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(Download) UPSC IAS Mains Exam Paper - 2017 : Economics

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(Download) UPSC IAS Mains Exam Paper - 2017 : Economics

ECONOMICS
(Paper I)

Time Allowed : Three Hours

Maximuml Marks : 250

QUESTION PAPER SPECIFIC INSTRUCTIONS

Please read each of the following instructions carefully before attempting questions.

There are EIGHT questions divided in Two Sections and printed both in HINDI and in ENGLISH.

Candidate has to attempt FIVE questions in all.

Question Nos. 1 and 5 are compulsory and out of the remaining, THREE are to be attempted choosing at least ONE question from each Section.

The number of marks carried by a question/part is indicated against it.

Answers must be written in the medium authorized in the Admission Certificate which must be stated clearly on the cover of this Question-cum-Answer (QCA) Booklet in the space provided. No marks will be given for answers written in medium other than the authorized one W

Word limit in questions, wherever specified, should be adhered to.

Graphs/illustrations, wherever required, may be drawn/given in the space provided for answering the question itself.

Attempts of questions shall be counted in sequential order. Unless struck off, attempt of a question shall be counted even if attempted partly. Any page or portion of the page left blank in the Question-cum-Answer Booklet must be clearly struck off.

SECTION A

1. Answer the following questions in about 150 words :

1. (a) Derive the expansion path for a firm operating with the Cobb-Douglas Production Function.

1. (b) “Under monopolistic competition a firm enjoys monopoly power without enjoying monopoly profit.” - Explain.

1. (c) Show that in the complete Keynesian model only fiscal policy is effective during a period of depression.

1.(d) Explain the difference between the assumptions of New Classical and the New Keynesian approaches in managing individuals and markets.

1.(e) Show that full employment is the logical conclusion of the Classical macro model.

2.(a) optimality conditions are necessary but not sufficient conditions for social welfare maximisation.” Comment.

2. (b) Discuss briefly the circumstances where fiscal expansion leads to full crowding out.

2. (c) 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.

3. (a) How Chamberlin uses planned sales curve to explain equilibrium of a firm and group when the entry of firms is permitted ?

3. (b) 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.

3. (c) Why do you expect a high correlation between the money supply and aggregate expenditure ? Does this resolve the monetarist-fiscalist debate ?

4. (a) What is financial repression ? Mention some of its consequences.

4.(b) Transaction demand for money is not always interest rate inelastic." Discuss. 15

4.(c) Explain the Keynesian and classical extreme monetary assumptions for showing their effects on the slope of the LM curve.

SECTION 'B'

5. Answer the following questions in about 150 words each :

5. (a) Distinguish between effective and differential tax incidence.

5.(b) Write a short note on gravity model of trade.

5.(c) Determine optimum tariff of a country with the help of offer curve.

5.(d) What is solow-residual ? What are its implications ?

5.(e) What are the implications of trade in higher education under GATS for India ?

6.(a) "The consumption and production effects of a tariff for a commodity depend on the elasticities of demand and supply respectively.” Discuss.

6. (b) "Monetary Contraction is a better option than devaluation to improve balance of payments position of a developing economy under fixed exchange rate system.” Discuss.

6. (c) Do you agree with the view that the honeymoon with free trade under W.T.O. is at an end ? Give reasons for your answer.

7. (a) 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 profit affected when Indian rupee depreciates against the US dollar ?

7 (b) State and discuss Arrow Impossibility theorem. How does Sen modify it for social welfare maximisation ?

7. (c) Show that Cobb-Douglas Production Function exhibits both Hicks and Harrod neutral technical progress.

8. (a) "In view of economic uncertainties, Hirschman approach to economic development makes more sense.” 'Discuss.

8. (b) "The trade-off between environment and development remains unresolved.” Comment in view of the United States exiting from Paris Climate Agreement.

8. (c) Discuss the problem of intergenerational inequity arising out of internal public debt.

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ECONOMICS
(Paper II)

Time Allowed : Three Hours

Maximuml Marks : 250

QUESTION PAPER SPECIFIC INSTRUCTIONS

Question Paper Specific Instructions Please read each of the following instructions carefully before attempting questions :

There are EIGHT questions divided in TWO SECTIONS and printed both in HINDI and in ENGLISH Candidate has to attempt FIVE questions in all.

Question nos. 1 and 5 are compulsory and out of the remaining, any THREE are to be attempted choosing at least ONE question from each section.

The number of marks carried by a question / part is indicated against it.

Word limit in questions, wherever specified, should be adhered to and if answered in much longer or shorter than the prescribed length, marks may be deducted.

Graphs/illustrations, wherever required, may be drawn/given in the space provided for answering the question itself.

SECTION A

Q1. Answer the following questions in about 150 words each :

(a). Would you advocate that the income of rich farmers should be taxed in India ? Give reasons.

(b) “Subsidies are a source of inefficiency and corruption." Do you agree with the statement in the Indian context ? Justify your answer.

(c) What caused the problem of non-performing assets of Indian commercial banks and what cures are being suggested to solve the problem?

(d) What were the considerations underlying the initiation of the railways and the road transport system in India in the 19th century?

(e) Write a brief note on the state of manufacturing in India in the 18th century and the subsequent de-industrialisation.

Q.2

(a). What is drain theory ? How does it explain the backwardness of India in the 19th century?

(b) Do you think that the attitude of the British Government towards the Indian economy changed markedly at the turn of the 19th century ? Give specific instances supporting your argument.

(c) What were the broad considerations underlying the different types of land settlements in India during the colonial rule ? Discuss.

Q3.

(a) What is your assessment of the principal impact of the recent demonetization in India in the immediate and medium terms ?

(b) India has a vast potential to reap a demographic dividend. Explain the point and discuss the necessary measures to realise it.

(c) 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 government contemplate in this matter ?

Q4.

(a) India's economic growth is associated with rising inequality. How does it so happen and what actions need to be taken to mitigate the problem ?

(b) Write a note on the broad trend of India's foreign trade and current account balance during roughly the last one decade.

SECTION B

Q.5 Answer the following questions in about 150 words each:

(a) 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.

(b) Explain the concept and the underlying rationale of ‘Universal Basic Income'.

(d) “Though economic liberalisation in India in the mid 90s aimed at industrial growth, actually the services sector led the economy.” Elucidate.

(e) Do you think the recent appreciation of Indian currency is harming India's exports ? Can it have a beneficial side too ? Explain in brief.

Q6.

(a) 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.

(b) What are the merits and demerits of the case of farmers' loan waiver in India ? Explain.

(c) Even though India is self-sufficient in the production of foodgrains, Indian agriculture is faced with some major challenges. Elucidate.

Q7.

(a) 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 ?

(b) Give a brief account of the evolution of the concept of economic planning in India after Independence.

Q8.

(a) The quality of employment, in general, in India is perceived to be alarming. How would you analyse the situation ?

(b) Give a short analysis of the state of devolution of resources from the Centre to the States in India in the light of the idea of fiscal federalism.

(b) How did per capita income in India behave since Independence ? Has it improved the well-being of the people uniformly ? Give specific reasons.