Basic Doubts !

[Anjali]

1. What percentage of numbers from 1 to 70 have squares that end in the digit 1?
a)1
b)14
c)2
d)21

2. The following is/are not example(s) of externality:
a)Pollution emanating from a factory chimney which is hazardous to the health of people living nearby
b)Construction of roads for facilitating transportation to a factory
c)Traffic signal put up by the government
d)Both b)and c) above

3. Which object has a lowest elasticity of supply?
a) Luxury items
b) Necessities
c) Perishable goods
d) None of the above

4. What annual instalment will discharge a debt of Rs. 1092 due in 3 years at 12% simple interest?
a) Rs.300
b) Rs.225
c) Rs.400
d) Rs.325

[Dreyfus]

For q1 there are 14 numbers which comes out to 20% but der is no option for 20 :(
q2 it should be C...because its a public good and traffic signal is meant for direct benefits of public!
q3..it should be perishable goods as when their price rises the producers won't increase their output proportionally due to perishable nature of goods!

[Anjali]

Even Iam getting 20 % for first but no such option there ! :-(
And construction of road is also a public good , so why not that ?
What about ques 4 ?

[Dreyfus]

Because construction of a road is meant for transportation to factory...this means its construction is initiated by producer or group of of producers who'll get direct benefit from the roads but public, the third agent, will get benefit of it due to positive externality...that's y its not a public good!

[Anjali]

Ohhh ! Thanks a ton vaibhav !
But vaibhav pure public goods are viewed as a kind of positive externality . I read it in a book.

[Ankur9]

Annual amount = A

(A + 0.12A)*3 = 1092

A=325 (d)

[Anjali]

Thanks Ankur !