1. Answer any THREE of the following questions. Each answer should not exceed
200 words: 20-3=60
(a) What is meant by oligopoly? In what respects is it different from other forms
of market? Show that an oligopolist may face a kinked demand curve.
(b) What is inflation? Is cost-push an adequate explanation of inflationary
(c) Explain Keynes' Absolute Income hypothesis. Give a critical evaluation of
(d) Elucidate the concept of Social Welfare Function. Critically examine this
2. Describe the fiscal and monetary policies of economic stabilization. Make a
comparative analysis of their effectiveness in developed and developing economy.
3. "In the Keynesian system, aggregate demand determines the conditions of labour
market, whereas in the classical system, the labour market takes care of itself."
Explain this statement. 60
4. "Marginal Productivity Theory of Income Distribution is analytically sound but in
real life equally inapplicable." Discuss this statement. 60
5. Answer any THREE of the following questions. Each answer should consist of
not more than 200 words 20x3=60
(a) Explain how Neo-Classical growth theory removes the rigidity in Harrod-
Domar growth model in explaining the growth process.
(b) Discuss critically the role of International Monetary Fund in imparting
stability in international monetary system.
(c) Examine the efficacy of HDI as indicator of human welfare.
(d) Give salient features of WTO Agreement in relation to agriculture. In this
context explain the concept of TRIPS.
6. Examine the effects of quota and tariffs on terms of trade. Discuss the advantages
of quota over tariffs in the present day context. 60
7. Do you agree with the 'Limits to Growth' thesis? Is it relevant in the context of
developing economies? In this context discuss the concept of sustainable