ISI 2017 key

[Abhitesh]

22 c is right.

[Akshay Pamnani]

24)Why isn't a congested city street a public good?
     

[Akshay Pamnani]

How is it right?

[Abhitesh]

Congested street can accommodate limited number of persons say just 10 more. So anyone person after the 10th guy will be excluded from using the street.

[Abhitesh]

You have to check for a>1 only.

[Akshay Pamnani]

Why only a>1?

[Abhitesh]

That is how return to scale is defined. You increase factor by 'a' output increase is less than 'a'.

How much are you expecting in PEA & PEB.

[Akshay Pamnani]

PEA-85
PEB-80

[Akshay Pamnani]

Are you sure about 26?
I marked it A too,but heard it was wrong

[Abhitesh]

if price is sticky then it is constant. So AS curve will be horizontal.
refer to mankiw for sticky price and isi sample paper for sticky wage.

[shiva]

PEA, 1st question answer must be C. 3. if you write the echelon form of the given vectors, you will have only 3 dimension. Please check it once.

[shiva]

PEB, last three questions based on general equilibrium answers are,

28. C left and top edges of the box
29. B line segment joining (0, 1/2) to (0,1)
30. D. Could be any of the above.

please verify them.

[Akshay Pamnani]

PEB-28 and 30,I too marked the same.
But Abhitesh got a different answer for 30

[Amit Goyal]

[28] Efficient Allocations are: the left and top edges of the box.
[29] Unique Competitive equilibrium allocation consists of the one in which A consumes: (0,1).
[30] Price of X in the competitive equilibrium must be: 1.

[Daffodils]

Sir, shouldn't 29 be b and 30d?

[ColtraneBlues]

Hey. I was just looking at the PEB answers in this thread. I had an issue with 3 answers given:

3.22 1/3 isn't an option. 29 1/3 is. But I got the answer as 17.6

14. Shouldn't this be B? How can savings increase without changing GDP- shouldn't the LM curve shift left and the IS curve right- i.e, expand fiscal and contract monetary policy?

25. Why can't A operate in a perfectly competitive industry? His cost fiction is 1+y. His MC is 1. So if the price is 1, he should be able to operate

[ColtraneBlues]

Also Question 26-
Shouldn't the Aggregate Supply curve should be upward sloping in case of both- sticky prices and Sticky Wages?

[shiva]

Thank you sir, I just checked the answers(28, 29, 30). I made a mistake during the exam.

guys, can any of you confirm the answers for 7(supply of shares),  15(IS-LM-BP), 18(phillip's curve)

[Abhitesh]

What did you miss earlier?

[shiva]

http://learn.econschool.in/courses/course-v1:EconSchoolX+ES002+2016_T1/courseware/7be737931a644ee18526458ada1b2e71/e6d67c6795e64b7d88f44a9eba2908d4/

@abhitesh, If you are asking about the solution. check this video by amit sir, the question in ISI has a change in endowments because of which px = 1

I overlooked certain things during the exam.