UNIVERSITY GRANTS COMMISSION
NET BUREAU
Code No. : 01
Subject : ECONOMICS
SYLLABUS AND SAMPLE QUESTIONS
Note:
There will be two question papers, Paper-II and Paper-III (Part-A & B). Paper-II will cover
50 Objective Type Questions (Multiple choice, Matching type, True/False, Assertion-
Reasoning type) carrying 100 marks. Paper-III will have two Parts-A and B; Paper-III(A) will
have 10 short essay type questions (300 words) carrying 16 marks each. In it there will be
one question with internal choice from each unit (i.e., 10 questions from 10 units; Total marks
will be 160). Paper-III(B) will be compulsory and there will be one question from each of the
Electives. The candidate will attempt only one question (one elective only in 800 words)
carrying 40 marks. Total marks of Paper-lIII will be 200.
o1
PAPER-II
Micro-economic Analysis
Demand analysis — Marshallian, Hicksian and Revealed preference approaches
Theory of Production and Costs
Pricing and output under different forms of market structure
Factor Pricing analysis
Elements of general equilibrium and new welfare economics
Macro-economic Analysis
Determination of output and employment — Classical approach, Keynesian
approach, Consumption hypotheses
Demand for Money — Fisher and Cambridge versions, Approaches of Keynesian,
Friedman, Patinkin, Baumol and Tobin
Supply of Money, Determinants of money supply, High-powered money, Money
multiplier
Phillips Curve analysis
Business cycles — Models of Samuelson, Hicks and Kaldor.
Macro-economic Equilibrium — Relative roles of monetary and fiscal policies
Development and Planning
Economic Growth, Economic Development and sustainable Development —
Importance of institutions — Government and markets — Perpetuation of
underdevelopment — Vicious circle of poverty, circular causation, structural view of
underdevelopment — Measurement of development conventional, HDI and quality of
life indices
Theories of Development — Classical, Marx and Schumpeter; Economic Growth —
Harrod-Domar model, instability of equilibrium, Neoclassical growth — Solow's
model, steady state growth. Approaches to development : Balanced growth, criticalo1
minimum effort, big push, unlimited supply of labour, unbalanced growth, low income
equilibrium trap
Indicators and measurement of poverty
Importance of agriculture and industry in economic development — choice of
techniques and appropriate technology — Investment criteria — Elementary idea of
cost-benefit analysis
Trade and Aid — International trade as ‘engine of growth’ — Globalization and LDC's
Objectives and role of monetary and fiscal policies in economic development
Techniques of planning; Plan Models in India; planning in a market-oriented economy
Public Finance
Role of the Government in Economic activity — Allocation, distribution and
stabilization functions; Private, Public and Merit goods
The Public Budgets — Kinds of Budgets, Zero-base budgeting, different concepts of
budget deficits; Budgets of the Union Government in India
Public Expenditure — Hypotheses; effects and evaluation
Public Revenue — Different approaches to the division of tax burden, incidence and
effects of taxation; elasticity and buoyancy; taxable capacity
Public Debt — Sources, effects, burden and its management
Fiscal Federalism —Theory and problems; Problems of Centre-State Financial relations
in India
Fiscal Policy — Neutral and compensatory and functional finance; balanced budget
multiplier
International Economics
Theories of International Trade : Empirical verification and Relevance
International Trade under Imperfect competition
Terms of Trade and Economic Growth — Secular
Deterioration of Terms of Trade Hypothesis — a critical review
Equilibrium/disequilibrium in Balance of Payment — Traditional, Absorption and
Monetary approaches for adjustment in the Balance of Payments, Foreign Trade
multiplier
Impact of Tariffs, Partial and general equilibrium analysis; Political economy of Non-
Tariff Barriers
Theory of regionalism at Global level — Collapse of Bretton-Wood System — Recent
Monefary reforms
Trade Policy and Reforms in India
Indian Economy
Basic Economic indicators — National income, performance of different sectors
Trends in prices and money supply
Agriculture — Institutional and technological aspects, new agricultural policy
Industry — New industrial policy and liberalization
Money and banking — Concepts of money supply, inflation, monetary policy and
financial sector reforms
Public finance — Trends in revenue and expenditures of the Central and State
Governments, Public debt; analysis of the Union Budget
Foreign trade — Trends, Balance of payments and trade reforms
