Economics Optional (Topicwise) Question Paper | UPSC IAS Exam

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Economics Optional (Topicwise) Question Paper


Marshallian and Walrasian Approaches to Price Determination

  1. ☒‘Validity of Marshall’s equimarginal utility depends on the assumption of unitary elasticity of the marginal utility curves of the commodities under the budget.’ Clearly explain this assertion. (12, 2012)
  2. ☒State and explain the law of equimarginal utility and also state clearly the limitations of this law. (20, 2010)
  3. ☒How is the Marshallian equilibrium different from Walrasian equilibrium? (15, 2019)
  4. ☒State Marshallian and Walrasian conditions of market equilibrium. Do you think the existence of Marshallian stability necessarily ensures Walrasian stability and vice versa? Explain. (10, 2016)
  5. ☒Discuss the cobweb model of dynamic equilibrium with lagged adjustment. Explain how the existence of a stable equilibrium depends on the nature of the demand and supply curves. (20,2014)
  6. ☒What do you mean by existence and uniqueness of equilibrium in a market? Examine these concepts in a market where both demand and supply curves are downward sloping. (10,2014)
  7. ☒The role of income and substitution effect is crucial in producing backward bending labour supply curve when a tax is imposed on wages. Do you agree? (15, 2019)
  8. ☐Explain the backward sloping supply curve of labour as a choice between income and leisure. (10, 2015)
  9. ☒Derive the expansion path for a firm operating with the Cobb-Douglas Production Function. (10, 2017)
  10. ☒Explain the relationship between own and cross price elasticities for a compensated demand function. (10,2014)

Alternative Distribution Theories

  1. ☒Briefly state the Kaldor’s theory of distribution in determining the share of profit and the share of wages in national income. Explain the mechanism behind Kaldor’s model. (15, 2020)
  2. ☒State and explain the theory of distribution in which the exhaustion of the total product is taken care of without leaving any residual claimant and also state clearly the assumptions necessary for the success of the theory. (20, 2010)
  3. ☒Is rent a surplus? Give reasons in support of your assertion and point out the difference between ‘rent’ and ‘quasi rent’. (20, 2012)
  4. ☒Examine the process of reaching the Ricardian steady state. How can the tendency towards steady state be countered? (20,2014)
  5. ☒‘Technical progress in capital intensive sector almost invariably reduces the real wage rate and increase the real return to capital. Technical progress in labour-intensive sector will lead to increase in real wage rate and decrease in the real return to capital.’ Explain. (15, 2016)
  6. ☒Give an outline of Kaldor’s theory of distribution. Also explain the implications of an increase in the wage level and a reduction in the saving rate on the distribution of income. (20, 2018)
  7. ☐In what way Kaldor’s model of income distribution is basically a Keynesian theory? (20,2015) (~as Q6)
  8. ☒Kaldor in his theory of distribution argues, unlike Kalecki, that it is not reasonable to neglect the constraint of labour shortage, and analyse a situation of full employment. Show how investment and savings propensities determine distributive shares in the Kaldor approach. Suppose that investment is not exogenous as in Kaldor’s original model but that it varies with profits. What does this mean for the stability of the Kaldor model of distribution? (10, 2013)
  9. ☒Examine Kalecki’s model of distribution. Do you consider it a correct explanation of distribution? (20, 2012)
  10. ☐Elucidate how does Kalecki’s theory of distribution share the value of output between labour and capital. (20,2011) (~as prev Q)
  11. ☐Examine Kaldor and Kalecki theory of distribution. (10, 2016)

Mkt Structure: Monopolistic Competition, Duopoly, Oligopoly

Perfect Competition

  1. ☒Under competition, the cost function is given as C(y) = Y^2 + 1, where y is output. Derive the inverse supply curve and show how the supply curve looks like. (10, 2019)
  2. ☒Under perfect competition, in the short run, find out graphically, without using average cost curve, the conditions of equilibrium for the existence of (i) normal profit (ii) supernormal profit and (iii) loss. (10, 2015)
  3. ☒What are the ways in which a perfectly competitive market may become imperfect? Examine whether advertisement helps an imperfectly competitive market become a perfectly competitive one. (20, 2010)


  1. ☒ What determines the degree of price discrimination under monopoly market? (10, 2019)
  2. ☒(?) describe some measures to evaluate the monopoly power of a firm. (10,2018)
  3. ☒A supply curve is not used to determine the equilibrium price and quantity in a market under monopoly because
    1. A supply curve derived by using relevant cost curves in a market under monopoly may give more than one price for different quantities and also more than one quantity for the same price; and
    2. For determining profit maximizing price and quantity of a monopolist, supply curve is not necessary. Explain (a) and (b) above with graphical illustration. (20, 2010)

Monopolistic Competition

  1. ☒Suppose an industry is characterized by the following three conditions: (i) there are a large number of small firms, each producing a differentiated product and facing a downward sloping demand curve (ii) each firm ignores the effects of its action on the decisions taken by other firms and (iii) new firms producing close substitutes for the product of the existing firms can enter the industry. Then, derive the equilibrium conditions of an individual firm and of the industry. (10, 2013)
  2. ☒Does a monopolistically competitive market lead to excess capacity under price competition? (10, 2018)
  3. ☒‘Under monopolistic competition a firm enjoys monopoly power without enjoying monopoly profit’. Explain. (10, 2017) (goes into selling costs)
  4. ☒Reflect on the inefficiency and socially undesirable aspects of monopolistic competition market situation vis-à-vis the perfect competitions, both in the short and in the long run. (20, 2019)
  5. ☒How Chamberlin uses planned sales curve to explain equilibrium of a firm and group when the entry of firms is permitted? (15, 2017) (planned sales curve = perceived dd curve)
  6. ☒‘If firms produce differentiated products, it is neither possible to identify the industry nor possible to draw it supply curve.’ Discuss how Chamberlin handles this problem. (12, 2012) – using symmetry and uniformity assumption


  1. ☒Suppose that we have only two firms in the market with constant marginal costs of C1 and C2 respectively, such that C1>C2. What is the Bertrand equilibrium in this market? How is it different from the competitive equilibrium? (8+7, 2020)
  2. ☒What is the follower’s problem in a duopoly model and how does it differ from the leader’s problem? (15, 2019)
  3. ☒Explain why in a duopoly model of collusion, each firm has an incentive to cheat the other. (15, 2018)
  4. ☒Under Bertrand price competition with homogenous products in an oligopoly, demonstrate how is the equilibrium price that will prevail arrived at? (25, 2013)
  5. ☒Let the market demand curve for carbonated water be given by P = 20 – 9Q/2. (P is price, Q is market output). Let there be two firms producing carbonated water, each with a constant marginal cost of Rs 2 (c1 = c2 = 2);
    1. What is the market equilibrium price and quantity when each firm behaves as a Cournot duopolist? what are the firms’ profits?
    2. What is the market equilibrium price and quantity when each firm behaves as a Bertrand duopolist? What are the firms’ profits? (25, 2013)
  6. ☒Show how the price output decision is taken by duopolists, taking into account their mutual reaction. Under what condition will the duopolistic market be in equilibrium? (12, 2012)
  7. ☒Demand for light bulbs can be characterized by Q = 100-P, where Q is millions of boxes of lights sold and P is the price per box. There are two producers of lights having identical cost functions: Ci = 10Qi + ½ Qi^2 (i=1,2); Q = Q1 + Q2
    1. Unable to recognize the potential for collusion, managers of the two firms act as short run perfect competitors. What are the equilibrium values of Q1, Q2 and P? what are each firm’s profits?
    2. Manager of each firm independently recognizes the oligopolistic nature of light bulbs industry and plays Cournot. What are the equilibrium values of Q1, Q2 and P? what are each firm’s profits?
    3. Suppose firm I guesses correctly that Firm II has Cournot conjectural variation, so it plays Stackelberg. What are the equilibrium values of Q1, Q2 and P? what are each firm’s profits?
    4. If the managers of two firms collude, what are the equilibrium values of Q1, Q2 and P? what are each firm’s profits? (60, 2009)


  1. ☒What is conjectural variation? Show how some models of oligopoly are derived on the basis of it. (15,2020)
  2. ☒Two firms produce homogeneous outputs with cost functions C1 = q1^2, C2 = 2q2^2 and the inverse market demand function P = 100 – (q1+q2). Show that at the Cournot-Nash equilibrium, firm 2 makes higher profit than at the joint profit maximising equilibrium. Explain why this is so. (20, 2020)
  3. ☒Show how a dominant firm with a competitive fringe can act as a price leader in an oligopoly market. (15, 2018)
  4. ☐‘A dominant firm acts as a price leader and other firms adjust their outputs accordingly’. Comment. (20, 2009)
  5. ☒State Bain’s limit price theory. (10, 2016)
  6. ☒Explain kinked demand curve theory with the help of a diagram. (10, 2016)
  7. ☒Explain how Nash equilibrium provides a solution to the problem of strategic interdependence among firms in an oligopolistic market. (20,2015)
  8. ☒Write on Prisoners’ Dilemma and Nash equilibrium. (15, 2016)
  9. ☒What is a Lemon market? What is the role of signalling and screening in it? Explain. (15, 2016)
  10. ☒What is asymmetric information? How could it lead to adverse selection and market failure? Discuss. (20, 2016)
  11. ☒What is prisoner’s dilemma? How is it related to a strictly dominant industry? (10, 2012)
  12. ☒‘The conventional analysis of profit maximization breaks down if the entrepreneur sells his output and possesses a production function which is homogenous of degree one.” Explain. (10,2014) (CRS)

Modern Welfare Criteria:

Pareto Hicks & Scitovsky, Arrow’s Impossibility, AK Sen’s Social Welfare Function

  1. ☒State Arrow’s five reasonable conditions which a social welfare function must satisfy. (10, 2020)
  2. ☐In an economy with only two commodities, two consumers and two producers with single factor of production, derive the necessary conditions for Pareto optimality in a ‘perfect’ economy. (15,2020)
  3. ☒Consider a perfectly competitive exchange economy with no production, and two different goods 1 and 2. Let p1 and p2 be the prices of the goods. The economy is populated by two people A & B. A’s initial endowment of the two goods is given by and B’s initial endowment is . A can choose any bundle and B can choose any bundle . In this pure exchange economy, write out the conditions for a Walrasian equilibrium. Show that for such an economy for any equilibrium set of prices that the absolute price level is indeterminate. (10, 2013)
  1. ☒Derive Marshall’s welfare economics from his concept of consumer surplus after explaining consumer’s surplus along with the underlying assumptions. (10, 2012)
  2. ☒What criteria will have to be satisfied to obtain a Pareto efficient allocation? (10, 2019)
  1. ☒How do externalities lead to market failure? How can this situation be remedied? (10, 2018)
  2. ☒‘Pareto optimality conditions are necessary but not sufficient conditions for social welfare maximization’. (15, 2017) (subset of Q8)
  3. ☐‘Pareto-optimality is a necessary but not sufficient condition for welfare maximisation’. Develop this idea highlighting the role of ‘social welfare contours’ and ‘utility possibility contours’ in welfare maximizing state. (20, 2010)
  4. ☒State and discuss Arrow Impossibility theorem. How does Sen modify it for social welfare maximization? (15, 2017)
  5. ☒What, according to Arrow, are the axioms required for translating individual preferences into social preferences? Why is it impossible to construct social preferences satisfying those axioms? (20, 2009)
  6. ☒How is Kaldor-Hicks compensation principle an improvement over Pareto optimality criterion? What are Scitovsky’s views in this regard? (10,2015)
  7. ☒The ‘non-rival nature’ of social goods consumption has important bearing on efficient resource allocation. Explore the problem with examples and diagrams. (20,2011)
  8. ☒‘Tragedy of the commons’ leads to over-exploitation of resources. Analyse. (15, 2019)
  9. ☒What is Scitovsky’s paradox? How far has Scitovsky been successful in removing contradictions in Kaldor-Hicks compensation criteria of welfare? (20, 2009)


