University of Mumbai 2007 B.A Economics - II(il-07) - Question Paper
Economics - II(April-07) & C O\orri\ c <, j] -
N.B. : (1) Attempt any five questions choosing not more than three questions from each section.
(2) Figures to the right indicate full marks.
(3) Draw neat diagrams wherever necessary.
Section I
1. Discuss the scope and significance of macro economics. What are its limitations ?. .
2. (a) BIxainine the Say's Law of markets.
(b) Explain the classical theory of employment.
3. What is consumption function ? Discuss the factors affecting the consumption function. -
4. (a) Explain the concept and working of investment multiplier.
(b) Critically examine the liquidity preference theory of interest.
5. Write short notes on any two of the following :
(a) Phases of trade cycle
(b) Marginal efficiency of capital
(c) Supply of money
(d) Classical approach to demand for money.
Section II
6. (a) Discuss the primary and secondary functions of commercial banks.
(b) Examine the process of credit creation of commercial banks.t
7. (a) What are the various objectives of monetary policy ?
(b) Explain the quantitative credit control measures of a central bo-nfc.
B. (a) Distinguish between public finance and private finance.
(b) Explain the canons of taxation.
9. (a) Discuss the merits and demerits of indirect taxes.
(b) Bring out the causes of increasing public expenditure in modem times.
10. Write short notes on any two of the following :
(a) Deficit financing
(b) Burden of public debt
(c) Terms of trade
(d) Structure of balance of payments.
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