DEPARTMENT OF ECONOMICS

VIKRAMA SIMHAPURI UNIVERSITY: NELLORE 524 001

VSURESET ECONOMICS Ph.D. ENTRANCE TEST SYLLABUS & MODEL
QUESTIONS
DEMAND ANALYSIS: The concept of Demand- Elasticity of Demand: Types and
Measurement- Indifference curve Analysis Revealed preference Theory-Recent Development
in the theory of Demad..
THEORY OF PRODUCTION AND COST: Production function- Cobb-Douglas
Production Function CES production function- Law of variable proportion -Returns to
scale-lso- quants.- Equilibrium of the Film: Choice of optimum combination of inputElasticity of Substitution-Linear progmmming Graphical method-Traditional Theory of
Costs- modern theory costs
PRICE AND OUTPUT DETERIVHNATION UNDER MARKETS: Equilibrium of the
Firm-concepts of revenue-Perfect competition: Equilibrium of the Firm and industry under
Perfect competition-price Determination under perfect competition -Derivation of supply
curve of industry under perfect competition.
Monopoly: Equilibrium of the Firm-Price Discrimination-Equilibrium of the Firm under
Discriminating monopoly-price and output determination under Bilateral monopolyMonop0iistic Competition: Equilibrium of the Firm and the Group: General and chamberlain
approaches-Product Differentiation and selling costs-Excess capacity.
MODERN THEORIES OF THE FIRM: Baumols sales revenue maximization modelMarris' model of the managerial enterprise-Williamson`s model of managerial discretion
Bains limit pricing theory -Recent developments in the theory of limit pricing: The models
of Sylos- Labini- Franco Modigliani and Bhagwati
GENERAL EQUILIBRIUM: Meaning of equilibrium -Static and dynamic equilibriumStable and unstable equilibrium -Partial and general equilibrium-General equilibrium of
Exchange and consumption-General equilibrium of production and exchange-General
equilibrium and relative prices.
UNIT-II
NATIONAL INCOME: National Income and Social Accounting methods of estimationfamily of national income concepts- problems. in estimation of national income.
CLASSICAL AND KEYNESIAN MACRO ECONOMICS: Classical theory of
employment- Critique of classical theory- Basic Keynesian model-Consumption functioninvestment multiplier- Accelerator-Interaction -between multiplier and acceleration.
NEO-CLASSICAL AND KEYNESIAN SYNTHESIS: The lS-LM model- Extension of ISLM model with government sector. Relative effectiveness of monetary and fiscal policiesExtension of IS-LM model with labor market.

BUSINESS CYCLES: Types of Trade Cycles-Different theories of Trade Cycles:

Sammelsen- Hicks and Kaldor --Control of business Cycles: Monetary and Fiscal Policies.
MACRO ECONOMIC POLICIES: Objectives of Macro economic policies -Objectives
and tools of Monetary Policy-Evaluating Monetary Policy: The Policy of activists and Nonactivists arguments-Fiscal policy: Objectives and Tools- Automatic Stabilizers-Problems in
the implementation of fiscal policies- Effectiveness of Monetary and Fiscal Policies.
UNT: III PUBLIC FINANCE.
PUBLIC EXPENDITURE: Wagners Law of Increasing state activities- Peacock and
Wiseman Hypothesis- Rostows Theory - Reasons for growth of public expenditure in
modern times-Determinates and classification of Public expenditure Effects of public
expenditure- Growth and regulation of public expenditure in India.
PUBLIC REVENUE: Sources of public revenue-Tax Revenue and Non-tax RevenueCharacteristics of Good tax system-Benefit theory and Ability to pay theory-Taxable
capacity-Factors determining taxable capacity, Measurement of Taxable capacity and taxable
capacity in India.
INCIDENCE OF TAXATION: Incidence of Taxation-Classical Approach-The
concentration, diffusion and Modem Theories of Incidence and Musgraves concept of
Incidence-Study of Indian Tax Structure-Direct and Indirect Taxes-Review of Tax proposals
of Raja J Chellaiah Committee- Reforms in Taxation.
GOVERNMENT BUDGET: Theory of Government Budgeting: Classical and Modem
Views- Budget Classification: Functional and Economic classification-Progratntne and
Performance Budgeting-Zero-Base Budgeting - Budget Reforms- Fiscal Crisis in IndiaReforms to Control Revenue Deficit-Fiscal Deficit and Budgetary deficit in India.
LOCAL FINANCE: Significance of Local Finance- Revenue and Expenditure of local
Bodies-Financial Strengthening of Urban and Rural Local Bodies through devolution of
Funds from Central and State Governments.
UNIT IV: INDIAN ECONOMY AND INTERNATIONAL TRADE
STRUCTURE OF INDIAN ECONOMY: Basic features of Indian Economy -Growth and
Structural changes in Indian Economy- Trends in Indias National income -Saving and
investment pattern in India-Human Development in India.
ECONOMIC REFORMS: Rationale of internal and external reforms- Globalization of
Indian economy W.T.O. and impact on the different sectors of the economy -Need for and
issues in good governance- issues in competition and safety nets in Indian economy.
THEORIES OF INTERNATIONAL TRADE: The pure theory of International Trade
Theories of` Absolute Advantage, Comparative Advantage and Modern Theory- Theorem of
Factor Price Equalization. Empirical Testing of theory- Absolute cost and comparative costHecltscher Ohlin Theory of Trade- Scanties of Paradox of Factor Price Equalization The
Production Possibility Curve Offer Curve