Approaches to employment, income and interest rate determination:

classical, Keynes IS-LM

  1. ☒Discuss the classical dichotomy that money is neutral. (10,2014)
  2. ☒Show that full employment is the logical conclusion of the Classical macro model. (10, 2017)
  3. ☒Explain how the equilibrium employment and real wage would change in a typically classical model if, in the event of increase in supply of labour, money wage becomes rigid. (20, 2017)
  4. ☒The following data are given for an economy:
    Consumption function, C = 250 + 0.5(Y-T) – 500r
    Investment function, I = 250 – 500r
    Real money demand function, L/P = 0.5Y – 500r
    Nominal money supply, M = 7650
    Price level, P = 17
    Tax = T = Govt Expenditure = G = 200
    1. Find the equations for IS and LM Curves, and solve for Y and r.
    2. Find out the multiplier formula for money supply change and then calculate the change in output if money supply changes by 510. (7+8, 2019)
  5. ☒You are given the data on the following variables in an economy:
    Govt spending = 300
    Planned investment = 200
    Net exports = 50
    Autonomous taxes = 250
    Income-tax rate = 0.1
    Marginal propensity to consume = 0.5
    1. ☒Consumption (C) is 600, when income (Y) is equal to 1500. Solve for autonomous consumption.
    2. ☒Solve for the equilibrium levels of output denoted (respectively by Yw* and Y*wo) in the two scenarios – presence and absence of income tax in the economy.
    3. ☒Solve for the change in net exports that would bring the equilibrium output level in the economy with the income tax to the level of Y*w that you found in (ii). Specify both the magnitude and sign of the change.
      [figures are in ₹’000 crore, obviously except tax rate and MPC] (20,2020)
  6. ☒Explain the paradox of thrift. (10,2014)
  7. ☒Is stagflation a logical outcome of Keynesian orthodoxy? Give reasons for your answer. (10,2018) – right shift of Philips curve
  8. ☒In the simple Keynesian model, if consumption and investment are both functions of income, how would the multiplier be affected? (15,2018)
  9. ☒Show that in the complete Keynesian model only fiscal policy is effective during a period of depression. (10, 2017)
  10. ☒Explain the Keynesian and classical extreme monetary assumptions for showing their effects on the slope of the LM Curve. (20, 2017)
  11. ☒What are the fiscal and monetary implications of vertical IS and LM curves? (10, 2016) (20/2010) (20, 2012)
  12. ☒Show that liquidity preference is neither necessary nor sufficient for the existence of involuntary unemployment in Keynesian system. (20,2015)
  13. ☒Explain the meaning and significance of money illusion on the part of workers in the Keynesian theory of employment. (10,2015)
  14. ☐ Explain the determination of output and employment in a macroeconomic under the conditions when individuals are subject to (i) no money illusion (ii) money illusion. (10, 2013) (classical vs Keynesian)
  15. ☒Using the IS-LM Model, show how expected deflation may cause equilibrium output to remain at less than full-employment level. (10,2018)
  16. ☒Explain with appropriate assumptions, the determination of equilibrium income and interest rate in a Keynesian model of goods and money markets, through diagrams. (20,2014)
  17. ☒Why is under-employment equilibrium possible in Keynesian economics, but not possible in Classical economics? Give reasons. (20, 2012)
  18. ☐Explain how equilibrium rate of interest and income are determined with the interaction of both product and money market. (10,2020) (same as Q16)
  19. ☐Why does the point of intersection of IS and LM curves coincide with the two markets? (20, 2012)/ (20,2010) (explained w/ Q16 above)
  20. ☒What is ‘liquidity trap’? how does it occur? Illustrate. (20,2011)
  21. ☒In Keynesian theory ‘rate of interest is what it is because it is expected to become other than it is. If it is not expected to become other than it is, there is nothing to tell us why it is what it is’. Critically evaluate this comment and explain the role of rate of interest rate in determination of equilibrium income. (40, 2010)
  22. ☒Explain how Keynesian speculative demand for money is restated in regressive expectation model. Point out its limitations. (20,2020)

neo-classical synthesis and new classical theories of interest rate determination, interest rate structure

  1. ☒How will you derive the real aggregate demand curve using the New Classical Theory? (20,2018)
  2. ☒Why do you expect a high correlation between the money supply and aggregate expenditure? Does this resolve the monetarist-fiscalist debate? (20, 2017)
  3. ☒Explain the difference between the assumptions of New Classical and the New Keynesian approaches in managing individuals and markets. (10, 2017)
  4. ☒‘Monetarists are of the view that only money does and Keynesians believe that money does not matter.’ What is your reasoning of the extreme views held by monetarists and the Keynesians? [What is the reasoning behind these extreme views held by their protagonists?] (20,2011)/(20,2014)
  5. ☒‘The advent of New Classical Macroeconomics has tended to upset the applecart of Keynesian and to a great extent, that of the monetarists.’ Discuss. (20, 2016)
  6. ☒Distinguish between Monetarist and Neo-Keynesian approaches to expectation augmented Phillips’s curve. (20, 2016)
  7. ☒State Okun’s law and find out the expectations-augmented Philips curve. (10, 2015)
  8. ☒‘If the interest elasticity of demand for money is low, the monetarists could predict the real GNP simple by the use of money supply’. Explain this statement. (10, 2015)
  9. ☐‘Under rational expectations hypothesis, systematic monetary policy will be ineffective.’ Explain this statement using a suitable model. (20,2015) (new classical)
  10. ☒If workers supply labour on the basis of an expected real wage, how is the aggregate supply of output determined in the economy? Suppose aggregate demand and supply are below the natural rate of employment and output. Would the New Classical economists advocate any particular policy intervention when the economy is in such a situation? (25, 2013)
  11. ☒Macroeconomics is usually approached via the outcomes of economic interaction in the following four markets – commodities, money, bonds and labour markets. The Classical economists focus on which three of these four markets? In which market does the loanable fund theory of interest rate determination of the Classical economists focus and how is the interest rate determined? The Neo-Classical synthesis focuses on which three markets? In which market is the interest rate primarily determined in the liquidity preference theory? (25, 2013)
  12. ☐‘New classical macroeconomics not only rejects the demand management policies of Keynes, but also the propositions of mainstream monetarists such as Friedman.’ Do you agree? (20, 2010) (same as applecart Q)
  13. ☒‘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 realized? What other assumption is made by New Classical Economists in this context and what is its implication? (60, 2009)
  14. ☒What is hysteresis? Explain the impact of hysteresis in Gradualist Monetarist and Eclectic Keynesian frameworks. (15,2018) (gradualist = defined policy rule/ eclectic = discretionary?)
  15. ☒Automatic stabilizers are supposed to mitigate cyclical fluctuations, but there exist limitations which dampen the effect of these stabilizers. Analyse. (10, 2019)
  16. ☒Show that in a simple Keynesian model, equal expansion in tax and government expenditure does not always lead to balanced budget theorem. (10, 2019)

Money Banking & Finance

Demand, Ss of Money:

  1. ☒An individual finds that all his receipts (including income) and payment transactions are in the form of money that bears no interest. However, he can convert into bonds and earn interest income but that involves a fixed cost of each conversion transaction. What are the determinants of the individual’s demand for holding money? (10, 2013) — Baumol?

Money multiplier,

  1. ☐What are the different measures of money supply? Explain the concept of money multiplier and state the factors that determine its volume. (30, 2010)
  2. ☒Mention the different components of supply of money as specified by the RBI. In what sense is the narrow money ‘narrow’? (20, 2012)
  3. ☒What is high-powered money? Explain how changes in short-term monetary policy affect high-powered money and money multiplier. (10,2018)
  4. ☒Explain H-theory of money supply. (10,2014)
  5. ☒What is high-powered or base money (H)? Is it an autonomous policy-determined variable? Explain. (20, 2009) [can also include Mundell Johnson aspects]
  6. ☒Explain how money multiplier will be affected if there happens to be partial hoarding by public in each round as well as excess cash reserve holding by banks over the minimum required. (10, 2019)
  7. ☒Demonetisation is expected to result in a fall in the ratio of currency to deposit. Using the money multiplier theory explain its possible impact on supply of money. (15, 2017)
  8. ☐Derive money multiplier when a part of money supply is exogenous and the other part is endogenous. (10,2015)
  9. ☒Compare the deposit multiplier with money multiplier. Is there any impact on money multiplier arising out of massive use of credit and debit cards? (20,2014)
  10. ☒Would the introduction of ATMs, which allows people to withdraw cash from banks as needed, make deposits more inconvenient and affect the money supply? Elucidate. (20,2011)
  11. ☐What do you mean by money multiplier? What are the factors that determine the value of the multiplier? (20, 2012) (basically derivation of h theory)

Quantity Theory of Money (Fisher, Pigou, Friedman)

  1. ☒Discuss in brief Friedman’s restatement of the quantity theory of money and find its similarity/ difference with the classical quantity theory. (15, 2016)
  2. ☐ In what sense is Friedman’s QTM said to be a ‘restatement’ of Fisher’s theory? Explain. (10, 2019) (subset of Q1)
  3. ☐Explain Milton Friedman’s reformulation of the Quantity Theory of Money. (20, 2009) (same as Q1)
  4. ☒Is Friedman’s QTM close to Classical or Keynesian approach to the aggregate demand for money? Give justification for your arguments. (20,2011)
  5. ☒‘Cambridge equation determines income (Y) assuming rate of interest (r) as given, whereas Keynes theory of interest rate determination assumes given income. Both are thus incomplete.’ Do you agree with the above assertion? How would then these two variables (Y and r) be determined simultaneously? (20, 2009)

