This document provides instructions for candidates taking an economics admissions exam. It notes that there are two question papers (Option A and B) and advises which is more suitable based on candidates' educational backgrounds. It specifies that candidates must write their roll number on exam materials and indicate which question paper they are attempting. The document also outlines the structure of the exam, including three parts with multiple choice, short answer, and mathematical questions. It provides word limits for responses and information on scoring.

1. ,
Ju.l y,
1996
DF.Pf-RTMENT C.1i;,
DFLE.I SCHOOL OF ECON0111cs
ECONOMrcs
MA Adm Iss iot1,; .. ""'" Scht11,.,_.,, ,,i p '1'<>:a
J'J IJr; .. 'J/
(l) Please wr He Your r o J l II Umber on top of th; s Pago. i11 Ches~acc Provided for iL.
~
( 2 J NaJ,e sure that you I," vc "rit ten bo ti, Your nau,c ,o,;,/ ,·,,_; 1
'"'"'be,- on the det<>cJ,,,1,1c -"li1,s of n11 the «us,.c,- 1,oo.',s '°"" !,,,o.-_
( J J Tit e rn are two q uc.5t io11 pa Pers 1" LI, is t,Ook. ,111s,,,.,,. ,,,,,_ Ge!<;.
Candidat es w1,o Ila ve done eco11om i cs at the Ur1<Jr, ryca du.-, t c .l ~,,.,,:
"ill find option A the more suitcbJc of the two, t1i1 Jfr <:1,,,,,c, ,._·/.,,
·have done Mat1,cmat .ic,r , Stau ,,lic:;, 1'/11•:;ic,;, """"'""<in~. 0cc . .,.,
to ons"e;· either }>aper.· D"t you ""'St nnt, .i ,. '"'Y c."·cu,,,.,·,c,,,,_, ..mix questions from l11c tr-10 .
( 1 J 1'1ease i ncti cat c• on the lop n "h l ;,.,,,u cor,.c r .,; [ l'o,; r a""'",.
-booklets l•<hich of ll,c two '"'Pees l'Ot> ha,•e "l lcmr,tc,J
;,crtai,,;ng lo it. Hcuc then, careful},- bctorc ,·ou bQgi n onsi;,o,;,.,,
·. he Paper.
question
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2. Option A
This paper is in three p;uts.
all three pacts.
You ace ceq~iced to ~!Lt.
/ separate booklet w i 11 l>e prov itl~tl to you for
/nsw~r to q11c!'.tio11!; lTI thi" par.t shouJ.~.1- l;epaper.
in th.is
i~1norctl
book.let. Yo11r. a11:;wcc~ lo Lid!, p,irl: are
i [ ·y c u cl o t IIe III c l s c , 11c r e .
/ t, !,w e i: s to - Pa r l: I ( and Purl: J 11 slui11.l.d l><! i11 Ll1<!
l>ook.<!l.. Hcite a11sw<!t"S ~o l'.1 c I: 1 l 1 011 the la:; L pa~Jo Cl [ :.c;t.:011
l>ool<.lct. Your answers mny uut iu11orecl if you ·1rlt:c
elsewhere.
Word l.im.i ts have been :;l.i.pul.alcd 011 a11:;wc1·:; l.o .i.l l
in Purl 1 and to some quest.ion:; i11 Part: .l l. Tile::;<! :.;l1oul:.i b
observed strictly. /11!;wcr:.; which ar.c 11ot to t!1c po.i11t,
verlH>!,C, w i I .l L>ci pci11;1 l i zed.
l'art 1..
( 7-(! lllil r:k:;)
/ns1-1er any l:_ljO quest.ions. lll q11C!";L .io11s c,11.Ty cqu.il 111<1;·/:.';.
Use eco110111ic reason_i ny lo a11s1,1cr l /J~se q11cs tj O11s. !,.i :,i it
your .-,11s1,1ers lo JOO ·,1or·ds . Verbose_ ,111s1,1c,:s 1,1j,.L l __i;c .
penali?ed.
