BCom In Accounting & Finance (BCAF) SEM III 2017 2018 Nov 2018 ECONOMICS II MACRO ECONOMICS Question Paper - Mumbai University | munotes

Questions asked in this paper

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• N.B: 1. Attempt all questions

1. Q2 All questions carry equal marks
2. Q1 Answer any two 15 marks
   • a) Explain the concept of circular flow of income and expenditure ina three — sector
   • b) Discuss the various factors affecting consumption function
   • c) Explain concept of multiplier and bring out various leakages of the multiplier
3. Q2 Answer any two 15 marks
   • a) Explain the Keynesian approach to demand for money
   • b) Explain the effects of inflation
   • c) Explain the objectives of monetary policy
4. Q3 Answer any two 15 marks
   • a) Explain the principle of sound finances
   • b) Explain the burden of internal public debt
   • c) Discuss the limitations of the FRBM Act,2003
5. Q4 Answer any two 15 marks
   • a) Evaluate Ricardian Theory of comparative cost
   • b) Discuss the arguments for free trade
   • c) Explain measures to control deficit in the balance of payments
6. Q5 A) Conceptual question (any four out of six) 8 marks
7. Q1 National income
8. Q2 Money supply
9. Q3 Public expenditure
10. Q4 Public debt
11. Q5 Currency devaluation
12. Q6 Quota
13. Q5 B) Multiple choice question ( any seven) 7 marks
    • a) Labour
    • b) Goods and services
    • c) Land
    • d) None of the above
14. Q2 The ----- theory attributes business cycles to changes in marginal efficiency of
    • a) Monetary
    • b) Multiplier — accelerator
    • c) Real business
    • d) Investment
    • Q.P. Code: 23405
15. Q3 Demand for transaction and precautionary motive is interest
    • a) Elastic
    • b) Unit elastic
    • c) Inelastic
    • d) None of the above
16. Q4 Which of the following is not a direct cause of demand — pull inflation
    • a) Deficit financing
    • b) Credit creation
    • c) Raw materials
    • d) Black money
17. Q5 External debt implies borrowing from
    • a) Individuals
    • b) Firms
    • c) Foreign countries
    • d) None of the above
18. Q6 Ricardian theory measures comparative cost in terms of
    • a) Money
    • b) Labour days
    • c) Cost of all inputs
    • d) None of the above
19. Q7 Expenditure switching policies used to correct deficit in the balance of payments
    • a) Devaluation
    • b) Revaluation
    • c) Appreciation
    • d) -All of the above
20. Q8 Which of the following is not true of prosperity?
    • a) It begins at peak
    • c) Idle funds are channelized into productive area
    • d) Comes to at peak
21. Q9 Inflation is beneficial to
    • b) Business people
    • c) Creditors
    • d) None of the above
22. Q10 Income terms of trade tells increased capacity to
    • a) Export
    • b) Import
    • c). Investment
    • d) None of the above

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