gokhalemodel papers 2 doubts

Posted by k on Jun 08, 2013; 7:46am
URL: http://discussion-forum.276.s1.nabble.com/gokhalemodel-papers-2-doubts-tp7581987.html

Q1)Which of the following would likely be a seasonal component of a time series?
a) Law suits c) Recessions
b) Population growth d) Holidays
 
Q2)Which of the following could never be described by a binomial distribution?
a) The number of defective widgets
produced by an assembly process.
c) The amount of water used daily by a
single household.
b) All of these could always be described by
a binomial distribution.
d) The number of people in your class
who can answer this question correctly
 
Q3)Leo C. Swartz, a taxi driver in Chicago, has found that the weather affects his customers’
tipping. If it is raining, his customers usually tip poorly. When it is not raining, however, they
usually tip well.. Which of the following is true?
a) Tips and weather are statistically
independent.
c) P (good tip / rain) is larger than P(bad
tip / rain).
b) The weather conditions Leo cited are
not mutually exclusive.
d) None of these
 
Q4)During the millennium scare of 2000, Surendra reduced his monthly spending by Rs1, 000
and buried his money in the backyard. If the MPC is 0 .75, how much did national income
fall?
a) Rs1,000 c) zero
b) Rs 4,000 d) It actually increased Rs 4,000.
 
Q5)There are two goods: x1 and x2. Income triples and the price of good x1 doubles.
What is the maximum increase of price of good x2 such that no one is worse off?
a) triple the price c) no change
b) double the price d) can’t say

Q6) Rakesh and Ramesh consume clothes (C) and food (F) only. Rakesh’s utility function is U (C, F)
= aA ln C + bA ln F , and Ramesh’s utility function is U (C, F) = aB ln C + bB ln F . aA ,bA , aB ,bB >
0 . The price of clothes is PC , and the price of food is PF . At the optimal level of consumption
what would be the marginal rates of substitution (MRS) of clothes for food of Rakesh and
Ramesh?
a) MRSRakesh = MRSRamesh c) MRSRakesh > MRSRamesh
b) MRSRakesh IS NOT EQUAL TO MRSRamesh d) MRSRakesh < MRSRamesh