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Reg. No. : ........................................

Code No. : 12405 Sub. Code : R 3 EC 61/ B 3 EC 61

B.A. (CBCS) DEGREE EXAMINATION, APRIL 2015.

Sixth Semester

Economics — Main

MACRO ECONOMICS – II

(For those who joined in July 2008-2011)

Time : Three hours Maximum : 75 marks

PART A — (10 1 = 10 marks)

Answer ALL questions.

Choose the correct answer :

1. ›UPõº÷hõ ö£õ¸Íõuõμzøu GzuøÚz xøÓPÍõP¨

¤›zuõº

(A) Cμsk xøÓPÒ (B) ‰ßÖ xøÓPÒ

(C) |õßS xøÓPÒ (D) CøÁ HxªÀø»

Ricardo divided the economy into how many sectors

(a) Two sectors (b) Three sectors (c) Four sectors (d) None of these

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2. ©õºUêß P¸zx¨£i ©õÖQßÓ ‰»uÚ® Gߣx

(A) EøǨ¤ØPõÚ T¼

(B) {»zvØPõÚ Áõμ®

(C) G¢vμ[PÐUPõÚ •uÀ

(D) CøÁ GxĪÀø»

Variable capital according to Marx is

(a) wage for labour

(b) rent for land

(c) capital for machines

(d) none of these

3. {v •u½k Gߣx

(A) Esø© •u½k

(B) G¢vμ[PøÍ Áõ[SuÀ

(C) HØPÚ÷Á EÒÍ ö\õzxUPÒ ©õØÓ®

(D) CøÁ GxĪÀø»

Financial investment means

(a) Real investment

(b) Purchase of machines

(c) Transfer of existing assets

(d) None of these

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4. •u½møh {ºn°US® PõμoPÒ

(A) Á¸©õÚ®

(B) Ámi

(C) •u¼ß CÖv{ø» BUPzvÓß

(D) CøÁ AøÚzx®

Factors determining investment

(a) income

(b) interest

(c) marginal efficiency of capital

(d) all the above

5. RÛ]¯¨ ö£õ¸Íõuõμ J¸

(A) SÖQ¯ Põ» B´Ä

(B) }sh Põ» B´Ä

(C) ÷uUP {ø» B´Ä

(D) CøÁ HxªÀø»

Keynesian economics is a

(a) Short period analysis

(b) Long period analysis

(c) Static analysis

(d) None of these

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6. ©¢u {ø»ø¯¨ ÷£õUP Rßì £›¢xø쨣x

(A) uÛ¯õº •u½k (B) Aμ_ •u½k

(C) (A) ©ØÖ® (B) (D) CøÁ HxªÀø»

Keynes advocates ——————— to remove depression

(a) Private investment

(b) Government investment

(c) Both (a) and (b)

(d) None of the above

7. ÷£›¯À ö£õ¸Íõuõμ öPõÒøP°À ÷©õuÀ Gߣx

(A) öPõÒøP ÷|õUP[PÎß JØÖø©

(B) öPõÒøP ÷|õUP[PÎß ÷©õuÀ

(C) (A) ©ØÖ® (B)

(D) CøÁ HxªÀø»

TRADE-OFF in Macro Economic Policy means

(a) Co-ordination of Policy objective

(b) Conflict of policy objectives

(c) Both (a) and (b)

(d) None of the above

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8. {ø»¯ØÓ Âø»°ß ÂøÍÄ

(A) £nÃUP® (B) £nÁõmh®

(C) (A) ©ØÖ® (B) (D) CøÁ HxªÀø»

Fluctuations in prices result in

(a) Inflation (b) Deflation

(c) Both (a) and (b) (d) None of these

9. ©¢u Põ»zvÀ ¤ß£ØÓ¨£k® £nUöPõÒøP Gx?

(A) A›¯ £nUöPõÒøP

(B) |k{ø» £nUöPõÒøP

(C) Gί £nUöPõÒøP

(D) ÷©ØTÔ¯ HxªÀø»

Monetary policy adopted during depression is

(a) Dear money policy

(b) Neutral money policy

(c) Cheap money policy

(d) None of the above

10. {vUöPõÒøP vmhzøu A•À£kzxÁx

(A) Aμ_

(B) P®ö£Û £vÁõͺ

(C) C¢v¯ ø©¯ Á[Q

(D) CøÁ HxªÀø»

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Fiscal Policy measure is implemented by the

(a) Government

(b) Registrar of companies

(c) RBI

(d) None of the above

PART B — (5 5 = 25 marks)

Answer ALL questions, choosing either (a) or (b), each answer should not exceed 250 words.

