JNU SIS 2013 Doubts

[Ashima]

1 c
2 d
3 not getting the answer, plz help
4b
5c
6
7d
8a
9b
10d
11b
12c
13d
14a
15b
16b
17c
18b
19a
20c (opp costs are same)
21 HELP!
22d
23b
24 please help me with this one
25a (didnt aactually solve it- too lengthy)

Please tell me what answers you are getting!

[ViV]

Anyone please help...

3. A car manufacturing company wants to decide where to locate a new plant. The only
inputs used in cars are steel and labour, and the production function is f (S, L) = S^1/2L^1/2,
where S is tons of steel and L is units of labour. The company can locate its plant either
in country A or in country B. In country A, steel costs Rs 70 a ton and labour costs
Rs 70 per unit. In country B, steel costs Rs 80 per ton and labour costs Rs 60 per unit.
In which of the two countries should the company locate its new plant?
(a) Country A
(b) Country B
(c) It is indifferent between country A and country B
(d) The information given is not sufficient to determine

11. Consider five urns numbered 1 to 5, where each urn contains 10 balls. Urn 1 has i
defective balls and (10 - i) non defective balls. In an experiment, an urn is selected at
random, and then a ball is selected at random from that urn. What is the probability
that a defective ball is selected? If the ball is defective, what is the probability that it
came from urn 2?
(a) 7/10; 2/5
(b) 3/10; 2/15
(c) 1/5; 3/25
(d) 3/5; 2/5

21. If the home marginal propensity to consume exportable is greater than the elasticity of
the foreigner's offer curve, then in the absence of inferior goods, a tariff
(a) lowers the domestic prices of importable
(b) increases the domestic prices of importable
(c) No impact on domestic prices
(d) Cannot say

24. There are two countries A and B with their currencies denoted as 'A$' and B$'
respectively. Their nominal exchange rates in terms of US Dollars (USD) are as follows :
A$ 50 = USD 1; B$ 1 = USD 1.5
The nominal prices of petrol per litre in the two countries are A$ 75 per litre and
B$ 1 per litre respectively. It is reported that in purchasing power parity (PPP) terms,
petrol prices are three times higher in country A than in country B. Compare a resident
of country A earning AS 50,000 per month with a resident of country B earning
B$ 2,000 per month. In PPP terms
(a) resident of country A is better off than resident of country B
(b) resident of country A is at par with resident of country B
(c) resident of country A is worse off than resident of country B
(d) Cannot say

@Ashima: My all answers are matching with your answers except these
6 C
22 C
25 C

[Akshay Jain]

3.fix an amt of good say 1 unit is to be produced in both countries
now in country A
minimize cost = 70S+70L s.t.c f(S,L)>=1
minimum total cost=140
and in country B
minmise cost = 80S+60L s.t.c. f(S,L)>=1
minimum total cost=139 approx
cost in country B is less dan cost in country A

[ViV]

got your point Akshay

[ishita1793]

How is it 139?

[ishita1793]

i am getting the 7th answer as B which is 2 and not D which is 4.

[Akshay Jain]

@ishita in country A the the (K,L) combination that minimize cost of producing 1 unit is (1,1)
and in coutry B he the (K,L) combination that minimize cost of producing 1 unit is ((3^1/2)/2,(2/3^1/2)
put these K,L combinations isocost equations of respective countries and u vl get the costs as 140 and 139(approx) respectively

[ViV]

@Ishita for 7th (d) is the answer. Do check..

[ishita1793]

@Akshay Thank you! Please check you e-mail

[ishita1793]

@Viv can you solve it here please?

[ViV]

For singular matrix detA = 0
solve the det. you will get in this form
-4(a-1) -2(-6) = 0