CDS 2015

[Eco16]

Anybody solving this?

[SM]

I am!

Let's discuss?

[SM]

1
2A
3B
4A
5C
6D
7B
8B
9B
10C
11D
12D
13A
14A
15A
16C
17B
18A
19A
20B
21A
22C
23C
24D
25C

Let me know which of these answers differ.

[Eco16]

I am getting different answers for the following.
2-c
8-c
10-d
23-a
And are you sure about answers to indian economy questions?

[Eco16]

and is the answer for question 1 not in the options?

[SM]

Hi!

Yup, checked the Indian economy answers online.

1. My calculations for the first questions went haywire. :/ It's either A or B, what did you get?

2. A monopolist can charge the consumer the unit of tax. Now, you're saying it is c, that means as the demand gets elastic, the tax burden rises? Could you tell me what logic you used?

8. here, it says, at the most 4 tosses, so we take cases here, as in I can get a head in 1,2,3,4 tosses
case 1: tail appears in the first toss: P= 1/2
case 2: tail appears in the second toss: p=P(Head)*P(Tail)= 1/2*1/2
case 3:tail appears in the third toss: 1/2^3
case 4: tail appears in the fourth toss: 1/2^4

10. How are you getting convexity? I did the question this way:
Consider three bundles, X,Y and Z. And consider two ICs, X lies on one IC, Y on the other, and Z on both. If i say, X>Y, then since X and Z lie on the same IC, X~Z and Z~Y. By Transitivity, X~Y, which is a contradiction.

23. I agree with you on this one :) I had marked it incorrectly.

[nishtha92]

1 A
2 C
3 A
4 B
8 C
12 B
14 Not sure
15 D
21 B

My these answers are different ..

[nishtha92]

I am also getting C for question 10.

For the 8th one, if you add the probability of the four cases mentioned by you it gives 15/16.

[Eco16]

Somewhere in the forum i saw the formula for calculating burden of tax on consumers which was
burden of tax=elasticity of supply /elasticity of supply - elasticity of demand which made me choose c as an option. But how can you say all the burden is borne by suppliers it is not given demand is perfectly elastic.
For 8th, you need to add up all that to get the answer.
For 10th, I didn't read the question completely ;-)

[SM]

I meant, since it is a monopoly, hence, tax burden is shifted to buyers.

Haan, adding all those cases, I get 15/16. Also, since it says, at the most four tosses, so I interpret this as, one, or two or three or four. And "Or" Is addition.

[Eco16]

I don't think so it matters whether it is a monopoly or not. The burden is shared is based upon the shape of demand curve and supply curve.
But I am not sure myself!

[Eco16]

You solving 2014 too?

[nishtha92]

Can you please share the 2014 paper? I can't find it on their website.

On Fri, May 20, 2016 at 3:32 PM, Eco16 [via Discussion forum] <[hidden email]> wrote:

You solving 2014 too?

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[nishtha92]

Can any of you explain Q23 to me please? How is A the answer for this?

[Eco16]

In ques 23, it is given r = 0.5 we calculate r square from that and thus answer is part A.

[nishtha92]

Yes. coefficient of determination. Got it. Thanks..

Where did you get the 2014 paper from?

[Eco16]

It is available on their site.
M.A model test papers.

[rohitdubey52]

1. In the market equilibrium, QS = QD
1800 + 240P = 3550 – 266P
P* = 3.46 and Q* = 2630
EDP = (%Q) / (%P) = (P/Q) (Q/P) = (3.46/ 2630) (-266) =- 0.35
ESP = (%Q) / (%P) = (P/Q) (Q/P) = (3.46/ 2630) (240) = 0.32

[rohitdubey52]

Can you please explain 3 and 4

[nishtha92]

For Q3, using elasticity formula (differentiation of q wrt p*p)/q would give -2 for good 1 and -5 for good 2. Hence, good 2 has a higher elasticity.

for Q4, as both individuals prefer more of the good and we have given all of it to one person, we can only increase individual 2's utility by decreasing individual 1's utility. Hence the allocation is pareto efficient.