Section - A

(Attempt all the eight parts of the question in about 50 words each):

Marks: 5 × 8 = 40

1. Elaborate the following:

(a) 'Supply creates its own demand'.

(Comment for solution.)

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(b) Option Contract and Future contract.

(Comment for solution.)

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(c) High Powered Money.

(Comment for solution.)

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(d) New Keynesian Philips Curve.

(Comment for solution.)

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(e) Absorption and Elasticity approaches.

(Comment for solution.)

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(f) Trade Creation and Trade Diversion.

(Comment for solution.)

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(g) Capability Poverty and Human Poverty.

(Comment for solution.)

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(h) Gilt edged security market.

(Comment for solution.)

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Section - B

(Answer any ten of the following questions in about 150 words each):

Marks: 12 × 10 = 120

2. "Speculations may do no harm as bubbles on a steady stream of enterprise, but the position is serious when enterprise becomes the bubble on whirlpool of speculation. When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be undone" Examine the Keynesian proposition to explain meltdowns/recessions in economies of the world.

(Comment for solution.)

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3. Explain knife-edge balance in Harrod-Domar model of growth.

(Comment for solution.)

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4. Explain Michael Lipton's 'Urban-bias' in development and dichotomy of development in developing countries like India.

(Comment for solution.)

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5. Examine Bhagawati-Sen controversy on growth via enhancing social infrastructure (education and health) when the economy is in recession.

(Comment for solution.)

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6. Discuss Harvey Leibenstein's classifications of characteristics of underdeveloped economies.

(Comment for solution.)

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7. What is Green NNP? Elucidate whether Green NNP can be used as a sustainability indicator.

(Comment for solution.)

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8. How far A K Sen's poverty alleviation strategy draws upon Rawlsian theory of justice and Nozick's view on entitlement ? Discuss.

(Comment for solution.)

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9. When the rate of interest becomes very low the liquidity preference becomes absolute. Explain.

(Comment for solution.)

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10. Examine the relationship betweent stock market and industrial growth.

(Comment for solution.)

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11. What are the salient features of the Chicago school of thought in monetary economics? Discuss.

(Comment for solution.)

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12. "The need for balanced growth rests on the need for a balanced diet". Explain.

(Comment for solution.)

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Section - C

(Answer any two of the following questions in about 300 words each):

Marks: 20 × 2 = 40

13. How does endogenous technological progress, driven by human capital formation and R & D, offsets diminishing returns to physical capital? Discuss.

(Comment for solution.)

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14. What is a non-bank financial intermediary? How does it influence the efficacy of monetary policy ? Discuss.

(Comment for solution.)

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15. Examine Sen's capability approach to economic development Also discuss poverty alleviation strategy in the light of the above approach.

(Comment for solution.)

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