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ENTRANCE EXAMINATION, 2010 M.A. ECONOMICS 1. In a closed economy, the balanced budget multiplier is (a) (b) (c) (d) Equal to 1 Less than 1 More than 1 Dependent on the marginal propensity to consume in the economy.

2.

Stagflation describes a situation of (a) (b) (c) (d) Rising prices and rising output Rising prices and falling or stagnant output Falling or stagnant prices and rising output Falling or stagnant prices and falling or stagnant output.

3.

If Canada has a comparative advantage in the production of wheat compared to the United States, it means that (a) (b) (c) The opportunity cost of producing wheat is higher in Canada than in the US The opportunity cost of producing wheat is lower in Canada than in the US With free trade, Canada will export all of its wheat

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(d)

With free trade, the US will not produce any wheat.

4.

Infant industry protection is (a) (b) (c) (d) The policy of ensuring that children are not adversely affected by industrial pollution The policy of protecting a new domestic industry from lower cost imports The policy of providing bank credit to industries run by weaker off sections The policy of subsidizing imports in newly industrializing countries.

5.

For the countries in the European Union that share a common currency, the euro, (a) (b) (c) (d) It is impossible to have different real exchange rates from one another It is possible to have real exchange rates that are different from one another The nominal and real exchange rates will always very according to fiscal policy The nominal and real exchange rates will always vary according to capital flows.

6.

The current account balance in an open economy (a) (b) (c) Always includes the balance on investment income Never includes the balance on investment income Includes the balance on investment income and flows of investment

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(d)

Includes flows of investment but not the balance on investment income.

7.

A streetlight is considered as a good example of a public good (a) (b) (c) (d) Because it is provided in public spaces Because its consumption is non-rival and non-excludable Because its consumption is rival but non-excludable Because its consumption is non-rival but excludable.

8.

The bottom 20 percent of the world’s population are estimated to receive around this much of global income (a) (b) (c) (d) Less than 1 percent Around 5 percent Around 10 percent Around 15 percent.

9.

If an economy is a price taker in world markets for both exports and imports, exchange rate devaluation (a) (b) (c) Will have no effect on the balance of trade Will cause the balance of trade to improve Will cause the balance of trade to deteriorate

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(d)

Will turn a trade deficit into a balance.

10.

The ‘Gold Standard’ refers to an international currency regime under which (a) (b) (c) (d) Only gold was used in international transactions Only gold was used as money in domestic transactions Countries officially linked their money supply to a specific value of gold Countries officially linked the value of their money to a specific weight of gold.

The next six questions 11-16 are based on the following table which gives the variable cost of producing the different levels of output of a commodity that a competitive firm might produce: Variable Cost of Production 0 25 42 54 64 75 93 112 140 180 230

Output 0 1 2 3 4 5 6 7 8 9 10

The sunk cost of production in the short run is 15. 11. If the price of the commodity is 20, then the profit-maximizing level of output is

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. Which of the following is correct? (a) (b) (c) (d) …(20) = …(20) < …(20) > …(20) = …(19) = 6 …(19) …(19) …(19) = 23 14. then the profit-maximizing level of output is (a) (b) (c) (d) 6 7 8 9 13. This document is for reference purposes only. please check JNU Sample papers for any errors.in (a) (b) (c) (d) 6 7 8 9 12.JNU Entrance Examination Papers JNU Entrance Exam www. You should have a copy of JNU papers available from JNU or DSE. Let …(20) denote the profit of the firm when the price of the output is 20 and let …(19) denote the profit of the firm when the price of the output is 19. If the price of the commodity is 19. If the price of the commodity is 14. available from. then the profit-maximizing level of output is ECOPOINT MA Economics Entrance Coaching Page 5 All care has been taken to keep this document free from errors.ecopoint. Even though. JNU or DSE Photostat shop.

