c. s.

(Main} Exam: 2011

_,....._ ' ----
fc-DTN-L-FDA I
ECONOMICS
Pape r I

j Time Allow ed : Three Hours j IMaximum Marks : 300 I

INST RUC TIO NS
Each quest ion is print ed both in Hind i and
- .
in Engli sh.
Answ ers must be writte n in the medi um
specified in the Admi ssion Certificate issue d
to you, which must be stated clearly on the
cover of the answer-book in. the space
provi ded for the purpose. No mark s will be
given for the answ ers writte n in a mediu_m
other than that specified in the Admi ssion
Certificate,
Cand idate s shoul d attem pt Questions no. 1
and 5 which are compulsory, and any three
of the rema ining questions selecting at least
one quest ion from each Section .
.
The numb er of mark s carried by each
quest ion is indic ated at the end of the
question.
Grap hs I illustrations, -
wherever required,
may be Clone in the answer-book itself.

Z<R If , 31'Jil'l!Y (j5J w.r- fiioo reo rrx

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 --..- - --._--

SECTIO N A
1. Answer the following in not more than 200 words
each : 20x3=60
(a) Elucidat e how does Kalecki's theory of distribut ion
share the value of output between labour and
capital.
(b) The margina l efficiency of capital together with the
current rate o(intere st determin e the profitabi lity
of an investme nt project. How does it help in the
selection of an investm ent project ?
(c) Is Friedma n's quantity theory of money close to
Classica l or Keynesia n approach to the aggregat e
demand for money ? Give justifica tions for your
argumen ts.

2. (a) The 'non-riva l nature' of social goods consump tion

has importan t bearing on efficient resource
allocation. Explore the problem with the example s
and diagrams . 20
(b) How does the burden of tax distribut ion between
buyers and sellers in the ratio of elasticity of
demand and that of supply take place ? 20
(c) 'Moneta rists are of the view that only money does
and Keynesi ans believe that money does not
matter.' What is your reasonin g of the extreme
views held by the monetar ists and the
Keynesi ans ? 20

C-DTN-L-FDA 2 [Cof]td.]

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 1. 200 it 31f'Qq;
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C- DT N- l-F DA
3 [C on td .]
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3. (a) What is the difference between horizontal equity
.
and vertical equity while. considering ability to
' .
pay ? How should the problem be resolved ?
Illustrate graphically. 20

(b) What is 'liquidity trap' ? How does it occur ?

Illustrate. 20

(c) Would the introduction cif automatic teller

which allows people to with!f':aw cash
from banks as needed, mak"e deposits more
inconvenient and affect the money s_upply ?
Elucidate. 20

4. (a) How do the small trading. nations share the gains

from trade which occur, as consequence of gains
.
from exchange and from specialisati?n ? 1 20
(b) If all assumptions hold true, how does trade
between nations .tend

to bring about equalisation
- J.

of factor prices ? . . . 20
(c) How does portfolio balance approach differ . from
monetary approach in determining the exchange
I

rate?' 20

'

C-DTN-L-FDA 4 [Contd .]

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......
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C-DTN-l-FDA 5 [Co ntd .J

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 SECTIO N B

5. Answer the following in not more than 200 words .

each : 20x3=60
(a) What do the following terms signify in structur al
transfor mation and growth ?
(i) Kuznets ' U-shape d curve
(ii) Environ mental Kuznets curve
(iii) N-shape d Kuznets curve in the long-run
(b) How can the structur al independ ence between
A-secto r and K-sector in the dualistic economy
foster growth in the absence of external stimuli ?
(c) Compare Human Develop ment Index (HDI) with
. .
Human Poverty Index (HPJ) as a measure of
developm ent. How is the Human Poverty Index
.
different from t.he Happy Planet Index ?

6. (a) Why do energy elasticiti es tend to unity m

industria lly advanced. countrie s.? 20
(b) What are the negative external ities of high energy
coefficients ? 20
(c) How is subsidy better than tariff to achieve
domestic objectives ? 20

C-DnJ,L -FDA 6 [qontd.]

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if i:llfi'!t:J> : 20x3;60

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C-DTN-L-FDA 7 l<:;ontd .]

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7. (a) How does the policy mix of fiscal and monetary
policies .maintain equilibrium 1n balance Or
payments and full employme nt ? 20
(b) How is warranted growth different from natural
rate of growth ? Explain why Harrod's growth
model is called 20
(c) In the contempor ary world of perfect capital
mobility and fixed exchange rates, why is the
'
monetary policy ineffective to maintain
equilibriu m? 20

8. (a) How does Solow incorporat e

investmen t m
education in the growth modelto achieve long-run
growth? 20
(b) What are the objectives of National Environm ent
Policy, 2006 ? 20
(c) What are India's gains under WTO with,
'
respect to
(i) Service sector,
(ii) Globe-Hex model ? - 20 '

C-DTN-L-F DA 8

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C-DTN-L-FDA 9

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 ...-

. IC-DTN-L-FDA I

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Note : Eng lish of the Instr uctio ns is prin ted on

the fron t cover of this ques tion paper.