Keynes’s Theory on Dd for Money

  1. ☒Keynesian demand for money is one of the key concepts of Keynesian theory of unemployment. Illustrate. (15, 2019)
  2. ☐Is the speculative demand for money responsible for the existence of involuntary unemployment in Keynesian system? Give reasons. (20, 2010) (liquidity trap part in prev Q)
  3. ☒‘Transaction demand for money is not always interest rate inelastic.’ Discuss. (15, 2017) (Baumol)
  4. ☐‘Transaction demand for money is interest rate elastic’. Explain in reference to the post-Keynesian theories of demand for money. (20, 2012) (same as above)
  5. ☒Distinguish between post-Keynesian approaches to horizontalist and structuralist theory of endogenous money supply. (10, 2020)
  6. ☒What do you mean by Tobin’s ‘q’ theory of investment? How would you modify the standard IS-LM functions in the presence of Tobin’s ‘q’? (15,2020)
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Goals and Instruments of Monetary Mgmt in Closed and open economies

  1. ☒What is interest rate targeting? Explain using the concept of Taylor rule. (15, 2018)
  2. ☒What makes monetary policy ineffective in the short run? Explain. (15, 2019)
  3. ☒Should inflation targeting be main plank of monetary policy of a central bank in emerging market economies like India? Show its implications on investment and growth. (15, 2016)
  4. ☒Compare the various instruments of monetary policy with respect to influencing the cost and availability of credit. (20,2014)
  5. ☒What are the main goals of a central bank? What are the instruments by which the central bank manages the liquidity in the financial system and how does it use these instruments to achieve its goals? (25, 2013)
  6. ☒Bring out the differences in the definitions of deficit financing given by different authorities in India and examine the role of deficit as an instrument of monetary control. (20, 2009)

relation b/w central bank & treasury

  1. ☒Explain repo rate and reverse repo rate. How do changes in the repo rate affect EMIs of borrowers? (10, 2015)
  2. ☒Mention the classification of assets held by a commercial bank. Discuss the problems faced by commercial bank due to rise in NPAs. (10,2020)
  3. ☒In the event of persistent inflation in an economy, what changes the Central Bank will bring about in (i) reserve ratios, (ii) bank rate and (iii) open market operations? (20,2015)

proposal for ceiling on growth rate of money

☒(read up from gaurav’s notes)

Public finance, role in mkt economy:

stabilisation of ss, allocation of resources, distribution, dvpment

  1. ☒What are the three basic goals of public finance? Can these goals be coordinated into an overall pattern of policy or are they always in conflict? (10, 2013)

sources of govt revenue, forms of taxes and subsidies, incidence, effects

  1. ☒The burden of tax depends upon the elasticity of demand and supply of a commodity or service. Explain with suitable examples. (20, 2018)
    1. ☐How does the burden of tax distribution between buyers and sellers in the ratio of elasticity demand and that of supply take place? (20,2011) [same as Q2]
    2. ☐‘The direct money burden of the tax imposed on any object is divided between the buyers and the sellers in the proportion of the elasticity of supply of the object taxed to elasticity of demand for it.’ Discuss. (20, 2009) [same as Q2]
  2. ☒Distinguish between effective and differential tax incidence. (10, 2017)
  3. ☒Discuss different forms of subsidies. Explain how perverse subsidies are detrimental to the economy and environment in the long run. (20,2020)
  4. ☒‘Subsidies have both positive and negative impacts on the economy’. Explain this statement and illustrate your answer with Indian experience. (20,2015)
  5. ☒Suppose a given yield of tax is to be obtained from an excise on a particular product in a perfectly competitive industry. If the objective is economic efficiency the govt would prefer that tax which obtains the desired yield with a lesser increase in the price. Should the govt impose a unit tax or an ad valorem tax if the objective is that they should both impose the same burden at the initial price before the imposition of the tax? Demonstrate your answer with a diagram. (25, 2013)
  1. ☒Is there any significant difference between Value added tax and Sales tax? If so, what is that? (20, 2012)
  2. ☒‘Subjective approach to taxation leads to least aggregate sacrifice principle.’ Elucidate. Also give the limitations of this principle. (20, 2009)
  3. ☒What is the difference between horizontal equity and vertical equity while considering ability to pay? How should the problem be resolved? Illustrate graphically. (20,2011)
  4. ☒What do you understand by shifting of a tax? How does a monopolist succeed in shifting the burden of a tax under increasing marginal cost? (10,2014)

limits to taxations, Loans, crowding out effects, limits to borrowing

  1. ☒Discuss the problem of intergenerational inequity arising out of internal public debt. (20, 2017)
  2. ☒What is financial repression? Mention some of its consequences. (15, 2017)
  3. ☒Discuss briefly the circumstances where fiscal expansion leads to full crowding out. (15, 2017)
  4. ☒Explain why money supply remains unaffected if budget deficit is met by borrowing from the public. (20, 2012)
  5. ☐If public expenditure is financed by money creation, show diagrammatically the short run and long run crowding out effect. (20, 2010)
  6. ☒Differentiate between the complete, partial and zero crowding out effect to a given increase in government expenditure in an economy. (10,2014)
  7. ☒What is rent seeking? Consider a proposal by a government to levy a proportional tax on income so as to subsidize the consumption of a good. The proportional tax at rate t reduces the wage received to w(1-t) which with a standard upward sloping supply of labour curve will reduce the hours of labour worked from say L2 to L1. The net income of the person falls and tax revenue will be twL1. This is transferred as a subsidy which reduces the price of the subsidized good from P to P-S and increase the quantity derived from Q1 to Q2. What is the valuation of the subsidy by the recipient? Is it equal to the value of taxes paid to finance the subsidy? If the tax payer decides to devote resources to rent seeking to forestall the policy to subsidize the good and subsidy recipient is also willing to devote resources to encourage the adoption of the policy, who will have the advantage in the rent seeking context? (25, 2013)

public expenditure and its effects


old & new theories:

  1. ☒Write a short note on gravity model of trade. (10, 2017)
  2. ☒How do the small trading nations share the gains from trade which occur as a consequence of gains from exchange and gains from specialization? (20,2011)
  3. ☒Explain Brander-Krugman model of intra-industry trade in an oligopolistic market. (10, 2016)
  4. ☒What are the features based on which the new trade theories are built that are distinctly different from the old theories? (20, 2019)

comparative advantage,

  1. ☒Explain, with the help of a diagram, how Haberler’s theory of opportunity cost is an improvement over the comparative cost theory of Ricardo. (15, 2018)
  2. ☒Differentiate between inter-industry and intra-industry trade. Can standard H-O model explain intra-industry trade? Discuss. (10, 2016)
  3. ☒Explain the conditions under which complete specialization will be possible for two nations in case of comparative advantage. Suppose productivity per unit of labour for two nations, India and UK is given as under. Will mutually beneficial trade be possible for the two nations? If yes, please explain whether specialisation shall be complete or not. (10,2014)
  4. India UK
    1. Wheat (Kg/manhour) 6 3
    2. Cloth (yard/manhour) 4 2
  5. ☒What are the two key conclusions of the Heckscher-Ohlin model of international trade? Under what assumptions are these conclusions arrived at? (15,2013)
  6. ☒Does the Heckscher-Ohlin theorem withstand the factor intensity reversal test? In this context, state the relevance of Leontief paradox? (30, 2010)
  7. ☒If all assumptions hold true, how does trade between nations tend to bring about equalization of factor prices? (20,2011)

terms of trade and offer curve

  1. ☒‘If each country is endowed with a certain fixed commodity combination, the differences in demand patterns in these countries can lead to emergence of international trade.’ Explain this statement with the help of offer curves of the two countries. (20, 2009)
  2. ☒Distinguish between single and double factor terms of trade. Explain how far terms of trade of a developing economy would change with technological advancement and economic growth. (20, 2014)

product cycle, strategic trade theories

  1. ☐In the context of international trade theory, discuss in detail the various stages of the international product life cycle. (10,2020) (subset of Q2)
  2. ☒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, 2012)

trade as an engine of growth, theories of underdevelopment in an open economy

  1. ☒Discuss the issue of compatibility between international trade and environment sustainability. (10,2020)
  2. ☒What is ‘immiserising growth’? How can it be prevented through trade policy interventions? (10,2015)
  3. ☒Trade can be growth-promoting or growth-inhibiting. Argue in terms of the established theories. (15, 2019)
  4. ☒Summarise the main arguments of the trade optimists and trade pessimists with regard to trade policy for developing countries. Which argument does the data tend to support? (10, 2013) (same as prev one)
  5. ☒How can controls on foreign trade contribute to the development of developing countries? (20, 2019)
  6. ☒Can multinational investment defeat the objective of inclusive growth? Give reasons for your answer. (20, 2019)
  7. ☒‘The argument that export-biased growth may turn the terms of trade unfavourable to the country and hence my not be beneficial, is applicable in the case of a large country and not a small country’. Explain. (20, 2016)
  8. ☒‘Apart from bringing capital into a country, multinational corporations provide many other advantages that cannot be obtained by borrowing from international capital market.’ Discuss. (20, 2014)
  9. ☒Discuss the role of multinationals in employment creation, income generation and transfer of technology. (20, 2012)

tariff, quota

  1. ☒Determine optimum tariff of a country with the help of offer curve. (10, 2017) (trade IC tangent to partner’s offer curve)
  2. ☐In what way does the concept of a positive optimal tariff apply to only large countries and not to small countries? Explain. (15, 2019) (face elastic offer curve => already on highest possible IC)
  3. ☒Analyse the partial equilibrium effects of a tariff imposed by a large country on its imports in terms of consumers’ surplus. (10,2014)
  4. ☒What is an offer curve in international trade? For two countries engaged in trade in two goods, draw the offer curves such that the offer curve of the home country has a section reflecting inelastic import demand. The foreign country’s offer curve is elastic throughout. Indicate in your diagram which part of the home country’s offer curve is inelastic. What is the reason for this shape of the offer curve? Suppose the home country imposes a tariff on imports. Demonstrate the implications for trade. (10, 2013)
  5. ☒‘The consumption and production effects of a tariff for a commodity depend on the elasticities of demand and supply respectively.’ Discuss. (15, 2017)
  6. ☒Many countries subsidise some of their export industries. Use a partial equilibrium model under perfect competition to illustrate the following effects of an export subsidy for a large country:
    1. Welfare effects of an export subsidy
    2. Which group is winning and which is losing from the subsidy? (8+7, 2020)
  7. ☒A quota on import and an equal-import tariff are equivalent in a competitive market but not under monopoly. Explain. (15, 2018)
  8. ☒How is subsidy better than tariff to achieve domestic objectives? (20,2011)
  9. ☐‘In the presence of domestic distortions, subsidies are the first best policies and tariffs are the second best.’ Do you agree? Explain. (20, 2009)

