DSE-2009

[nidhi]

  Q1. The demand function for lemonade is Qd = 100 − p , and the supply function is
Qs = 10 + 2 p , where p is the price in rupees. The government levies a sales tax on
lemonade after which the volume of sales drops to 60. Then the per unit tax on
lemonade is
           a)   Rs 20
           b)   Rs 15
           c)   Rs. 10
           d)   Rs. 5

[sonal]

the ans is tax=15.u can solve it substituting p=p+t in in the dd function or p=p-t in the ss function.

[nidhi]

Hey sonal thanks....
could u tell me  how to solve the following  question
 
Q2. Consider an exchange economy with persons 1 and 2 and goods x and y. Person 1’s utility
   function is u1(x, y) = y +log(x) and u2(x, y) = y + log(x). The total endowment of the economy
   is (2, 2). Which of the following is true about this economy?
a) Allocations in the set {((x1, y1), (x2, y2)) | x1 = x2 = 1, y1 + y2 = 2, 0 ≤ y1 ≤ 2 } are efficient.
b) Allocations in the set {((x1, y1), (x2, y2)) | 0 ≤ x1 < 1, x1 + x2 = 2, y1 = 0, y2 = 2 } are efficient.
c) Allocations in the set {((x1, y1), (x2, y2)) | 0 ≤ x2 < 1, x1 + x2 = 2, y1 = 2, y2 = 0 } are efficient.
d) All of the above

[sonal]

hi nidhi,i think none of the options is correct........since these are quasilinear preferences.....the lines x1+x2=2/y1+y2=2 can never be efficient.this is nt in the dse 2009 ppr...please chek the options once again........and correct me if i'm wrong

[sonal]

Q6.
There are three alternative definitions of a consistent estimator
I. An estimator is consistent if its probability limit equals its true parameter
value as sample size approaches infinity.
II. An estimator is consistent if its mean squared error goes to zero as sample
size approaches infinity.
III. An estimator is consistent if it is unbiased, and its variance goes to zero as
sample size approaches infinity.
Which of the following is correct?
a) Only I is Correct
b) Only II is Correct
c) Only III is Correct
d) All three are Correct

Q18. When the nominal wage rate is rigid, the aggregate supply schedule
(in the output-price space) is:
a) horizontal
b) vertical
c) downward sloping
d) upward sloping

i think the answer shud be d) and a) resp........plz chek

[nidhi aggarwal]

Q-6 ANS (A)Only I is Correct

Q18- ANS d) upward sloping (AS THE WAGES ARE RIGID AS PRICE RISES REAL WAGE WILL FALL AND INDUSTRY WILL HIRE MORE WORKER AND IT WILL INCREASE AGG. SUPPLY)

[vaibhy]

Ans to Q18 is that due to wage rigidity AS curve is horizontal because the household can not realize the expected rise in prices and are willing to supply at the constant wage rate in short run

[nidhi]

Hi  vaibhy,
In the end of the question (in the output price space) is written which means they are asking for agg. supply of output not for agg. supply of worker.

[vaibhy]

yes when you derive the AS curve using the labor market equilibrium and plot it against AD in output price frame work. its just the reasoning why AS curve will be horizontal.

[nidhi]

How to solve this question

17. Jai and Vijay are taking a exam in statistics. The exam has only three grades A,
B and C. The probability that Jai gets a B is 0.3, the probability that Vijay gets a B is
0.4, the probability that neither gets an A, but at least one gets a B is 0.1. What is the
probability that neither gets a C but at least one gets a B?
                a)  0.1
                b)  0.6
                c)  0.8
                d)  Insufficient data to answer the question

[priyanka p]

b} 0.6   

it goes like 0.3+0.4-0.1

On Sun, Jun 6, 2010 at 6:26 PM, nidhi [via Discussion forum] <[hidden email]> wrote:

