JNU 2013 SSS DOUBTS

[Shefali]

Ans of 63 is a

[Dreyfus]

@subhayu.....how ed is 1 at any point on dd?
I m getting ed as -1/pq....

[ViV]

Any reason?

[ViV]

@ Shefali: I agree Normality is assumed it is not necessary.

[The Villain]

q75 @Vaibhav..
dq/dp=-1/p^2
elasticity=dq/dp*(p/q)
=-(-1/p^2)*(p/1/p)
=1

[ViV]

Thanks Ron
please explain remaining questions...

[Dreyfus]

Thanks Ron....

[ViV]

58,69 and 83

[The Villain]

Q83 is d..

[Ashima]

58 is c. It will be same.

As I is larger in 2nd economy (twice than that in 1st economy)

But, at the same time MPS is half in first economy. So people save less in first economy and thus invest more.

Thus, eqb will be same.

[Akshay Jain]

Ques 83..its d
p imples q
negation of p doesnt say anything about happening of q
its like p is a proper subset of q....
if p happens den definately q vl take place

[ViV]

Thanks everyone

[ViV]

My last Doubt of 2013 Paper
Answer Question Nos. 54-57 on the basis of the following information :
Suppose, in equilibrium, aggregate income (in units of money per year) in an economy Y = C+ I, where investment expenditure (in units of money per year) I = 1000 and aggregate consumption expenditure (in units of money per year) C satisfies the following conditions:
(i) C is a function of current disposable income in the economy (Yd).
(ii) If Yd = 0, then C = 500.
(iii) Marginal propensity to save out of Yd is constant in the economy and equalto 30%.
Suppose the government collects direct tax revenues equal to 15% of Y and makes direct
transfer payments equal to 750 units of money per year.

54. What is the value of the investment multiplier in the economy?
(a) Between 1.7 and 1.9
(b) Between 1.9 and 2.1
(c) Between 2.1 and 2.3
(d) Between 2.3 and 2.5

55. What is the equilibrium value of Y in the economy?
(a) Between 3250 and 3750
(b) Between 3750 and 4250
(c) Between 4250 and 4750
(d) Between 4750 and 5250

56. If instead of 750 units of money the government makes annual transfer payments equal
to 10% of Y, then the value of the investment multiplier will
(a) decrease by less than unity
(b) decrease by more than unity
(c) increase by less than unity
(d) increase by more than unity

57. If instead of 750 units of money the government makes annual transfer payments equal
to 10% of Y, then the equilibrium value of Y will
(a) decrease by less than 1000
(b) decrease by more than 1000
(c) increase by less than 1000
(d) increase by more than 1000

[The Villain]

@Vaibhav...pls help me with q 70

[RajEco]

yeah 70 shud be d. e times
83. shud be d only.
 and for
63. i think it shud be b. (bcoz they are not independent).

whats the answer ?

[ViV]

83 (d) Normality is assumed it is not necessary. Refer ch. 4 of Basic Gujarati
Rest of the answers are correct

[Dreyfus]

@ron ...for q70

[Dreyfus]

54.d
55.d
56.c
57.a

[Granpa Simpson]

Just use the basic definition...the equation represents a demand curve which is rectangular hyperabola..the revenue remains constant and hence Marginal Revenue=0....this can occur only if elasticity is 1.

[Ashima]

54 d
55 d
56- ?
57 a

What answers did you get?