then the indifference curves will be (a) Strictly convex to the origin ECOPOINT MA Economics Entrance Coaching Page 6 All care has been taken to keep this document free from errors. 17. please check JNU Sample papers for any errors.JNU Entrance Examination Papers JNU Entrance Exam www. If the price of the commodity is 17.ecopoint. . Even though. This document is for reference purposes only. JNU or DSE Photostat shop. You should have a copy of JNU papers available from JNU or DSE.in (a) (b) (c) (d) 4 5 0 None of above. If the price of the commodity is 17. available from. 15. then the profit maximizing level of output is (a) (b) (c) (d) 1 2 3 5 16. then at the profit maximizing level of output the firm (a) (b) (c) (d) Incurs a loss of 5 Incurs a loss of 15 Makes a profit of 7 None of the above. If good x and good y are perfect substitutes.

if it produces any positive amount. 2). . You should have a copy of JNU papers available from JNU or DSE. The next two questions 19 and 20 are based on the following: 19 The consumer’s budget set is (a) (b) {(x1. 0). However. Even though. JNU or DSE Photostat shop. 18.JNU Entrance Examination Papers JNU Entrance Exam www. This document is for reference purposes only. (1. (2. (0. (1. 0).ecopoint. (1. 1). 20) 0 for P in the interval [20. …. please check JNU Sample papers for any errors. 3). x2 ≥ 0} {(0. (0. 0)} ECOPOINT MA Economics Entrance Coaching Page 7 All care has been taken to keep this document free from errors.50. A monopolist faces the following demand function D(P): D(P) = = = 10 for P in the interval [Q 10] 20 – P for P in the interval (10. x2) |4x1 + 3x2 ≤ 10 and x1.in (b) (c) (d) Strictly concave to the origin Straight lines L-shaped. What is the optimal monopoly price? (a) (b) (c) (d) 15 10 5 There is no monopoly equilibrium.) Now suppose that the monopolist has zero-variable cost of production. available from. 1). it must incur a fixed cost of Rs.

He only eats rotis and dal.JNU Entrance Examination Papers JNU Entrance Exam www. . please check JNU Sample papers for any errors.in (c) (d) 0. the consumer would consume less of commodity 1 and more of commodity 2 The consumer’s optimal bundle does not change. Then (a) (b) (c) (d) He consumes 3 rotis and 5 cups of dal per day He consumes no more than 3 rotis per day He consumes no more than 5 cups of dal per day He consumes 5 rotis and 4 cups of dal per day. the consumer would consume more of both commodities. 1). JNU or DSE Photostat shop. a cup of dal costs Rs. 2 while each roti costs Re 1 and Satish decides to spend only Rs 13 per day on food. At the optimum. ECOPOINT MA Economics Entrance Coaching Page 8 All care has been taken to keep this document free from errors. (2. If the preference of the consumer over the two gods have not changed. the consumer would consume more of commodity 1 and less of commodity 2 At the optimum. he has been told that each roti has 1000 calories while each cup of dal has 500 calories. available from. (1. Also he decides to consume exactly 5500 calories a day. (0. Satish is very conscious about the food he eats. 1). 2). Even though. Suppose the price of both commodities fall by 10 paisa and money income increases by 10 paisa. 2)} 20. He spends his entire money allocated on foods. 21. 0)} {(1. This document is for reference purposes only. 0). You should have a copy of JNU papers available from JNU or DSE. (1. 3). then (a) (b) (c) (d) At the optimum. (1.ecopoint.

