Economics section(10 questions) DSE 2014 Q paper

[amianand]

Can some1 please help me to solve these questions.
I am stuck with function of capital. how should i derive that.I think i will be able to solve rest of the parts if someone could help to solve first question.

[Amit Goyal]

[amianand]

Thanks for valuable answer. But i have few doubts, would appreciate for any clarifications.

When final commodity is numeraire, shouldn't summation of production functions be 1?
i.e.
Y_t = 1

Also, why production function is not multiplied by price of commodity while solving profit optimization problem.

[bruce]

Amit Goyal sir
what to study for DSE entrance..
nd from where to do optimization problems
i am a student of DU...
hoping for a quick reply sir !!

[naren]

how to solve next questions of the passage

[amianand]

Hi Naren, did you understand as why total output was not multiplied by its price while solving optimization problem?

[Amit Goyal]

Please read the question carefully. It is clearly stated in the problem that "The final commodity is the numeraire" which means that the price of this commodity is one.

[Amit Goyal]

Hi Bruce,

I think doing past year exams seems like a decent strategy given the amount of time that is left for the DSE entrance.

[naren]

i just cant get idea how to solve these type of macro problem
appreciate if u ll explain

[Sris]

ME TOO....