Poverty, unemployment, migration and environment
2Statistical Methods
Measures of Central tendency, dispersion, skewness and kurtosis
Elementary theory of probability — Binomial, Poisson and Normal distributions
Simple correlation and regression analysis
Statistical inferences — Applications, sampling distributions (t, and F tests),
sampling of attributes, testing of Hypothesis
Index numbers and time series analysis
Sampling and census methods, types of sampling and errors
PAPER III (A)
[Core group ]
Unit-I
Theory of Demand —Axiomatic approach, Demand functions, Consumerbdaviour
under conditions of uncertainty
Theory of production
Collusive and non-collusive oligopolies
Different models of objectives of the firm — Baumol, Morris and Williamson
Factor pricing
General equilibrium and Welfare Economics
Unit-II
Keynesian and post-Keynesian approaches to theory of output and employment;
concept of investment multiplier; consumption hypotheses
Theories of investment and accelerator
Theories of demand for money — Keynesian and post-Keynesian
Different approaches to money suppiy; money supply; components and determinants;
money multiplier
Output — price determination (aggregate supply and aggregate demand curve analysis)
Fleming-Mundell open economy model
Unit-IL
o1
Development and Growth — Role of institutions
Theories of growth and development — Models of growth of Joan Robinson and
Kaldor; Technical Progress — Hicks, Harrod and learning by doing, production
function approach to the determinants of growth : Endogenous growth : role of
education, research and knowledge — explanation of cross country differentials in
economic development and growth.
Theories of development — Classical, Marx, Schumpeter and structural analysis of
development — Imperfect market paradigm, Lewis model of development, Ranis-Fei
model, Dependency theory of development
Factors in economy development — natural resources, population, capital, Human
Resource Development and infrastructure
Trade and development — trade as engine of growth, two-gap analysis, Prebisch,
Singer and Myrdal views; gains from trade and LDCsUnit-IV
Theories of taxation, types, incidence and effects
Theories of public expenditure — effects on savings, investment and growth
Burden of public debt
Union Finance — Trends in Revenue and Expenditure of the Government of India
State finance — Trends in Revenue and Expenditure of the State Governments
Public Debt — India's Public debt since 1951 — growth composition, ownership
pattern and debt management
Union-State Financial Relations — Horizontal and vertical imbalances; the
Finance Commissions
Fiscal Policy and Fiscal Reforms in India
- Unit-V
"Monetary approach’ and adjustment in the balance of payments
Regional blocs — multilateralism and world trading system
The Political Economy of imposition of non-tariff barriers
International trade under conditions of imperfect competition in goods market
Theory of International reserves
Optimum Currency Areas — Theory and impact in the developed and developing
countries
WTO and its impact on the different sectors of the economy
Unit-VI
Components of money supply
Role, constituents and functions of money and capital markets
RBI — recent monetary and credit policies
Commercial banks and co-operative banks
Specialized financial and investment institutions
Non-Bank financial institutions and Regional Rural Banks
Unit-VII
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Industrial structure and economic growth
Patter of industrialization — Public and Private; large and small industries
Theories of Industrial location — Indian experience
Industrial productivity — measurement, partial and total trends
Industrial Finance in India
Industrial Labour — Problems, policies and reforms in India
Economic Reforms and industrial growthUnit-VIII
Population and Economic development — interrelation between population,
deve-lopment and environment, sustainable development
Malthusian theory of population,
demographic transition, population a
ptimum theory of population, theory of
imits to Growth’ and as ‘Ultimate Source’
Concepts. of Demography — Vital rates, Life tables, composition and uses,
Measurement of fertility — Total fertility rate, gross and net reproduction rate — Age
pyramids, population projection — stable, stationary and quasi-stationary population;
characteristics of Indian population through recent census
Poverty in India — Absolute and relative; analysis of poverty in India
Environment as necessity — amenity and public goods; causes of envirorimental and
ecosystem degeneration — policies for controlling pollution — economic and