given by the following: U(x1.ecopoint.100.. What is its marginal cost at this level of output? (a) (b) (c) (d) 2. The consumer’s income is Rs.to unit of y. Such a production function exhibits (a) (b) Decreasing return to scale and diminishing marginal product for factor K Increasing return to scale and diminishing marginal product for factor K ECOPOINT MA Economics Entrance Coaching Page 9 All care has been taken to keep this document free from errors. You should have a copy of JNU papers available from JNU or DSE. y)1 where x and y ……………………………………………… of the first and second good respectively.in 22. where A is a positive constant.. A monopolist has a demand curve with constant price elasticity with absolute value 4. available from. 50 units of x and 50 units of y. please check JNU Sample papers for any errors. . JNU or DSE Photostat shop. None of the above. The price of both goods are Rs………………………….100.35 1.. 25 units of x and 25 units of y. The monopolist charges a price of 60 per unit of output. A firm has a production function q=A-K0-5Ll-8.36 45 54 23.JNU Entrance Examination Papers JNU Entrance Exam www. Even though. y) = max (x1. 24. His optimal consumption bundle is Rs. This document is for reference purposes only. His optimal consumption bundle is (a) (b) (c) (d) Either (i) zero unit of x and 50 units of y or (ii) ……………………. a consumer……………………………………. In a two good world.

If (x/b) > (b/c). .…. The short run supply curve for a competitive firm is given by (a) (b) (c) (d) The marginal cost curve of the firm The marginal cost curve above the average cost curve The marginal cost curve above the average variable cost curve The upward sloping part of the marginal cost curve 26.5 (Geometric Mean) There is no fixed relationship between Arithmetic Mean and Geometric Mean 27.X2. available from. please check JNU Sample papers for any errors. then their (a) (b) (c) (d) Arithmetic Mean < Geometric mean Geometric Mean < Arithmetic mean Arithmetic Mean= 0.in (c) (d) Decreasing return to scale and increasing marginal product for factor K Constant returns to scale with increasing marginal product for factor L 25. This document is for reference purposes only. then (a) (b) xc > b2 xc < b2 ECOPOINT MA Economics Entrance Coaching Page 10 All care has been taken to keep this document free from errors.JNU Entrance Examination Papers JNU Entrance Exam www. Even though.ecopoint. JNU or DSE Photostat shop. If X1. You should have a copy of JNU papers available from JNU or DSE..Xn are non=negative real numbers.

Given two numbers x = (3√7+4√7)2 and y = 343. Even though. In her first 7 class tests.in (c) (d) xc = b2 Cannot say anything about relation between x. .5 and f’(x) <0. Let f(x)=(log(x))/ x. please check JNU Sample papers for any errors. Beena’s average score was 85.75 < x <1 f’(x)>0. available from. Beena has scored. This document is for reference purposes only. if 0. where 0<x<1. Then for all x such that 0<x<1 (a) (b) (c) (d) f’(x)<0 f’(x)>0 f’(x)>0. which of the following must be true? (a) (b) (c) (d) x>y y>x x=y x = y/2 30.ecopoint. In her last class test. JNU or DSE Photostat shop.75 and f’(x) <0.5 < x <1 29. if 0<x<0. if 0. Beena’s average score after 8 class tests is 84. if 0<x<0. b and c 28. (a) 82 ECOPOINT MA Economics Entrance Coaching Page 11 All care has been taken to keep this document free from errors.JNU Entrance Examination Papers JNU Entrance Exam www. You should have a copy of JNU papers available from JNU or DSE.

a). You should have a copy of JNU papers available from JNU or DSE. 1] 32. Suppose every X1 contains 5 elements and every Yj contains 2 elements and …………………… If each elements of S belongs to exactly 10 of the X 1s and to exactly 4 of Yjs. 33. Y2. a]. M is different from 0 and (a + b) = 4. please check JNU Sample papers for any errors. available from. Yn be two collections of sets. X2. . where a > 0 (-∞. ….ecopoint. The function ƒ(x) = log10 x is continuous over the interval. …. values for both a. 31. + ∞) [-a. then n is ECOPOINT MA Economics Entrance Coaching Page 12 All care has been taken to keep this document free from errors.JNU Entrance Examination Papers JNU Entrance Exam www. Let X1. b Whenever 4 ≥ M > 0 there are real values for a. b Whenever O > M there are negative values for both a. Even though. b Whenever O > M there are positive.in (b) (c) (d) 87 77 None of the above. X20 and Y1. (a) (b) (c) (d) 9-a. where a > 0 [0. If a-b =M. JNU or DSE Photostat shop. This document is for reference purposes only. b. then (a) (b) (c) (d) There are always real values for a.

