UOH 2014 question discussion

[E A Ibrahim]

Though Hyderabad exam was over two months ago, I would like to post some of the difficult questions of that paper here. It would be worthwhile since the questions are likely to be repeated.

83.A country's current account
(a). balance equal to the change in its net foreign wealth
(b) balance equals the change in its foreign wealth
(c) surplus equals the change in its foreign wealth.
(d) deficit equals the change in its foreign wealth

60. If one were to divide the standard deviation of a population of the mean of the sample population and multiply this value by 100, one would have calculated the
(a) Population standard score
(b) Population variance
(c) Population standard deviation
(D) Population coefficient of variation


59. The quadratic equation, 2x^2-3x+4=0
(a) has distinct real roots
(b) has distinct complex roots
(c) has identical real roots
(d) has identical complex roots

93. Capital inflows in the balance of payments accounts include
(A) purchases of financial assets by domestic residents
(b) direct investments in foreign in foreign countries
(c) indirect investments in foreign countries
(d) purchases of domestic government bonds by foreigners.

What options did you mark for these questions.

[Homer Simpson]

83(b), 60(d), 59(b), 93(d) - i dont remember what i wrote that time though! please let me know if its wrong and why :)

[E A Ibrahim]

All of our answers match. Please share the answers you are having doubt.

[E A Ibrahim]

74. The basic difference between a sales tax and a VAT
(a) Incidence of tax
(b) Method of collection
(c) Tax base
(d) NONE

71. If the elasticity of supply is less than the elasticity of demand, the burden of tax will fall on
(a) Entirely on the buyer
(b) Entirely on the seller
(c) Both on the seller and the buyer
(d) None

44. Which of the following organizations supply data on State Domestic Product in India
(a) NSSO
(b) Organisation for Federal Data
(c) RBI
(d) Indian council for Applied Economic Research

[Anjali]

Answers for first part are same as Tsuki has posted .
For second part
74 b
71 either c or d - actually the larger part of tax is taken by the seller , and the smaller part by buyer , so c seems more correct to me.
Dunno 44

[Homer Simpson]

Hi,

74(b), 71(c), 44(a) - in tax burden, both are sharing though seller has more share of the burden.

I will check out other questions as well. Wasnt prepared for Hyderabad, so would like to discuss any previous year doubts too.

[E A Ibrahim]

78. Starting from autarky situation with Heckscher-Ohlin model, if Country H is relatively labour abundant then once trade begins
(a) wages and rents should rise in H
(b) wages and rents should fall in H
(c) wages should rise and rents should fall in H
(d) wages should fall and rents should rise in H

26. Find the price elasticity of demand for the curvilinear demand function of the form Q= aP^-b
(a) -b
(b) b
(c) 1
(d) None of the above (NOTA)

22. The cost that a firm incurs in purchasing or hiring any factor of production is referred to as
(a) Explicit cost
(b) Implicit cost
(c) Variable Cost
(d) Fixed cost

10. Cigarette smoking is an example of
(a) Positive production externality
(b) Negative production externality
(c) Positive consumption externality
(d) Negative consumption externality

7. For a natural monopoly, economies of scale
(a) Exist due to patent protection
(b) cause legal barriers to entry
(c) Exist in the long-run average cost curve over the entire range of output
(d) NOTA

[Homer Simpson]

78(c), 26(b), 22(a), 10(d), 7(c)

[E A Ibrahim]

For 26, I got option (a) as answer. When, I got the same answer when I redid the question now. Please check yourself.

e= (dq/dp) * (p/q)
dq/dp= -baP^-b-1.

When I solved the equation, I got -b. Please help if I am wrong.  

[Homer Simpson]

calculation is fine, however we take absolute value for elasticity of demand.

[E A Ibrahim]

1. Block pricing by electricity companies is an example of
(a) First degree discrimination
(b) second degree discrimination
(c) third degree discrimination
(d) NOTA

75. Countries trade with each other because they are ----- and because of -------
a. different, costs
b. similar, scale economies
c. different, scale economies
d. similar, costs

[Homer Simpson]

1(b) , 75 (b)

[The Villain]

q26... ans is a

[E A Ibrahim]

For 75, I think (C) is the answer. Countries ought to trade when they are different. Heckscher-Ohlin theorem states than international trade takes place when countries are different in terms of factors of production

[Homer Simpson]

If the countries have similar capital-labor ratios, then there will be little inter-industry trade based on comparative advantage in resources. There will be intra-industry trade based on economies of scale. Thus i think (b) should be answer.