IGNOU MSc Economics assignment 2012 first year solved questions solutions answer keys

Indira Gandhi National Open University, School of Social Sciences – Assignments 2012
July 2011 and January 2012 Sessions

IGNOU has posted the MSc course, first Year Courses.

Assignment submission dates
July 2011 session – March 31, 2012
January 2012 session – September 30, 2012
Maximum Marks: 100

MEC-001: Microeconomic Analysis
Assignment Code: MEC-001/TMA/2011-12
Section A
1. Explain the concept of Nash equilibrium. How is it related to (a) Dominant strategy equilibrium and (b) Sub-game perfection?
2. What is indirect utility function? How will you derive an indirect utility function from a direct utility function? Explain Roy’s identity.
Section B
3. Derive the elasticity of substitution for the Cobb-Douglas production function ( ) a b q = f K, L = AK L
4. What are the recommendations of Coase to solve the problem of externalities?
5. Explain Arrow’s Impossibility Theorem.
6 Discuss the concept of asymmetric information. Explain the relation among moral hazard, adverse selection and signaling, giving suitable examples.
7. Do you agree with the proposition that a risk-averse person will optimally buy full insurance if the insurance is actuarially fair? Give reasons in support of your answer.

MEC-002: Macroeconomic Analysis
Assignment Code: MEC-002/AST/2011-12
Section A
1. What is meant by steady state in the Solow model? Explain how Golden Rule is different from steady state.
2. Explain how the permanent income hypothesis reconciles the difference between short-run and long-run consumption behavior.
Section B
3. Policy makers should stick to rules instead of pursuing discretionary polices. Do you agree with the above statement? Substantiate your answer.
4. Explain in brief the salient features of real business cycle theory. In what respects is it different from other theories of business cycle?
5. Explain why firms may offer a higher wage to workers than the equilibrium wage rate.
6. Bring out the important issues on which Lucas criticizes Keynesian macroeconomics. To what extent the New-Keynesian economists have accepted these criticisms?
7. Write short notes on the following.
a) Rational expectation and adaptive expectation
b) Non-accelerating Inflation Rate of Unemployment

MEC-003: Quantitative Methods
Assignment Code: MEC-003 / AST-1/2011-12
Section A
1. How do you use differential equations in economics? What type of situations can be helpfully depicted using differential equations? Discuss the role of initial condition in solving a differential equation. If your objective is to examine the stability of equilibrium, with the help of an example, show how a second-order differential equation helps in addressing your concern.
2. Give examples of problems where you can make use of Poisson distribution. Does it have a probability density function? Why or why not? Discuss your answer in the context of the rnean and variance of Poisson distribution.
Section B
3. Explain the relevant considerations of making a choice between one-tailed and two-tailed tests. How would you determine the level of significance in the above tests?
4. A linear programming problem is given as Min z = 30 x1+ 50×2 Subject to. Find its optimal solution.
5. How would you determine linear dependence of a matrix? Define the rank of a matrix in terms of its linear independence.
6. The correlation coefficient between nasal length and stature for a group of 20 Indian adult males was found to be 0.203. Test whether there is any correlation between the characteristics in the population.
7. Write short notes on the following:
a) Eigen-vectors and Eigen-values
b) Taylor’s expansion
c) Mixed strategy
d) Kuhn-Tucker condition

MEC-004: Economics Of Growth And Development
Assignment Code: MEC-004/AST/2011-12
Section A
1. Critically examine the basic formulations of the Harrod – Domar model of economic growth. How does the Harrod model explain the occurrence of trade cycles?
2. Discuss the concept of Golden Age Equilibrium in Joan Robinson’s Model. What are its main criticisms?
Section B
3. Define any three of the following
a) The golden rule of accumulation
b) The Real Business Cycle model
c) Tragedy of the commons
d) Vicious circle of poverty
e) Evolutionary Growth
4. Explain the concept and implications of globalization. Also, discuss its advantages and shortcomings.
5. Critically evaluate the theory of critical minimum effort. Also bring out its limitations.
6. Explain the meaning of planning as an instrument of resource allocation. Why is there a need for planning in the development process?
7. Differentiate between
a) Embodied progress and Disembodied progress
b) Harrod neutrality and Hicks neutrality
c) Capital augmenting and capital deepening.

MEC-005: Indian Economic Policy
Assignment Code: MEC-005/AST/2011-12
Section A
1. “A number of steps can reduce the severity, spread and size of the black economy in India.”
Give the future directives on the parallel economy and cite the practical obstacles faced on the way to fight the black economy.
2. “In the wake of globalisation, in order to protect the vulnerable groups, different strategies of employment need to be followed”. Comment
Section B
3. Discuss the instruments of monetary policy and throw light on the main features of monetary policy from the late-1990’s onwards.
4. In the light of the parameters for assessing economic reforms, critically examine its impact on the Indian economy.
5. Explain how Minimum support price (MSP), microfinance, easy access to credit and agricultural marketing help in addressing the issues in the agricultural sector?
6. ‘Policy-reform is an on-going process’ – discuss the statement by making suggestions for foreign capital policy.
7. Explain any three of the following.
a) Portfolio Investment and Direct business investment
b) Issues in union-state financial relations
d) Poverty ratio and working poor
e) Functions and Objectives of the WTO
f) Distinction between Member-Based Organizations and Non-Governmental Organizations.

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