JNU SIS 2012

[The Villain]

I solved JNU SIS 2012 paper.I"m getting the following answers.Please confirm
1 c
2 c
3 b
4 c
5 a
6 d
7 a
8 b
9 c
10 a
11 d
12 c
13 b
14 d
15 a
16 b
17a
18 a
19 c
20 d
21...tried a lot...ans still not coming..
22 d
23 b
24 c
25 b

[Dreyfus]

Ron...for q21.in the LM relation the coefficient of d1 is Y.......as in all the options denominator has expression as sum .....nd in dis way u'll get option b as answer

[Shefali]

Thanxx ...pls explain quest 14

[Shefali]

anyone...Ron??

[anishagulati]

Please explain q24

[ishita1793]

Suppose the elasticity of demand for an iPod is -3.5. This means that
(a) the demand for iPods is inelastic
(b) the demand curve for iPods is very steep.
(c) 10 percent increase in the price of iPods will cause quantity demanded to rise
by 35%.
(d) 10 percent increase in the price of iPods will cause quantity demanded to fall
by 35%.
 
shouldn't the answer be (a) ??

[The Villain]

@Ishita ...-3.5 means its elastic.

[The Villain]

@Shefali..prob problem is solved is
1-prob (problem is solved)
do it ...u'll get your answer:)

[ishita1793]

the marginal propensity to save is 0.15 and the marginal propensity to import is 0.05,
then the multiplier effect on GDP is
(a) 6.67
(b) 5.00
(c) 431
(d) None of the above

Isnt the formula for Multiplier effect 1/MPS ? then the asnwer should come 6.67

[The Villain]

@Ishita
Multiplier is 1/1-c+ct+m
here t is zero,mpc is .85(1-0.15)
Just subs in above formula...u'll get the ans as 5

[ishita1793]

WHATS 'M'?

[The Villain]

m is marginal propensity to import..

[ishita1793]

@Ron, could you please check you E-mail!

[ishita1793]

Please explain q.24

[hs]

in 24th i m getting d(100) as answer pls check

[ViV]

@ Ron : 4th should be (a)
Govt. Subsidy will increase the price so Qs = 3(P+5/3)-5 = 3P and Qd = 10-2P
P* = 2 and Q* = 6
Cost to the govt. = 5/3*6 = 10

15th should be (c)
we are getting C = 1 and 2/3  but at C = 1, P(1)<0 so we can't take C = 1.

17th should be (b)
P(some mistake) = 1- P(no mistake)
                      =  1- P(0)
                      =  1-0.049787
                      = 0.950213

21st I couldn't do but I think it would be either (b) or (c) Vaibhav if possible please help on this

22nd: Ron Could you explain your reason..

24th: I am betting on (a)
At Rs. 100 Qd = 900units. Because of Import quota 300 units can be imported. so remaining 600 units can be demanded at the price of Rs.250 domestically.
So total DD = 300(Import)+600(Domestic) and total Price = 100(Import price)+250(Domestic price)
Hence price will go up by Rs.250 and make it to Rs.350 to buy 900units.


Rest answers matched with you so please look at these and lemme know. May be my answers are wrong.

[ViV]

@Shefali : 14th
(1-3/7)(1-3/8)(1-1/3) = 5/21

[ViV]

@Anisha: 24th I have explained. Do check..


@Ishita: In that I-Pod question answer is (d). It's just how we explain price elasticity.
             In multiplier K = 1/1-mpc + import proportion
                                = 1/0.15+0.05 = 5       1-mpc = mps = 0.15

[Shefali]

@viv...17 should be a...pls check

[The Villain]

@Viv
Right.,4th is a...made an error