Economics Paper I Past Paper 2019

Money and trade dominate the Economics Paper I past paper 2019. Q.2 uses IS-LM to discuss the neutral effect of monetary policy. Q.3 explains the monetary transmission mechanism and judges at least three of its channels. Q.4 reads the slopes of isoquant and iso-cost lines. Q.5 lists tariff and nontariff barriers and asks why countries restrict trade at all. Q.6 separates fixed, flexible and managed floating exchange rate regimes. Q.7 describes the underdevelopment trap and lists how poor countries try to escape it. Q.8 closes by asking for distinctions between four pairs of concepts. 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 — Use the IS-LM model to discuss the Neutral effect of monetary expansion in the case of open economy. Distinguish between Keynesian and Classical Views on neutrality of money. (20)

Q.3 — What do you understand by Monetary Transmission Mechanism (MTM)? Evaluate and explain at least three different channels of MTM. (20)

Q.4 — What do the slopes of an isoquant line and iso-cost line measure? Describe theoretically and graphically the conditions that are satisfied when a firm has chosen a least cost technique for producing a given output. (20)

Q.5 — What are tariff and nontariff barriers to international trade? Why do countries sometimes restrict international trade? (20)

Q.6 — Extricate among fixed, flexible and managed floating exchange rate regimes. (20)

Q.7 — Describe the underdevelopment trap. Highlight the main ways in which poor countries attempt to overcome their poverty. (20)

Q.8 — Distinguish between any FOUR. (5 each) (20)
a. Comparative advantage and Absolute advantage.
b. Consumer surplus and producer surplus
c. Progressive and regressive taxes
d. Economic growth and economic development
e. Real GNP and nominal GNP
f. Consumer price index and GDP deflator

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Economics Paper I Past Paper 2020 · All Economics Past Papers · Economics Paper I Past Paper 2018