Bachelor Of Management Studies (BMS) SEM IV 2017 2018 April 2018 BUS. ECONOMICS Question Paper - Mumbai University | munotes

Questions asked in this paper

• 2. Figures to the right indicate full marks

1. Q1 B) State whether the following statements are True or False (Any 7) 7 marks
   • 1. Inaclosed economy, GNP is always greater than GDP
   • 2. Macroeconomics analyses the behaviour of individual firms
   • 3. Recession, if not controlled will lead to depression
   • 4. During depression, velocity of circulation of money will be high
   • 5. Demand for active cash balances depends upon the level of income
   • 6. A mild inflation is good for the economy
   • 7. Fiscal policy relies on the use of taxes and spending by the government to influence aggregate
   • 8. Protectionism is adopted only by developing countries
   • 9. Arbitrage helps to equalise the exchange rate
   • 10. All countries adopt a flexible exchange rate mechanism at present A and Bor C and D
   • A. Discuss the scope of Macroeconomics. 8
   • B. Explain the circular flow of income in a two sector closed economy. 7
   • C. What is Trade cycle? Explain various phases of trade cycles. 8
   • D. Explain the concept and working of multiplier. Aand B or C and D 7
   • A. What are the various determinations of money supply? 8
   • B. Discuss the demand pull and cost push inflation. 7
   • C. Discuss the Keynesian liquidity preference theory of interest. 8
   • D. Explain various instruments of monetary policy. 7
   • Q.P.Code: 31323
2. Q4 Attempt A and B or C and D
   • A. Define public good. What are the characteristics of public good? 8
   • B. Explain the objectives of fiscal policy. 7
   • C. Discuss the various factors influencing incidence of taxation. 8
   • D. Write a note on FRBM Act 2003. A and B or C and D 7
   • A. Examine Ricardian theory of comparative difference in cost. 8
   • B. Explain structure of Balance of payment. Write short note on (Any 3) (15) 7
   • 2. Fisher’s Equation of Exchange
   • 3. Fiscal deficit and Primary deficit
   • 4. Types of disequilibrium in Balance of Payment
   • 5. Arbitrage and Hedging concepts

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