persuasive; their relative effectiveness in LDCs; Relation between population, poverty
and environmental degradation — microplanning for environment and eco-preservation
— water sheds, joint forest management and self-help groups
Role of State in environmental preservation — Review of environmental legislation in
India
Unit-IX
Role of Agriculture in Indian Economy — Share of Agriculture, interrelationship
between agriculture and industry
Institutional aspects — Land reforms, Green revolution
Technological aspects — Agricultural inputs and shifts in production function
Capital formation in the rural sector — Savings, assets and credits
Strategies for rural development
Regional disparities in Indian agriculture
Cooperative movement in India — Organization, structure and development of
different types of cooperatives in India
Unit-X
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Application of Differential and Integral Calculus in theories of consumer behaviour,
Production and pricing under different market conditions
Input-output analysis and linear programming
Application of Correlation and Regression
Testing of Hypothesis in Regression AnalysisPAPER-III (B)
[ ELECTIVE/OPTIONAL }
Elective-I
Single Equation Linear Model :
Assumption and properties of OLS
Multiple Regression Model — Estimation and Interpretation
Multi-collinearity — Auto-correlation and heteroscedasticity —Causes, detection,
consequences and remedy
Dummy variables, distributed lags — Need, limitations and interpretation
Applications in Economics
Simultaneous Equation models :
Structural and reduced forms
Endogenous and exogenous variables
Identification problems and conditions
Single equation methods of estimations — TSLS, indirect least squares and least
variance ratio
Techniques of Forecasting :
ARMA, ARIMA
Econometric properties of time series, Unit root, integrated series, random walk
and white noise
Elective-II
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Theory of Consumer Behaviour and Theory of Firms
Theory of Pricing — Monopoly, Monopolistic competition, Duopoly and Oligopoly
Theory of Games — Two-person, Zero-sum Game, Pure and Mixed strategy, Saddle
point solution, Linear programming and input output analysis
Static and Dynamic Multiplier and Accelerator, Samuelson-Hicks trade cycle model.
Growth Models — Harrod and Domar, Neoclassical models — Solow, Meade, Kaldor's
Model with technological progress, endogenous growth models
Employment and output determination with fixed and flexible prices (IS-LM,
Aggregate demand and aggregate supply analysis)Elective -III
The Rise and Fall of Bretton-Wood and emerging International Monetary System
World Trading System — Evolution and Distortions
Globalization — Developments in Exchange Markets, Euro-Currency Markets, and
International Bond Markets, International Debt crisis
Theory of Foreign Exchange Markets — Exchange Trading, Arbitrage and Market
Hedging,
Elective — IV
Growth and Productivity trends in Indian Agriculture
Development of distributive institutions — Costs and price policies
Agricultural marketing and credit
Trends in migration and labour markets. Minimum Wages Act
WTO and sustainable agricultural development
Reforms in Indian agriculture
Elective — V
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Planning and Economic Development
Costs, Prices, WTO and Indian Agriculture
Globalization, Liberalization and the Indian Industrial Sector
Infrastructure and Economic Development
Social Sector, Poverty and Reforms in India
Women, Environment and Economic Development
Trade Reforms and Liberalization
Financial sector reforms
Fiscal policy and fiscal reforms
SAMPLE QUESTIONS.
Paper -IL
During the year June 1980 to June 1981 money supply with the public (M1) in
India has increased by
(A
(B) above 20 percent but below 30 percent
above 30 percent
(C)_ above 10 percent but below 20 percent
(D) below 10 percent11.
01
The Indian economist with whom the CES production function is associated is
(A) B.S. Minhas
(B) A.K.Sen
(C) T.N. Srinivasan
(D) V.K.R.V.Rao
Paper-IIl (A)
Briefly distinguish between Cournot and Swezey models of oligopoly.
OR
Elucidate the Newmann-Morgentern index of expected utility. How is it cardinal in
nature ?
What is externality ? How does it lead to market becoming inefficient ?
OR
Explain the efficiency of prior savings approach to economic development.
Paper-IIl (B)
Examine the view that there can be no general theory of oligopoly.
OR
Explain the meaning and significance of identification problem. State the rank and
order conditions.femott :
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