Business Economics II SYBMS QUESTION BANK

Business Economics II

Disclaimer: Please note that these question banks are important questions to be done, however the whole syllabus must also be revised.

Paper pattern:-

Q1. Objectives (15 marks)

Q2. Full length questions (2 sets of 2 questions each. Attempt any one set)

Q3. Full length questions (2 sets of 2 questions each. Attempt any one set)

Q4. Full length questions (2 sets of 2 questions each. Attempt any one set)

Q5. Short notes (3 of 5)

Unit 1

1. What is the importance of macro economics
2. Explain the scope of macro economics
3. Explain the circular flow of income in the closed and open economy model
4. Conventional and Green NNP (SN)
5. Explain the relationship between national income and economic welfare
6. Explain the various phases of trade/economic cycles
7. Explain the relevance of multiplier effect
8. Explain the assumption of the multiplier model
9. Consumption function, Investment function (SN)

Unit 2

1. Explain the various types of money in circulation (M1, M2 etc)- SN
2. What are the factors that affect the circulation of money in the economy
3. Explain the Keyne’s Liquidity trap
4. Explain the Keynesian approach to demand for money
5. Elaborate the Fisher’s equation of exchange
6. Explain the types of inflation
7. What causes inflation
8. What are the consequences of inflation
9. How is inflation controlled
10. What is monetary policy and how can it help in economic growth

Unit 3

1. Explain the role of the government in any developing economy
2. Explain the objective of fiscal policy
3. What are the effects of taxation
4. Explain the significance of public expenditure
5. What is the effect of public expenditure
6. What are the different types of public debt (SN)
7. Revenue Budget, Capital Budget (SN)
8. Explain the structure and component of a union budget

Unit 4

1. Explain the Ricardo’s competitive advantage theory
2. What are the factors determining the terms of trade
3. Free trade vs Protection(SN)
4. FDI vs FII
5. What are the benefits of FDI
6. Explain the role of MNC in any developing economy
7. Explain the structure of BOP
8. What are the reasons of disequilibrium in BOP
9. Fixed vs flexible exchange rates (SN)
10. Arbitrage, Managed exchange rates (SN)

Text books recommended

1. Sheth Publications, 
2. Vipul Publications