JNU 2013 SSS DISCUSSION

[anishagulati]

Hi
Can you please explain the technique to solve ques 95-100?

And shouldn't ques86 be option b. Nominal exchange rate depreciation will increase exports, leading to increase in trade deficit?

[kangkan]

Hi Anish..there are two competing effects..the volume effect(increase in exports due to deprecitation) and value effect(increase in value of imports due to depreciation).Hence,the impact on trade deficit can go either way...
Now ,under most conditions(Marshall lerner conditions) ,the trade deficit will improve.

Check out chapter 16 on International economics(krugman)

:)

[aman]

how can qs 1 be a.. and how to solve 32..?

[MohitG]

I'm getting option (d) (0,1) for Q1

[ViV]

Could you explain 10-15 and 16-21.
I am getting 10-15 (b,b,d,d,b,d).

[SoniaKapoor]

How to do q 26??

[ViV]

Using Income Method: 780+100 = 880
So (b) is the answer

[Ridhika]

Hi Bhavya,

some of my answers differ as follows:
10) c
12) D
15) B (not sure)
20) C
I see only 3 possibilities - RSWXTUV , RSTWXUV, RSWTXUV (left to right is earliest to latest to be extinct) what is the 4th?
44) B
64) D
65) D
73) B - by definition there are barriers to etry in a monopolistic competition
74) B  - how can a there be collusion in a monolpoly when there is only 1 seller? So it cant be C
83) D
85) D - some P may be R but it is not necesary - R can be mutually exclusive to Q and P

Please let me know what you guys think of this!

Cheers!

[Ridhika]

Also how is q1 a? isnt the log function defned only for x E R+ . so that would make the answer (D)..

[Ridhika]

Also 43 is C

(i) is also true because we know that NE is unique and there is a pareto dominated strategy profile => For this game to not be prisinors dillema we need the dominated strategy profile to be such that it can be acieved without cooperation of both players, ie. one person can deviate to get to that pareto superior outcome. However, players are strategic, if they can deviate to an outcome better for themselves- they will do so. And if they are indifferent between the two outcomes given the moe of the other player, then NE is ot unique.

Therefore by contradiction (i) is true.

[suvidya patel]

question no.-38?

[Ridhika]

I think it's (a) but I'm not sure..

----- Reply message -----
From: "suvidya patel [via Discussion forum]" <ml-node+[hidden email]>
To: "Ridhika" <[hidden email]>
Subject: JNU 2013 SSS DISCUSSION
Date: Mon, Apr 14, 2014 11:40 PM

question no.-38?

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NAML

[The Villain]

Ques 38 is b...

[ViV]

Q.38...it's possible to have different real exchange rate...as nominal exchange rate will remain same but due to different prices in different countries its possible for countries to have different real exchange rate inspite of sharing same currency....

[Ridhika]

I get what you are saying .. but doesn't that create tremendous arbitrage possibilities? Effectively I can buy an apple for 1 euro on Germany and sell it for 3 in Italy ! -- even if this is possible initially won't flows of goods and capital neutralize the difference in real exchange rate in the long run ?

----- Reply message -----
From: "ViV [via Discussion forum]" <ml-node+[hidden email]>
To: "Ridhika" <[hidden email]>
Subject: JNU 2013 SSS DISCUSSION
Date: Tue, Apr 15, 2014 9:37 AM

Q.38...it's possible to have different real exchange rate...as nominal exchange rate will remain same but due to different prices in different countries its possible for countries to have different real exchange rate inspite of sharing same currency....

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NAML

[ViV]

Yeah! there is an Arbitrage possibility and that is possible because of difference in real exchange rate.
Stare the options and you will find B as most relevant answer "given the information in the Question"

[Ashima]

1st should be d as log does not exist for negative value.

I am getting 29th as 1700 exact! Is anyone getting the same answer?

What about 36th?

When international reserves are increasing, money supply is increasing.

LM shifts down. Interest Rate decreases. Ex ante investement > Ex ante saving, isnt it?

Shouldn't it be c?

Where is indirect utility function concept given?

73rd and 74th - both b?


86th should be a!

Please explain 97 to 100!

[Homer Simpson]

am getting - 1(d), 11 (b) and 19(d), 33(b), 34(d), 40 (a), 41(d), 45(b), 69(b)

[Ashima]

Tsuki can you please tell me 36 73 74 and 86!

Please!

[Ridhika]

@ ashima 97 to 100..

If x2 got 5% growth rate .. we can consider output in 2011 = 100 and output in 2012 = 105 ( any multiples will suffice ad these are used to calculate ratios ) .. so if x1 had to calculate rog he would use 5/105 = 4.76 .. the exact same logic can be used for 98-100

----- Reply message -----
From: "Ashima [via Discussion forum]" <ml-node+[hidden email]>
To: "Ridhika" <[hidden email]>
Subject: JNU 2013 SSS DISCUSSION
Date: Tue, Apr 15, 2014 6:54 PM

1st should be d as log does not exist for negative value.

I am getting 29th as 1700 exact! Is anyone getting the same answer?

What about 36th?

When international reserves are increasing, money supply is increasing.

LM shifts down. Interest Rate decreases. Ex ante investement > Ex ante saving, isnt it?

Shouldn't it be c?

Where is indirect utility function concept given?

73rd and 74th - both b?


86th should be a!

Please explain 97 to 100!

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NAML