BoP adjustment: alternative approaches:

price v/s income, income adjustment under fixed exchange rates

  1. ☒What are the elasticity and absorption approaches to BOP Adjustment? Discuss. (20, 2016)
  2. ☒With the help of Salter-Swan diagram, define the zones of disequilibrium and assign policy prescriptions for the situations pertaining to unemployment and inflation vis-à-vis BOP deficit. (20, 2016)
  3. ☒How do depreciation and appreciation in the external value of a currency impact a country’s balance of payments? (10,2015)
  4. ☒Suppose the goods, financial, current account and foreign exchange markets are initially in equilibrium. The economy has low or imperfect capital mobility and operates at a fixed exchange rate. The economy is subject to a favourable demand shock that raises expenditure. What is the outcome of the shock on the aggregate income and interest rate in the short-run? How is the balance of payments equilibrium achieved? Draw a diagram in support of your answer. (25, 2013)
  5. ☒Define a balance of payment function and explain the factors that cause a shift in this function. Explain the general equilibrium situation in a four sector IS-LM model. (20, 2009)
  6. ☒In an economy, the govt is trying to boost the local economy by a massive advertisement, ‘buy local – local is best’.
    1. Assuming that the public tend to be persuaded by the campaign, what effect might this have on the economy’s multiplier?
    2. Critics argue that this is unfair and leads to distortions in free trade. Examine how the economy performs here under flexible exchange rate system. (8+7,2020)
  7. ☒In the context of a two-country model, derive foreign trade multiplier and explain its working. What will be its repercussion? (20,2015)

theories of policy mix

  1. ☒Why is it that in a pure flexible exchange rate system, foreign exchange market has no direct effects on the monetary base and money supply? Does this mean that the foreign exchange market has no effect on the monetary policy? (20, 2014)
  2. ☒How does the policy mix of fiscal and monetary policies maintain equilibrium in balance of payments and full employment? (20,2011)

exchange rate adjustments under capital mobility

  1. ☒In case of perfect capital mobility, explain the difference of the impact of an increase in money supply on GDP under two alternative exchange rate regimes – one fixed and the other flexible. (15, 2019)
  2. ☒Under what conditions will devaluation create trade surplus and increase output in the simple Keynesian framework? (10, 2018)
  3. ☐In contemporary world of perfect capital mobility and fixed exchange rates, why is the monetary policy ineffective to maintain equilibrium? (20,2011) (subset of Q1 above)
  4. ☒How does portfolio balance approach differ from monetary approach in determining the exchange rate? (20,2011)
  5. ☒Show that in an open economy, given full capital mobility, fiscal action has maximum effect under fixed exchange rate and monetary action has similar effect under flexible exchange rate. (40, 2010)
  6. ☐Do you subscribe to the view that in a small open economy with perfect capital mobility, expansionary fiscal policy is ineffective under freely flexible exchange rate, whereas expansionary monetary policy will increase the national income? Elaborate your answer with suitable diagrams. (60,2009) (same as Q5 above)
  7. ☐In an open economy with high capital mobility, monetary management can be a successful tool to increase output. Explain. (15, 2018) (similar to Q1, draw flatter, upsloping BP rather than horizontal)

floating rates, implications for dvping ctries: currency boards

  1. ☒Petroleum is sold in the world market and priced in US Dollars. RISCO in India must import petroleum to use it in its manufacturing. How are its profits affected when Indian rupee depreciates against the US dollar? (15, 2017)
  2. ☒Distinguish between Currency Board Arrangement and dollarization. Why would a nation adopt one or the other? (10, 2012)
  3. ☒After 2003 till 2008, many emerging economies including India received huge capital inflows. To contain the effect of these flows the central bank sterilized the inflow. What is sterilization and how does it affect the supply of money in the economy? (25, 2013)
  4. ☒What do you understand by ‘sterilization’ effects of foreign exchange market intervention? How does sterilization work in the case of imperfect capital mobility? (30, 2010)

trade policy & developing ctries

  1. ☒‘Monetary contraction is a better option than devaluation to improve balance of payments position of a developing economy under fixed exchange rate system.’ Discuss. (15, 2017)
  1. ☐ ‘For most developing nations fighting persistent balance of payments crisis and inflationary crisis, monetary contraction is a better option.’ Do you agree? (12, 2012) (same as Q1 above)
  2. ☒Explain the recent changes in the trade and investment flows among different countries in the world. Discuss the major factors that led to these changes. (8+7,2020)
  3. ☒What are the advantages and disadvantages of capital mobility for developing countries? (10,2015)

BoP adjustments & policy coordination in open economy macro model

  1. ☒What are the obstacles to international macro-economic policy coordination? Discuss. (10, 2019)
  2. ☒What do you understand by a small open economy in the context of both goods and money markets? (10,2014)

speculative attacks

  1. ☒Give an outline of a model of speculative attack under fixed exchange rate. (10, 2018)
  2. ☒What is a speculative attack on a currency? Suppose the economy has a fixed exchange rate and the government is following an expansionary macroeconomic policy. The govt increases the budget deficit which it finances through a monetary expansion. How does this lead to a crisis? What is the timing of the speculative attack? (25, 2013)

trade blocs, monetary unions

  1. ☒Explain how trade blocs are important in the process of economic globalisation. Illustrate your answer with suitable examples. (15, 2020)
  2. ☒Distinguish between Monetary union and Economic union. Do the proliferating trading blocs adversely affect the free trade in the world? Give reasons for your answer. (20,2015)
  3. ☒Why are trading blocs formed? Explain the welfare impact of such trading blocs for non-member countries. (20, 2012)

WTO: TRIMS, TRIPS, Domestic measures, WTO talk rounds

  1. ☒What is Doha Development Agenda? Explain how it negotiated TRIPS and TRIMS among nations. (20, 2018)
  2. ☒Do you agree with the view that the honeymoon with free trade under WTO is at an end? Give reasons for your answer. (20, 2017)
  3. ☒What are the implications of trade in higher education under GATS for India? (10, 2017)
  4. ☒What is the stalemate in the WTO about subsidies in less developed economies? Discuss. (15, 2016)
  5. ☒‘With the Doha Round of multilateral trade talks stalled, RTAs Regional Trade Agreements have emerged as an alternative approach to increase trade, spur stronger economic growth and lower unemployment rates in the participating countries.’ Explain. (20,2014)
  6. ☒Explain the Trade Related Investment Measures (TRIMs) of WTO. What are the major debates relating to it? (10, 2014)
  7. ☒What are India’s gains under WTO regime wrt (i) service sector, (ii) Globe-Hex model? (20,2011)
  8. ☒Describe the structure of WTO with reference to five main agreements. (30, 2010)


  1. (i) Theories of growth:
  2. ☒Show that Cobb-Douglas Production Function exhibits both Hicks and Harrod neutral technical progress. (20, 2017)

Harrod’s model;

  1. ☒In Harrod’s model of growth, if the expected gr rate exceeds the warranted growth rate, what will be reln b/w actual gr rate and expected gr rate? (10, 2018)
  2. ☒Do you think that the root of Harrod’s instability problem lies in the assumption of wage price rigidity? Give arguments in favour of your answer. (10, 2015)
  3. ☒It is said that a characteristic of the Harrod-Domar model is that even for the long run the economy is at best balanced on a knife-edge of equilibrium growth. Explain the Harrod-Domar model and the reason for this characteristic. (15, 2013)
  4. ☐”The assumption of fixed coefficient production function is at the root of Harrod’s instability.” Discuss and explain whether giving up the assumption really helps. (10, 2012) (repeat)
  5. ☐How is warranted growth different from natural rate of growth? Explain why Harrod’s growth model is called “knife edge’? (20,2011) (repeat)
  6. ☐Give an account of the knife-edge problem in Harrod model of economic development. Can this problem be solved? (2008) (repeat)
  7. ☒Explain how Neoclassical growth theory removes rigidity in H-D growth model. (2004)
  1. ☐Critically examine the Harrod-Domar model. What are its shortcomings? (1999)

(ii) Lewis model of development with surplus labour.

  1. ☒Describe Lewis model of development in an economy with unlimited supply of labour. Is Lewis model really capital driven? Give reasons. (8+7,2020)
  2. ☒Examine Arthur Lewis model of economy of development with unlimited supplies of labour? What is AK Sen’s critique of that approach? (20, 2018)
  3. ☒Indicate the Ricardo legacy which is inherent in the Lewis model of economic development. (15, 2016)
  4. ☒Explain the Lewis model of structural change from an agricultural economy to a modern industrial economy. State three major criticisms of the Lewis model. (20, 2013)
  1. ☐Expansion of high productivity sector absorbs more and more labour from subsistence sector indicating that dualism is a powerful tool of development planning. Critically evaluate Lewis model in light of the above statement. Examine the relevance of the model for contemporary India. (60, 2009) (~repeat)
  2. ☒Discuss Lewis model of growth. Do you think the model is applicable for Indian economic development? (2007)
  3. ☒To counteract under-development stagnation, discuss Leibenstein’s critical minimum effort theory. (10, 2016)

(iii) Balanced Unbalanced Growth.

  1. ☒In the view of economic uncertainties, Hirschman approach to economic development makes more sense. Discuss. (15, 2017)
  2. ☒“Balanced and unbalanced growth strategies are not substitutes but complementary to each other.” Explain this statement. (2015)
  1. ☒”Balanced growth strategy of development in terms of pattern of investment has to be in conformity not only with derived demands but final demands as well.” Argue whether this statement is about avoiding bottlenecks for certain sectors and excess capacities in others or promoting import substitution. (20, 2014)
  1. ☐At purely economic level, balanced & unbalanced growth doctrines can be complementary rather than competitive strategies. Discuss. Which of these strategies would you advocate for a country like India? (2008) (repeat)

(iv) Human Capitals and Economic Growth.

  1. ☒Development of human capital may lead to constant returns & propel an economy to self-sustaining economic growth. Explain? (15, 2018)
  2. ☒What is Solow residual? What are its implications. (10, 2017) (residual = qty that can’t be directly measured, rather inferred from measured values of observables – Kolstad)
  3. Under what conditions economic growth reduces employment growth? Discuss. (10, 2016)
  4. ☐Describe the growth path, which once the economy attains it, will give a higher level of per capita consumption than any other growth path for all time. (20, 2016) (golden rule)
  5. ☒There is one saving rate that is best in the sense of maximizing per capita consumption in steady state. Explain this statement and illustrate the idea graphically. (20, 2010)
  6. ☒How does Solow incorporate investment in education in the growth model to achieve long-run growth? (20, 2011)
  1. ☐Develop the idea that endogenous technological progress, driven by investment in human capital formation and R & D, offsets diminishing returns to physical capital. (60, 2010) (repeat Q1)

(v) Research and Development and Economic Growth.

