JNU 2013 SSS DISCUSSION

[ishita1793]

could you please explain how to do 95-100 ?

[ishita1793]

ISNT INVESTMENT MULTIPLIER = 1/1-MPC ?

[Shahbaaz Khan]

Please let me know if these answers are wrong

Ans 15 - It could be "d"

Ans 69 - It should be "d" as we dont know the price level in 1990-91. It could be in favor either agri or manu depending upon their initial price levels. Regarding option "c" , as there is a difference in the %age changes in the price level ,I believe there must also be a change in relative prices. So it cant remain constant.

Ans 58 - it should be "a". The reason because here he is asking only about (Y-C) which is nothing but I and in the question it is given that I is autonomous of Y. So changes in MPS and all will not affect I. As economy one has double of I (Y-C) for 1 will be double of 2.



 

[econ14]

plzzz help.......
60. The GDP of a country is growing at 5%, its population growth is 2% and its income
elasticity for food is 0.5. We can expect food demand to grow at
(a) 2.0 percent
(b) 2.5 percent
(c) 3.5 percent
(d) 5-0 percent

[The Villain]

elasticity=%change in quantity/%change in income
.5=x/5
ans is 2.5%

[econ14]

thanx RON

[abhinav619]

Market capitalization in the Bombay Stock Exchange (BSE) rose by 100 percent in a
single year. This means that
(a) the Sensex rose by 100 percent during that year
(b) the value of shares traded at the BSE over the year increased by 100 percent when
compared with the previous year
(c) the value of all outstanding shares of companies listed at the BSE rose by
100 percent
(d) the prices of every share listed at the BSE rose by 100 percent.

Shouldn't it be (c). Does someone have a precise answer to this with facts

[kangkan]

Hi Ron and Sandeeep..i think 60 is different..income elasticity is usually defined for resposiveness to indvidual consumption to indvidual income..now per capita income(% change)=5-2 =3%...increase in per capita food demand (or food demand of indvidauls)= 0.5*3=1.5%..total food demand change= change in population+change in individual demand=2+1.5=3.5%

[coolravi]

can someone please explain question 54 to 57

[aman]

40. If an economy is a price taker in world markets for both export and import, the real exchange rate devaluation
a.will have no effect on the balance of trade
b. will cause the balance of trade to improve
c. will cause the balance of trade to deteriorate
d. will turn a trade deficit into a balance
plz answer

[kangkan]

detoriate because of the j cuve effect

[Ridhika]

I think it will improve. Because it's talking of balance of trade not current account. Ie. On balance of goods and not expenditure on goods. So when devaluation occurs exports increase and imports decrease .. therefore balance of trade improves ..

----- Reply message -----
From: "kangkan [via Discussion forum]" <ml-node+[hidden email]>
To: "Ridhika" <[hidden email]>
Subject: JNU 2013 SSS DISCUSSION
Date: Tue, May 13, 2014 10:38 PM

detoriate because of the j cuve effect

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[Ridhika]

Hey Viv.. in 58..
Im getting a

We know Y=C+I (in both economies)
So Y-C=I
and we know I (in eco 1) = 2I (in eco 2)

So (a) .. but this seems too simple.. so im not sure

What is your logic?

Guys please respond to my post above as well..

[sanjeev]

If you see carefully 1.333 is 1.33, where as 1.303 can not be same that is 1.33! here as we are considering the aggregate of the economy as a whole. Therefore, even 0.01 will make a huge difference!

[mrittik]

There are 30 outstanding companies which are listed in BSE....so the answer is c...you may check it on Wiki about 30 top traded companies whose share trading is considered the most important for Market Capitalization....

[sanjeev]

so answer is c ben not a loll!
typing error from u

[sanjeev]

yes it is

[sanjeev]

dear aman plz follow the following paper u will get answer:

http://www.banrep.gov.co/docum/ftp/borra120.pdf
page 8

[Priyanka Singh]

final ans 40 and 86