SAU 2013 paper

[Homer Simpson]

Hey, i did the 2013 paper and these were the answers i got. please have a look and tell me which are wrong. Thanks a lot in advance!

1
2(b)
3(b)
4 a
5 d
6 c
7 a
8 b
9 b
10 d
11 a
12 d
13 b
14 b
15 b
16 c
17 b
18 b
19 a
20 b
21 c
22 a
23 b
24 a
25 a
26 c
27 b
28 d
29 b
30 d
31 c
32 b
33 b
34 d
35 c
36 c
37 b
38
39 d
40 a
41 c
42 d
43 b
44
45 c
46 d
47 b
48 d
49 b
50 b

[Amita_IITM]

Most of them match. I think 34th will be a. 1st will be a.
Can you please explain the 5th one?

[Homer Simpson]

Hey, thanks for the reply. I thought of 5 like this -

It could possibly be either (b) or (d).

If we have a linear downward sloping demand curve in form y = ax+b, where a= = -1.5 (for instance) slope may be constant but elasticity is actually -1.5(y/x). Thus (b) is not possible if price elasticity is given at constant value.

But if we have non-linear demand curve, say y = 1.5/x , then elasticity is constant at 1.5

Also, would 26 be (a) or (c) ? Doesnt perfect competition have "perfect info" and "free entry and exit" ? How did you get (a) for question 1?

[SoniaKapoor]

How to solve quest 35?/

[Amita_IITM]

26th is definitely c, coz there should be free entry and exit.

For 1st, consider this-
write a=1 b=2, c=3, d=4....z=26.

that way the series becomes-
25, 5, 21, 9, 17, 13, ___
If you see closely, there are two series in one here. One being __5,__,9__,13 which is the previous number plus 4. other being- 25,__,21,__,17,__ which is previous no minus 4. Also, the two series have their numbers coming alternatively. Since 13 is from 1st series, next will be from the second. So, it will be 17-4= 13. So M.

Is it okay?

Also, please explain the philip's curve sacrifice ratio concept.

[Amita_IITM]

Same doubt sonia. Could you do 36th? I am getting negetive i. How to solve?

[SoniaKapoor]

amita, check here
most of the quest have been explained here including sacrifice ratio

http://discussion-forum.2150183.n2.nabble.com/SAU-PAPER-td7585693.html

[Homer Simpson]

Thanks Sonia and Amita!

[Economics student]

Can u please explain 41, 43. Also for 47 did u do TR>TC?

[Homer Simpson]

@Amita: Your logic for 1 seems fine!

[Amita_IITM]

Thanks. Can you help me with 41 and 43?

[SoniaKapoor]

quest 47
Find MR which is 460-4Q and equate it with MC ...u will get 92

[Homer Simpson]

I dont know how to do 41. As for 43, i did it this way -

Labor force = employed (urban+rural) + unemployed
         L       = L(u) + L(r) + Q

Assume, Q = unemployed

thus, L -L(r) = L(u) + Q

My equation after substituting values becomes-

=> 60 x (L(u)/L(u) + Z) = 40
=> 3 L(u) = 2 L(u) + 2Q
=> Q = (1/2)L(u)

Thus, we see for a one unit change in urban employment, unemployment rises by 1/2. Therefore (b).

[Homer Simpson]

yep, checked again. it is definitely 92.

Also, can 16 be (d)? Wouldnt mean be most likely affected by extreme value, as compared to the others? Range includes only highest and lowest values. Mode is the highest value. But mean will be a average of all values.

Any idea about 40, 41 and 44?

As for 35, you can simply re-arrange the equation in the form given in the macro text-book, then NAIRU will be 5%+a which is option (c)

[Amita_IITM]

Its 92 only.

Please help with 43.
And its definitely range. As due to very large or very small values will be covered in its absolute sense, unlike in AM where it gets a little diluted by the addition of the other values and then division by the number. :)

[Economics student]

thank you so much tsuki :)

[Economics student]

@tsuki- Please tell me the method u used for 46th. mine is very long.

[Homer Simpson]

Ok, i did 46 this way (pure guess) -

basically, change from 2500 to 5000 is a 100% rise. Now they are saying this rise is spread over 10 years. Since i dont know varying the growth rates of the individual years, i thought that the average percentage would be 10% per year

How did you do it??

[The Villain]

The answer for 46 should be c..

[Homer Simpson]

hey Ron, could you explain the working please?