(Pages : 4)
Reg. No. : .................................... Name : .........................................
Final Year B.A. Degree Examination, March 2009 Part – III : Group – III : ECONOMICS Paper – VI : Optional (D) : International Economics (New Scheme – 2005 Admission Onwards) Time : 3 Hours
Max. Marks : 100
Instruction: Answers may be written either in English or in Malayalam. I. Choose the correct answer. Write only the alphabet : 1) Who is the author of ‘Principles of Political Economy and Taxation’ ? a) Adam Smith b) J.S. Mill c) Hecksher d) David Ricardo
2) The elasticity approach is developed in the field of international trade. Which of the following is considered as its purpose ? a) to analyse the effects of exports b) to analyse the effects of imports c) to analyse the effects of devaluation d) none of the above 3) Who developed the opportunity Cost Theory ? a) Haberler b) Ricardo c) Samuelson d) Ohlin 4) The predecessor of WTO a) GATT c) IMF
b) GATS d) IDA
5) The Current EXIM Policy covers the period of a) 2002 – 2007 b) 2007 – 2012 c) 2005 – 2010 d) none of the above
(5×1=5 Marks) P.T.O .
II. State true or false : 6) Exchange control is a method of correcting disequilibrium in the balance of payments. 7) Input-output model is successfully employed by Samuelson. 8) Infant Industry argument is an instrument used for free trade. 9) Reciprocal demand curve is also known as offer curve. 10) IMF and IDA are called Brettonwood Twins.
III. Fill in the blanks : 11) WTO came into existence in the year _________ a) 1996 b) 1995 12) ________ depends not only on the tariff on the commodity produced but also on the input coefficients and tariffs on the inputs. a) Optimum tariff b) Effective tariff
13) __________ is a trade barrier. a) Exchange control b) Quantitative Restrictions 14) __________is an asset created by IMF. a) Euro-dollar b) Special drawing rights 15) ____________ avoids risks associated with the trade. a) Hedging
IV. Define any four of the following : 16) Devaluation. 17) Terms of trade. 18) Opportunity cost 19) Custom duty 20) Partial convertibility.
V. Answer any seven of the following not more than half a page : 21) Distinguish between inter-regional and international trade. 22) Explain trade as an engine of growth. 23) What are the arguments against free trade ? 24) Major functions of WTO. 25) Direction of foreign trade in India. 26) Effects of deficit in balance of payment. 27) Limitations of absolute advantage theory. 28) What are the concepts of terms of trade ? 29) Explain the concept of optimum tariff.
30) Explain foreign trade multiplies.
VI. Answer any six of the following. Each not more than one page : 31) Explain the impact of tariffs in partial Equilibrium Analysis. 32) What are the limitations and importance of offer curve ?
33) What are the consequences of disequilibrium in balance of payments ? 34) Critically review the functions of World Bank. 35) Give a brief sketch of international monetary system. 36) What are the measures adopted by the Govt. to correct deficit before 1991 ? 37) What are the instruments of export promotion ? 38) Explain the importance and scope of international economics. 39) Explain the importance of terms of trade. 40) Explain the exchange control methods.
VII. Answer any three of the following not exceeding three pages. 41) Explain Heckscher-Ohlin theorem. 42) Explain the measurement and distribution of gains from trade. 43) Explain the role of WTO in promoting the trade of developing economics. 44) Critically review the trade reforms of India. 45) What are the limitations of devaluation ? Show its relevance in the context of Indian economy. 46) Explain the components of balance of payments. Show its trend in India during post-reform period. (10Ă—3=30 Marks) ______________