JNU 2012 SSS DOUBTS

[ViV]

JNU_DOUBTS_2012.docx

Please explain answers of the questions in world file....

[Dreyfus]

Q28...let the prob of physics be x ... Since p of chem is equally likely as p of physics therefore p(p)=p(c)=x now p(m) is twice likely as p of physics or chemistry therefore p(m)=2x
x+x+2x=1→x=1/4 nd p(m)=1/2
Q32...no of obs are odd therefore median is n/2th term ie D's weight
Q33...always equals to their(B,C,D,E) WIEGHT..
Q34...avg of D & E's wieght ie non of the above
Q36
Q44 i hv mark A B C 'S statement nd den compare the cases one by one by putting each on H S C with that u ll find A can never be on hockey nd soccer therefore a must be in cricket also C fits in both cricket nd hockey but since A is in cricket the only choice left for C is to b in hockey ...both of their positions implies D to be in hockey
Q48...when rent increases the existing customers with reservation prices of 1500 will no longer be able to buy the houses therefore demand will fall ...since 1500 is equilibrium price therefore at 1600 there will be excess supply
Q50...in 1min→2T can type 1 page
               6min→2Tcan ttype 6 pages
              3*6 min→3*2T can type 6 pages
Therefore in 18 min 6 T can type 6 pages
Q55 we r not given the initial size thats we can't determine...

[Shefali]

pls explain quest 48

[Arushi :))]

Questions 22-26
22.
In a closed economy,
total savings, S= Sp+Sg= I ( sum of private savings and savings by govt.)
Sp= I-Sg= I-(T-G)= I+(G-T)
Its given that there are only two types of expenditures C and G .
therefore, I and T are zero
=> Sp= G
Hence, (a)

Its given that for 1 unit of unit of final output 0.005 labour-day is required.
Wage for a unit of output = 0.005*150 = 0.75
For Y units of output wage would be = 0.75Y
implies, 75% wage goes to workers and remaining 25% goes to non workers .
Also, its given that  non-workers consume a fixed amount always.Let this fixed amount be C. This means whatever changes are there in fiscal policy their consumption wont change.

23.
Y= Consumption by workers+ consumption by non-workers+ G
Y=0.75Y+C+G
Delta G= Delta T
Delta Y = 0.75 delta y + delta G
0.25 delta y= delta G
Delta Y = 4 * delta G
implies the balanced budget multiplier is 4. option c

24.
Y = 0.8(0.75Y)+C+G
Y=0.6Y+C+G
0.4 delta Y = delta G
delta Y = 2.5 delta G
hence option b

25.
This question is same as 23 except for the part that taxes are imposed on workers and not on non-workers.
Here, it is given that workers consume their entire income!
Y= 0.75Y+C+G
The equation remains the same,
But the workers are consuming their whole income. This means tax collection is zero before and after the changes.
Budget surplus before the changes is 0-G = -G
Budget surplus after the changes is 0-G' = -G' , G'>G
This means that Budget deficit has increased.
Now, this can't be a case of balanced budget multiplier because balanced budget multiplier means changing of taxes and G such that delta BS is zero.
Here, delta BS is not zero.
So , the answer is d- None of the above.

26.
Y= 0.8( 0.75Y-T)+C+G
Y= 0.6Y-0.8T+G+C
delta Y= 0.6delta Y - 0.8 delta T + delta G
0.4deltaY = delta G - 0.8 delta G            (delta T= delta G)
0.4 delta Y = 0.2 Delta G
Delta Y = 0.50 Delta G
Hence , option a.

[Arushi :))]

@ Shefali:
Price ceiling is done by govt in favour of the consumers.
In price ceiling , the govt sets a price that is below the equilibrium price which results in excess demand of good in question.( Binding)
There are two types of price ceiling: Binding and non- binding
In case of non-binding, Price is set up above the current price and hence none of the above is the answer....

[Arushi :))]

55.
Whatever is the initial size, let it be x,
Then on the first day size is x
On the second day it doubles in size 2x
on the third day size is 4x = (2^2)*x
on the fourth day size 8x= (2^3) *x
.
.
.
.
.
On the 48th day size would (2^47)*x
So the total size is (2^47)*x
Half of this size is (2^47)*x/2 = (2^46)*x
This size is covered on the previous day , i.e 47th day.
So it takes 47 days to cover half the lake.
It is d therefore

[ViV]

@Shefali draw Demand & Supply curve showing equilibrium at Rs.1500. Now draw a straight price line at Rs.1600. This new price line will cut both Demand and  Supply curve at different points. If u see from the X axis you will find different quantities of Demand and supply where D<S. why the option b is the answer has been explained by Arushi.

[ViV]

Thanks!! Arushi:) and Vaibhav

[Ashima]

Isn't it a non-binding price ceiling. Shouldn't it be none of the above? d rather than b?

[ViV]

Ashima you are right. I was just telling how to solve. Since Price ceiling is higher than the Equilibrium price then there will be no demand.

[Ashima]

Ohh! :)

[ViV]

oh! I should have written d as the answer.
Sorry for the Confusion. I just saw after your comment..

[Ashima]

Also, for 55th. The lily one, the answer should be d! What are you getting?

[ViV]

Since these are my doubts and earlier I couldn't do it. So I will go with Arushi's answer because it does match with the answer key uploaded by Amit Sir.

[Ashima]

Yeah 47! I dint her answers! Makes it d! Thanks :)