  1. ☒Show how the idea of monopolistic competition becomes intrinsic to the endogenous growth theory as postulated by Romer. (20, 2020) (Romer, 1990 – my soln not perfect, will research later)
  2. ☒How can the structural independence between A-sector and K-sector in the dualistic economy foster growth in the absence of external stimuli? (20, 2011) (Lewis)
  3. ☒Q
    1. What makes technical progress endogenous? Do you think that technology is a ‘non-rival’ good?
    2. Show that if the research becomes more successful, the growth rate will increase and hence the standard of living. (20,2020)
  4. ☒Discuss the essential features of the growth models which incorporate research and development. (15, 2019)
  5. ☒In an economy having two sectors, namely, goods-producing sector and Research and Development (R & D) sector, prove with the help of new growth theory that (i) both capital and aggregate output must grow at the same rate and (ii) per capita output must grow at the rate of growth of technology. (20, 2015) (copied soln, need to understand from paper)
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(b) Process of Economic Development of less developed countries:

Myrdal and Kuznets on economic development and structural change:

  1. ☒Explain Myrdal’s cumulative causation theory as the theory for development. (10,2020)
  2. ☐Distinguish between backwash and spread effects of Myrdal. How do they operate in backward economies? (20, 2012) (subpart of previous)
  3. ☒Critically examine Myrdal’s thesis on economic development & structural change in the context of the process of economic development of less developed countries. Do you think that the structural changes in these countries are in the right direction? Elaborate. (2008)
  4. ☒In the contemporary world, many countries are not following Kuznets pattern of structural change. Give reasons. (20, 2019)
  5. ☒Kuznets hypothesis predicts decline in income inequalities in the long-run. In recent decades do trends in income inequalities in developed and developing economies support this hypothesis? (15, 2018) (same as 2019)
  6. ☒Explain Kuznets’ inverted ‘U’ hypothesis. Is growth good for the poor? Explain. (10, 2016)
  7. ☒Expand on the following three explanations for the Kuznets hypothesis about inequality and development-(i) the cohort size hypothesis, (ii) the effect of openness on inequality, and (iii) the strong versus the weak version of the hypothesis. (10, 2013)
  8. ☒What do the following terms signify in structural transformation and growth?
    1. (i) Kuznets’ U-shaped curve
    2. (ii) Environmental Kuznets curve
    3. (iii) N-shaped Kuznets curve in the long-run. (20, 2011)
  9. ☐Critically evaluate Kuznets’ inverted U-shaped curve hypothesis of income distribution. Does it hold good for less developed countries as well? (20, 2009)

Role of Agriculture in Economic Development of less developed countries.

  1. ☒What are the causes of market failure in agriculture? How may govt intervention mitigate this? (20, 2019)
  2. ☒State five reasons that support government intervention in agricultural markets. (10, 2013) (subset of Q1)
  3. ☐‘Agriculture is not just a sector contributing a small proportion of GDP, it is a way of life for the Indians’. Discuss. (12, 2012)
  4. Economic Development and International Trade and Investment, Role of Multinationals.

> with trade Qs

  1. ☒“As long as the substitution possibilities between foreign and domestic resources are limited, the dual-gap analysis is relevant.” Critically examine this statement. (20, 2015)

(d) Planning and Economic Development: Changing role of Markets and Planning, Private-Public Partnership.

— these solutions in onenote

  1. ☐Explain how PPP helps in the rapid economic development of a country. (10,2020)
  2. ☐Can public-private partnership function effectively in the area of physical infrastructure? (15, 2019)
  3. ☐What are shadow prices? Why are these preferred over market prices in project evaluation. (10, 2018)
  4. ☐That marginal efficiency of capital together with the current rate of interest determine the profitability of an investment project. How does it help in the selection of an investment project? (20,2011)
  5. ☐Explain why the market and the State have complementary roles in economic development? (15, 2018)
  6. ☐Examine the effects of public expenditure on the development process of an economy. (15, 2016)
  7. ☐What is indicative planning? In this context, explain how State and markets can play a synergistic role in economic development. (10, 2015)
  8. ☐Point out the critical elements in typical Public-Private-Partnership (PPP) agreements in the infrastructure projects to safeguard the interests of the public. (10, 2014)
  9. ☐”The solution of long-term development needs of India lies in promoting public-private partnership.” Discuss. (20, 2012)
  10. ☐For optimal allocation of resources, which of the options – market forces, planning exercise of a combination of both – should be suitable for the third world countries? Defend your stand. (20, 2012)
  11. ☐With the change in economic policies, relative role of market & the state also changes. Do you agree? Illustrate with suitable examples. (2007)

(e) Welfare indicators and measures of growth: Human Development Indices, The basic needs approach.

  1. ☒How is Human Development Index calculated by UNDP? Can there be a better method of assigning weights to various indicators? (10, 2019)
  2. ☒Describe the different indicators that are used by UNDP to construct the Human Development Index (HDI). Why is a logarithmic transformation applied only to per capita income in the calculation of HDI? (20, 2014)
  3. ☒Compare Human Development Index (HDI) with Human Poverty Index (HPI) as a measure of development. How is the Human Poverty Index different from the Happy Planet Index? (20, 2011)
  4. ☒What is HDI? Give its limitations as a measure of economic development and suggest improvements. (20, 2009)

Development and Environmental Sustainability – Renewable and Non-renewable Resources, Environmental Degradation, Intergenerational equity development.

— these solutions in one note

  1. ☒Explain how renewable resources will play a role in future economics. (10,2020)
  2. ☒‘Even green energy is not always green.’ Do you agree? Illustrate your answer taking biofuels as an example. (15,2020)
  3. ☒How does ‘carbon trading’ help in reducing environment degradation? (10, 2019/2015)
  4. ☒How does rural economic activity create environmental degradation in developing economies? (15, 2018)
  5. ☒What policies would you suggest to combat negative externalities? (20, 2018)
  6. ☒The trade-off between environment and development remains unresolved. Comment in the view of US exiting from Paris Climate Agreement. (15, 2017)
  7. ☒Illustrate the notion of perverse subsidies in the context of natural resource sector. (15, 2016)
  8. ☒”Pollution-income progression of agrarian communities (clean) to industrial economies (pollution intensive) to service economies (cleaner) would appear to be false if pollution increases again at the end due to higher levels of income and consumption of the people at large.” Discuss. (15, 2016)
  9. ☒What do you mean by ‘green accounting’? Discuss how this concept can be incorporated in national income accounting. (10, 2015)
  10. ☒Discuss the role of renewable energy resources in order to maintain environmental sustainability with special reference to India. (20, 2015)
  11. ☒“Global warming will certainly increase the cry of the earth and the cry of the poor.” In this context, examine the international efforts to reduce global warming. (20, 2015)
  12. ☒Our development strategy has been proposed in terms of ‘faster’, ‘more inclusive’ and ‘sustainable’ growth. Do the three components sit together well? Argue for your answer. (10, 2014)
  13. ☒‘Industrial development and environmental degradation are highly correlated.’ If it is true what should be, in your opinion, the policy options for industrialisation process vis-à-vis pollution control? (20, 2012)
  14. ☒Why do energy elasticities tend to unity in industrially advanced countries? (20, 2011)
  15. ☒What are the negative externalities of high energy coefficients? (20, 2011)
  16. ☒What are the objectives of National Environment Policy, 2006? (20, 2011)

Paper 2 Topic Wise

Indian Economics in Pre-Indep Era:

Land System, Changes

  1. ☒Assess the impact of land tenure system adopted by the British on the peasants and productivity of Indian agriculture. (10,2020)
  2. ☒What were the broad consideration underlying the different types of land settlement in India during the colonial rule? Discuss. (15,2017)
  3. ☒ Land system during the British period was responsible for sustained poverty in India and stagnant growth of Indian economy. Discuss. (10,2014)
  4. ☒ Examine the features of permanent land settlement as introduced by Lord Cornwallis. (15,2018)

Commercialisation of Agriculture

  1. ☒Account for the commercialisation of Indian agriculture during the second half of the 19th C and analyse its effects. (10,2019)
  2. ☒Discuss the process of ‘forced commercialization’ of agriculture under colonial rule. (20,2009)
  3. ☒Critically examine condition of agricultural and rural economy during the pre-independence era. (15,2016)

Deindustrialisation/ Underdevelopment

  1. ☒Analyse the effects of colonialism on de-industrialisation in India during the 18th C. (15,2020)
  2. ☒Explain the underlying causes and effects of deindustrialisation in India during the 19th C. (15,2019)
  3. ☐‘British rule led to India’s underdevelopment’. Do you agree? Give reasons in support of your answer. (20,2018)
  4. ☒Do you think that the attitude of the British govt towards the Indian economy changed markedly at the turn of the 19th C? Give specific instances supporting your argument. (15,2017)
  5. ☒During the British rule, India was rooted with seeds of modernisation, but the country remained underdeveloped. Discuss. (15,2015)

Drain Theory

  1. ☒Examine the theory of ‘Economic Drain’ in the second half of the 19th C in India and discuss its economic effects. (15,2019)
  2. ☐What is drain theory? How does it explain the backwardness of India in the 19th C? (20,2017)
  3. ☐Write on ‘Drain Theory’ as developed by Dadabhai Naoroji. How does it explain sustained poverty during the British Rule in India? (10,2013)

Laissez Faire – Theory & Critique/ Trade policy

  1. ☒Examine how the laissez faire policy was responsible for the famine in the late 19th C India. (10,2020)
  2. ☒Do you agree with the view that the objective of industrial and commercial policies of British was to transform India as a complementary economy of England? Give reasons. (10,2018)
  3. ☒What specific trade policies during the British period led to the decline of Indian industry? Explain. (10,2015)
  4. ☒Discuss policy of Discriminating Protection and its impact on Indian industrial development during the British period. (15,2011)
    1. ☐What were the economic consequences of discriminating protection in the trade policy during the British regime? (10,2016)
    2. ☐Write about the policy of discriminating protection during the British rule and its impact on industrial development in India. (10,2014)

Mfg & Transport: Jute, Cotton, Railways

  1. ☒Evaluate the development of the transport system in India during 1857 to 1947. (15, 2020)
  2. ☒Do you agree that the development of Indian railways during the British Rule helped facilitate the process of industrialisation? Give reasons. (10,2019)
  3. ☒Trace the development of the cotton textile industry in India during the British period. Discuss the major problems faced by the industry in different stages of its growth during this period. (20,2019)
  4. ☐What were the considerations underlying the initiation of the railways and road transport system in India in the 19th C? (10,2017)
  5. ☒Explain how Railways played in important role in unifying the people of India during pre-Independence period. (15,2016)
  6. ☐How did railways contribute to India’s economic development in the pre-Independence era? (10,2015)
  7. ☒Examine the problems faced by jute mills in India during the early years of their existence. (15,2018)
  8. ☒How was the Jute industry affected after partition? What remedial measures were taken to arrest its decline? (20,2012)
  9. ☐Write a brief note on the state of manufacturing in India in the 18th C and the subsequent de-industrialisation. (10,2017)
  10. ☒Discuss the manufacturing conditions that prevailed during pre-independence period. Do you feel that the private sector didn’t come forward for investment due to fear of nationalisation? Give reasons. (20,2016)

