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problem 1: Answer any three of the given problems.

a) Show that the exponents of Cobb-Douglas production function are a measure of the factor share in output and also the elasticity of output with respect to the factor.

b) Do you agree with the analysis that in competitive banking environment, the Bank Rate has lost its efficiency to control credit? Give some reasons for your answer.

c) Lately, too much concern has been shown concerning the size of the fiscal deficit; what matters more is the reason for the deficit instead of the size. Comment on it.

d) Outline the relationship between increasing foreign exchange reserves and the money supply.

problem 2: Critically examine Mundell’s approach for the efficient use of monetary and fiscal policy to achieve macro balances.

problem 3: Describe Patinkin's approach to integrate the Value theory and monetary theory.

problem 4: Differentiate between the effect and incidence of the direct taxation. How do direct taxes influence the production and savings in the economy?

problem 5: Answer any three of the given problems.

a) State Kuznet's hypothesis? Illustrate its implications for a developing economy?
b) Describe Leontief paradox.
c) Is Wagner hypothesis a sufficient description of increase in public expenses in recent times? Illustrate.
d) What do you mean by tax buoyancy and elasticity of tax revenue?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M97178

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