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ECONOMICS (INTERNATIONAL)
Time Allowed: 3 Hours Maximum Marks: 100
PART  1
1.Suppose preferences are lexicographic. Then the indifference curves a.are
kinked
1.Let the budget constraint of a consumer be X + Y = 100 and let his utility function be U= X + 2Y. Then the consumption of good X is a.100
1.If the income consumption curve
for an individual spending all his income on two goods does
a.the
individual is irrational
1.A point outside the IS curve but below the LM curve a.violates
Walras’ law
1.For a Leontief production function
the output expansion paths for two different sets of input
a.intersect
once
1.If the currency deposit ratio and
the reserve ratio are respectively 9% and 5%, then the
a.45
1.The periods of the Third and Fourth Five Year Plans are a.196162
to 196566 and 196970 to 197374
1.One of the two equal sides of a
rightangled triangle whose area is ½ is drawn horizontally
a.1
9.The total cost is given by 5000
+ 1000q – 500q(2) + 2/3q(3), where q is the quantity of output.
a.q
= 0
9.If all the resources of an economy
are fully employed, then it can produce 1000 units of a
a.(1000,
0)
PART  2
9.Let the cost function of a firm
under perfect competition be C= 0 if q = 0 and C = 1 + 2q(2)
12. Determine whether equilibrium solution exists for the following markets: a.D
= 12 – 3P; S = 2P – 10
(one page gap)
13. Let the consumption expenditure (C) and net investment (I), both functions
of
C = 200 + 0.8Y I = 0.1Y – 100 Find NNP in equilibrium. Is this an example of
" Paradox of Thrift"? ( one page gap)
14.If the capital gains on bond holdings
are uncertain and the investors maximize utility that
15.An economy’s aggregate supply curve
is given by Y = 2P, where y is real GNP and P the
16.(a) Maximise x + y subject to 1>_ x + 2y, and
1 >_ 2x + y
a.Find
the expected value of a game in which the payoff is 2n, if head appears
at the
17.A consumer is observed to purchase x = 20, y = 10 at prices Px =2 and Py = 6. She is also observed to purchase
x = 18 and y = 4 at prices Px = 3 and Py = 5. Is her behaviour
18.(a) A monopolist's demand function is Q = Apa, A>0, a>0 and the total cost function is cQ, C>0.
For what values of a does there exist a positive profit maximising level
(b) A consumer's utility
function is BC(a)L(b) , a ,b ,>0, where C is the consumption and
L the labour supply. If Y0 is the consumer's nonwage
income, show that the Labour supply curve
is downward sloping if Y0>0. (one page gap)
19.(a). A man purchases a lottery ticket
in which he may win the first prize of Rs. 10,000/ with
(b). Find the inverse
of the following matrix(one page gap)
17.Consider a duopoly with identical costs
given by C(Qi) = a Qi, a >0. The demand function
Part  III
21. The market demand
is q = 12  p and the cost function is q(2)/2 (p is price and q,
a.What
would be the equilibrium price and quantity if the firm behaved as a competitive
b.What would be the equilibrium price and quantity if the firm behaved as a monopolist? c.How
much money would the firm require if it were to forego the monopoly profit
and
d.How
much would the consumers be willing to pay if the firm would agree to behave
22.A labourer has property
income of Rs.20/ per day and works 8 hours a day at Rs.2/
23. Write notes on any two of the following. Limit your answer within 200 words: a.Uruguay Round of multilateral negotiations b.Recent changes in the industrial policy in India c.The relevance of the Keynesian
model for the Indian economy during the years of the great
d.Abilitytopay versus benefit principle.
(one page space)

M.A. ENTRANCE EXAMINATION, 1996
ECONOMICS (INTERNATIONAL)(1996) Time Allowed: 3 Hours Maximum Marks:
100
PART  1
1. Goods X and Y are perfect substitutes. Then
the consumer’s indifference curves for these goods are
2. If a firm has a CRS production function and
if a firm is paid its value marginal product (VMP), then the profit of
the firm is
3. Assume that the average variable cost (AVC)
curve of a firm is Ushaped. Then at the output level at which the AVC
is at its minimum
4. The first oil shock occurred in the year
5. Suppose money supply increases. Then from the
ISLM diagram
6. The ISLM model assumes
7. Consider the following arguments:
8. Suppose that there are two goods and both yield
strictly positive utility to the consumer. Then the indifference curves
are
9. Suppose that the production function is linearly
homogeneous. Then the output expansion paths are
10. A monopolist faces an upward shift in his
marginal cost curve. As a result
PART  II
11. Suppose that the utility function of a consumer is (x – 1)(2) + (y – 1)(2). Plot the demand curve for prices lying between ½ and 2, when his income is 1. (one page gap) 12. Argue that profit maximization implies cost minimization. (one page gap) 13. Let the budget constraint of a consumer be X + Y = 100. Suppose his utility function is given by XY. Argue that he consumes the same amount as a consumer with the utility function 10X(2)Y(2) + 19. (one page gap) 14. Show that in the long run industry equilibrium the marginal firm will produce an output greater than that, which minimizes its average variable cost. (one page gap) 15. Let the consumption be C = 400 + 0.6Y, and let the investment function be I = 100 + 0.2Y.Solve for Y. How would you interpret the model in terms of the ISLM framework? (one page gap) 16. Discuss the role of expectations in Keynes’ theory of liquidity preference. What would happen to the liquidity preference curve if all individuals had identical expectations? (one page gap) 17. Explain how an increase in the volume of highpowered money leads to an increase in the money supply. (one page gap) 18. In a general equilibrium framework with n markets, why is it enough to look at (n – 1) markets only? (one page gap) 19. If there is a multiplant monopolist with constant marginal costs and a strictly positive fixed cost for each of the plants, then how many of the plants should he optimally use if the cost function for each plant is the same? (one page gap) 20. Show that if a monopoly is able to practice perfect price discrimination its output will be higher than if it must adopt a conventional pricing policy. (one page gap) PART  III
21. Students can buy a travel pass, which entitles
them to a reduction in the price of all rail tickets.
22. Farmers produce corn from land and labour.
The labour cost of producing y is y(2). There are 100 firms, which behave
competitively:
23. Write short notes of any two of the following
limiting the total length of your answer to 200 words:

M.A. ECONOMICS (WITH SPECIALIZATION IN WORLD ECONOMY) Time Allowed: 3 Hours Maximum Marks: 100
1. a. A, B, C, D, E are five matrices of n x n
dimension. Answer the following and
2. Answer any five of the following questions:
5x5=25
3. Answer any three of the following questions
in 300 words: 10x3=30
4. Write short notes on:
10x3=30
5. Let M = ((x, y): 0 less than or equal to x
less than or equal to 1; 0 less than or equal to y less than or equal to
1) and let f(x, y) = cx(2)y.
6. An electric current is switched on at random
during the day. Then it is switched off at a time selected at random between
the time the current is switched on and the end of the day. Let the outcome
of this experiment consist of these two times.

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