55.5 1 ECOPOINT MA Economics Entrance Coaching Page 13 All care has been taken to keep this document free from errors.875 Rs. X after one year and nothing thereafter is Rs.5 (ƒ(x) > 0 and x > 0). 55. JNU or DSE Photostat shop.JNU Entrance Examination Papers JNU Entrance Exam www. This document is for reference purposes only. 55. then the elasticity of ƒ(x) / x with respect to x is (a) (b) (c) (d) -0. available from.ecopoint. please check JNU Sample papers for any errors.000 Rs. 50. You should have a copy of JNU papers available from JNU or DSE.in (a) (b) (c) (d) 10 20 100 50 34. Even though. 54. Suppose interest is compounded half-yearly at the rate of 10% per annum. . then X is equal to (a) (b) (c) (d) Rs.5 0 0.000. If the present value of an asset which returns a fixed sum of Rs.125 Rs.250 35. If the elasticity of ƒ(x) with respect to x is 0.

in 36. The probability that the function selected is one-to-one is (a) (b) (c) (d) 1/nn 2/(n-1)l 1/nl (n-y)/nn-1 38.ecopoint. 3. What is the probability that the next throw will also give the number 6? (a) (b) 1/30 1/6 ECOPOINT MA Economics Entrance Coaching Page 14 All care has been taken to keep this document free from errors. . please check JNU Sample papers for any errors. 2. This document is for reference purposes only. In an examination. A fair die has given the number 6 on five consecutive throws. Even though. A function is selected at random from all the functions of the set A = (1. available from. n) in to itself. JNU or DSE Photostat shop. Number of ways in which a student can fail to get all answers correct is (a) (b) (c) (d) 12 27 63 72 37.JNU Entrance Examination Papers JNU Entrance Exam www. You should have a copy of JNU papers available from JNU or DSE. …. there are three multiple choice questions and each question has 4 choices.

5 The sum S does not converge to any finite value 41.999999 …is (a) (b) (c) (d) Exactly equal to 1 Slightly less than 1 Slightly more than 1 Between 0-99 and 0.JNU Entrance Examination Papers JNU Entrance Exam www. JNU or DSE Photostat shop. 39. This document is for reference purposes only. available from.999 40. Which of the following is a function? (a) A rule that assigns the circumference of a rectangle to its area.ecopoint. The number 0. Even though. ECOPOINT MA Economics Entrance Coaching Page 15 All care has been taken to keep this document free from errors. please check JNU Sample papers for any errors. . You should have a copy of JNU papers available from JNU or DSE.in (c) (d) 5/6 None of the above. Let S = 1 + ½ + 1/3 + ¼ + … Then (a) (b) (c) (d) S is equal to 4 S is equal to 6 S is equal to 8.

please check JNU Sample papers for any errors. Let oi denote the standard deviation for the income distribution i.JNU Entrance Examination Papers JNU Entrance Exam www. Which of the following is true? (a) (b) (c) (d) O5 < o1 = o2 = o6 < o4 < o3 O5 < o1 = o2 = o6 < o3 < o4 O5 < o1 = o2 < o6 < o4 < o3 O5 < o1 = o6 < o2 < o4 < o3 44. Which of the following is true? ECOPOINT MA Economics Entrance Coaching Page 16 All care has been taken to keep this document free from errors. 42. A rule that assigns the salary of a person to his or her years of education. You should have a copy of JNU papers available from JNU or DSE. A rule that assigns to each person in a classroom his or her height. Let ui denote the median for the income distribution i.ecopoint. This document is for reference purposes only. Which of the following is true? (a) (b) (c) (d) G5 < G1 = G2 = G3 = G6 =G4 G5 < G1 = G2 = G3 = G6 <G4 G1 < G2 = G3 = G4 > G5 >G6 G1 < G2 = G3 = G4 < G5 <G6 43. .in (b) (c) (d) A rule that assigns to each number its square root. Let Gi denote the Gini coefficient for the income distribution i. Even though. available from. JNU or DSE Photostat shop.

