SAU PAPER

[The Villain]

Sry ans is a...by mistake i typed b
See this is Cournot model...so one firm can have lesser mc and so produces more

[Ashima]

Yeah I guess so its a! :)

[Ashima]

9th? b or c?

[The Villain]

b for sure..

[jack]

16-a
17-b
18-b
19-c
20-b
21-c
22-d
23-b
26-c
27-d
28-d
29-b

[jack]

my answer for Q 39 is C
is it right?

[ViV]

7th Question: it is a situation of Cournot equilibrium where both firms produce equal quantity of output(Nash Equilibrium) So, Option should be (C) but I am not 100% sure on this....

9th : it should be (C) because parameters of models are not structured they do vary with time to time. So, the model would potentially be misleading.

10th : Ron Please explain logic...
16th : (D)

[ViV]

@Jack for Q.28 is the case of Lexicographic Ordering so answer should be (B)
 Q.39 it's (C)

[Ashima]

Ron please explain 25th.

And how come 27th is d? 

Isn't it non-transitive? 

On Mon, Mar 31, 2014 at 10:30 PM, ENGRAVECHARM [via Discussion forum] <[hidden email]> wrote:

@Jack for Q.28 is the case of Lexicographic Ordering so answer should be (B)
 Q.39 it's (C)

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[Ashima]

Ron please explain 25th.
And how come 27th is d?

Isn't it non-transitive?

[Anjali]

6. C
7. D
8. A
9. B
10. D ( not sure , have to go through IS LM again :-p )
11. A
12. D
13. B
14. B
15. B
16. A ( not sure , could be D as well )
17. C ( not sure )
18. B
19. C
20. B
Meet you tomorrow with more answers and discussion. Keep posting your viewpoints. And @ Ashima , where is sacrifice ratio ?
Also are there more papers available for SAU online ?

[Ashima]

sacrifice ratio is given in some DU macro reading, will see the author tom and will let you know the 27th one please, with diagram.

[Anjali]

Earlier , even I was taking A as the answer for question 10th , but here the MC are different , contrary to what we have studied. Please help.
And explain solution for ques 28

[Anjali]

@Jack for 22 , I suppose its A. Just cross check.

[jack]

comparative advantage means that the o/p cost of commodity is lesser than the another commodity
so in that case, Atapattu's o/p cost of table is less than the Rahut's o/p cost of table
Rahut has comparative advantage in chair, which is not given in the option
so option d, I Think

[The Villain]

jack...can u explain quest 20

[jack]

Such preferences are called as lexicographic preferences because by definition, if a preference relation is defined such that an individual always prefer a basket with more unit of one commodity(say x) over a basket with less unit of that commodity irrespective unit of the other commodity(say y), and if he has to compare two basket such that there is same number of x then he prefer a basket with more of y.
so in this question, both condition are satisfied
 let, x - (s,d) and y - (s1,d1) be two destinations:
If s>s1; x is preferred to y
If s=s1 and d<d1; x is preferred to y
so option d

[jack]

X=.6y*
M=.3Y
so, X/M=.6Y*/.3Y
for trade balance to hold,
ratio of foreign output to domestic output should be 1/2

[Anjali]

O/p cost for rahul is 4/20 or 0.20 ? Am I correct @ jack ?

[The Villain]

thanxx jack
anjali...opp cost for rahul is 5 for tables and .2 for chairs...