Money & Credit

  1. ☒Examine how the currency policy of the British affected the growth of monetisation in the Indian economy during 19th C. (20,2020)
  2. ☒☐How did Gold Bullion Standard end with ‘ratio controversy’ in British India? (10,2018)

Vakil, Gadgil, VKRV Rao

  1. ☒Highlight the main contributions of CN Vakil to Indian planning as opposed to that of the Mahalanobis model at the time of the formulation of the Second Five Year Plan for India. (10,2019)
  2. ☒Discuss the Wage-goods model of development as given by CN Vakil and PR Brahmananda. (15,2016)
    1. ☐Throw light on wage-goods model of C. N. Vakil and P. R. Brahmanand. (15,2011)
  3. ☐“A close connection between the finance on the hand, and politics and administration on the other land, and the influence of the latter on the former cannot be avoided. This is all the more true in India.” Do you agree with this statement of C. N. Vakil? Is it relevant even today? (25,2013)
  4. ☒Do you think that pursuit of wage-goods model could have been more appropriate for post-independence strategy of development? Give reasons. (15,2015)
  5. ☒Discuss the contributions of D. R. Gadgil to Indian Economic Planning and Policy. Evaluate the key elements of the ‘Gadgil Formula’ used by the Planning Commission. (20,2010)
  6. ☒How did VKRV Rao improve upon the earlier national income estimates of India? (10,2018)
    1. ☒Explain the contribution of VKRV Rao in the estimation of National Income. (15,2016)
    2. ☒Evaluate the contributions of VKRV Rao in the National Income Accounting of India. (10,2020)
  7. ☒Discuss in detail the views VKRN Rao on deficit financing. (12,2012)

Agriculture (Pre-liberalisation)

Land Reforms, Land Tenure

  1. ☒‘The progress in the implementation of tenancy and revenue reforms during the first 3 decades after independence in India was not satisfactory.’ Do you agree with this view? Do you think that the advent of the Green Revolution made such land reforms policy redundant? (20,2019)
  2. ☒How would you justify the policy of land reforms in the light of the farm size-productivity debate in India? (15,2018)
  3. ☒What are the components of Land Reforms in India? Has it been completed? If not, then what are the obstacles? (10,2013)
    1. Why are land reforms still not complete in India? What are the obstacles in its way? Elaborate. (15,2014)

Green Revolution

  1. ☒Discuss the technological factors relating to the Green Revolution in India. (15,2019)
  2. ☒Do you think that the green revolution had limited impact on Indian agriculture? Justify your answer. (15,2018)
    1. ☒Do you agree with the view that an increase in the productivity of agriculture as a result of the Green revolution was only short-term? Give reasons. (10,2016)
  3. ☒Why Green Revolution lost its steam and India needs yet another Green Revolution or Evergreen Revolution? Discuss. (20,2014)
    1. ☐“India urgently needs yet another Green Revolution by infusing modern technologies like ICT and Space technologies and Strategic Management techniques to come up with demand side pressures resulting in persistent food inflation in the economy.” Do you agree? (30,2011)
  4. ☒“The success of the Green Revolution shows the importance of the State in agrarian transformation.” Comment. (20,2009)
  5. ☒Explain why the use of organic farming should be encouraged in India. (10,2018)

Capital Formation in Agri

  1. ☒Explain the trend in gross capital formation in agriculture in India during the post liberalisation period. Do you think that private investment has been crowded out by the public investment during this period? (20,2020)
    1. Analyse the recent trend of gross capital formation in agriculture. Has it, do you think, been responsible for the sluggish growth rate in agriculture? (30,2011)

New Economic Reform and Agriculture

Agriculture And WTO

  1. ☒Critically examine the role of WTO on agricultural exports in India. (15,2019)
  2. ☒During the British rule, commercialization of agriculture was forced on the farmers, while now it is the need of the hour. Discuss. (12,2012)
  3. ☒Subsidy is a contentious issue and roadblock in the WTO. Examine India’s stand for protecting farmers’ interests. (20,2014)
  4. ☒Write on the unfinished agenda of Doha Round of negotiations of the WTO. (15,2011)
  5. ☐Discuss the impact of World Trade Organization (WTO) on Indian Agriculture. 60

Food Processing

  1. Do you think the food processing sector as the sunrise sector in India during the post-reform period? Justify. (10,2020)
    1. ☒Agro-based industries, especially food processing units, can alter the fate of rural India. Discuss. (15,2015)
  2. ☒Horticulture is now the growth driver of Indian Agriculture. Discuss the issue in the broad context of rural diversification. (10,2018)


  1. ☒Analyse the impact of fertiliser subsidy on agricultural productivity growth during the post reform period. (10,2020)
  2. ☐‘Agriculture subsidy is both an economic as well as social issue, hence the govt finds it difficult to take a decisive decision.’ Comment on the above statement. (15,2016)
    1. ‘Subsidies are a source of inefficiency and corruption.’ Do you agree with the statement in the Indian context? Justify your answer. (10,2017)
  3. ☒What are the different types of agricultural subsidies that are given to the farmers in India? How can these be rationalised? (10,2015)
  4. ☒Analyse the salient features of ‘interest subvention scheme’ and its implications on the farm sector. (20,2018)
  5. ☒What are the merits and demerits of the case of farm loan waivers in India? Explain. (15,2017)

Agricultural Prices and Public Distribution System, Food Security

  1. ☒Examine the efficacy and resilience of PDS in India for providing food security. (15,2020)
  2. ☒How has the movement of agricultural prices during the post-liberalisation period been responsible for farmers’ distress in India? (10,2019)
  3. ☐What reforms would you advocate to make the PDS in India more effective? (10,2019)
  4. ☒Assess the degree of success of the targeted Public Distribution System in the country in meeting its objectives. (30,2010)
  5. ☒Highlight the basic features of NFSA, 2013. Can it solve the problem of malnutrition in the country? Discuss. (10,2015)
  6. ☐Examine the basic features of the National Food Security Act, 2013. (10,2016)
  7. ☒Do you agree that focused and target-oriented technological interventions under National Food Security Mission (NFSM) have made significant impact since its inception? Justify. (10,2013)
  8. ☒High MSP induce distortions, some of which ultimately hurt the poor. Examine its merits and demerits. (15,2015)

Impact of Public Expenditure on Agricultural Growth/ General Agriculture

  1. ☐Explain the trend in gross capital formation in agriculture in India during the post liberalisation period. Do you think that private investment has been crowded out by the public investment during this period? (20,2020)
  2. ☐Do you think that the fall in public investment in agriculture adversely affects the productivity growth of this sector in India? Give reasons. (15, 2019)
  3. ☒Relative contribution of agriculture to the GDP of India has been going down steadily since Independence. Do you think this highlights a weakness of the economy? Explain. (10,2017)
  4. ☒Even though India is self-sufficient in the production of food grains, Indian agriculture is faced with some major challenges. Elucidate. (15,2017)
  5. ☒What is your opinion on the view that the economic reform process has largely bypassed agriculture? (15,2015)
  6. ☐Discuss the factors responsible for slow growth in agriculture in recent years. What steps ought to be taken for sustained growth in this sector? (12,2012)
  7. ☒Would you advocate that the income of rich farmers should be taxed in India? Give reasons. (10,2017)
  8. ☒What are the factors responsible for the large number of farmers’ suicides in relatively richer Indian States? Examine. (15,2014)
  9. ☒Distinguish between cooperative, contractual and corporate farming. Which of these is best suited for India and why? (20,2012)


Trends in Composition and Growth

  1. ☐Elaborate on the phenomenon of ‘missing middle’ in Indian manufacturing sector. (10,2018)
  2. ☐How can the organised manufacturing sector be revived as an engine of inclusive growth? (10,2018)
  3. ☐What is the broad trend of the manufacturing sector’s relative share in GDP in India over the last four decades? How do you view its performance and what actions does the govt contemplate in this matter? (20,2017)
  4. ☐Explain the principal causes of deceleration in industrial growth during the mid-1960’s to mid-1970’s in India. Do you think that the reasons for the slowdown in industrial growth since the late 1990s are basically different from those of the earlier deceleration? Answer with proper arguments. (20,2019)

Role of Public & Pvt Sector

  1. ☐Comment on the role of public sector during the early phase of industrial development in India. (10,2020)
  2. ☐Critically examine the relative contributions of public and private sectors in pre-liberalisation period in India. (10,2018)
  3. ☐Delineate the trends in the growth and industrial composition of public sector in India during the pre-liberalisation period. (20,2012)

Small Scale & Cottage Industries

  1. ☐What are the major problems faced by the SSIs? Examine the role of the MSMED Act, 2006, in enhancing productivity of SSIs in India. (20,2020)
  2. ☐What role are MSMEs playing in India’s economic growth? (10,2017)
  3. ☐What was the impact of policy reservation in favour of small-scale industries in India during the post-independence but pre-liberalisation era? (10,2015)
  4. ☐A number of production lines ware reserved for the small-scale sector in the pre-liberalisation period. Did such reservation achieve its objectives? Explain in detail. (30,2012)

New Economic Policy and Industry

Strategy of Industrialization

  1. ☐Critically examine the new manufacturing policy, 2011 for fostering industrial growth in India. (15,2020)
  2. ☐Evaluate the Competition Act, 2002 relative to the MRTP Act. (10,2019)
  3. ☐‘Though economic liberalisation in India in the mid-90s aimed at industrial growth, actually the services sector led the economy.’ Elucidate. (10,2017)
  4. ☐The industrial development agenda framed by the Industrial Policy, 1956 transformed the Indian economy substantially from an agricultural to an industrial economy. Elucidate. State in brief sectoral composition of growth during the period before 1990. (25,2013)
  5. ☐How does the strategy of industrialisation under the New Economic Policy promote productivity growth in manufacturing industries in India? Explain. (15,2019)
  6. ☐What are the main components of the National Manufacturing Policy, 2014? Discuss. (15,2015)
  7. ☐Discuss the recent initiatives for augmenting power generation in India. (10,2015)
  8. ☐Explain the recent policy initiatives for enhancing crude oil and natural gas production in India. (15,2015)

Privatization, Disinvestments

  1. ☐Critically examine the strategy of disinvestment in improving the growth of the manufacturing sector. (15,2020)
  2. ☐Discuss the disinvestment policy adopted by the GoI as part of structural adjustment programme of the IMF and the World Bank. Examine the impact of such a policy on industrial growth in India. (20,2019)
  3. ☐Critically examine the Disinvestment Policy of the GoI. (15,2017)
  4. ☐What is the present policy of disinvestment of the Government of India? What modification can be introduced in order to make it fruit-bearing? (25,2013)
  5. ☐Can disinvestment in public sector units be a sustainable alternative for raising resources for government expenditure? (12,2012)
  6. ☐Critically examine the arguments usually put forward in favour of disinvestment of public sector enterprises. (20,2009)

Role of Foreign Direct Investment and Multinationals.

