji

3. “Rural Development is the basis for overall economic development” This was the view ofa) M.K. Gandhib) R.C. Duttc) Indra Gandhid) Jawaharlal Nehru

4. V.K.R.V. Rao is associated witha) The Five Year Planb) Politics in Indiac) Finance Commission in Indiad) All the above

Fill up the following ( 2 x 1 = 2)

5. Surplus value is associated with _____________ as a factor of production.

6. Optimality as a measure of welfare was given by _______________

State whether the following are True or False (2 x 1 = 2)

7. According to mercantilists agriculture is the basis for all economic activities (T/F)

8. Classical economists assumed the existence of full employment equilibrium (T/F)

Match the following ( 4 x ½ = 2)

9. 1. Adamsmith a. Welfare2. Karl Marx b. Classical3. Alfred Marshall c. Socialist4. A.C. Pigou d. co-classical

e. Institutional

Section - B

Very Short Answers (30 - 50 words) (10 x 2 = 20)

10. State the economic doctrine of physiocrats.11. State Malthusian perception of the economy12. State the theory of surplus value by Karl Marx13. What is meant by ‘marginal school’?14. Name any two economists of Austrian school15. What do you mean by ‘Comparative Static’?16. Mention any two Nobel laureates since 198517. State the most important contribution of Dr. Ambethkar18. What is meant by ‘Gadgil Plan’?19. Mention any four points of the ‘20 point’ programme of the former

Prime Minister Mrs. Indira Gandhi

Section C

Short Answer Questions (5 x 6 = 30)

20. Narrate the contributions of David Ricardo21. What is the contribution of Marginal school?

22. Enumerate the Pigouvian ideas of welfare economics23. Outline the contributions of Dadabai Nauroji24. Write a note on Trusteeship25. What is Nehru’s contribution to Indian Economic Development?26. Trace the recent trends in Indian Economic thinking

Section D (2 x 20 = 40)

Long Answer Questions (2 x 20 = 40)

27. Critically examine the rise and fall of Marxism28. Examine the relevance of Keynesian economics to developing

economy.29. Explain the Walrasian General Equilibrium Theory.30. Evaluate the contribution of Dr. V.K.R.V. Rao.

Unit/Type ofQuestion

Objective type Non-objective type Total No. of Questions

Multiple Choice

T/F Fill Matching V. Shortanswerquestions

Shortanswerquestions

Longanswerquestions

Unit I 1 1 2II 1 1 1 1 1 5

III 1 1 2 1 5IV 1 1 2V 1 1 2

VI 1 1VII 1 1 1 1 4

VIII 1 1 2IX 1 1 1 3X 1 2 2 1 6

Total No. ofQuestion

4 2 2 4 10 6 4 32