JNU 2006-2002 Doubts

[The Villain]

hw did you get c??? pls explain

[Anjali]

Surplus value / capital invested
400-200 / 1000
Have you done ques 14 and 15 ?

[The Villain]

@ Anjali
q14...these are lexicographic preferances.These are preferances in which an individual prefers an amount of good x to any amount of good y.No matter hw much y he gets,he still prefers x.For eg if indiidual lexicographically prefers x to y and  bundles are (2,1) and (4,6) , an individual will prfer the 2 nd bundle to 1st.

[econ14]

@tsuki plzz explain q4 and q14.....

[The Villain]

q15...total prodn is 2400(just add all).
bt 200 and 300 worth are used as intermediates.so 2400-50=1900

[econ14]

Thanx Ron plz help with q4.

[Homer Simpson]

for 4, warranted rate of growth would be 3.6 and natural rate of growth is 3

[The Villain]

q4...warranted growth is s/capital output ratio...compare with 3%....

[Anjali]

Tsuki natural growth rate is 3%?
@ron what about ques 5, 7, 3, 10, 12, 16, 18

[Anjali]

And in the lexicographic case , is it always x over y ? Or vice versa ?
And , what about , ques 12th , why not d ?
Because change in foreign reserves on its own depict bop surplus or deficit . We don't merge it with CA ?
And for 3rd don't you think it should be c ?
What about long run supply curve for a perfectly competitive firm ?

[econ14]

@anjali
For q12 its (d).....

[Homer Simpson]

@Anjali - Long run competitive supply curve is determined by the cost structure of the industry rather than simply summing up the outputs supplied by firms at particular prices. This is when all inputs are variable as well - plant size can vary now. So we could have constant, increasing or decreasing cost industries.

and yes, natural growth rate is 3, wrote 5 by mistake

[Anjali]

@sandeep , tsuki 's ans is different for 12 , so wanted to cross check . Are you sure that its d ?
Tsuki how did you do 5th and 7th ?

[bhavya jain]

jnu 2002 q
13) There are two villages A &B. An equal number of households,say200, live in A and B.Total agricultural land in each village is 200 hectares.the median land holdings is 0.5 hectares in A and 1 hectare in B.What can you say about inequality of land distribution in A and B ?
a:Inequality is more in A than B      
 b:inequality is less in A than B  
c: inequality is same in A&B
d: any of the above can be true
since median is not a measure of inequality, so wat will be the option b/w c & d?

[The Villain]

@anjali...for lexicographic it can be other way also...if lex prefers y over x then x..
Q2 is c
n ss curve is...sr mc curve above avc

[Homer Simpson]

I am not sure about 12 but whats the reasoning for (d)? Do we deduct net remittances? I thought that was part of NFIA.

Anjali, as for 5, crowding out happens partially even when not at full employment. Govt borrowing dampens private investment by detrimental change in interest rates. The options on excess capacities are not relevant to this question as much but we can be sure that Govt and private could be competing for available loanable funds to invest in the same sector.

as for 7, new mean is twice the old mean and so is standard deviation. Thus CV is unchanged.

[Homer Simpson]

bhavya, i think it will be 13(a)

[Anjali]

Yes 5th seems right from your view point.
Iam not sure about 12th
And in 7th you kept sd unchanged because its a scale effect ?

[The Villain]

12 is d

[Anjali]

Why a for 13th ?