Examine briefly the lu~y is!;uc!s undcrlyi11u Lite cltoict! beltecn
external co1111nercinJ borroHiny and (orci911 privalc jnv cstment I
for fi11c1nci11u Lite cur1·c1:L occounl tlcfic.i.L in lntlia':.; l;c.Jl,111c2
0 ( p iJ Y Ill C 11 LS .
Wllat do you undersland by L11e term ·scissor:; crisis' ? Jtov:
....,as i t r:- es o l v e d i n Ll1c ( o r III c ·r So v i e t Un i o 11?
Critically cxami11<! the official cli..ti111:; of brj11~1i11q tlo·111 U1c
a nnual rate o( i11flc1t.io11 in Lile currc) 11l. fi11-111;1ci,1l year
focusin(J on: (a) l.l1c• pr i,·0. i11cl<'x 11:;1;d, (1,) I.lie ..tJl.cr11;1l:iVC
proccc..l11rc~~ or co11q111l.i11q 1.ti t~ .11111u,11 r.1Lc o( in(lalion, and
( C ) t It e r O l I~ L' ( ,HJ Ill i l ti S l: (; re t.i pr i CC S .
1
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3. V
.,
,
1.
-------
l'arl 11 .
( GO m.i r.lts)
/ns1,1er any l.I questions. 1'll qucslions carry equ~-:l 1,,,:1 ;_ :..,.
Pa rls of questions c.:i rr ry proporc: i.on,1 lc "'C ig/1 l. Lim;:: ":::.; .. .-
a nstve rs to _1,__5_(!_ tvord!; foe ri11csliu11~; 1 c111cJ ?. . Verbose ,,1!:;1-::!i ::
·t.,ill be penalized .
"lli9ec tlle l eve l of foreign excli<1119e r-ese rves, the better
~
it is for the economy". Uo you a~rcc? Explain you1:
answer·.
2. Keeping {n 1ni11d the inlercsts o[ c1ll ,1f[cc tcd <::;rout)S, as:;;<::ss
Llle des i r ab i l i t y o [ · s H :3 d c :; ll i ' for LIIe l II d i an e co II o 111 y .
3.(a) Tile demand fu~1ctio11 o[ a co1111nodily is 9ivc11 i.>y
q=ApE
( b)
Hhere q = quantity demanded,
p = pc ice o( Lhc c0111111LHli t.·,-,
/ and c arc ~l iv c 11 co11~.;LaI1l.s.
S how thal the price clast;..icily o( ue1!1..1nd j_s co11~L.~i1~.
I f ( p = 2 fl, q = G) tll I cl ( i> = J r. q :.: r, )
elasticity o[ dcina1,d.,
,~ Dra,' indif(cn!ncc cur-vc.; and lHL' (en~11ce dircclio11 ai:cO-JS
depicting eac h of Lhc following prelt-tcnces:
(a) l love cheese but !1<1Le lJutLet.
(b) l can' L Lell L11c cli((ccc11ce lH~l1,•0:1 Ci.d(,· ,1;: ,'l:f•, ,,.
l like bolll o( Llwm .
(c) 1 lo"'-' c-1 lcci, ,111<1 ~,,•~•,-t:; h111 .1 1 ;_,•1 ;1 poi11t l dislil~C!
Analy ze dia~1rom111c.1Lic,,Jly L11<! c.:u 11 1;c•ql'C!!ICP o[
specific (u11iL) L .::1 ►: 011 ,1 r it11 l ,1c1il'J ., lti1il,~d <1-.•1n<11HJ cu 1 vc .
