GOKHLAE MODEL PAPER 1

[k]

Q8)If both income and substitution-effects are strong, this region of the demand curve
must be
a) relatively price elastic
b) relatively price inelastic
c) perfectly inelastic
d) unit elastic
 
Q 13)The demand for spring water is given by P = 1000- Q. Assume that the cost of
production to be zero. What is the equilibrium price for the industry if there are four
firms in the industry?
a) Rs. 800
b) Rs. 200
c) Rs.100
d) Rs.1000
 
Q35)Based on the following information answer questions 35 and 36
LM Function Y = 500+200 i
Investment function (I) 100 – 10 i
Transaction demand for Money (Mt) 0.50 Y
Speculative Demand for Money (Ma) 350 – 100 i
Supply of money (Ms) 500 Rs.
Current equilibrium rate of interest (i) 10 %
.  If expansionary fiscal policies increase the equilibrium rate of interest to 12 % , the
crowding out in the economy is :
a) 10 Rs.
b) 15 Rs.
c) 20 Rs.
d) 25 Rs.
 
For X ~ N(0, 1) P (X LESS THAN EQUAL TO  0) = ?
a) 0.25
b) 0.05
c) 0.5
d) 0
 
PLZ HELP

[laracroft]

Hey Preety
I think the following are the answers:
8- B
13- D
36( last one)- D

[Ayushya Kaul]

Hey anyone up?
Would love a response to any one of these doubts:

1) Skilled worker earn more than unskilled worker because
 a) they have higher marginal value
 b) of compable- worth legislation
 c) the supply of skill labour is more elastic
 d) The demand of skill labour is more elastic

5) The following is/are not example(s) of externality:
 a) Pollution emanating from a factory chimney which is hazardous to the health of
people living nearby
 b) Construction of roads for facilitating transportation to a factory
 c) Traffic signal put up by the government
 d) Both b)and c) above

10) Of the production functions, which one of the following represents decreasing
returns to scale?
 a) Q = 2K + 3L +KL
 b) Q = 20K 0.6 L 0.5
 c) Q = 100 + 3K +2L
 d) Both a) and c) above

13) The demand for spring water is given by P = 1000- Q. Assume that the cost of
production to be zero. What is the equilibrium price for the industry if there are four
firms in the industry?
 a) Rs. 800
 b) Rs. 200
 c) Rs.100
 d) Rs.1000

19) Assume that there are 100 markets in an economy. Prices have adjusted so that 98
markets are in equilibrium. Then Walras’ Law implies that
 a) also the remaining two markets are in equilibrium
 b) it is impossible that both remaining markets display excess demand
 c) the market prices in the remaining two markets have to fall
 d) the market prices in the remaining two markets have to rise

Is the answer of above B)?

33 For an economy, goods market equilibrium is : 0.5 Y = 3125 – 25 i
If expansionary monetary policies decrease the rate of interest in the economy by one
percentage point, the equilibrium income will
 a) decrease by 25
 b) increase by 25
 c) decrease by 50
 d) insufficient data

Is the answer C?

[Ayushya Kaul]

Hello lady croft :P
Any idea about the other questions?

[Ayushya Kaul]

Section-C

10. The rent of a hostel for the first 3 days was 50 Rs per day for the first 3 days, Rs 100
per day for the next 5 days and Rs 300 per day for other days. Te registration fee in
the beginning is Rs 50 if a person has to pay 1600 rupees. Than how many days did
he stayed at the hostel?
a) 11
 b) 10
 c) 32
 d) 16

Is the answer A? I could only get an approximate value.

15. Which of the following is not continuous distribution?
 a) Exponential Distribution
 b) Pareto Distribution
 c) Geometric Distribution
 d) Gamma Distribution

[Ayushya Kaul]

How did you get D for 36?

[duck]

Hi.. :)

Q)For X ~ N(0, 1) P (X LESS THAN EQUAL TO  0) = ?
Answer) 0.5

10) Of the production functions, which one of the following represents decreasing
returns to scale?
 a) Q = 2K + 3L +KL
 b) Q = 20K 0.6 L 0.5
 c) Q = 100 + 3K +2L
 d) Both a) and c) above
Answer: c

33) C