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E.S/.S.S.
Examination - 2025 BGSP-C-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 under 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 of a
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.
BGSP-C-GNM ৫
- SECTION A
(Compulsory Section)
01. Answer all the following questions in about 100 words each : 5x6=30
(a) Explain the Wiseman-Peacock hypothesis about growth of public
expenditure. 5
(0) What are the most important criteria for public investment decisions ?
Justify. 5
(c) Discuss the concept of user cost in case of pricing of exhaustible
resources. 5
(d) Explain the Green Climate Fund and its objectives. 5
(e) Discuss the concept of limit pricing as a strategy of a firm. 5
(f) Planning reduces the flaws in the functioning of the market. Explain. 5
BGSP-C-GNM 2
SECTION B
Answer any six out of the following nine questions in about 200 words each :
15x6=90
Q2.
Q3.
९4.
Q5.
Q6.
౧౯.
९8.
९9.
Q10.
Show that change in price under monopoly will be one half that under perfect
competition when a specific unit tax is imposed.
Explain the need and purpose of use of shadow price in developing countries.
Discuss the main issues of public debt management, keeping in mind the
debate about inter-generational burden of public debt.
Indicate the efficacy of the Joint Forest Management system as an example of
a collective action programme in controlling forest degradation.
Critically discuss the role of Pigouvian tax as a tool for combating
environmental pollution.
Elucidate the interdependence of Research and Development and innovation in
a market economy.
Discuss different ways and means by which public policy can regulate the
development of firms and industries.
What is Local Agenda 21 in the Rio Action Plan 1992 ? Explain in this context
the relevance of bottom-up approach to development.
Describe the concept of planning in a mixed developing economy, including the
role of decentralised planning.
BGSP-C-GNM 3
15
15
15
15
15
15
15
15
SECTION C
Answer any four out of the following six questions in about 300 words each :
౧11.
९12.
Q13.
९14.
౧15.
౧16.
20x4=80
(a) Discuss the Lindahl theory of determination of public expenditure. 10
യ) What role does public expenditure play in the economic stability of an
economy ? Discuss. 10
Critically examine the efficacy of the system of tradable pollution permit as an
instrument for achieving environmental sustainability. 20
What are the underlying causes of emergence of environmental valuation
system ? Discuss the main features of contingent valuation technique. 8+12=20
Two firms produce a homogeneous product. The market demand for the
commodity is given by :
X=x,+x,=120-p
where x, and ® are outputs produced by two firms respectively and ற is price.
The cost functions are given by :
x
৮১
61७5) = 10x, 80१ 0202) =
3
Find the following :
(a) | When firm 1 is the leader, determine the equilibrium quantity of the
second firm, and the market price.
(0) ‘When the two firms are interdependent on each other, determine the
equilibrium quantity produced by the two firms and the market
price. 10+10=20
Analyse the notions of product differentiation and market concentration as
elements of market structure. Discuss any five measures of market
concentration. 10+10=20
Discuss the advantages and disadvantages of planning in a developing
economy, taking the example of India. 20
BGSP-C-GNM 4
