jnu sis

[ritu]

1.the necessary and sufficient condition for factor price equalisation in ho model is--
a.factor intensity reversal
b.incomplete specialisation
c.non-constant returns to scale
d. dissimilar prodn functn



2.consider the following aggregated demand sysytem:
Md=AD-r
Md/p=Ms/p
AD=C+I+G
C=1+0.5Y
I=1-0.5Y
derive is-lm equations.


3.does anybody know how to find elasticity of import demand through offer curves??/what is formula for it thru graphs??????


4.suppose that price elasticity of demand for good x is 0.2.if the price of x rises by 2.8%,what effect will it have on total expenditure on good x?
a.expenditure on x will fall by 5.6%
b.expenditure on x will rise by 5.6%
c.expenditure on x will rise by 2.2%
d.expenditure on x will fall by 2.2%



5.if the absolute value of price elasticity of demand for good x is greater than one,then we must have:
a.if price increases by 1%,then quantity demanded will decrease by less than 1%
b.if price of x  decreases by 1%,then quantity demanded will increase by less than 1%
c.if price of x increases,then expenditure on good will increase
d.none of above

i think d is right...

[divyas]

1. incomplete specialisation
5. d)

[aditi5000]

3 b.expenditure on x will rise by 5.6%

[aditi5000]

5 d.none of above

[aditi5000]

1 b.incomplete specialisation

[aditi5000]

2.consider the following aggregated demand sysytem:
Md=AD-r
Md/p=Ms/p
AD=C+I+G
C=1+0.5Y
I=1-0.5Y
derive is-lm equations.

IS -
Y = 1+0.5Y+1-0.5Y +G
SOLVE FOR Y

LM
(1+0.5Y+1-0.5Y +G-r)/p=Ms/p
solve for Y and get it in terms of r

[a.m]

@ Aditi - the expenditure should rise less than proportionately for an inelastic good right ? so how did you arrive at the conclusion that expenditure rises at the rate of 5.6% ?

[aditi5000]

Yeah you're right - got severely confused. Check out http://discussion-forum.2150183.n2.nabble.com/jnu-td7561537.html#a7562289
Sir has put up answers

[aditi5000]

4.suppose that price elasticity of demand for good x is 0.2.if the price of x rises by 2.8%,what effect will it have on total expenditure on good x?
a.expenditure on x will fall by 5.6%
b.expenditure on x will rise by 5.6%
c.expenditure on x will rise by 2.2%
d.expenditure on x will fall by 2.2%

answer
(c) Expenditure on X will rise by 2.2%

[vaibhavR]

aditi5000 wrote

2.consider the following aggregated demand sysytem:
Md=AD-r
Md/p=Ms/p
AD=C+I+G
C=1+0.5Y
I=1-0.5Y
derive is-lm equations.

IS -
Y = 1+0.5Y+1-0.5Y +G
SOLVE FOR Y

LM
(1+0.5Y+1-0.5Y +G-r)/p=Ms/p
solve for Y and get it in terms of r

hey, could you check it agaiin ... this doesnt seem to work ..

[vaibhavR]

Q 22

The consumption set :

C =  {(x,y) < R2; x>=x0>0 and y>=y0>0}

is

(a) bounded
(b) convex
(c) convex and bounded
(d) neither convex nor bounded