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LE.S/1.S.S. Examination, 2024 SGSE-B-GNM
GENERAL ECONOMICS
PAPER—III
Time Allowed : Three Hours Maximum Marks : 200
QUESTION PAPER SPECIFIC INSTRUCTIONS
Please read each of the following instructions carefully
before attempting questions
There are SIXTEEN questions divided in THREE Sections.
The ONLY question in Section—A is compulsory.
In Section—B, SIX out of NINE questions are to be attempted.
In Section—C, FOUR out of SIX questions are to be attempted.
Candidates should attempt questions/parts as per the instructions given in the Sections.
The number of marks carried by a question/part is indicated against it.
Wherever any assumptions are made for answering a question, they must be clearly
indicated.
Diagrams/Figures, wherever required, shall be drawn in the space provided for answering
the question itself.
Unless otherwise mentioned, symbols and notations have their usual standard meanings.
Candidates are required to write clear, legible and concise answers and to adhere to word
limits, wherever indicated. Failure to adhere to word limits may be penalized.
Attempts of questions shall be counted in sequential order. Unless struck off, attempt ofa
question shall be counted even if attempted partly.
Any page or portion of the page left blank in the Question-cum-Answer (QCA) Booklet
must be clearly struck off.
Answers must be written in ENGLISH only.
SGSE-B-GNM/75 1 [ P.T.O.
1.
SECTION—A
( Compulsory Section )
Answer all the following parts in about 100 words each : 56530
(a) How is an optimum tax rate defined?
(b) Explain, with the help of an example, how non-user value matters in valuing
environmental goods.
(c) What is hedonistic method of environmental valuation?
(0) What do you mean by market concentration? Mention the factors which
determine market concentration.
(e) What are the microeconomic factors that affect investment decisions?
6 Justify that state and market are complementary, not mutually exclusive.
SECTION—B
Answer any six questions out of the following nine in about 200 words each: 15%6=90
2.
What do you mean by balanced budget? What are the arguments for and against
balanced budget? 4+11=15
Give a theoretical analysis of the growth of the public expenditure in terms of
Adolph Wagner’s hypothesis. What are the criticisms levelled against it? 10+5=15
Critically examine the role of social cost-benefit analysis in the context of
formulating a public investment decision. 15
Explain the Hotelling’s theory of non-renewable resources and in this context,
explain how optimal allocation of non-renewable resources may be achieved. 9+6=15
How is climate change altering the pursuit of economic development in the Global
South? 15
Discuss the meaning and measurements of profitability. What is the difference
between profitability and profit? 11+4=15
SGSE-B-GNM/75 2
8. What do you mean by entry-preventing pricing? How can it be an optimal pricing
strategy of a firm? 8+7=15
9. (a) What is collusive oligopoly and what are its objectives?
(b) We have the demand and cost functions of two firms A and B:
P=100-0-5Q=100-0-5(Q, + 08)
८५ =0-50,
୦୫ = 0-508
Calculate the maximum joint profit of the colluding firms on the basis of the
above information. (3+6)+6=15
10. Explain the relevance of Public-Private Partnership (PPP) Model in the context of a
market economy. 15
SECTION—C
Answer any four questions out of the following six in about 300 words each: 2024-80
11. What is meant by equity in taxation? How do you justify for the ability to pay
approach as a tool in achieving equity? 5+15=20
12. Briefly explain Domar Approach, Solvency Approach and Ricardian Equivalence for
the problem of sustainability of public debt. Which of the three will you prefer and
why? 12+8=20
13. What is Green GDP? Discuss the UN Methodology for computing Green GDP.
5+15=20
14. Which is better—carbon tax or cap-and-trade? Justify your answer. 20
15. What are the different approaches for public policy formulation with respect to
development of firms? Explain. 20
16. “It is being increasingly believed that development planning is no longer relevant in
today’s context.” Do you agree? Justify your position. 20
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SGSE-B-GNM/75 3 SB24—6240
