IAS Mains Economics 2007

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Time Allowed: Three Hours Maximum Marks: 300


Candidates should attempt all questions strictly in accordance with the instructions given under each questions. The number of marks carried by each question is indicated at the end of the question.

Section A

  1. Answer any three of the following questions. Each answer should not exceed 200 words____20 × 3 = 60

    1. What is the backward rising input supply curve? Illustrate with the help of suitable example.

    2. With the help of suitable diagram, elaborate Cournot Model. What is the significant of reaction curve in the model?

    3. What are the different kinds of disequilibrium in balance of payment? Suggest some measures to solve the problem of structural disequilibrium in balance of payments.

    4. What are the desired structural changes required for achieving the objective of economic development.

  2. Welfare Economic is a branch of economic theory which provides a theoretical framework for optimum use of resources. In the Light of above statement, examine the main areas of welfare economics____60

  3. Outline the Keynesian theory of money and interest. What is the role of expectation in the theory of determination of rate of interest? ____60

  4. The adjustment to a tax imposition not only affects the distribution of tax burden but also bears upon the efficiency of resource use in the private sector. Substantiate the statement highlighting the role of taxation policy in improving allocation efficiency in economy____60

Section B

  1. Answer any three of the following questions. Each answer should not exceed 200 words____20 × 3 = 60

    1. The Ministerial Declaration adopted at Hon Kong addresses some of the concerns of developing countries related to agriculture. Comment upon the statement. What were the time frames and targets in specific areas decided in the declaration?

    2. Discuss the Lewis Model of economic growth. Do you think the model is applicable to the Indian Development progress?

    3. Under the flexible foreign exchange rate scenario devaluation has become redundant. Comment upon the statement.

    4. Explain Sustainable development.

  2. Heckscher-Ohlin theory does not invalidate the classical theory of comparative cost but rather powerfully supplements it. Substantiate the statement____60

  3. What are the human development indices used for international comparison of status of development? Elaborate the methodology used for developing Human Development Index____60

  4. With the change in economic policies, relative role of market and state also change. Do you agree with the statement? Illustrate your answer with the help of suitable examples____60



  1. Answer any three of the following questions. Each answer should not exceed 200 words____20 × 3 = 60

    1. Give a critical account of the development of India during British Rule.

    2. Discuss the nature and incidence of the problem of rural poverty in India. What suggestions do you offer to solve it?

    3. Examine the role of indirect taxes in India's Economic Development.

    4. Is Economic planning relevant in the context of the Globlised Economy of India? Elucidate.

  2. Discuss the impact of World Trade Organization (WTO) on Indian Agriculture. 60

  3. Explain the nature and the cause of inflation of India. Critically appraise the measure adopted the authorities to control it. 60

  4. Make a critical assessment of National Rural Employment Guarantee scheme in India____60


  1. Answer any three of the following questions. Each answer should not exceed 200 words____20 × 3 = 60

    1. Examine the Progress of Tax Reform in India.

    2. Comment on the recent moves towards liberalization and their effects on Indian industry.

    3. critically examine the functioning of Indian Money Market.

    4. Is privatization a boon or a bane in India.

  2. Write a detailed note on the import-Substitution and export promotion strategy of India____60

  3. Discuss the need for and justification of Banking Reforms in India____60

  4. Critically evaluate the reasons for fluctuation in agricultural price in India. What would be the components of an optimum agricultural price policy regime for India? ____60

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