jnu

[ritu]

in jnu 2011 q 93,why cant D be the winner???????Why the answer is b???????


1. a person takes rs 100 of currency notes and puts them into demand deposit in a bank.bank keeps rs 10 nd loans out rs 90.these leads to what change in money supply?

2.a monopolist faces a demnd curve with unit price elasticity of demand..for such a monopolist,if mc is positive,
a.profit maximising output doesnt exist
b.profit maximising output is where MC=MR & MR is decreasing
c.profit maximising output is where AR=MR & AR is decreasing
d.none of above


3.how a lump sum tax affects a monopolist's output?(increases,decreases,unchanged,cant say)

4.letx1<x2<x3<x4<x5.suppose AM of x1,x2,x3,x4,x5 is M and AM od x1,x3,x4,x5 is m.then its necessarily the casethat
a.m=M
b.M>m
c.M<m
d.none of above

5.a person's income increased by 70% over a 2 year period.during this period the consumer price index increased by 50% in first yr nd 20% in second year.what is person's real income compared to beginning ...
a 10% lower
b unchanged
c 5.56% lower
d none of above

6.a nation invests all that it saves nd its rate of saving is 30%.if the annual rate of growth of that country is 6%,then its production conditions must be that it delivers a unit increment in output for every...
a. 2
b.3
c.5
d.10
units of output.



7.or an economy the long run rate of growth of gdp is 5percent per annum at full employment. the investment rate is 20percent and the rate of growth of labor force is 2percent per annum. then capital output ratio is-

a-2
b-5
c-7
d-10
 pls pls reply...

[anon_econ]

for the 3rd one i'm wondering if it should be 'can't say' bcoz if profits r negative with the tax output would fall to zero..
for the 7th one shudnt it be 4?? k/y in steady state =s/n+g. n+g=0.05 and s=0.2??

[anon_econ]

for the first one there's no change when cash is converted into a deposit. money supply will increase by the amount of the loan ie 90 bucks.

[anon_econ]

for the 2nd one MR is always 0 so he shud produce 0 units. now i don't know if we should tick option a or d..
for the fourth one i think it shud be none of the above. say the nos r -20,1.1,1.2,1.3,1.4. here new am<old am. take another case of 1,1.1,1.2,1.3,1.4. here new am>old am.

[ritu]

hey vasudha...u remember that monopolist vala question in isi 2012 sample paper...there also elasticity was 1,,,but we could find the output...where price was maxiumum possible....think abt it ....can this give sm clue regarding ths questn?????
nd yes i agree wityh ur method for 7th bt its nt in option....wot to do???

[anon_econ]

umm in that question elasticity of demand was not 1 EVERYWHERE. if it's 1 everywhere then i think output would be 0..
see the TR curve would be a rectangular hyperbola. n if the TC curve is upward sloping, the difference b/w TR and TC keep reducing with output..
what do u think?

[aditi5000]

hey, where is this question from - "6.a nation invests all that it saves nd its rate of saving is 30%.if the annual rate of growth of that country is 6%,then its production conditions must be that it delivers a unit increment in output for every...
a. 2
b.3
c.5
d.10
units of output. "

[ritu]

yar in that question we had p=1/q...a constant elasticity demand curve....so yes TR is a RH and if tc is upward sloping gap btwn them goes on increasing but  before they intersect it wud be profitable to produce....??????

[ritu]

aditi...its frm jnu 2005 or 6 i guess

[anon_econ]

It's TR-TC, not MR-MC. so u just have to find out where the gap is maximum. And that is right in the beginning.

[ritu]

ok so this means no such output exists coz total revenue curve wud never touch the axis being a rh....right??????

[anon_econ]

well, output is zero. dunno what price he would charge though!
i'm not sure about this question. am just telling u what is coming to my mind.

[aditi5000]

4 - B

[aditi5000]

x1<x2<x3<x4<x5.
AM of 1,2,3,4,5 is M = 3
and AM of 1,3,4,5 = 3.25 = m
a.m=M

b.M>m
c.M<m </b> ANSWER

d.none of above

i'm sorry i thought observation 4 was being removed.. then m<M

in the case of observation 3 being removed m=M

[Amit Goyal]

a monopolist faces a demnd curve with unit price elasticity of demand..for such a monopolist,if mc is positive,
a.profit maximising output doesnt exist
b.profit maximising output is where MC=MR & MR is decreasing
c.profit maximising output is where AR=MR & AR is decreasing
d.none of above

Consider for example inverse demand function, p = 1/q
We have unit price elasticity. And revenue is fixed and is equal to 1, no matter how much you produce. Given that MC > 0 at every level of output. Cost is strictly increasing in output. So, monopolist would like to produce as less as possible. Total revenue jumps to 0 the moment you choose to produce 0. And it is 1 is you produce any small amount.  Since the smallest strictly positive output doesn't exist, the solution to this problem doesn't exist.

[aditi5000]

Sir what if inverse dd is p = 20/q and cost = 10q
then your optimal output would be 1 right ? because you get tr = 20 and tc = 10 thus profit = 10 ?

[Amit Goyal]

Optimal output does not exist. Because 0.5 gives you higher profit than 1 and 0.25 gives you even higher than 0.5 and so on.

[ritu]

in such a case optimal output can be determined if there is a restriction on maximum price that can be charged ,otherwise no eqm output exists....nd sir is median a way of measuring inequality?????i dnt think so

[aditi5000]

Thank you! :)

[Amit Goyal]

Just median doesn't tell you anything about the inequality