Principles of Economics and Bangladesh Economy question Paper, December, 2013

Banking Diploma Examination— December, 2013

JA1BB

Principles of Economics and Bangladesh Economy (PBE)

[N. B.- Answer any five questions]

1. a) "Economics is the science of wealth" - Discuss.

b) Show the relationship between-

1)   Economics and Statistics;

2)  Economics and Political Science; and

3) Economics and Sociology.

2. a) State what is meant by-       

1)   Income elasticity of demand; and

2)  Cross elasticity of demand.

 b) State and explain the Law of Demand and indicate the limitations of the Law.      

3. a) What are the characteristics of monopoly and illustrate how price is determined in a monopoly market?

b) ''There is no supply curve in monopoly". - Discuss.      

4. a) Distinguish between “balance of trade" and “balance of payments".  

b) Discuss measures considered necessary for correcting balance of payments deficits. 

5. a) Explain the different methods of calculating Gross Domestic Product (GDP) of a country.

b) What problems are generally encountered in calculating GDP? State the problems in detail.

       

6. a) Discuss the causes and consequences of inflation.

b) Suggest appropriate measures for controlling inflation.

7. a) Critically discuss Irvine Fisher's "Quantity Theory of Money".    

8. a) How do you account for the present appreciating trend of Bangladesh Taka vis-a-vis the US dollar?

b) Discuss the likely effects of the appreciation of the Taka on the country's (i) exports: (ii) imports and remittances.

9. a) What should be the goals of monetary policy in a developing country?

b) Critically appraise Bangladesh Bank's Monetary Policy Statement for the first half (July‑December) of the present fiscal year (2013-2014).

10. Write short notes on any four of the following:-

a) Fixed Cost and Variable Cost:

b) Floating exchange rate; ANS

c) Statutory liquidity requirement (SLR);

d) Gresham's Law; ANS

e) Terms of Trade:

f) Giffen good.