BECC-133 PRINCIPLES OF MACROECONOMICS – I
Solved Assignment 2020-2021
Course Code: BECC-133
Assignment Code: ASST/BECC 103/ 2020-21
Total Marks: 100
|Title Name||BECC-133 Economics Hons (BAECH) Solved Assignment 2020-2021|
|Service Type||Solved Assignment (Soft copy/PDF)|
|Course||BAG(Economics Hons (BAECH))|
|Semester||2020-2021 Course: BA(Economics Hons (BAECH))|
|Short Name||BECC-133 (Economics Hons (BAECH))|
|Assignment Code||ASST/BECC 103/ 2020-21|
|Product||Assignment of BAG(Economics Hons (BAECH)) 2020-2021 (IGNOU)|
|Submission Date||For students of July 2020 cycle: 30.04.2021
For students of January 2021 cycle: 31.10.2021
Answer the following Descriptive Category Questions in about 500 words each. Each
question carries 20 marks. Word limit does not apply in the case of numerical questions.
2 × 20 = 40
1. (a) What is Say’s Law of market? What are its implications for an economy?
(b) Explain why and how, according to the classical economists, the economy always
operates at full employment level.
2. (a) Define marginal propensity to consume.
(b) Why marginal propensity to consume (mpc) remains between 0 and 1? What is the
implication of 𝑚𝑝𝑐 > 1?
(c) What are the implications of a higher value of the mpc?
(d) Is it possible to describe mpc through a diagram?
Answer the following Middle Category Questions in about 250 words each. Each
question carries 10 marks. Word limit does not apply in the case of numerical questions.
3 × 10 = 30
3. What are the functions of money? Explain how paper money or fiat money performs all
4. Give an outline of the value added method of measurement of Gross Domestic Product.
Explain how the problem of ‘double counting’ is taken care of in this method.
5. Draw an appropriate diagram and explain how circular flow of income and expenditure
Answer the following Short Category Questions in about 100 words each. Each question
carries 6 marks. 5 × 6 = 30
6. Explain the concept of money multiplier.
7. Explain why illegal activities are excluded from gross domestic product.
8. For a three sector economy the following are given:
𝐶 = 25 + 0.6𝑌, I = 30, G = 25
where C = consumption, I = investment, and G = government expenditure.
Find out the equilibrium output level.
9. Explain why income tax is considered as an automatic stabiliser.
10. In the IS-LM model, explain why the economy always moves towards the equilibrium
BECC 133, BECC133, BECC-133