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4. (i :
I-; X ;1111 i 11, • t I 1, • r • I I t ·,·I
c, r
·1. c,,, "" ,.,,,.,,.,,.,,," ;""'""""·'" ,.,,,,.,n" i<::111 Lu;, <iccJJ11., 1,
ooLp,,t Ucc ;,1.,, ., ul io<11, cc,) i1,nc,1:;c i,1 im1>unc; - l':xpJ,1 .111 Yo e; I 11:; ,/ ( • 1·
o_
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subject.:
Lo .'( I ~
C.'(]
v•• I ,
9. F j "" :i '""'""'"' ; v., I" L ,,., ",·:. "'""'" ""'" ;, 11<1 p I oduc1. « r" "', "" l.E:q1Jo1J11 Yo11r n1 1!;,,.,,~,.
/
10. l( SoAvlJ, l'(A) o o.·1, 011,J l'(fJ)oo.s,
') ·I, ':> 1 - Of.i,u1 l<(Afl//J, l'IMll1J •'>I l'( ,1'11JJ
C i :;
ll Ou " I ~ - ,p.,,;; l. "'" ""' Ii. i p I<,. cl10 k,, '·"'"·, l.lu, "' ,., , . I :,i, r
"'""';,,,., """"'"" 1,,, c:,c,, 'P«,slio,, ut "hi,;1,, '"'" •· · c.,, ,.,-~,
( -:1 ) Ifu1,1 i s X
(I i s L t · i uu L C? t I "?
PW'~( b)
Civn I I I 0.
V ,t f 110.~
of .13( Y. ) .-, 11 ( I V;, I
( >: )
"/t-t
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I, ( 1/. ~
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1. I 1: 1 I
LI1<' ,I I
I 11 11 c • L j , .-
Ill(•; I JI c, I
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le:,,~ L ; I =, J ;I l - <J 0.
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l I I (_;
<J l: CJ111t: l r· j c
l11 l '. <..! II
U[ >:1.:r11 Ll
%2.-I It; I I i ::
.i I I l l I I ( ' I I C ( ' i l. .·'
' " ()I le' )' 1111 I I I I J I ; j <" f
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5. r
-- ~J -
l'dLI. 111.
( 20 11,ark!.i)
/H:l:e111pl: ,1J L q11c!;l.i,111s.
ec1cli question J:nclica tc
c hoice of anstver D
derivations etc . need
p,1 rt:
I LI q11,:sl.io11s c.-i1.'I.')'
011c clwicc: (c. g. 1-U
[or q ues I: .i on 1 ) .
<.'l/11,lJ. Jll, ll:l:::. :··c_.;·
ivill sig11Li._:· ye:,~·
No C<l 7.c:11J,-.I: cUii:',:
l:o J;e pcc~;e11Led for CJUCStiOJJ!i .I. ii Lil.?.::;
Caul.io n: l'ICCJ.Jlive pc111.:1J. 111;1rkir1q!
LJo nol 111,ilu.: •..,iJd (JUl!!:>S ;:l,uul. .i11s-/et:;. I corre·cL
1-1..Ll l cost
u ri s v1t: J 1, i J. I
felc!J you Ofl<: 1a:1rk, l,;1l. ; , •,11·1, 1HJ .111:-;•ll!r
111arl<...
/ I I : ; ,/ C! ,.. : ; I () I I I j : ; I >; 1 l ~l. 111 l l:: I I /I: ; I l L: 1111 ,l ·~ d
S<~cu r1u ;_111s1,1c1r l >oo lc lel.
J . I (' ;,1 C () fl S IJ 111C C :,; p '-~ 11 d :; ,1 l Ii i :; l fl CC) 111(!
~ L.1 s l i C i Ly u l ll I i.l L (_J '.)l) d i :,
( ;1 ) i 11 f l l I i l.. C
(l)) 7..CfO
( C ) !)C l: vi CC 11 Z e r O .t ; Id O IIf!
(d) equul to one.
yuu ·11._i Ll
2. ·/) 1i3. I: i S t lt C! d i S l. i II· JI I i S It i r I(l t: Ca l l l r e <l f ,I CC 1H p G t i l .i V C!