11. (A) {»zv¼¸¢x QøhUS® AvP¨£i¯õÚ

E£›÷¯ Áõμ® – ÂÍUSP.

Rent is the differential surplus earned by land – Explain.

Or

(B) ›UPõº÷hõÂß £QºÄ ÷Põm£õmiß

Gk÷PõÒPøÍ GÊxP.

Write the assumptions of Ricardian theory of distribution.

12. (A) vmhªmh •u½k, Esø© •u½k & ÂÍUSP.

Explain Ex-ante and Ex-post investment.

Or

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(B) ‰»uÚzvß CÖv{ø» BUPzvÓß £ØÔ ]Ö

SÔ¨¦ ÁøμP.

Write a brief note on Marginal Efficiency of Capital.

13. (A) ÁmiÂQuzvØS® ‰»uÚ BUPzvÓÝUS®

EÒÍ öuõhºø£ £ØÔ SÔ¨ö£ÊxP.

Explain the relationship between Rate of interest and Marginal efficiency of capital.

Or

(B) ‘ö©õzu’, ‘{Pμ’ •u½k £ØÔ ]Ö SÔ¨¦ GÊxP.

Write short notes on Gross and Net investment.

14. (A) ö£õ¸Íõuõμ Áͺa] Gߣx \μõ\› GNP

Áͺa] – ÂÁ›.

Economic Growth is percentage increase in GNP – Explain.

Or

(B) ÷£›¯À ö£õ¸ÍõuõμU öPõÒøP°À {ø»¯õÚ

Âø» Gߣx GßÚ?

What is meant by price stability in macro economic policy?

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15. (A) Âø»Áõ]ø¯U Pmk¨£kzu £nU–

öPõÒøP°ß ußø© Pmk¨£õmk •øÓPÒ

GÆÁõÖ £¯ß£kzu¨£kQÓx.

How are the qualitative measures of monetary policy used to control price rise?

Or

(B) £nUöPõÒøP°ß •UQ¯zxÁ® £ØÔ GÊxP.

Write about the importance of monetary policy.

PART C — (5 8 = 40 marks)

Answer ALL questions, choosing either (a) or (b), each answer should not exceed 600 words.

16. (A) ‰»uÚ® GßÓõÀ GßÚ? ‰»uÚzvß £À÷ÁÖ

ÁøPPøÍ ÂÍUSP.

What is investment? Explain the various types of investment.

Or

(B) ysh¨£mh •u½møh £õvUS® PõμoPøÍ

ÂÁ›.

Explain the factors affecting inducement of investment.

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17. (A) RÛ]¯ß Gk÷PõÒPÒ ¤ßu[Q¯ |õkPÐUS

GÆÁõÖ ö£õ¸¢x® Gߣøu ÂÍUSP.

Elucidate the applicability of Keynesian assumptions to under developed countries.

Or

(B) ¤ßu[Q¯ |õkPøͨ £ØÔ¯ Rßêß öPõÒøP

•øÓø¯ ÂÍUSP.

Explain the policy measures of Keynes towards under developed countries.

18. (A) ÷£›¯À ö£õ¸Íõuõμ öPõÒøP ÷|õUP[PÎß

÷©õuø» ÂÁ›.

Evaluate the conflicts of macro economic policy objectives.

Or

(B) £nU öPõÒøP°À EÒ|õmk öÁÎ|õmk

\©{ø» £ØÔ ÂÍUP® u¸P.

Explain the monetary policy for internal and external balance.

19. (A) ÷£›¯À ö£õ¸ÍõuõμU öPõÒøP ÷|õUP[PøÍ

J¸[Qøn¨£vÀ EÒÍ ]UPÀPøÍ B´P.

Discuss the problems of co-ordination of Macro Economic Policy.

Or

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(B) ÷£›¯À ö£õ¸ÍõuõμU öPõÒøP°À •Ê

÷Áø»Áõ´¨¦ ©ØÖ® A¯À|õmk ö\¾zx

{ø»ø¯¨ £ØÔ GÊxP.

Write about full employment and balance of payment in Macro economic policy.

20. (A) £nÁõmhzøuU Pmk¨£kzu £õ[S Ãu®

©ØÖ® öμõUP C¸¨¦ ©õØÖ Ãu® GÆÁõÖ

£¯ß£kzu¨£kQÓx?

How are Bank Rate and Cash reserve Ratio used to counteract depression?

Or

(B) Á͸® |õkPÎÀ £nU öPõÒøP°ß £[QøÚ

öuõSzx GÊxP.

Give an account of the role of monetary policy in developing economies.

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