JNU Q

[RHIDIMA]

Someone plz solve this question:

Suppose aggregate income in the economy is equal to total wages plus total profits. 40% of all profits are saved. If the share of wages in agg income is 60% & the rate of saving in the economy is 0.25, the fraction of wages saved in the economy is-
a)0.09
b)0.15
c)0.16
d)0.24

[Akshay Jain]

if we assume that aggregate income is 100 and wages is 60% of total so wages =60
and profit equals 40
40% of profit is saved =40%of 40=16
total savin in economy is 25%of100=25
saving thru wages =25-15=9
9/60=15% of wages shud be saved

[RHIDIMA]

Can u plz solve this question also:
A group of persons, the mean age is 12 and the median is 10. The probability that a randomly selected person from the group will be 12 yrs or older is:
a) equal to 0.5
b) less than 0.5
c) less than or equal to o.5
d) greater than 0.5

[Akshay Jain]

i think its option b
mean is greater den median
and median divides the area under the frequency polygon or prob distribution into two equal parts
so prob that a person is 10 yrs (median) or older is 1/2=.5
since we are cal the prob for 12 years or older so it shud b less dn .5

[Sinistral]

using definition of median:
P(x<=m)>= 1/2 where m is median
so P(x<=10)>= 1/2

now we need to find:
P(X>=12)=1-P(X<=12)
             =1-[P(x<=10) + P(10<X<=12)]
             <= 1-[1/2 + P(10<X<=12)]  using median inequality
P(X>=12) <= 1/2 -  P(10<X<=12)]
we know that mean = 12 so P(10<X<=12)] will never be equal to zero.
hence   P(X>=12) < 0.5
option (b)          

[Rhidima]

Can someone plz solve this question asap;

Q1) Suppose in a closed economy with no govt expenditure and taxation the investment fn is given by I=2000+0.1Y-8000r & the saving fn given by S=1000+0.2Y+2000r(where r is the nominal interest rate). The economy is subject to a liquidity trap at r=0.01. What is the max equilibrium value of Y possible in this economy?
a) 7800
b) 9000
c) 11000
d) None of the above

Q2) Suppose the rate of profit is 20%, profit income is taxed at the rate of 30% and the rate of inflation is 5%. The real post-tax profit rate is-
a) 9%
b) 10.5%
c) -15%
d) None of the above

[laracroft]

Q. 1 OPTION- B
Q. 2 OPTION- D

[Rhidima]

how did u get it.. can u plz explain ur steps to both the questions..

[kam]

in q1 u need to put I and S equal. if you take Y on one and rest of the terms on the other then the coefficient of r will be negative and since r cannot fall below 0.01 due to liquidity trap so putting r=0.01 will maximize Y(i.e. Y=9000)

[RHIDIMA]

wat abt Q2??

[vandita24x7]

tax on profit= 30% of 20% = .03*.02=.06
post tax profit = .20-.06=.14
profit-inflation= actual profit= .14-.05= .09= 9%
Hence option A.. this is the ans given in answer key also.. u can verify :)

[vandita24x7]

@taani
 30% of 20%= .3*.2=.06