How to solve this question

17. Jai and Vijay are taking a exam in statistics. The exam has only three grades A,
B and C. The probability that Jai gets a B is 0.3, the probability that Vijay gets a B is
0.4, the probability that neither gets an A, but at least one gets a B is 0.1. What is the
probability that neither gets a C but at least one gets a B?
                a)  0.1
                b)  0.6
                c)  0.8
                d)  Insufficient data to answer the question

---

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[vaibhy]

Questions 26 and 27 Suppose that a typical graduate student at the Delhi School of
Economics lives in a two good world, books ( x ) and movies ( y ), with utility
function
u(x, y) = x^1/5 y ^4/5. Prices of books and movies are 50 and 10 respectively.
Suppose the University is considering the following schemes.
Scheme 1: 750 is paid as fellowship and additional 250 as book grant. Naturally, book
grant can only be spent on books.
Scheme 2: 1000 as scholarship and gets one movie free on each book they purchase.
Believing that books and movies are perfectly divisible, compute the optimal
consumption bundle under each scheme.
26. Optimal consumption bundle under scheme 1 is
a) (4 books, 80 movies)
b) (5 books, 75 movies)
c) (6.5 books, 57.5 movies)
d) (10 books, 50 movies)

27. Optimal consumption bundle under scheme 2 is
a) (4 books, 80 movies)
b) (4 books, 84 movies)
c) (5 books, 75 movies)
d) (5 books, 80 movies)

how to go about it?

[nidhi]

Thanks priyanka, couid you please elaborate this answer.

[duck]

hey hi nidhi..

the answer to exchange economy que is d) All of the above

just draw the IC's and u ll get it.. :)

[Bhaskar Biswas]

for the 2nd part of the question, ie q no 27, when he have the full amount of Rs. 1000 to spend as he wishes, the simple way to calculate is by equating the MRS to the Price ratio.

This gives the Books(x)=4, and movies(y)=80, but as the offer gives him 1 movie for each of the book he buys, hence, the total number of movies(y)=84...hence option number (b)..according to me...

now coming to Question number 26, his rational behaviour will not allow him to buy books more than 4, but, given the book grant, he will have to buy 5 books, which is more than sufficient for him. So, this leads him to no other choice and he spends the remaining Rs. 750 on movies.

Hence the consumption bundle is books(x)=5, movies(y)=75..hence option number (b)..according to me...

[nidhi aggarwal]

Questions 24 and 25 ‘Suraksha’ is the sole producer and supplier of security systems
in India and the sole employer of locksmiths in the labour market. The demand for
security systems is D( p ) = 100 − p , where p is the price. The production of security
systems only requires locksmiths and the production function is given by f ( L) = 4 L ,
where L is the number of locksmiths employed. The supply curve for locksmiths is
                                                    
given by L( w) = max    0, w/2-20 , where w is the wage rate.
                                                    
24. How many locksmiths will ‘Suraksha’ employ?
       a) 5
      b) 10
     (C) 15
      d) 20

25. If the government sets the minimum wage is 70 , how many locksmiths will
Suraksha employ?
         a)            5
         b)            10
         c)            15
         d)            20
I THINK ANSWER TO BOTH QUESTION SHOLD BE (D), CAN ANY BODY TELL  IS IT CORRECT OR NOT?

[vaibhy]

the answer to that question is 10 in both cases

[Swati jain]

ques:42,44,45

[manvi09]

how to solve
1. There are 4 married couples in a club. A 3-member committee must be formed
from among them, such that no married couple is part of the committee. The number
of ways in which this committee can be formed is
a) 16
b) 44
c) 32
d) 56

[Niharika Mishra]

Hi Sonal ,

Saw solution for this question can u plz explain what u did ...

12. The demand function for lemonade is Q p d =100 - , and the supply function is
Q p s =10 + 2 , where p is the price in rupees. The government levies a sales tax on
lemonade after which the volume of sales drops to 60. Then the per unit tax on
lemonade is
a) Rs 20
b) Rs 15
c) Rs. 10
d) Rs. 5


Can u plz elaborate how u got 15 .