WEST BENGAL CIVIL SERVICE
EXAMINATION - 2000
Economics Paper-I
Time Allowed-3 Hours Full Marks-100
Answer any five questions, taking at least two from each Group.
Group - A
1. (a) What is menat by the elasticity of demand for a commodity ?
(b) How would you measure elasticity at a point on a demand curve ?
(c) Point out some exceptions to the law of demand. 4+10+6
2. (a) Distinguish between an indifference curve and an indifference map.
(b) What are the properties of indifference curves ? 8+12
3. (a) Show how a monopolist determines the output to be produced and the price at which he will sell his commodity.
(b) Is monopoly an unmixed evil ? 12+8
4. (a) What are iso-quants ?
(b) Describe the nature of iso-quants.
(c) Write a brief note on the Cobb-Douglas production function. 5+10+5
5. (a) State and explain the Ricardian theory of comparative advantage.
(b) State the basic assumptions of the Hecksher-Ohlin trade model and explain the model. 10+10
Group - B
6. (a) How is credit created by banks ?
(b) Show how the Central Bank of country uses the various struments of credit control. 10+10
7. (a) What is meant by inflation ?
(b) Distinguish between demand-pull inflation and cost-push ation.
(c) How can inflation be controlled ? 4+8+8
8. What is the role of foreign investment in the development of a less developed country ? 20
9. Discuss Harrod's theory of growth. 20
10. (a) What are the determinants of economic growth ?
(b) Discuss the role of technology in the economic development of developing countries. 10+10
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