Economics Paper I Past Paper 2023

Curves and banks carry the Economics Paper I past paper 2023. Q.2 tests the slope of an indifference curve and asks for the marginal rate of substitution when one good is neutral. Q.3 defines opportunity cost and asks why profit needs inputs and outputs valued at opportunity cost. Q.4 lists the functions of the International Monetary Fund and asks how it helps countries trapped in financial trouble. Q.5 places monetary policy with the central bank and asks how it works. Q.6 explains the theory of liquidity preference. Q.7 asks for a policy framework that cuts the budget deficit and lifts the development outlook. Q.8 closes with short notes on four listed topics. This file holds the Part-II sheet only.

What this paper contains

  • This file carries Part-II (the descriptive part) of the paper.
  • Part-II — attempt any FOUR questions from Q.2–Q.8; each question carries 20 marks (Part-I holds the 20 MCQs, per the printed header)

Part-II questions

Q.2 — Is the slope of an indifference curve at a particular point known as the marginal rate of substitution (MRS)? Justify your answer with a graph. If good 1 is a ‘neutral’, what is its MRS for good 2? (20)

Q.3 — Define opportunity costs and explain why the economic definition of profit requires that we value all inputs and the outputs at their opportunity cost? (20)

Q.4 — Briefly describe the functions of International Monetry Fund (IMF). How does the IMF help countries trapped in financial issues? (20)

Q.5 — The central bank in a country is responsible for its monetary policy. What are the objectives and tools of monetary policy? Use diagrams to explain your answer. (20)

Q.6 — What is the theory of liquidity preferences? How does it explain the downward slope of the aggregate-demand curve? Use the theory of liquidity preference to explain how a decrease in the money supply affects the aggregate-demand curve in a closed economy. (20)

Q.7 — Considering the current economic scenario of our economy, recommend an effective policy framework that can reduce budget deficit and improve the developmental outlook. (20)

Q.8 — Write short notes on any FOUR of the following: (5 each) (20)
a. Public Goods
b. Draw self-explanatory functions of: MPC, Aggregate demand, Multiplier
c. Cost minimization by a small firm.
d. Two methods of national income accounting.
e. Fuel poverty
f. Welfare economics

Download Economics Paper I Past Paper 2023 (PDF)

Economics Paper I Past Paper 2024 · All Economics Past Papers · Economics Paper I Past Paper 2022