Economics Optional Test 8 for UPSC Mains 2017


Here is the 8th Economics Mains Marathon Optional Test.

Note: This is the last Economics Mains Marathon Optional Test. All the Best! 

Economics Mains Marathon : Test-8

  1. “It is production which creates market for goods.” J.B. Say. In the light of the above statement, outline the classical theory of full employment.
  2. Explain the meaning and significance of money illusion on the part of workers in the Keynesian theory of employment.
  3. Explain the paradox of thrift.
  4. Explain with appropriate assumptions, the determination of equilibrium income and interest rate in a Keynesian model of goods and money markets, through diagrams.
  5. What are the fiscal and monetary implications of vertical IS and vertical LM curves?
  6. What do you mean by money multiplier? What are the factors that determine the value of the multiplier?
  7. If expectations (regarding price level) were always fulfilled, short-run aggregate supply curve would always be vertical.” Critically examine this statement of New Classical Economics what would be the shape of the curve, if expectations were not realised? What other assumption is made by New classical Economists in this context and what is its implication?
  8. Outline the Keynesian theory of money and interest. What is role of expectations in the theory of determination of rate of interest?
  9. Is Friedman’s quantity theory of money close to Classical or Keynesian approach to the aggregate demand for money? Give justifications for your arguments.
  10. Critically examine the Wiseman – Peacock hypothesis of public expenditure. How does public expenditure help in attaining economic stabilisation and higher levels of production and growth? Elucidate your answer.
  11. Agriculture Subsidy is both and economic as well as social issue, hence the govt. finds it difficult to take a decisive decision.
  12. Examine the effects of public expenditure on the development process of an economy.
  13. Specify the main factors which hindered trickle down in Indian economy and agenda of inclusive growth is being pressed into for economic justice.
  14. Accelerated growth of tertiary sector during the past two decades in Indian economy has posed multiple challenges. Discuss
  15. Why are land reforms still not complete in India? What are the obstacles in its way? Elaborate.
  16. Subsidy is a contentious issue and roadblock in the WTO. Examine India’s stander protecting its farmers’ interests
  17. Rural poverty continues to be a chronic problem in India, which cannot be taken care of by anti poverty programmes but by creation of permanent productive assets. Discuss.
  18. What is the present policy of disinvestment of GOI? What modifications can be introduced in order to make it fruit-bearing?
  19. Do you think full convertibility of rupee on the capital account will help in accelerating India’s economic growth? Give reasons.
  20. Critically examine the fiscal federal system as it operates in India presently. What improvements would you suggest?

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