Business Economics (Macro-II) (SYBCOM) || Question Bank

Business Economics (Macro-II) (SYBCOM) || Question Bank

Money

Short Answer Questions

1. What is the classical approach to the demand for money?

2. What is precautionary demand for money?

3. Why has the study of supply of money received relatively scant attention compared to analysis of demand for money?

4. Briefly discuss the difference of opinion of monetarists and Keynesian with

reference to supply of money.

5. What are the limitations of credit creation?

6. What is the money measure of RBI?

7. Write a short note on moral suasion as an instrument of credit control.

Long Answer Questions

1. Explain the four important approaches to the definition of money.

2. Describe the functions of money in an economy.

3. Assess the transactions and speculative demand for money as per Keynes.

4. Explain the determinants of money supply in an economy.

5. Examine the process of multiple credit creation by monopoly commercial bank.

6. Describe credit creation by competitive commercial banks.

7. Analyse the bank rate and open market operations in reference to credit control.

Inflation

Short Answer Questions

1. What are the various ways in which inflation has been defined?

2. What is desirable rate of inflation?

3. Why is every price rise not an inflation?

4. ‘Both the demand pull and cost push explanations of inflation are closely linked

with the now widely held view that the problem of inflation is more sociological

than economic in nature.’ Explain.

5. What are some of the new approaches to controlling inflation?

Long Answer Questions

1. Explain the different kinds of inflation on the basis of rate.

2. How does inflation affect the production and growth in an economy?

3. Examine the effect of inflation on employment.

4. Discuss the effects of inflation on some sections of the society and on distribution

of wealth.

5. Critically analyse the concepts of demand pull and cost push inflation.

6. Explain the measures which can be adopted for controlling inflation along with

their limitations.

Trade Cycle

Short Answer Questions

1. Why do some economists tempted to infer that business cycle is a thing of the

past and business cycle theories obsolete?

2. How does the depression phase of the business reverses?

3. What are the main objectives of the stabilization policies?

Long Answer Questions

1. Explain the phases of a business cycle.

2. Discuss the most important and widely used economic policies used to achieve

economic stability.

Public Finance

Short Answer Questions

1. Mention the role of the government in the public finance sector.

2. State the subject matter of public finance.

3. List the various sources of public revenue.

4. Write a short note on the similarities between private and public finance.

5. Which of the following receipts of government are non-taxes, part taxes, or full

taxes?

(a) Voluntary gifts to government

(b) Borrowings by government

(c Fees charged and fines imposed by the courts

(d) Excess of user charges over supply cost of a government service

(e) Excise duty paid by a manufacturer

(f) Loan recoveries by the government

(g) A surcharge on hotel room fare

(h) Stamp duty paid on the purchase of a house

6. What are the various categories of non-tax revenue?

7. Write a short note on capital receipts.

Long Answer Questions

1. What were the major drawbacks of budgetary deficits?

2. Describe the fields related to public finances.

3. Interpret the dissimilarities between private and public finance.

4. Analyse the role of public debt in managing the economy.

5. Explain the concept of multiple tax system.

6. Describe the types of taxes.

7. Interpret the limitations of land value tax.

8. Distinguish between general sales tax and turnover tax.

9. Discuss the various forms of VAT.

10. Explain the characteristics of a good tax system.

11. How can you say that the productive power of the society resides in the form of

human wealth?