JNU 2008 SSS DOUBTS

[ViV]

A3.bmp        (d)
A10.bmp     
A21.bmp     (b)
A23.bmp     (e)
A24.bmp     (d)
A29.bmp     (d)

I have written my guess answers of each question.
please do check my answers are right or not and solve A10.

[Homer Simpson]

i think 10(c), 23(b), 29(c). dont know 24. others matched

[aman]

I am too much confused with A29.. c or d, which option will be correct. And, have u soved C1?

[Dreyfus]

A3.d...r is independent of quantities
A.10 C
A.23. Pv of perpetuity= coupon/rate of interest....or its a sum of infinite gp with common ratio being 1/1+r
Nt sure about 10

[ViV]

Tsuki & Vaibhav please tell me how you solved A10 ??

[Economics student]

For A10, here's what I did-

We can figure out that fixed cost is 5Rs. Then for every unit, we see per unit cost of production is 0.5. You can check by writing in form of equations and solving. so, for 10 units, FC is 5, and per unit is 0.5*10, so TC=10. For 30 units, FC=5 and per unit will be 0.5*30, so TC=20.
This approach may be flawed, someone please let me know if i went wrong somewhere.

[Homer Simpson]

@saloni, i have done it along similar lines.
C = f+cQ ...plug in given values and solve. you will get c=0.5

also, can anyone explain how to approach these problems??  

[ViV]

Thanks everyone...

[Anjali]

Can we discuss this paper here ?

[Ashima]

29 is a!
CRR stands for Cash Reserve Ratio.CRR means Cash Reserve Ratio. Banks in India are required to hold a certain proportion of their deposits in the form of cash. However, actually Banks don’t hold these as cash with themselves, but deposit such case with Reserve Bank of India (RBI) / currency chests, which is considered as equivlanet to holding cash with themselves.. This minimum ratio (that is the part of the total deposits to be held as cash) is stipulated by the RBI and is known as the CRR or Cash Reserve Ratio. Thus, When a bank’s deposits increase by Rs100, and if the cash reserve ratio is 9%, the banks will have to hold additional Rs 9 with RBI and Bank will be able to use only Rs 91 for investments and lending / credit purpose. Therefore, higher the ratio (i.e. CRR), the lower is the amount that banks will be able to use for lending and investment.

[Ashima]

Sorry! Its the multiple of CRR! Just as we have done the multiplier effect on AD. Same way 1/crr times the credit amount increases.