Economics Optional Test 4 for UPSC Mains 2017 : Mains Marathon


Here is the 4th Economics Mains Marathon Optional Test.

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Economics Mains Marathon : Test-4

Test 4

  1. If both the countries in David Ricardo’s model of international trade have comparative advantage in their exports, then demonstrate the mutual gain for these countries, taking trade as an indirect method of production.
  2. Applying the Heckscher-Ohlin framework show that while a country as a whole potentially gains from trade, the owners of scarce factor of production are worse off.
  3. What is meant by ‘factor abundance’? How does it affect the shape of the production frontier of a nation?
  4. In the Ricardian two commodities model, the comparative advantage functions determine the pattern of specialization for each country. Does comparative advantage also determine pattern of specialization if both the countries are producing more than two goods? If yes, elaborate how and if no, then explain why not?
  5. Do you agree with the view that “international trade is an engine of growth”? Elucidate your answer.
  6. Explain the conditions under which optimum tariff is likely to be high or zero.
  7. “Heckscher – Ohlin theory does not invalidate the classical theory of comparative cost but rather powerfully supplements it.” Substantiate the statement.
  8. Examine the effects of quota and tariffs on terms of trade. Discuss the advantages of quota over tariffs in the present day context.
  9. Show different stages of product life cycle. How do the shortcomings of diffusion lag of new technologies in recent years cause a time compression of the cycle?
  10. How is subsidy better than tariff to achieve domestic objectives?
  11. Critically examine the salient features of Fiscal Responsibility Act.
  12. Bring out the role of State Finance Commissions in India, with particular reference to the rural economy.
  13. Partial capital account convertibility cannot serve the purpose of integrating Indian economy with global economy. Analyse critically.
  14. Would a flexible exchange rate regime serve India better than a fixed exchange rate regime in the current international scenario?
  15. Explain the salient features of 73rd and 74th CAA and elaborate the impact of its implementation.
  16. Is Economic Planning relevant in the context of the Globalised economy of India? Elucidate.
  17. Inflation is not purely a monetary phenomenon in India and hence the scope of monetary policy of the RBI to contain it is limited. Discuss.
  18. What are the major factors behind accumulation of non performing assets in the Indian banking sector in recent years? Discuss
  19. Weigh the pros and cons of inflation targeting as the objective of the Reserve Bank of India
  20. Discuss the salient features of TRIPS and Indian position on (i) geographical indications and (ii) plant breeders’ rights.

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