JNU- 2010 Doubt

[hs]

83 a
84 d
85 a
68 d
72 b or c
71 d
68 d
66 a
67 c

can sum1 help me out with Q72

[Anjali]

But tsuki , in 14 , producing at 5 , means that the producer is incurring loss. Please have a look at that questions again. And for 16th why not a ? Although we don't take sunk cost in deciding how much to produce , but at the end of the day sunk cost is a loss.

[Anjali]

@bin for 57 it should be d
For 84 I guess b
For 83 , a
Please share your answers for 81 and 82

[ViV]

81 (d)
83 (a)
84 (d)
85 (b)

[Bin]

Tsuki, Himanshu and Viv

1.Is the investment multiplier for an open economy given by 1/1-{c(1-t)-m}?

2.Is there any method to solve the X,Y,Z statement questions?

[Bin]

Also, how do we solve the 6oth question?

[Anjali]

@viv , please explain your answer for 84. And for 85 it will be a because by putting respective values ans is not matching with 25/11

[Homer Simpson]

Yes, thats the multiplier formula with imports. it cant be b - usually we dont put income taxes on imports. As for X,Y,Z questions, refer to chapter on logic. it will suffice.

for question 60, put TR = 0.10Y so your C function will be 500 + c(Y + TR - Taxes) and solve the normal way. then compare with the investment multiplier u got for the case when TR = 750.

Anjali, i will confirm the sunk cost treatment and let u know. a bit confused about it!

[bhavya jain]

the ans shud be
72) d
87) d

[Anjali]

Tsuki for the open economy multiplier , I believe even b could be an ans ( only if 25/11 ) is not mentioned because
M= M + m( Yd )
We spend on imports through our disposable income. So by that logic even b seems fine , but the ans is not matching with 25/11
So I have marked it as a
Also , for gini coefficient question , how have you calculated median in question 44 ?
And please post answers for 41 , 33 , 51 , 69 , 87 , 84 and 82
Can we also discuss the comprehension answers here ? Ques 96-100 !

[Anjali]

Bhavya , in question 87 it is mentioned that take investment from macroeconomic point of view . So in that sense , what does investment comprise of ?

[Anjali]

Tsuki I have a basic micro question . Please see
U(x,y) = ln ( x ) + y
Here , preferences are quasilinear with respect to x or y ?
Also , these are two statements , are they true or false ?
IS curve reflects a causal relation between interest and output.
LM curve reflects a causal relation between interest and output.
What do they mean ? Can we take them as true ?

[The Villain]

quasi linear wrt y...
ya i thnk these 2 statements are true..

[Dreyfus]

@ron....quasilinear preferences represents the marginal utility associated with one good is constant and for other good the marginal utility isn't constant but can be in any form. Here mu of good x is 1/x and for y it is 1 constant!
Therefore preferences are quasilinear in good x!

[The Villain]

Ya vaibhav they are quasi linear in x...bt wrt y na

[Anjali]

What about other two questions vaibhav - IS LM ones ?

[Dreyfus]

Ron..I can't say that preferences are quasilinear wid respect to y....as its interpretation is not clear or not making sense...
@anjali as of now I can't say anything about causal relation among interest rate and output.....

[Anjali]

Are you sure about quasi linearity in x , @ vaibhav ?

[Anjali]

@ vaibhav pls have a look at this :
http://discussion-forum.2150183.n2.nabble.com/JNU-2007-doubts-td7588463.html

[ViV]

@Vaibhav: Ron's last comment is true.