Even though.in (a) (b) (c) (d) u4 < u1 = u2 = u5 < u6 < u3 u4 < u1 = u2 = u5 = u6 < u3 The mean is equal to the median for each of the given distributions.JNU Entrance Examination Papers JNU Entrance Exam www. D5. ECOPOINT MA Economics Entrance Coaching Page 17 All care has been taken to keep this document free from errors. In case the painter works on Thursday. The mean is different from the median for each of the given distributions. 45. The interior decorator does his work after the painter. JNU or DSE Photostat shop. D2. which among the following alternatives is possible? (a) (b) (c) (d) The electrician works on Tuesday.ecopoint. You should have a copy of JNU papers available from JNU or DSE. D3 is the only Pareto-optimal distribution. Which of the following is true? (a) (b) (c) (d) There is no Pareto-optimal distribution. . Consider the five income distributions D1. The plumber and the painter work on consecutive days. please check JNU Sample papers for any errors. This document is for reference purposes only. The electrician works on Friday. D3. 46. available from. D1 and D3 are the only Pareto-optimal distributions. D4. All distributions are Pareto-optimal.

available from. How would you distribute your order for eggs so as to minimize expected total loss of eggs? (a) (b) Order all your eggs from the first boy. Which arrangement among the following is possible? (a) (b) (c) (d) The painter will work on Wednesday and the plumber on Thursday.JNU Entrance Examination Papers JNU Entrance Exam www. There are two egg delivery boys you can order eggs from. In case the carpenter works on Thursday. Order all your eggs from the second boy. The painter will work on Monday and the carpenter on Thursday. The plumber may work before the electrician does. In case the painter works on Friday. .e.in 47. You should have a copy of JNU papers available from JNU or DSE. Wednesday. 49. The carpenter will work on Wednesday and the plumber on Thursday. The probability of the first boy falling and breaking all the eggs is ½ and the probability of the second boy falling and breaking all the eggs in 1/5. JNU or DSE Photostat shop. (d) 48. Even though. The carpenter will work on Tuesday and the painter on Friday. which among the following statements must be untrue? (a) (b) (c) The carpenter may work on Wednesday. ECOPOINT MA Economics Entrance Coaching Page 18 All care has been taken to keep this document free from errors. the electrician has to work on the previous day. please check JNU Sample papers for any errors..ecopoint. This document is for reference purposes only. The carpenter and the electrician may work on consecutive days. i.

please check JNU Sample papers for any errors.in (c) (d) Distribute the order for eggs between the two boys equally.ecopoint. 51. ECOPOINT MA Economics Entrance Coaching Page 19 All care has been taken to keep this document free from errors. available from. If you integrate the function ƒ(x) = 1/x from 1 to 3. you get (a) (b) (c) (d) 2 Log 3 Log 4 None of the above. . This document is for reference purposes only. 50. If x < y + ε > 0.JNU Entrance Examination Papers JNU Entrance Exam www. The rate of interest is (a) A flow variable. then (a) (b) (c) (d) x>y x≤y x>0>y x<0<y 52. You should have a copy of JNU papers available from JNU or DSE. Even though. JNU or DSE Photostat shop. Order three-fourths of your eggs from the first boy and the rest from the second boy.

. The ratio of a flow variable to a stock variable. If in a given year a country’s GDP at constant prices is 1000 currency units and the value of its implicit GDP deflator for that year is 110. The ratio of a stock variable to a flow variable.in (b) (c) (d) A stock variable.09 1100 ECOPOINT MA Economics Entrance Coaching Page 20 All care has been taken to keep this document free from errors. 53. The fiscal deficit is (a) (b) (c) (d) A flow variable A stock variable.JNU Entrance Examination Papers JNU Entrance Exam www. JNU or DSE Photostat shop. please check JNU Sample papers for any errors. You should have a copy of JNU papers available from JNU or DSE.ecopoint. This document is for reference purposes only. The ratio of a flow variable to a stock variable. available from. Even though. 54. The ratio of a stock variable to a flow variable.09 990. the value of the country’s GDP at current prices (in its currency units) is (a) (b) (c) (d) 890 909.

