JNU

[neha:)]

Please help!
1. Currently, State Governments receive approximately which of the following shares of Central Govt's gross tax collection?
a. 22%
b. 25%
c. 32%
d. 40%

2.If an economy is a price taker in world markets for both exports and import, the real exchange rate devaluation will
a. have no effect on trade balance
b. cause trade balance to improve
c. cause trade balance to worsen
d. turn trade deficit into a balance

3.Method used to determine value added in agriculture in India?
a. Input-output approach
b. Weather prediction
c. crop cutting experiments
d. cost surveys of ministry of agriculture

4. Between 1900 and 1950 in India
a. agricultural output grew faster than industrial output.
b. agricultural output grew slower than industrial output.
c. agricultural output grew at the same rate as industrial output.
d. neither sector's output grew at all.

5. In the rural economy of India over 1990's
a. rate of employment growth has been about the same as rate of population growth
b. rate of employment growth has been greater than the rate of population growth
c. rate of employment growth has been slower than the rate of population growth
d. no data available for this period

6. The proposition that public investment 'crowds out' private investment is based on the assumption that
a. public and private investments compete because they are invested in same sector of the economy
b. there already exists excess capacity in public sector units
c. there already exists excess capacity in private sector units
d. there is full employment of resources like labour and industry.

7.Trend rate of growth of index of industrial production during 1990s as compared to 1980s was
a. close to double
b. almost same
c. close to half
d. none of the above

8. Over the decade of 1990s per capita foodgrain availability in India has
a. increased by 50%
b. increased by 30%
c. increased by 10%
d. not increased.

9. A monopolist faces a demand curve with unit price elasticity of demand. For such a monopolist, if marginal costs are positive
a. profit maximizing output doesn't exist
b. profit maximizing output is where MR=MC, and MR is decreasing.
c. profit maximizing output is where AR=MR, and AR is decreasing.
d. None of the above

[The Villain]

1 a
2 b 3 a
9 a

[neha:)]

Thanks Ron! Are you sure about 1st and 3rd ?

[The Villain]

Yes absolutely :-)

[Anjali]

Ron for first I think its 32%

[The Villain]

yes it is 32%..Acc to 13th fianance comm it is 32% .32%

[SoniaKapoor]

I think Ron you wrote a by mistake though you meant c 32% .Hehe

[Anjali]

[The Villain]

Oops i didnt see that..I didnt see option a was 22%..Apologies .

[Anjali]

Ron confirm for 9th ?

[SoniaKapoor]

9 a

[The Villain]

Yes 9th is a..
Could you pls solve my doubts on nia on quest 1...neha's post..
pls explain parts 2-6

[Anjali]

Ron check neha's post , I have posted the ans

[Anjali]

Ron I have a doubt - In Perfect competition , where demand curve is perfectly elastic - horizontal , do we have a consumer surplus ?

[sanjeev]

in perfect competition we do have consume surplus! kindly refer to dead weight loss concept u will get it there

[Anjali]

I read Sanjeev , in PC where demand is perfectly elastic , there is no consumer surplus