IMPERFECT COMPETITION AND INTERNATIONAL TRADE: Intra-Industry TradeNeo Hecksher- Ohlin Model neo Chamberlin Model-Kravis and Linder theory of Trade-Role
of Dynamic factors in Trade (Alternative Theories of` Trade). Vent for Surplus. Availability,
Changes in tastes. Technology, factor endowments- Increasing return to scale-Monopolistic
competition and International Trade.
THEORY OF TRADE POLICY: Free trade Vs. Protectionism- Trade Restriction-The
Theory of Tariffs-The Stopler Samuelson Theorem., Tariffs and Income Distribution
Tariffs, the term of trade and domestic prices- Non- tariff Barriers- The us of trade
restrictions- Effects of quotas-PERA And FEMA-Quantitative Restriction and the Balance of
Payments - import Substitution Vs Export Push.
UNIT: V ECONOMICS OF GROWTH AND DEVELOPMENT
Introduction: Economics of Growth and Development- Factors affecting economic growth :
Capital, labor and technology -Measurement of economic growth and economic development
: Traditional approach welfare approach - Human development approach - Sustainable
development.
Theories of Growth: Adam Smith, Ricardo, Karal Marx and Schumpeter -Joan Robinsons
Golden Age model- Harrod - Domar model.
Partial Theories of Growth and Development; Rostows Stages of Growth Theory Lews
surplus Labour theory Rodans Big push theory -Nurkse Balanced Growth Theory
Hirshmans unbalanced theory-Leibensteins critical minimum effort theory -Nelson Low
level Equilibrium Trap theory.
Theories of DuaIism:Dualism and Dualistic economy -Sociological and technological
dualism Dualistic theories of Boeke, Higgines and Fei and Ranis.
Factors in Economics Development: Population and economic development- Optimum
theory of population -Demographic transition -Human resource development- Man power
planning -Role of capital formation in economic development -Role of technology in
economic development.
The Model Paper is as follows.

MODEL QUESTIONS
VSU RECET 2012
(Ph.D Entrance Examination)
Time : 2 Hours
120

Max. Marks :

(Each question carries 1 mark the candidate has to answer 30 questions from Section A
Carrying in 30 marks and 90 questions from Section B carrying 90 marks)
SECTION A
(GENERAL APTITUDE)
1.

196, 256, 324, 400, 484 ______________

A) 576

2.

B) 441

C) 529

D) 625

1/9, 2/27, 8/81 __________ 124/729

A) 32/243

B) 128/ 243

C) 256/ 243

D) 64/243

3.
A man walks 30m towards of south then turning to his right, he walks 3m then turning
to his left, he walks 2 m, again he turns to his left and walks 30m how far is the from his
initial position.
A) 20m
4.

