SUBJECT SUBJECT
CODE NO.
07 ECONOMICS
A. SYLLABUS
Paper II
1. Micro-economic Analysis
Demand analysis-Marshallian, Hicksian and Revealed preference approaches
Theory of Production and Costs
Pricing and output under different forms of market structure
Factor Pricing analysis
Elements of general equilibrium and new welfare economics
2. Macro-economics Analysis
Determination of output and employment-Classical approach, Keynesian approach, Consumption
hypotheses
Demand for Money-Fisher and Cambridge versions, Approaches of Keynesian Friedman,
Patinkin, Baumol and tobin
Supply of Money, Determinants of money supply, High-powered money, Money multiplier
Phillips Curve analysis
Business cycles-Models of Samuelson, Hicks and Kaldor.
Macro-economic Equilibrium-Relative roles of monetary and fiscal policies
3. Development and Planning
Economic Growth, Economic Development and sustainable Development importance of
institutions-Government and markets-Perpetuation of underdevelopment-Vicious circle of
poverty, circular causation, structural view of underdevelopment-Measurement of development
conventional, HDI and quality of life indices
Theories of Development-Classical, Marx and Schumpeter; Economic Growth-Harrod-Domar
model, instability of equilibrium. Neoclassical growth-Solow’s model, steady state growth.
Approaches to development; Balanced growth critical minimum effort, big push, unlimited
supply of labour, unbalanced growth, low income equlibrium trap indicators and measurement of
poverty
Importance of agriculture and industry in economic development-choice of techniques and
appropriate Technology-investment criteria-Elementary idea of cost-benefit analysis.
Trade and Aid-International trade as engine of growth-Globalization and LDC’s
4. Public Finance
Role of the Government in Economics activity-Allocation, distribution and stabilization
functions; Private, Public and Merit goods
The Public Budgets-kinds of Budgets, Zero-base budgeting, different concepts of budget deficits;
Budgets of the Union Government in India
Public Expenditure-Hypotheses; effects and evaluation
Public Revenue-Different approaches to the division of tax burden, incidence and effects of
taxation;elasticity and buoyancy; taxable capacity
Public Debt-Sources, effects, burden and its management
Fiscal Federalism-Theory and problems; Problems of Centre-State Financial relations in India
Fiscal Policy-Neutral and compensatory and functional finance; balanced budget multiplier
5. International Economics
Theories of International Trade: Empirical verification and Relevance
International Trade under Imperfect competition
Terms of Trade and Economic Growth-Secular
Deterioration of Terms of Trade hypothesis-a critical review
Equilibrium/disequilibrium in Balance of Payment-Traditional, Absorption and Monetary
approaches for adjustment in the Balance of Payments, foreign Trade multiplier
Impact of Tariffs, Partial and general equilibrium analysis; Political economy of Non-Tariff
Barriers
Theory of regionalism at Global level-Collapse of Bretton-Wood System-Recent Monetary
reforms Trade Policy and Reforms in India
6. Indian Economy
Basic Economic indicators-National income, performance of different sectors Trends in prices
and money supply
Agriculture-Institutional and technological aspects, new agricultural policy
Industry-New industrial policy and liberalization
PAPER—III
(CORE GROUP)
Unit—I
Theory of Demand-Axiomatic approach, Demand functions, Consumer behaviour under
conditions of uncertainty
Theory of production collusive and non-collusive oligopolies
Different models of objectives of the firm-Baumol, Morrts and Williamson
Factor pricing
General equilibrium and Welfare Economics
Unit—II
Keynesian and post-Keynesian approaches to theory of output and employment concept of
investment multiplier; consumption hypotheses
Theories of investment and accelerator
Theories of demand for money-Keynesian and post-Keynesian
Different approaches to money supply; money supply, components and determinants; money
multiplier
Output-price determination (aggregate supply and aggregate demand curve analysis)
Section I
Essay writing: Two questions with internal choice on general themes and contemporary,
theoretical, disciplinary relevance may be given. The candidate is excepted to write up to Five
Hundred words for each questions of 20 marks(2 Q x20M=40 Marks).In case the questions are
based on electives, the choice should have questions are based on electives, the choices should
have questions from each elective, otherwise all choices should be of general nature, common to
all candidates. In case of science subjects like Computer Science and applications,
Environmental Sciences, Electronic Sciences etc., two questions carrying 20 marks each may be
given in place of essay type questions. The questions in this section will be numbered as 1 and 2.
Section II
Three extended answer based questions to test the analytical ability for the candidates are to
asked on the major specialization /electives. Questions will be asked on all major specialization
/electives and the candidates may be asked to choose one of the specialization /electives and
answer the three questions. There is to be no internal choice. Each question will be answered in
upto three hundred (300) words. And shall carry 15 marks each (3QX 15M=45 Marks).Where
there is no specialization /Elective, three questions may be across the syllabus. The questions in
this section will be numbered as 3 to 5.
Section III
Nine Questions may be asked across the syllabus. The Questions will be definitional seeking
particular information and are to be answered in up to Fifty words each. For Science subjects are
Section IV
It requires the candidates to answer questions from a given text of around 200-300 words taken
from of a known thinker/author. Five carefully considered specific questions are to be asked on
the given text, requiring an answer in up to 30 words each. This section carries5 questions of 5
marks each (5Qx5M=25Marks). In the case of science subjects, theoretical/numerical problem
may be set. These questions are meant to test critical thinking ability to comprehend and apply
knowledge one possesses. The questions in this section will be numbered as 15to 19.
2. The Indian economist with whom the CES production function is associated is
(A) B. S. Minhas
(B) A. K. Sen
(C) T. N. Srinivasan
(D) V. K. R. V. Rao
Paper III
SECTION – I
Note : This section consists of two essay type of questions of twenty (20) marks each, to be
answered in about five hundred (500) words each. (2 × 20 = 40 marks)
1. What are the causes of recent global financial crisis ? What has been its impact on growth,
employment and money markets in India ? Describe the measures adopted in India to combat it ?
OR
Describe the major new economic reforms introduced in India since 1991. Also examine their
effects on the performance of different sectors of the Indian economy.
2. Differentiate between foreign direct investment and portfolio investment by foreign
institutional investors. Discuss the factors that determine foreign direct investment inflows in a
developing country, like India.?
OR
Explain the growth and productivity trends in Indian agriculture since 1991. Also suggest
measures to improve productivity of agriculture in India.
Note: For more details regarding sample questions for paper II and paper III, you can
refer to the UGC-NET 2010 Examination Question papers, available in the UGC website
(www.ugc.ac.in).
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University SET Center,Pareeksha Bhavan, University of Mysore, Mysore
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