DSE 2015 answer

[Mike]

For nullity, refer to chapter 2 of this book. https://www.math.brown.edu/~treil/papers/LADW/book.pdf

[Mike]

Ques (29)
in first part, given p2 plays hawk, p1choses not to ener. So p1 gets a utility of zero and p2 gets a utility of 6.
while in second part, nash equlibrium is (enter, dove) where each gets a utility of 3.
Now as you can see that in part one p2 got 6 but now he enjoys a utility of 3 only. So p2 is worse off because p1 is acting rationally. soo, answer is (d).

[Ansh malhotra]

Thank you mike . I have doubt I question 17 doubt please help

[Mike]

Ansh, even i don't know how to do question 17.

[varnika1880]

Can anyone plz help with q. 31

[shivi]

Please help with questn 52

[harshdua]

Sir, i am facing problem on convexity and concavity of multivariable sets pls help???? Ex ques 45 from dse 2012

[Mike]

Try to plot the graph for f(x,y)=2,
X+y+xy =2 , now write y as a function of x. Than find the first derivative and second derivative. Your graph will be convex to the origin. So answer - when f(x,y)>=c

[varnika1880]

Can anyone plz help with the solow question ...how to form the steady state equation in such question ....a lil hint will be sufficient

[harshdua]

Hey guys is answer for ques 16 option d????

[harshdua]

mike do you know how to do ques 30 on lexicographic preferences

[JMKeynes]

Person 2 always consumers along the 45 degree crossed line. (Since he has min preferences)

Now, given endowment e and a price vector >1, person 1 would prefer to consume at point A while 2 likes to consume at point B. Hence we have an excess demand of good 'x'. And by the definition of a competitive equilibrium, there should be no excess demand of any good and each person should be maximising utility given the price vector.

Similarly for a price vector<1, person 1 chooses point C while 2 chooses point D.
In fact this will arise for any positive price vector.
So answer is "d"

[Mike]

Thanks JM Keynes
Very nice solution.

[varnika1880]

Guys plz help with the solow question

[JMKeynes]

[JMKeynes]

This was meant in reply to Varnika's question, sorry.

[harshdua]

Thanks Keynes for the answer

[harshdua]

what do u think of the new pattern for the exam 40 mcqs, knowing d school they wont be easy but do u guys think they will keep the criteria for 40 marks for admision in general cat.???? they gave admission to everyone scoring 40 last year

[knowpraveen]

40 percentage is the idea. Which could mean, this year it should be 48 marks, which translates into 16 correct questions.

[Qwerty]

JMKeynes Mike Maecon Could you explain Q11. The answer given is (c) but I cannot understand why. According to me if r=0.2 then r^2=0.04, i.e. A unit change in income explains 4% inc. in savings. So Correct answer should be (A)

Also Q35 & 36 Pls explain..