( ; l ) ll<:i:1;i rtd :;I.opes ' Il) ·/ l I
( lJ ) t·iC i ~~ cor::; i: i.111 L
( C ) fC is j_ d (! I l t i C cl L lo M<..:
( cJ) Tu l,11 rcvcnu-c i. :; ;,1 r" Y f" r· uI11 L11e ur i(Jill.
3. l[ LIUC l!:> [;1 lJinc.1 '.-)ll(!CC lL is ;tr,() l' ll l. l.c SIU'.C Lltc11
( i ) 1.11: :c Ill II'., l lJ,:. I :, I I i i ~i
( lJ ) SHi·iC i1;Lersc·cl:. LIUC LO L11e L'.:! ( L ol l Ile l.,HllJency
0 Sll/C l S 111 i. r1 i :11 i ;·.ed LO L li e r i (J lIL or l l1 c Lt.1nge11cy
( d ) SIUC < SIU-C .
1
1. Tile i11co:1e coI 1su11Ipl.1uI1 curve [or 2 s;oods :" and y l1<1 s
( i.l ) ) / .,~ :. 0 l Jo LI 1 Y. d I tel "I
-~) ) ro1· IJo l ll .·, i I! t!
,.
'( C ) 1/3 i:or X a 11 0 7.. I 3 for y
( d ) noI1e o[ L Ile c1bc.,ve.
5. Tile 111ar g ~rw 1 propens i Ly Lo sove is O. 2 .::. 1:d tile inco1i1C Li1;-:
r c1 l: c
( cl )
( b )
( C )
) ')
j :; Il . l .
1 . J
? . J
J ..
T I I c 111 u I l. i p I i n r- l
, .
.,
J.
!'
. I
I
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6.
-· (i -
I n ct 11 0 pen e CO II O in y ii ll C XO CJ 0. IIO LIS J fl C r (! il S 0. j I I j It I/ l! ~-; L111 l.! l I L
( d )
),-b)
( C )
( d )
t lie~ ri
( ii )
( IJ )
( C )
(u )
i11c1·e,1:;c 011Lp11t i111d 1111prov0. Ille L1·i1dc! li;1l;i11 c-t:
i11creu:;c ouLpuL ill1d v1orse11 Lhc Lrade IJaLH1cc
l o 1-1e r o u Lp u t a 11 cJ 1-1 o t· s e n t IIe :: r u d e lJa .l r.1 fl c c
none of Lile nbove
i."sc.:iL policy is <!ilc!clivc! il11cJ 111011ct.;1cy policy i:;
i11c_l(ecL tvil:!
fiscc1l policy ls i11cffective urid 11101ictnr)' L,olicyeffective.
both <1re effective.
IJ0L11 arc i11ef fectivc.
U. I[ L11e cor r clc1Lio r1 bclv1e 0 11 J:< c.111d l i~ 1 UH? ~::Hrela•ic,n
he t 1-1e cc 11 x / 2 ;1 11 d - y i s
9.
(,1) r/7.
(I>) r/7.
(c) - r
(u) r
C CJ r f C .I iJ L i O I l C U () [ ( i C i C? II I
C (I<! f i C: j C! I I I () f I <! q I <: ! ; ~;. i (i II O J :-: 0 11 y i :,
IJ C t ,/CC II Y. i II cl y
~ ( ii )
( l) )
( C )
( cJ )
.u ✓.
- . 0 2
. 1
l
. ,.
., U./,
10 . I ( / and lJ i) t '~ l 11 d C p e 11 d C:1 L CV C fl Ls ' a nd p I. / ] ·- 0 . :- il I 0.
p [ / u B] ~ u. ·; . Lltcn r ( u J is
( il ) () . '.i
( IJ ) 0.2
~ { C) (J . ,,
( <I ) () . :i ',
1::. . { C , 1 I. ·/ l LI I s 1
( ,I ) 1/]
( Ii ) l/U
( (; ) 1 / 1 1
)
( <I ) IH)ll(! or I I IC· : ,IH) V( ! .
