HCU DOUBT

[Econ_2]

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Can someone pls help me with the approach to solve these questions.
Thanks :)

[Econ_2]

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Q94 , Q96, Q97

[Niket]

(((100+gdp)/(100+population))-1)/100

basically question 94's answer is A

and using rule of 70 or rule of 72 it'll take approximately 12 years.

[Niket]

Read more here--
http://www.investopedia.com/terms/r/ruleof72.asp
https://en.wikipedia.org/wiki/Rule_of_72

[Niket]

Check out this link for some cool Macro practise questions

http://web.cjcu.edu.tw/~lcc/Courses/sg24.pdf


just change last sg24 to sg23, 22,21 and so on.

[Econ_2]

GDP per capita = GDP/popln = 7.5/1.5 = 5
So as asked, in how many years will PERCAPITA DOUBLE.  Taking per capita as 5
= 72/5 which gives us  14.4 .
Kindly rectify where I am going wrong .

[Econ_2]

Niket thank you so much for sharing the PDF. :)

[Niket]

Hi Esha, percentage is mentioned for growth and population not the values so you can't directly divide these two values. Please check the option A for question 94

[Econ_2]

Niket ! I am still not getting it yaar. Slow I know . can u pls post the solution.

[Niket]

No worries.

It'll be
(((100+7.5)/(100+1.5))-1)*100

=> 107.5/101.5=1.059
=> 1.059-1=0.059
=>  0.059*100=5.9

now using rule of 72 or 70--
=>72/5.9=12.2

12 years

Let me know if you still have doubt.

[Econ_2]

Aree! Ye to u solved pehle Hi. Samjh gaye
Thanks ya

[Niket]

[Econ_2]

Any idea about question 96, 97

[Niket]

For 97 find relation between Investment and Capital. I don't remember exactly.
But possible answer can be B or C.
Jugaad logic(In B integration+ 275 and in C differtiation +275) other I didn't get other options by any logic.Google it

[Econ_2]

Super !

[Niket]

[Econ_2]

A neutral tax is one that
   A. Generates no excess burden
   B. Affects government saving and private sector investment decisions equally
   C. Balances the government budget
   D. Relies, as far as possible on uniform tax rates.

[Econ_2]

Anyone

[Niket]

Is Financial Eco at HCU  worth it? I'm planning to skip it!

[Econ_2]

Don't ! I would say. Having options is playing safe. Give the paper .