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 U U

Serial _''--') fC-DTN-L-FDB)

ECONQMICS
P ap er -II

(Time Al lo we d: Three Hours)

(Maximum M ar ks : Joo)
INSTRUCTIONS
Each question is pr in te d both in
Hindi an d
in English.
An sw er s mu st be wr itt en in th
e me di um
specified in the Admission Certific
ate issued
to yOu, which must be sta ted cle
arly on the
co ve r of th e an sw er -b oo k in
Jhe sp ac e
provided fo r the purpose. No ma
rks will be
given fo r the answers written in
a medium
other than that sp ec ifi ed in the
Admission
Certificate.
Ca_ndidates should attempt Questio
n Nos. 1
an d 5 which are compulsory, an d
2 any !hree
of the remaining questions selectin
g at least
on e question from each Section.
The number ofmarks carried by ea
ch question
is indicated at th e en d of the _que
stion.
EJWr : 3f-Jfflr q;r qi"'<H "9V"f-rr:r <f> fCIE9f!
yrs<:i TIT Ef fl I
I

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 , SECTION-A
I. Answer the following questions in about 150 words
each:-
(a) Discuss Amartya Sen7s poverty measure and recent
advances in pqverty. measurement. 15
(b) Throw light on wage-goods model of C.N. Vakil
and P.R. Brahrnanand.
.

15
..
(c) Discuss policy of Discriminating Protection and
its impact oirlndian industrial development during
the British period. 15
(d) "By restricting social benefits to BPL households,
the poverty line (in India) wi!l be fully converted
from a statistical benchmark to a real-life social
division" (Dreze ). Discuss. 15

2. (a) Poverty alleviation strategy of.the day is moving

ahead of Redistribution with Growth (RWG) of
Chenery and the World Bank and Dreze and Sen's
Growth-mediated security and Support-led security
strategies to Empowerment, Opportunities and
Security lines. Elaborate. 30
(b) Elaborate upon Gandhian. versus Nehruvian visions
of India's development. Do you think Gandhian
approach is again attracting scholars and the
people ? Give reasons. 30

2 (Contd.)

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1.

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15
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ID -ufr I 30
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<i't 'if>\ \m ? ifii(OI I 30
3
(Contd.)

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 3. (a) "India urgently needs yet an
other Green Revolution
by infusing modern technolo
gies lik e IC T and
Space technologies an d Stra
tegic M an ag em en t
techniques to come up with de
mand side pressures
re su lti ng in pe rs is te nt f()od
in fl at io n in th e
economy!' Do you. ag re e?
30
(b) Critically examine the p
oint of view that RBI's
re ce nt m ea su re s at co nt ai ni
ng in fla tio n ha ve
compromised growth.
30
4'. (a) "T he de cl in in g share of
co m m od ity pr od uc in g
sectors--agriculture and in du st
ry -a nd rising share
of Services sector is creating
imbalances of far-
reaching consequences in'the ec
onomy." Critically
analyse.
30
(b) Analyse the recent trend of
gross capital formation
in ag ric ul tu re . H as it, do
yo u th in k, be en
re sp on si bl e fo r th e sl ug gi sh
gr ow th ra te in
agriculture ?
30

S E C TI O N -B
5. Answer the following questio
ns in around 150 words
ea ch :-
(a) Th ro w li'ght on th e PU
R A m od el of ru ra l
development.
15
(b) Write on second-generatio
n economic reforms in
India.
15
4 (Contd.)

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15
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5 (Contd.)

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 (c) Write on the unfinished agenda of Doha Round
of negotiations of the WTO. 15
(d) Write on Indo-ASEAN'trade relations. 15
6. (a) Is India ready for fuil capit al accou nt
convertibility ? Assess. 30
(b) Compare the role of Foreign Direct Inves tment
(FDI) and Foreign Institutional Investment (FII's)
in India 's econo mic devel opme nt. Are FDI's
preferable to Portfolio Investments ? Evaluate.
30

7. (a) Analyse the impact 9fMN REG A on rural and

urban wages and rur!ll migration. 20

(b) Discuss salient.economic ff!:lltures of73' d and 741h
Constitutional amendments. 20
(c)
,, Examine the challe ngesi o export diversification
and increase in export competitiveness of India.
20
8. (a) In view of fresh fears of global financial crisis
arising out of decelerating credit rating of the U.S.
economy and sovereign debt crisis in 'peripheral
Euro-Zone economies analy sdfs likely impact on
India 's trade and grqwth performance. Suggest
measures to contain it. 40
(b) Write in brief on Speda l Economic Zones (SEZ)
and their socio'-economic repercuiisions. 20
6 (Contd.)

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8

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