CS (MAIN) EXAM:2018 arigima (994-Ta-1) wer-wa wert fase ager (pra wet & ome 83 8 qi Revferiem ards sgt a1 cars oe) wee srs wer & ot St ae) 4 frit 8 oer fet wa atte Seif wa Hy wtenel at ge ute weal zeae 8 By wer Fem 1 ok 8 sifted § gen ark eet Fa wet ee 8 tay om ee ge ae wel oe aif were wea unr & fem fran ate sees om fee my E) Bel & am seh sofia sem 8 feed wrt softy, fren sae re wanes 8 fase on 8, ah ge mea a oe We we-we-a (ze He ye) gftan & gage Pike ere we fan WET eTieC site Hers a arate Sr Feral mony 8 fra nm, set at std sia ae fey wal A eg dim, set GRE 2, an gees fen arn afc re /frertrae, set aret wh, wer ae fl ae A fee Ake ae shea wear/bar BL wel seth A overar serge A ee | aA aren He eh, a) wee oe A eR A Sel aR ae ae tere: fee ra au wewe-aet gear # aeh Stet BoM FU we sig at ee wa a wer AT ATER) ECONOMICS (PAPER-1) ‘Time Allowed : Three Hours: QUESTION PAPER SPECIFIC INSTRUCTIONS (Please read each of the following instructions carefully before attempting questions) There arc 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 question 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 partion of the page left blank in the Question-cum-Answer Booklet must be clearly struck off. £OT-p-ECOR/4 1 [P.T.0,WE—A | SECTION—A 1. frefafaa 48 wee we ar oH aT 150 uel A Ohm: Answer the following questions in about 150 words each 10*5=50 (a) a wafeartta: weet ae as ware a ees sities erm BP Does @ monopolistically competitive market lead to excess capacity under price competition? fb) Pea wal A erie wits a oneer ea Re ge AM a ere APG) Explain some of the measures for assessing the monopoly power of a firm. fo) ee Wae-Wete We Bigs ar wan at ge eae Fh went sraediie fea wan Higa Pia sel tam ae 8 pe wy ea a aT wa aa BL Using the IS-LM model, show how expected deflation may cause equilibrium output to remain at less than full-employment level. (a) Fa Petia maa (eerste) Preranh Hecate wr es cofke aitora 8? sea sae & fey rer fa | Js stagflation a logical outcome of Keynesian orthodoxy? Give reasons for your answer. fe) areas aa en BP re fry Fs everett fa A feats fae weet omr-aifs gar she aa TH SH wwf FAA What is high-powered moncy? Explain how changes in short-term monetary policy affect high-powered money and money multiplier. 2. (@) we Aim fe ghia (Fe) & feet sie A fe are wes wi A gt wi ater 4 Ft rom ee 2) Explain why in a duopoly model of collusion, each firm has an incentive to cheat the other, 15 (bp onigy fi seqfiner arom 8 ufo Go ary ce weet oe fig weer oe Fine seo eT Bert ee ae 81 Show how a dominant firm with a competitive fringe can act as a price leader in an oligopoly market. 15 fe) ses fram Reto ht eden aga Shim am a mag en a gfe ok awa a A ash a fae one et ere fag) Give an outline of Kaldor's theory of distribution. Also explain the implications of an increase in the wage level and a reduction in the saving rate on the distribution of income. 20 KeE-p-£eOn/4 23. fa) We Reward wise 4 aft ain ote Ran cel ona & wer a, ct vee fea rR oe Ben? In the simple Keynesian model, if consumption and investment are both functions of income, how would the miultiplier be affected? 15 ®) fete ant? agate gerd an dace Gees) Areva aia 8 feet & were aren fifa What is hysteresis? Explain the impact of hysteresis in Gradualist Monetarist and Eclectic Keynesian frameworks, is () 7a safe Rett ar gare eet Ee ong anes sect ait ae Fi fea cee carr Bthy How will you derive the real aggregate demand curve using the New Classical ‘Theory? 20 4. (a) Be wetiss en Gen 8? ten Fen A eer TT ee AE What is interest rate targeting? Explain using the concept of Taylor rule, 15 (o) Tab neem are get anderen aahie wes geee-ghe a oe ee eee OM 3) aren Fim) In an open economy with high capital mobility, monetary management can be a successful tool to increase output. Explain. 15 (eo) FOR I ae a Aen A oh othe of A tae ee ee th eg acre BAe aT Aft The burden of tax depends upon the elasticity of demand and supply of a commodity or service. Explain with suitable examples. 20 WE—B / SECTION—B 8. fraffaa #8 wes wa et oR on 150 wet A Af : Answer the following questions in about 150 words each = 105-50 (a) aca -Praané ef 3, fem fei fo sage eran afte fea etm she see aE? ‘Under what conditions will devaluation create trade surplus and jincresse output in the simple Keynesian framework? (o) aire fat an eh 87 oie geste A eat aran stadt ati ater A anf BF What are shadow prices? Why are these preferred over market prices in project evaluation? fo) Hate % he & aie 4, af wenfte aafa m safe (ate) daha ee sire wh, at areal age a seonfira date a afte en chi en? In Harrod’s model of growth, if the expected growth rate exceeds the warranted growth rate, what will be the relation between the actual growth rate «nd the ‘expected growth rate? £eT-p-£COR/4 3 [P-7.0,