  1. ☐Evaluate the role of FDI in contributing economic growth of India. (10,2020)
  2. ☐Has India been able to exploit the potential of FDI for export-oriented production? Give reasons. (10,2019)
  3. ☐Why should FDI be preferred over FPI? Comment on govt’s initiatives in this respect. (15,2018)
  4. ☐What developmental role can FDI play in a backward economy? What policy has India been following to attract FDI and what safeguards should the country adopt? (20,2017)
  5. ☐Critically examine the major changes in FDI policies of the GoI since 1991. (15,2016)
  6. ☐Write for and against FDI in retail trade of India. (15,2014)
  7. ☐Compare the role of Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII՚s) in India’s economic development. Are FDI՚s preferable to Portfolio Investments? Evaluate. (30,2011)
  8. ☐Why is capital inflow through multinational corporations preferred over foreign debt? (30,2012)
  9. ☐Comment on the new initiatives taken by the govt to facilitate investment and EoDB. (20,2018)
  10. ☐There is need of an ‘apex agency’ to monitor and to regulate the entry and functioning of transnational corporations in the context of India’s broader national interest. Give arguments in support of your answer. (15,2015)
  11. ☐Write in brief on Special Economic Zones (SEZ) and their socio-economic repercussions. (20,2011)
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New Economic Policy and Trade

Intellectual Property Rights

  1. ☒What is intellectual property? Why does intellectual property need to be promoted and protected? (15,2020)

Implications Of TRIPS, TRIMS, GATS

  1. ☒Narrate the implications of the TRIPS Agreement with special reference to the pharmaceutical sector in India. (15,2019)
  2. ☒Examine the implications of TRIPS on Indian economy. (15,2016)
  3. ☒Discuss the salient features of TRIPS and Indian position on (i) geographical indications and (ii) plant breeders՚ rights. (30,2012)
  4. ☒“The TRIPS agreement runs counter to the neoliberal argument in favour of competition.” Is this a fair assessment? Discuss. (20,2009)
  5. ☒Describe the salient features of TRIMS. How has it impacted the textile and clothing sector in India. (15,2018)
  6. ☒What are the four modes of GATS? What mode has been preferred by India and why? (15,2010)

New EXIM Policy.

  1. ☐Describe the salient features of New Foreign Trade Policy (2015-20) in India. Examine its role in improving the current account balance. (15,2020)
  2. ☐Examine the new EXIM policy. Given the tough competition in international trade, what corrective measure would you suggest to make it more successful in boosting Indian exports? (30,2012)
    1. ☐Bring out the salient features of New EXIM Policy of GoI. (10,2016)
  3. ☐Do you think the recent appreciation of Indian currency is harming India’s exports? Can it have a beneficial side too? Explain in brief. (10,2017)
  4. ☐What are the key initiatives proposed in Foreign Trade Policy, 2009 – 2014 for market diversification and technological upgradation to give a boost to exports? (10,2013)
  5. ☐Examine the challenges to export diversification and increase in export competitiveness of India. (20,2011)
  6. ☐Write a note on the broad trend of India’s foreign trade and current account balance during roughly the last one decade. (15,2017)
  7. ☐Write on Indo-ASEAN trade relations. (15,2011)
  8. ☐Write on the Look East Policy of India. (15,2014)
  9. ☐In view of fresh fears of global financial crisis arising out of decelerating credit rating of the U. S. economy and sovereign debt crisis in peripheral Euro-Zone economies analyse its likely impact on India’s trade and growth performance. Suggest measures to contain it. (40,2011)

New Exchange Rate Regime

Partial and Full Convertibility, Capital Account Convertibility

  1. ☐Do you think that Indian currency is fully convertible? Explain. (10,2020)
  2. ☐Is India ready for full capital account convertibility? Assess. (30,2011)
  3. ☐Examine the role of capital account convertibility in controlling deficit in the current account of India’s BoP. (15,2019)
  4. ☐Do you believe that capital account convertibility is feasible under the present circumstances in India? Explain. (20,2018)
  5. ☐‘Partial Capital Account Convertibility cannot serve the purpose of integrating Indian economy with world economy.’ Critically examine. (10,2016)
  6. ☐Do you think that full convertibility of rupee on capital account will help in accelerating India’s economic growth? Give reasons. (10,2015)
  7. ☐Discuss the issues involved in Capital Account Convertibility. In the light of this, explain India’s important capital account liberalisation measures. (15,2014)
  8. ☐“Partial capital account convertibility cannot serve the purpose of integrating Indian economy with global economy.” Analyse critically. (10,2013)
  9. ☐Would a flexible exchange rate regime serve India better than a fixed exchange rate regime in the current international scenario? (12,2012)
  10. ☐How global financial crisis and sovereign debt crisis of European nations exposed the disturbing role of speculative motive and fiscal imprudence? What lesson could India derive from it? (15,2014)
  11. ☐“Speculators may do no harm as bubbles on a steady of enterprise, but the position is serious when enterprise becomes the bubble on whirlpool of speculation. When enterprise becomes a by-product of the activities of a casino, the job is likely to be undone.” Explain in the context of global financial crisis and its impact on Indian economy. (25,2013)

New Economic Policy and Public Finance

Fiscal Responsibility Act

  1. ☐Discuss the role of FRBM Act, 2003 in improving the fiscal health of the State finances in India. (15,2020)
  2. ☐Explain the salient feature of the Fiscal Responsibility Act. Explain to what extent has the Government of India been able to adhere to the provisions of this Act? (30,2012)
  3. ☒What are the salient features of FRBM Act? Examine the criticisms levelled against it. (20,2014)
    1. Critically examine the salient features of the Fiscal Responsibility Act. (10,2016)
  4. ☒Write on second-generation economic reforms in India. (15,2011)
  5. ☐Second generation economic reforms are crucial for raising the growth rate of economy. Throw light on these dimensions. (10,2014)

Finance Commission

  1. ☒Give a short analysis of the state of devolution of resources from the Centre to the States in India in the light of fiscal federalism. (15,2017)
  2. ☒What are the major recommendations of the Fourteenth Finance Commission? (20,2015)
  3. ☒Discuss the major recommendations of the Thirteenth finance Commission with regard to augmentation of resources of local governments. (20,2012)

Fiscal Federalism, Fiscal Consolidation

  1. ☒Distinguish between Fiscal Federalism and Fiscal Consolidation. Discuss the fundamental changes in Indian fiscal federalism after introducing GST. (20,2020)
  2. ☒What is fiscal federalism? Examine the role of various Finance Commissions since 2001 in reducing horizontal and vertical fiscal imbalances. (15,2019)
  3. ☐The chequered fiscal history of India of the last fifteen years has been a saga of fiscal prudence on the part of the States and fiscal profligacy by the Centre. Do you agree? Give reasons. (15,2018)
  4. ☐Do you agree that fiscal slippage in the recent past is structural in nature? Also suggest roadmap for fiscal consolidation in the next few years. (20,2018)
  5. ☒Examine the process of introducing and passing GST Bill in parliament. How it helps in Fiscal consolidation in the country? (15,2016)
  6. ☐Distinguish between fiscal federalism and political federalism. How has fiscal federalism been evolving in relation to special category States in particular and other States in general? (20,2012)


  1. ☒Explain GST. Analyse how it is going to impact Indian business. (15,2017)
  2. ☐How is GST different from VAT? What is the grand bargain suggested by the Thirteenth Finance Commission for implementation of GST? (20,2012)
  3. ☐What are the broad features of the proposed GST Model? (10,2015)
  4. ☐What are the major objectives of the Direct Taxes Code Bill, 2010? Will it be effective in generating enhanced tax revenues? (25,2013)

Governance, Corruption

  1. ☐What is ‘Crony Capitalism?’ Is it true that almost all developing countries are facing the threat of ‘Crony Capitalism’ in their development efforts? (20,2016)
  2. ☐How could e-governance tackle the issues of corruption and inefficiency in the govt sector to lead to higher growth rate in the economy? Discuss. (15,2014)
  3. ☐‘Elitist bias’ and ‘Crony Capitalism’ have eclipsed the issues of efficiency and distributive justice in India. Elaborate. (20,2014)
  4. ☐What is ‘Crony Capitalism’? How it compromises economic and social justice issues? Explain. (10,2013)
  5. ☐In the context of the IT revolution, Digital India programme is a significant instrument of administrative reforms. Do you agree? (20,2015)

New Economic Policy and Monetary System

Role of RBI Under the New Regime.

  1. ☐Critically examine the role of RBI in maintaining financial stability under the new regime of monetary system. (20,2020)
  2. ☒Why is monetary transmission not effective in India? In the context of the recent announcement by the RBI, compare the efficacy of external benchmarks in bank loans with internal benchmarks for improving monetary transmissions through the banking channel. (20,2019)
  3. ☒Inflation is not a purely monetary phenomenon in India and hence the scope of monetary policy of the RBI to contain it is limited. Discuss. (25,2013)
  4. ☐Characterise the inflationary process in the last three years. What steps were taken by the RBI and the Government to control it? (12,2012)
  5. ☐Critically examine the point of view that RBI՚s recent measures at containing inflation have compromised growth. (30,2011)
  6. ☒Monetary Policy in India is often criticised as ineffective because large part of the country is not yet monetised. Do you agree with the view? Give reasons. (20,2016)
  7. ☐“An underdeveloped money and capital market has been a major cause of slow economic growth in India.” In the light of this statement, give relative importance of financial sector vis-à-vis real sector in Indian economy. (25,2013)

NBFCs, Demonetisation, Banking

  1. ☐Trace the development of NBFCs in India since the liberalisation era and comment on their impact on the effectiveness of the interest rate policies of the RBI. (15,2016)
  2. ☐NBFCs need to be effectively regulated and monitored in India. Can you suggest some measures in this direction? (15,2015)
  3. ☒Demonetisation has been a radical and unprecedented step with short-run costs and long-term benefits. Give reasons in support of this statement. (15,2018)
    1. ☐What is your assessment of the principal impact of the recent demonetisation in India in the immediate and middle terms? (15,2017)
  4. ☐The state-controlled section of India’s banking sector continues to be a major problem for policy makers. Do you agree? Give reasons in support of your answer. (15,2018)
  5. ☒What caused the problem of non-performing assets of Indian commercial banks and what cures are being suggested to solve the problem? (10,2017)
    1. ☐What are the major factors behind accumulation of NPA in the Indian banking sector in recent years? Discuss. (10,2015)
  6. ☒‘Financial inclusion is one of the most essential components of inclusive growth.’ Comment. (10,2015)


From Central Planning to Indicative Planning

  1. ☒Mixed economy is an outcome of the compromise between laissez-faire capitalism and socialist state control of resource. Elaborate. Mention its salient features. (10,2013)
  2. ☒Differentiate between plan and non-plan expenditure as used in the govt budget. Is this distinction relevant for govt finances in India today? (10,2019)
  3. ☒How the setting up of NITI Aayog has changed the planning perspective in India? Explain. (20,2018)
  4. ☒Give a brief account of the evolution of the concept of economic planning in India after Independence. (15,2017)
  5. ☒During post-independence era, India assigned the role of ‘Commanding Heights’ to the public undertakings. Should this policy be continued? Give reasons for your answer. (20,2016)
  6. ☒Discuss the basic features of 2nd FYP in India. (10,2016)
  7. ☒State the basic features of Mahalanobis model. (10,2013)

Relation Between Planning and Markets for Growth

  1. ☒Do you think that planning has a role in the context of market-based development of India? Answer with arguments. (15,2019)
  2. ☐Why did the socialist order fail and the country had to resort to the market economy system? Give reasons. (10,2015)
    1. ☒Why socialist model of development could not bring about equitable distribution of income in India and the country remained on a slow growth trajectory of 3 – 3.5% for a long time? Discuss. (10,2014)
  3. ☒What were the economic and non-economic rationale for adopting mixed economy model in India? (10,2016)
  4. ☐What are the consequences of deviation from socialistic pattern of society and mixed economy particular(rly for the persons below the poverty line? Explain. (10,2014)
  5. ☒What do you mean by the ‘Hindu rate of growth’? Why has it been argued that poverty cannot be eradicated under the Hindu rate of growth? (12,2012)

Decentralized Planning: 73rd And 74th Constitutional Amendments.

