JNU ECOM 2010 QUES 81-90

[Arushi :))]

QUES 81
In the list of five countries given below, choose the one which has a positive trade surplus
a. USA
b. Great Britain
c. Greece
d. China
Answer-d
QUES 82
Which one of the statements given below is correct for the year 2000-01?
a. The primary sector of the Indian economy is 50% of the GDP.
b. The tertiary sector of the Indian economy is 50% of the GDP.
c. The GDP contribution of the primary sector of the Indian economy is larger than that of the secondary sector.
d. The GDP contribution of the secondary sector of the Indian economy is larger than that of the tertiary sector.
Answer-b
QUES 83
If utensils worth Rs. 100 are produced with steel worth Rs50, wages paid are Rs10, depreciation of machinery is 0 and other material purchased is Rs10, then value added in the process is:

Answer-a
QUES 84
If an economy produces GDP of Rs30 billion per year with a capital stock of Rs135 billion , then the capital output ratio is a:
a. stock variable with a value of Rs 4.5 billion
b. stock variable with a value of 4.5 years
c. flow variable with a value of Rs 4.5 billion
d. flow variable with a value of 4.5 as a pure number
Answer-d
QUES 85
An economy has a proportionate income tax rate t, marginal propensity to consume of 'alpha' and marginal propensity to import of m, with values alpha= 0.8, t= 0.2, m=0.1. The short-run investment multiplier of the economy will be:

Answer-a
QUES 86
The 'Sub-prime Lending' crisis was originated in
a. India
b. USA
c. UK
d. China
Answer-b
QUES 87

Indicate which combination of statements is correct.
a. Transaction in (i) represents an act of net zero investment.
                       (ii) represents an act of net positive saving.
                       (iii) represents an act of net positive investment.
b. Transaction in (i) represents an act of net positive investment.
                       (ii) represents an act of net positive saving.
                       (iii) represents an act of net positive saving.
c. Transaction in (i) represents an act of net positive investment.
                       (ii) represents an act of net investment.
                       (iii) represents an act of saving.
d. Transaction in (i) represents an act of net positive investment.
                       (ii) represents an act of net positive saving.
                       (iii) represents an act of net zero saving.
Answer-
QUES 88

Answer-a
QUES 89
Which of the following will be an inverse function of f(x)= x^2?

Answer-d
QUES 90
The share of the primary sector in the Indian Labour Force in 2000 was approximately around

Answer-c

[Arushi :))]

87

[kangkan]

I think 87 is D :)

[E A Ibrahim]

I think the answer for question 82 is option C.

NCERT text book for class 11 page 31 says that, share of agriculture to GDP is 34.9, while it is 24.6% for industry in 1990-91. (I didn't get the date for 2000-01. But, no significant changes might have occurred). Also, it can't be said that share of the tertiary sector is exactly 50% of the GDP, even though it is above 50%. We need to verify the statistics to reach a certain answer.  

[Arushi :))]

Hey , i chose b according to this.

[E A Ibrahim]

But here also primary sector outweighs secondary sector. Primary sector's contribution is 26.18, while that of the primary sector is 23.51%. So, both answers are plausible. The thing we need to note is that now the order has reversed. Secondary sector contributes more to the GDP than the primary sector in recent years. From where did you get this data?

[Arushi :))]

http://www.academia.edu/3243027/Growth_and_Structural_Changes_in_Indias_Industrial_Sector
From here.
Anyway , i don't think anyone attempts such questions until and unless there is full surity....

[Ridhika]

hey arushi.. Im pretty sure 85 should be (b)

Can you please explain 88? Solving for the AP isnt working for some reason ..

[The Villain]

Q88...we know
Sn=n/2(2a+(n-1)d)
here a is 1 as odd numbers start fr 1
d is 2
substitute ..u get ans is n^2

[The Villain]

@Ridhika  ...Arushi is ryt...ans is a
We have,mpc as alpha..let alpha be a
del y/del I= 1/1-a(1-t)+m
=1/1-.8(1-.2)+.1
solve...ans is 50/23

[Ridhika]

Thanks for 88 Ron! I was making a careless mistake.. just found it..

For 85.. the proportion "m" will also be after taxes.. because you can only spend your disposable income on imports.. therefore the answer should be B according to me.. If its A we are saying that imports occur on before tax income.. why would that be the case?

[Arushi :))]

@ ridhika- yes its b.
@ Ron:
Consumption function would be C= Co+ c(1-t)Y
And similarly import function would be M= Mo+ m (1-t)Y
Y= A+ c(1-t)Y - m(1-t)Y
Y= A+ (1-t)(c-m)Y
Y = A/ {1-(c-m)(1-t)}
please tell if there's some mistake,
I go with ridhika

[ashutosh]

87 should be D only.
Buying a house will add to residential investment.
-Buying a share will be saving.
- And buying a share from bank deposits is like changing the form of savings.

[Anjali]

Why d for 84 ?
K/Y = capital billion / output billion per year
Shouldn't it be b ?

[Anjali]

Arushi your concept for ques 85 seems right , but its not matching with the equated value , which is 25/11
So ans is option a