Re: JNU SIS 2013 Doubts

Posted by ViV on May 01, 2014; 4:36am
URL: http://discussion-forum.276.s1.nabble.com/JNU-SIS-2013-Doubts-tp7587167p7588136.html

Anyone please help...

3. A car manufacturing company wants to decide where to locate a new plant. The only
inputs used in cars are steel and labour, and the production function is f (S, L) = S^1/2L^1/2,
where S is tons of steel and L is units of labour. The company can locate its plant either
in country A or in country B. In country A, steel costs Rs 70 a ton and labour costs
Rs 70 per unit. In country B, steel costs Rs 80 per ton and labour costs Rs 60 per unit.
In which of the two countries should the company locate its new plant?
(a) Country A
(b) Country B
(c) It is indifferent between country A and country B
(d) The information given is not sufficient to determine

11. Consider five urns numbered 1 to 5, where each urn contains 10 balls. Urn 1 has i
defective balls and (10 - i) non defective balls. In an experiment, an urn is selected at
random, and then a ball is selected at random from that urn. What is the probability
that a defective ball is selected? If the ball is defective, what is the probability that it
came from urn 2?
(a) 7/10; 2/5
(b) 3/10; 2/15
(c) 1/5; 3/25
(d) 3/5; 2/5

21. If the home marginal propensity to consume exportable is greater than the elasticity of
the foreigner's offer curve, then in the absence of inferior goods, a tariff
(a) lowers the domestic prices of importable
(b) increases the domestic prices of importable
(c) No impact on domestic prices
(d) Cannot say

24. There are two countries A and B with their currencies denoted as 'A$' and B$'
respectively. Their nominal exchange rates in terms of US Dollars (USD) are as follows :
A$ 50 = USD 1; B$ 1 = USD 1.5
The nominal prices of petrol per litre in the two countries are A$ 75 per litre and
B$ 1 per litre respectively. It is reported that in purchasing power parity (PPP) terms,
petrol prices are three times higher in country A than in country B. Compare a resident
of country A earning AS 50,000 per month with a resident of country B earning
B$ 2,000 per month. In PPP terms
(a) resident of country A is better off than resident of country B
(b) resident of country A is at par with resident of country B
(c) resident of country A is worse off than resident of country B
(d) Cannot say

@Ashima: My all answers are matching with your answers except these
6 C
22 C
25 C