Doubts - Please help!

[Homer Simpson]

1) Calculate gross savings and net domestic factor product (figures in crores)

    GDP (market prices) = 20,000
    Gross domestic capital formation = 5000
    Depreciation = 3000
    X-M = -3000
    Net invisible earnings from abroad = 2000
    Indirect taxes minus subsidies = 2000

2) Suppose X and Y are positive random valued variables, each taking 10 values. Both have same mean
    but the variance of Y is twice the variance of X. Which is true?

a) Max(x) > Max(y)
b) Max(x) = Max(y)
c) Max(x) < max(y)
d) Min(x) < min (y)
e) none of the above

3) Suppose the female mean wage in agriculture is 10% less than male wages but they have a 50% greater probability of getting a job compared to men. Then the expected wages of women is -

a) higher than men
b) equal to men
c) lower than men
d) cant say

4) Suppose a country receives a large net inflow of portfolio capital investment from abroad but there is no change in capital transactions on the external account. As a result, the level of foreign exchange reserves will -

(a) rise (b)fall (c)stay same (d) cant say

5) The function f(x) is defined as - f(x) = 1 only if x is rational
                                                     = 0 only if x is irrational

then f(x) is

(a) continuous everywhere
(b) continuous only at x is rational
(c) continuous only at x is irrational
(d) nowhere continuous

6) What happens to AD and Y relationship if c>1?

7) f(x) = log x -x +1 and let k be a constant

how many values of x will satisfy the equation f(x)=k if -

(i) k>0 (ii) k=0 (iii)k<0

[Noel]

d for q.5
you can use the denseness property of real numbers perhaps which states that there are infinitely many irrational numbers in the neighbourhood of a rational number and vice versa..hence limit of the function wont exist anywhere..this is also called dirichlet function..known to be nowhere continuous

[Noel]

for q.7 use the result logx < (x-1) for all x>0 except 1
(i) there is no x satisfying the condition k>0
(ii) x=1
(iii) x=(0,1)U(1,infinity)

[Homer Simpson]

Thanks a ton Noel! :)

can anyone help out with the other ones??

[ashutosh]

6. Normal AD and Y relationship will cease in that case. AD will be downward sloping in Y-AD space. Also IS curve will be upward sloping.

[ashutosh]

for 2 .. it should be none of the above.

[Homer Simpson]

Thank you, how did you do 2?

any idea how to do 1? What should i take Y for this?

[phelps.phan]

Q1) Assuming the economy is in equilibrium,
S=I+NX
I=capital investment-depriciation=5000-3000=2000
NX=-3000
S=-1000

NDP=GDP+Factor payments from abroad-Factor payments to abroad
=20000+2000=22000

q2) I think Ans is none of the above.
Q3) Ans d
q5) And d