50 after two years and Rs. 315 after one year. what is the present discounted value of the asset? (a) (b) (c) (d) Rs. 2. 661. Suppose an asset provides returns of Rs. JNU or DSE Photostat shop. please check JNU Sample papers for any errors.250.in 55. Rs. Suppose a plant can be used to produce in a day x units of product 1 and y units of product 2 where y = (32 – 5x) / (10 – x). You should have a copy of JNU papers available from JNU or DSE.200 Rs.ecopoint.JNU Entrance Examination Papers JNU Entrance Exam www. If interest is compounded yearly and the rate of interest is 5% per annum.15 after three years and nothing thereafter. 2. If the unit price of product 1 is twice the unit price of product 2. 1389. This document is for reference purposes only. Suppose the difference between the transactions velocity and the income velocity of circulation of money in an economy is 5 and the money value of total transactions is 6 times the money value of aggregate income. then the money value of aggregate income in currency units is (a) (b) (c) (d) 1000 1200 1500 1800 56.050 Rs. 2. . Even though. 57. 2. available from.100 Rs. where 32/5 ≥ x ≥ 0. If the quantity of money in circulation is 1000 currency units. then to maximize total revenue the number of units of x the plant should be used to produce in a day is ECOPOINT MA Economics Entrance Coaching Page 21 All care has been taken to keep this document free from errors.

ecopoint. please check JNU Sample papers for any errors.1 Between 2. . You should have a copy of JNU papers available from JNU or DSE.in (a) (b) (c) (d) 4 5 6 6. JNU or DSE Photostat shop. What is the value of the investment multiplier in the economy? (a) (b) (c) (d) Between 1. available from. Even though.4 58. This document is for reference purposes only.5 59.9 and 2.3 and 2.5 More than 2.3 Between 2. ECOPOINT MA Economics Entrance Coaching Page 22 All care has been taken to keep this document free from errors. What is the equilibrium value of Y in the economy? (a) (b) (c) (d) Between 3250 and 3750 Between 3750 and 4250 Between 4350 and 4750 Between 4750 and 5250.1 and 2.JNU Entrance Examination Papers JNU Entrance Exam www.

in 60. JNU or DSE Photostat shop. 61. Mathematics. Week 2 : Philosophy. . then the value of the investment multiplier will (a) (b) (c) (d) Decrease by less than unity Decrease by more than unity Increase by less than unity Increase by more than unity. Literature. Economics. Biology. available from.ecopoint. Literature (b) ECOPOINT MA Economics Entrance Coaching Page 23 All care has been taken to keep this document free from errors. Mathematics. Biology.JNU Entrance Examination Papers JNU Entrance Exam www. You should have a copy of JNU papers available from JNU or DSE. Biology. Which of the following is a possible sequence of combinations for the student in the two successive weeks? (a) Week 1 : Philosophy. If instead of 750 units of money the government makes annual transfer payments equal to 10% of Y. Even though. then the equilibrium value of Y wil (a) (b) (c) (d) Decrease by less than 1000 Decrease by more than 1000 Increase by less than 1000 Increase by more than 1000 62. please check JNU Sample papers for any errors. If instead of 750 units of money the government makes annual transfer payments equal to 10% of Y. Week 2 : Biology. This document is for reference purposes only. Week 1 : Philosophy.

