WEST BENGAL CIVIL SERVICE
EXAMINATION - 2001
Economics Paper-I
Time Allowed-3 Hours Full Marks-100
All questions carry equal marks.
Answer six questions taking two from each unit.
Unit-1
1. Draw the price offer curve and demand curve for normal goods. Show the differences of these when the goods
(a) is perfect substitute, and
(b) is perfect complement.
2. In two asset model what happens to the individual's budget constraint it the return on the risk-free asset goes up but that on the risky asset does not ? What happens if the return on the risky asset goes up but that on the risk-free asset does not ?
3. What are the different types of price discrimination followed by a monopolist ? What are the conditions that facilitate price discrimination ? How does a discriminating monopolist maximize profit ?
4. Using dominant firm model to analyse the operation of cartels
(a) how would you measure the monopoly power of cartel ?
(b) Show why the elasticity of demand for a commodity and cost differentials between cartel members and other producers are important to the oepration of a cartel.
Unit-2
5. How does the supply adjustment take place in the classical model ? What is the Keynesian alternative to that process ?
6. Explain the concept of natural rate of unemployment. What are the implications of that theory for effective stabilization policy ?
7. In what respect does a quantity theorist differ from a Keynesian ? what is the policy implification of that ?
8. Define high-powered money. How does budgetory deficit effect money supply ? How can budgetary deficit be financed ?
Unit - 3
9. Analyse the effect of full capital account convertibility on the domestic economy of India under flexible exchange rate,
10. What are the main assumptions of Hukscher-Ohlin model of international trade ? In what respect is it an improvement over Ricardian theory of comparative advantages ?
11. What is meant by Human Resource Development (HRD) ? Explain the main components of HRD programme essential for development in a less developed economy.
12. What is meant by warranted rate of growth ? Explain the conflict between the warranted rate of growth and the natural rate of growth.
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