  1. ☐Discuss the relevance of decentralised planning after the implementation of the 74th CAA, 1992. (10,2020)
  2. ☐“Indian planning structure and system still remains largely in favour of a centralized nature of planning. The 73rd and 74th Constitutional Amendments have hardly brought about any change in reality in the nature of Indian planning process.” Critically evaluate this statement. (25,2013)
  3. ☐Explain the salient features of the 73rd and 74th Constitutional Amendments in India and elaborate the impact of its implementation. (10,2016)
    1. ☐Discuss salient economic feature of 73rd and 74th Constitutional amendments. (20,2011)

New Economic Policy and Employment:

Employment, employment generation, Rural Wages, NREGS

  1. ☐Discuss the changes in sectoral composition of GDP with the changes in the sectoral components of employment in India since independence. (15,2020)
  2. ☐Examine the recent trend in rural wages in India. Discuss the role of MGNREGA in determining this trend. (15,2020)
  3. ☐What are the core objectives of the MGNREGS? In what ways has a paradigm shift taken place with the implementation of MGNREGA? (20,2019)
  4. ☐Do you agree that MGNREGA has been plagued with rampant malpractices, leakage of funds and diversion of resources? Give reasons. (10,2018)
  5. ☐NREGS should be reoriented to create productive permanent assets to promote employment and generate income in the rural sector. Critically evaluate. (20,2014)
  6. ☐Analyse the impact of MNREGA on rural and urban wages and rural migration. (20,2011)
  7. ☐Examine the relation between casualisation of employment and poverty in India. (15,2019)
  8. ☐The quality of employment, in general, in India is perceived to be alarming. How would you analyse the situation? (20,2017)
  9. ☐What are the basic features of new national rural employment guarantee scheme what are the impediments in their implementation? (20,2016)
  10. ☐Examine the labour policy of India and its impact on employment (labor) market in Indian economy. (15,2014)
  11. ☐Employment pattern in India in post-reform period has moved in favour of contractual, casual and self-employment. How public sector employment deceleration would impact the future of labour (employment) market in India? Elaborate. (10,2014)
  12. ☐Account for the change in the employment pattern in India after liberalization. What are your suggestions for employment security in the ‘informal’ sector of the economy? Discuss. (25,2013)
  13. ☐Write short notes on ‘Skill India’ and ‘Make in India’. (10,2016)
  14. ☐Skill development and thereby raising labour productivity like that in China would be the only panacea for long term growth in Indian economy. Discuss. (10,2014)

National, Per Capita Income

Patterns, Trends, Aggregate & Sectoral Composition and Changes Therein (Pie Charts)

  1. ☐Examine the trends in GDP at factor cost during the pre-reform period in India. (10,2019)
  2. ☐Discuss the changes in the sectoral composition of GDP in recent years. (15,2016)
  3. ☐It is often said that the prime generator of economic growth in India in the post liberalisation period has been the service sector. Do you agree? What has been its implication on the BoP in India? (20,2015)
  4. ☐Accelerated growth of tertiary sector during the past two decades in Indian economy has posed multiple challenges. Discuss. (25,2013)
  5. ☐“The declining share of commodity producing sectors — agriculture and industry — and rising share of Services sector is creating imbalances of far-reaching consequences in the economy.” Critically analyse. (30,2011)
  6. ☐Reflect on issues and implications of structural transformation in India’s income. (15,2018)
  7. ☐Trace the growth of real per capita income in India in the pre-liberalisation period, keeping in view the interplay of increasing population and increasing real national income. (12,2012)
  8. ☐While Indian economic growth in recent years is services-led growth and Chinese model is manufacturing led growth, show the implications of the two models for long term sustainable development. (10,2014)
  9. ☐How did per capita income in India behave since Independence? Has it improved the well-being of the people uniformly? Give specific reasons. (15,2017)
  10. ☐Highlight the structural changes in Indian economy before 1991. (15,2014)

Broad Factors Determining National Income and Distribution/ Development Concerns

  1. ☐Explain the major factors that affected the growth rate of the economy in post-independence India till 1991. (20,2015)
  2. ☐What are the factors which determine the size and composition of national income? In this respect contrast the scenarios between pre and post liberalization periods. (30,2012)
  3. ☐Transformation of rural sector is key to economic development as it sustains two-thirds of Indian population. How physical connectivity, electronic connectivity and knowledge connectivity may be helpful in this transformation? Explain the linkages. (25,2013)
  4. ☐Throw light on the PURA model of rural development. (15,2011)
  5. ☐Vitalisation of rural economy is key to ‘inclusive growth’ which is possible through strategic management and technological upgradation. Explain. (15,2014)
  6. ☐What were the major hurdles to development as experienced in India during first decade after independence? Discuss them and what steps were taken to remove them? (15,2016)
  7. ☐‘The dichotomy of development’ in India emerged owing to ‘governance deficit’ and ‘crony capitalism.’ Examine. (20,2015)
  8. ☐In Indian economy, dichotomy of development emerged during the pre-reform period despite efforts of holistic development. Delineate the factors responsible for it. (15,2014)
  9. ☐Do you think Gandhian vision of development is still relevant in India? Explain with reasons. (15,2014)
  10. ☐Elaborate upon Gandhian versus Nehruvian visions of India՚s development. Do you think Gandhian approach is again attracting scholars and the people? Give reasons. (30,2011)
  11. ☐Specify the main factors which hindered trickle down in Indian economy and agenda of ‘inclusive growth’ is being pressed into for economic justice. (10,2014)
  12. ☐Compare the strategies of trickle-down growth with inclusive growth. Why should the strategy of inclusive growth be preferred? (20,2012)

Poverty, Measures, Trends in Poverty,

  1. ☐‘While absolute poverty declines over the decades, the poverty gap between different social groups shows rising trend in India’. Discuss. (15,2020)
  2. ☐How are ‘absolute’ and ‘relative’ poverty measured? What modification in it has been suggested by Amartya Sen? What are the recent advances in the area of poverty measurement? Discuss. (25,2013)
  3. ☐How is development looked upon by A. K. Sen in terms of freedom and poverty as unfreedoms? Point out his narration of five dimensions of poverty. (10,2013)
  4. ☐Discuss Amartya Sen’s poverty measure and recent advances in poverty measurement. (15,2011)
  5. ☐How is the methodology followed by the Rangarajan Committee different from that of the Tendulkar Committee in measuring poverty in India? (10,2019)
  6. ☐Explain how multidimensional poverty index is calculated. (10,2018)
  7. ☐Throw light on the poverty debate in the pre-liberalisation era in India/ (15,2018)
  8. ☐Critically examine the difference between absolute poverty and relative poverty. Between the two, which is more appropriate? Give reasons. (20,2016)
  9. ☐Discuss the various measures of poverty with policy implications for removal of poverty. (20,2012)

Poverty Alleviation Schemes

  1. ☐Comment on poverty alleviation schemes undertaken by GoI for urban poor. (10,2020)
  2. ☐Market economy excludes poor from the consumer as well as employment market. Discuss how one can safeguard the interests of the population below poverty line. (15,2015)
  3. ☐Elaborate growth-mediated strategy security and support-led security strategies of poverty alleviation given by Jean Dreze and Amartya Sen. (20,2014)
  4. ☐Highlight the issues of Bhagwati-Sen controversy over tackling poverty and slow growth rate. (10,2014)
  5. ☐Poverty alleviation strategy of the day is moving ahead of Redistribution with Growth (RWG) of Chenery and the World Bank and Dreze and Sen՚s Growth-mediated security and Support-led security strategies to Empowerment, Opportunities and Security lines. Elaborate. (30,2011)
  6. ☐Would you advocate a programme of Universal Basic Income (UBI) to reduce extreme poverty in India? Discuss in detail. (15,2019)
  7. ☐The various anti-poverty programmes have not achieved the desired socio-economic progress in India. Write down the major programmes and your broad-based assessment of their weaknesses. (20,2017)
  8. ☐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. (20,2015)
  9. ☐Explain why in spite of poverty alleviation schemes number of the poor has not fallen very much. (12,2012)
  10. ☐“By restricting social benefits to BPL households, the poverty line (in India) will be fully converted from a statistical benchmark to a real-life social division” (Dreze). Discuss. (15,2011)
  11. ☐Explain the concept and the underlying rationale of ‘Universal Basic Income’. (10,2017)


  1. ☐Analyse the validity of the inverted U-shaped hypothesis of Kuznets in the context of changes in inequality in India. (15,2020)
  2. ☐Analyse trends in GDP growth and inequality during the first 3 decades of planning in India. Has the distribution of income in India become more equal during the post reform period? Suggest some policy measures that could help reduce income inequalities. (20,2020)
  3. ☐Explain why in spite of economic planning income distribution has turned more unequal through time. (12,2012)
  4. ☐Reflect on the relationship among economic growth, inequality and poverty in the post-reform period in India. (15,2018)
  5. ☐India’s economic growth is associated with rising inequality. How does it so happened and what actions need to be taken to mitigate the problem? (20,2017)
  6. ☐Explain the major tools for measuring inequality. Highlight the more appropriate method of measuring inequality. (15,2016)


  1. ☐India has a vast potential to reap a demographic dividend. Explain the point and discuss the necessary measures to realise it. (15,2017)
  2. ☐How does the population growth affect economic development of a country? Can the age structure of population alter the pattern of development in a country? Examine in the light of the Indian experience. (20,2015)
  3. ☐‘Population is not just a denominator to deflate aggregates. It is determined by the level and pattern of economic development.’ Comment. (20,2012)