IES

.20.10

tt/eri al No. [____2_3_0_1--J) ( B-HL R-K- HFB )

GENE RAL ECON OMIC S II

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(Time Allowe d: Three Hours ) ( Maxim um Marks : 200]

INSTR UCTIO NS

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The questio n paper has 3 Sectio ns-Sec tion-], Il & Ill

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respect ively. Candid ates are to attemp t 7 parts of the
questio n in Section -!; 7 questio ns from Section -11 and
2 questio ns from Section -Ill.
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Candid ates should attemp t questio ns as per the
instruc tions given in each Section .
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The numbe r of marks carrie d by each questio n is
indica ted agains t each
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Answe rs must be written only in Englis h.

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SECT ION- I
Candid ate should attemp t any SEVE N parts of the follow ing
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questio ns. (Answ er to each part should be approx imately

of 50 words) : -
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5x7=3 5
L (a) Explai n the meani ng of "Natio nal Produc t at
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Marke t Prices" and "Natio nal Produc t at Factor

Costs" . Illustra te the relatio nship betwee n the two
types of valuati ons.

1 (Contd.)

 (b) Briefly discuss "Primary and Secondary Markets" .
(c)
(d)
Meaning of "Exchange Rate Risk".

Briefly discuss the merits of "Liquidity Adjustment
Facility" (LAF).
(e) Distinguish between "Hot Money" and "Capital
Flight".

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(f) Explain "Futures Contract". What are the main
types of Futures ?

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(g) State the stages of Economic Growth in Rostow's
modeL

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{h) Explain the term "Capital Deepening". Under what
condition(s) Capital deepening takes place?
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(i) When Financial Markets are said to be perfect ?
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SECTION-II
Candidates should attempt any SEVEN of the following
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questions. (Answer to each question should be approximately

of 150 words) : - 1Sx7=105
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2. State briefly the key propositions of Monetarist School

of Macro Economics.
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3. Elucidate the concept of "Balanced Growth".

Will its achievement be easier if the supply of capital
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is larger than if it is smaller ?

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4. Explain the concept "Capital Market Efficiency".

What are the different forms of the Capital Market
Efficiency ?
2 (Contd.)

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5. "Despite merit, Heckscher-Ohlin theory has some
shortcomings." Discuss.
6. Briefly explain "Net Barter Terms of Trade". What are
the important limitations of the theory ?
7. "The Balance of Payment always balances." Comment
on the statement.

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8. "Growth of GNP is an unfailing Index of a country's
economic progress." Elucidate the idea_
9. The "Physical Quality of Life Index" is an instrument

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to measure development. Elaborate the statement.

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10. Explain briefly the objectives of IMF.

SECTION-III ra
Attempt any TWO of the following questions. (Answer to
each question should be approximately of 500 words) : -
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30x2=60
1L Examine the circumstances that gave rise to the
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mercantilism and those that brought about its decay.

Is the world going back to mercantilism in a new form ?
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12. "Dornar assigned a key role to Investment in the process

of Economic Growth." Keeping the statement in mind
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explain Domar's Economic Growth modeL

13. What is ''Reciprocal Demand" ? Critically evaluate
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Reciprocal Demand Theory.

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