B) 30m

D) 50m

64, 16:: 70;A) 17.5

5.

C) 60m

B) 18.5

C)21.5 D) 20.5

Solve the given equation

X2 - y2 = 34

X2 - y2 = 544

The value of X and Y are

A) 4 , 3
6.

B) 5, 3

C) 3, 5

D) 3, 4

Mathematical standard deviation is represented by

B)
___________

__________

N
2

C)

__________
N
7.

D)
_________
N2

Which of the following is not an internet Browser ?

A) Internet Explorer

B) Netscape

C) Opare

D) AQL

8.

Data transfer rate in modems is measured in

A) Bits for minute

B) Bits for Second

C) Bond widthD) None of the above

9.

Basics of steps of research process includes

A) Problem definition B) Research design
C) Data collection

10.

D) All

Which of the following comes under quantitative objective o research

A) A Study of estimate the demand of product
B) A Study of testing the effect of level of education
C) A Study on the impulse buying behavior of customers
D) None.

.
.
.
30

SECTION B
(ECONOMICS)
31.

32.

Price elasticity of Demand is Defined as

(a) P/ Q x P/Q

b) P/ Q x Q/P

c) Q/ P x Q/P

d) Q/ P x P/Q

Which is not the property of Indifference Curve

a) Always slopes downward from left to right

b) Parallel to x-axis
c) Convex to the Origin
d)Indifference Curve cannot touch each other
33.

34.

Revealed preference theory stated that

a) Weak ordering

b) Strong ordering

c) Both of the above

d) None of these

Price Discrimination is the most important feature of

a) Perfect competition b) Monopoly c) Monopolistic competition
d) Duopoly

35.

Gross National Product is Defined as

a) The total market value of all final goods services
produced in a country including net income from abroad
b) Total value of final goods and services produced in a country
c) To produce the goods with in the country
d) To produce goods outside the country

36.

Who was Chairman of National income committee in 1949

a) Mahalnobies b) Dr.V.K.RV.Rao c) Gadgil d) A.K. Sen

37.

Fiscal Policy deals with

a) Revenue of the Government
b) Revenue and Expenditure of the Government
c) Expenditure of the Government
d) Sources of Government Revenue

38.

The IS-LM model was Developed by

a) Hicks and Hansen b) J.B. Say c) Joan Rabinson d) Marshall

39.

Which tax secure more income to the Indian Government

a) Excise tax b) Wealth tax c) Income tax d) Corporate tax

40.

41.

Monetary Deficit is Defined as

a) Fiscal Deficit

- Interest payment

b) Revenue Deficit

- Interest payment

c) Budget Deficit

- Interest payment

d) Revenue

- Deficit

Incidence of Taxation means

a) Who ultimately pay the tax

b) Wholeseller pay the tax
c) Retailor pay the tax
d) All the above
42.

In which year GATT converted into W.T.O.

a) 1991

43.

b) 1992

c) 1994

d) 1995

Classical theory of International trade is based on

a) Labour theory of value
b) Quantity of Capital
c) Both of them
d) None of these

44.

Comparative Advantage was stated by

a) Adamsmith b) David Ricardo c) Tobin

45.

d) Hecksher

Autarky is a state of
a) Trade between friendly Nations
b) No trade between Nations
c) Trade between neighbors
d) No trade because no gain from trade

46.

In Hecksher Ohlin model, factor aboundance is Defined interms of

a) Physical quantities of factors
b) Factor prices
c) Both (a) and (b)
d) None of the above

47.

The Critical minimum effort theory is developed by

a) Leibenstein b) Rosenstein-Rodan c) W.A Lewis d) J.H.Bocke

48.

Lewis theory explains the process of development considering

a _______ sector economy
a) One

b) Two c) Four

d) Multi

49.

The basic rational of the theory of big push is based upon the idea of
a) Internal economies

b) External economies

c) Size of the population d) All the above

50.

Harrod Domar model of economic growth are based on the experiences of

a) Underdeveloped economies
b) Developing economies
c) Advanced Capitalist economies
d) Socialist economies.

.
.
.
.
120