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7. 1 3.
E(X) = <J, E(Y ) = 1 then
01) X .111d y ii l"() i 11u<)IH: 11dc11 L
( b ) X nnu y nrc uncor r elolccJ
( C ) X and y are 111utunJl y C ;, C l u ~; i V C
( d ) None o ( th e abov e .
Na tional income of a c ountry g rowing at the rate of.X%
per annum, while its population rs growing at _Y% per annurn .
1'11e rate of growth of µer caµil ,1 income is givC::n by:
(n) X - Y
( b) X Y
(c) X + Y
(d) X / Y
11. India's forei911 exchange reserves, i'.lt the ucyinni n g of the
cur r c n t f i rw. 11c i u 1 y cur , w c re II cu r cs L tu :
(a) $ 50 million
(b) Hs 200 crores
( c ) $ 1 ., lJ i l li o ll
(cJ) $ 3'.:i billion
15. The~ objective of Credit i{cservf1 natiu- (C!lH) is to:
(,1) subsidi7.c ~>a11ki11<J opcr,1tio11s
(lJ) raise resources (or· l.ltn ~1uvcr11111c 11L
(c) rG~Jul~Lc 1110110.y supply
(cl) 1101l) Of I.Ill! ,tlHJIJ<:.
pr lC:C) S " .
t 11,1L
( 0 J
( b J
lJcc r casc 111
tlo i ncrease
s up p ly.
1110 ll ( ) Y SU pp 1y J. e u <J:.;
i II pr i CC! S j 111 [) l i C ~;
Lu .1 p ri ce fall.
110 1 II C l Cu SC in 1110 11 cy
( C )
( d )
l ( Ll1cr0.
I II C r C! ~ :-; C!
11011c' or
.IS .Ill i llt:I c;1sl!
i 11 111011c)y :;:1pp ly .
Lit(' , II H)V('.
i fl [l I
' l . l l I ·· ( x ) < u LII e 11 i L 1 : ; 1)c>s s i LJ .l e LI1,1t.
( ; I ) I ( ) i~ i ll C I ( : ,I : ; i tt<I :1 l : I 11:r; 1· c,;1 • ; I II I
( l> ) I ( ) I,.., d<•c: I ('":, i II <J .i l ;1 cl cc:1 (!;' :, I II CJ
( C ) I ( ) i ~..; j II C 1· c;1:; i I ll) ,1 l ; I I l l I IC I (' . ' ~·,.., i 11 CJ
yd-') l' ( ) I ll) I ll! o( LI I ( ' ;ll,ovc
r :1 I c:
;1 l c:
1· ii L C
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10. Life cycle l1yput.l11!:,i:; oJ. <..:u11su11:ptio11 j111pJ.ics Lhc1L
propensity lo ccn1~;11111<! i:,
] l.J ••
( ;1 ) ii I ·/d y:; IlC' ( -J l' ( • I I (,- ; I II d
(b) ;1J-,1;1ys ~1r·cc1Ler l.11.111)
( c ) i.t l 1-,1 ,t y s 1p · C! i.t L ci r l II i.t 11 0 .
(cl) 11011 c of Llt0. ,tl>ov< : .
I 11 I I I I J I) •
')(,,
( ; I ) /.
i ::t:;, I ll<: t It:; L .:.i:; <l fll!I t:<!11 Li.tUt~ of t;fJI' ·u1:-;:
( IJ ) (i
( (: ) II
( d ) I ()
...
~
20. Tiu, luc,,nsL slta re of Lux n,vonu<,s for tho Indian econo1:,y ;
11
199'1-<J S ca rue [ ro111:
.--hi) excise l:ux
( b ) i II r: Cl Ill C! I: i1 X
( C ) Lil r i [ [ :-;
( d ) S it 1C! !-> t il X .
',.
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