JNU 2013 SSS DISCUSSION

[jack]

I think we do not take into account the population growth rate in the increase in demand for food. If population growth is to be accounted for, the answer would have been 4.5 %, which is not there. But, the answer 2.5% is there.

[Ridhika]

So u are just taking half of 5%.. I see .. thanks ! 

----- Reply message -----
From: "jack [via Discussion forum]" <ml-node+[hidden email]>
To: "Ridhika" <[hidden email]>
Subject: JNU 2013 SSS DISCUSSION
Date: Tue, Apr 29, 2014 11:26 AM

I think we do not take into account the population growth rate in the increase in demand for food. If population growth is to be accounted for, the answer would have been 4.5 %, which is not there. But, the answer 2.5% is there.

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NAML

[akanksha]

does anybody knows the ans to??

25. Take India's GDP in 2009-10 at! 50,00,000 crore. Indians working abroad remit to the
country ! 150 crore and foreigners working in India remit ! 100 crore out of the
country. Foreign investors repatriate F 50 crore and Indian business abroad brings in
! 10 crore. Then India's GNP in 2009-10 would have been
(a) ! 50,00,050 crore
(b) ! 49,99,950 crore
(c) ! 50,00,090 crore
(d) 49,99,910 crore    
53. Suppose two trials of a random experiment, in which a fair coin is tossed and a fair die
is rolled simultaneously, are carried out under the same conditions. What is the
probability that the outcome `the coin shows a head and the die shows a number
divisible by 3' is observed in at least one trial?
(a) 9/144
(b) 44/144
(c) 60/ 144
(d) 80/144

[ViV]

25
5000000+(150-100) = 5000050 (not sure on this)

53
sample space = (H1....H6,T1...T6), P(S) = 12
favorable outcome = (H3,H6), P(E) = 2
Unfavorable outcome = 12-2 = 10
Probability of favorable outcome in atleast 1 trial = 1-probability of unfavourable outcomes
                                                                  = 1 - (10/12*10/12)
                                                                  = 44/100

[akanksha]

thanks viv :)

[shietal]

what is the ans for Q 25

[Arushi :))]

For 25th its d.
According to krugman pg 292
National income = GNP - Depreciation + Net unilateral transfers
Here , remit means sending gifts ,
So we are getting 150 and sending 100
=> Net unilateral transfers are 50
Now , National income is also given by
NNP fc = GDP mp + Net indirect taxes - Depreciation + NFIA
Now foreign investors repatriate means they are taking 50 out of country
this means this a factor income paid to them
and factor income received is 10.
we can take net indirect taxes and depreciation to be zero because nothing is given about them
equating the two formulaes:
GNP+50 = GDP mp + 10 -50
therefore GNP equals 5000000+10-100= 4999910

[ViV]

5. The incidence of sales tax falls
(a) on only consumers if demand is completely elastic
(b) on only retailers if demand is completely elastic
(c) on only retailers if demand is completely inelastic
(d) always on both consumers and retailers
I am confused between (b) and (c) because of elasticity part so please expain...

41. The 'Gold Standard' refers to an international currency regime under which
(a) only gold was used in international transactions
(b) only gold was used as money in domestic transactions
(c) countries officially linked their money supply to a specific value of gold
(d) countries officially linked the value of their money to a specific weight of gold
(c) or (d) ??

70. Populations of two species A and B at time 0 are equal. If the instantaneous rates
of growth of populations of species A and B are u and u + 1 respectively, u > 0, then
at time 1 the population of species B would be
(a) twice the population of species A
(b) log 10 times of the population of species A
(c) e" times the population of species A
(d) e times the population of species A

Please give some explanations on these questions..

[Bin]

Hey Ashima,

Can you please solve q 60?
This is what I did

Found Y in both cases

5000-4477.61/4477.61

Is it like this?

[ViV]

Bin: I have used Income elasticity in this question
e=%delQ/%delI
0.5=%delQ/5 = 2.5%
Anyone suggest is this right?

[Anjali]

What will be the answer for ques 71 ?

[Bin]

Actually I meant question 56-calculation of investment multiplier when transfers change. How do you do it? Is it like how I've done in the previous post?

[ViV]

@Bin : Sol for 54-57
Y = C+I
C = 500+0.7(Y-0.15Y+750), I=1000
Y=500+0.595Y+525+1000

Q54
MULTIPLIER = 1/1-b=1/1-0.595=2.46 (d)

Q55
Solve this Y=500+0.595Y+525+1000
y = 5000 (d)

Q56
Y= 500+0.7(Y-0.15Y+0.1Y)+1000
Y = 500+0.665Y+1000
MULTIPLIER = 1/1-b=1/1-0.665=2.98
CHANGE IN MULTIPLIER = 2.98-2.46 =0.52 (c)

Q57
SOLVE THIS Y = 500+0.665Y+1000
Y = 4477.6
CHANGE IN Y = 5000-4477.6=52.38 (a)

[ViV]

@Anjali: 71 (a)

[Bin]

Thanks a ton Viv! I had been struggling with this one for a while.

What is the answer to 58th?

[Bin]

The answer to 63 is a)

Check http://en.wikipedia.org/wiki/Gauss%E2%80%93Markov_theorem

[Bin]

Is the answer to 74 b) or c)?

[Bin]

32. Is credit creation multiple of or fraction of CRR?

43. Please explain!!

45. Isn't it d?

74, 75, Aren't both b?

82. Please explain the method.

[Bin]

Please explain 89 also!

[ViV]

32(c)
CRR has a multiplier effect on credit creation

43(b) "not sure''

45(b) or (d) but I would bet on (b)

58(c)
In economy 1, MPS is 2 times. In economy 2, Investment is 2 times.
Y-C will same in both countries

74(c)

75(c)
D(p) = 1/p
dq/dp = -1/P^2
e = -[p/q.dq/dp]
  = -[(p/1/p)(-1/p^2)]
  = p^2/p^2 = 1

82(b)
go through options
If x = 24
then A = (1/2)24 = 12, B = (2/3)24 = 16
P(AuB) = 12+16+10 = 18
Total voters =18+6=24

89(c)
MR = P(1+1/e)
at profit maximization MR=MC
6 = P[1+(1/-2.5)]
P = 10