Economics Paper I Past Paper 2013
Profits, spending and policy crowd the Economics Paper I past paper 2013. Q.2 asks how firms earn abnormal and normal profits under perfect competition. Q.3 weighs fiscal action when crowding out runs strong. Q.4 takes up excess sensitivity and excess smoothness in consumption. Q.5 traces a rise in government spending through Keynesian analysis. Q.6 asks what public expenditure growth means and what drives it. Q.7 explains the economics of dumping in detail. Q.8 closes by setting the monetary policy multiplier against the fiscal policy multiplier. The file on this page holds both parts of the paper, the MCQ sheet and the Part-II sheet.
What this paper contains
- This file carries both parts of the paper: the Part-I MCQ sheet and the Part-II sheet.
- Part-I (Q.1) — 20 MCQs on the OMR Answer Sheet (20 marks)
- Part-II — attempt any FOUR questions from Q.2–Q.8; each question carries 20 marks
Part-II questions
Q.2 — Under perfect competition, how the firms earn abnormal and normal level of profits both in the short run and long run period? Explain with suitable diagrams. (20)
Q.3 — In the face of substantial crowding out, which will be more successful – fiscal or monetary policy? Explain in detail. (20)
Q.4 — What are the problems of excess sensitivity and excess smoothness? Does their existence disproves or invalidates the LC-PIH? Explain. (20)
Q.5 — As per Keynesian analysis, an increase in government spending raises the aggregate demand, so the fiscal policy by itself can be a source of inflation. Is this statement true, false or uncertain? Explain. (20)
Q.6 — What is meant by public expenditure growth? What are various causes of expenditure growth? Explain. (20)
Q.7 — What is the economics of dumping? Explain in detail. (20)
Q.8 — Differentiate and explain monetary policy multiplier and fiscal policy multiplier? (20)
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