If the student studies Philosophy. Mathematics and Literature. which of the following combinations must be studied in the eleventh week? (a) (b) (c) (d) Philosophy. ECOPOINT MA Economics Entrance Coaching Page 24 All care has been taken to keep this document free from errors. Biology. Philosophy. Philosophy. which of the following combinations must be studied in the third week? (a) (b) (c) (d) Philosophy. This document is for reference purposes only. Biology and Mathematics. Literature. JNU or DSE Photostat shop. Mathematics and Literature. Literature and Mathematics. 64. You should have a copy of JNU papers available from JNU or DSE. Even though. Economics and Mathematics. Week 2 : Philosophy. Week 2 : Philosophy. Biology and Economics in the first week. Week 1 : Biology. Mathematics. .in (c) Week 1 : Philosophy. Economics. Literature. Economics and Mathematics. Biology and Economics. Literature and Mathematics in the first week. If the student studies Philosophy.ecopoint.JNU Entrance Examination Papers JNU Entrance Exam www. please check JNU Sample papers for any errors. Philosophy. Philosophy. Mathematics. Biology and Mathematics. Economics. Economics. Mathematics. Economics. available from. (d) 63.

but Y is false ECOPOINT MA Economics Entrance Coaching Page 25 All care has been taken to keep this document free from errors. then all Z are W”. To do this. and if x > y > z. and all Y are W All Z are X. y and z are consecutive negative integers. and all W are Y All Y are Z. we need to show that (a) (b) (c) X is false Y is false X is true.JNU Entrance Examination Papers JNU Entrance Exam www. If we want to disprove the claim that “X implies Y”. JNU or DSE Photostat shop. You should have a copy of JNU papers available from JNU or DSE. and all W are X All X are Z.in 65.ecopoint. it would suffice to show that (a) (b) (c) (d) All Z are X. and all Y are W. which of the following must be a positive odd integer? (a) (b) (c) (d) Xyz (x – y) (y – z) X – yz X(y+ z) 66. If x. 67. available from. This document is for reference purposes only. Even though. Let X and Y be statements. Suppose one wishes to prove that “if all X are Y. . please check JNU Sample papers for any errors.

Then show that P(n. and Z is true X is true. available from. but X is false. and Y is false.ecopoint. 68. or Y is true. You should have a copy of JNU papers available from JNU or DSE. This document is for reference purposes only. . and deduce a contradiction Assume that X is true. JNU or DSE Photostat shop. We also know that Y is false. m) is true”.JNU Entrance Examination Papers JNU Entrance Exam www. Y and Z be statements. ECOPOINT MA Economics Entrance Coaching Page 26 All care has been taken to keep this document free from errors. Let P(n. If we want to prove that “f or every integer n. and deduce a contradiction 70. Suppose we know that X implies Y. and Y is true. m) be a property about two integers n and m.in (d) Y is true. and that Z implies X. please check JNU Sample papers for any errors. and Z is false Both X and Z are true Both X and Z are false. Let X and Y be statements. 69. and then show that X implies Z Show that either X is false. there exists an integer m such that P(n. (a) Le n and m be arbitrary integers. Which of the following strategies is not a valid way to show that “X implies Y”? (a) (b) (c) (d) Show that some statements Z implies Y. then we should do the following. We can infer that (a) (b) (c) (d) X is false. Even though. m) is true. Let X. or both Assume that X is false.

m) is true for every integer n. Even though. available from. please check JNU Sample papers for any errors. (d) 71. 72. then Y is false If Y is true. then X is false. and Y is also true If X is false. Find an integer n and an integer m such that P(n. ECOPOINT MA Economics Entrance Coaching Page 27 All care has been taken to keep this document free from errors.ecopoint.in (b) (c) Find an integer m such that P(n. Then find an integer m possibly depending on n such that P(n. and that Y implies Z. m) is true. This document is for reference purposes only. m) is true. . If we also know that X is false. Let X. then we can also conclude that (a) (b) (c) (d) X is true. You should have a copy of JNU papers available from JNU or DSE.JNU Entrance Examination Papers JNU Entrance Exam www. Let X and Y b statements. and Z is true Both Y and Z are false None of the above. we can infer that (a) (b) (c) (d) Y is true. then X is true. If Y is false. Let n be an arbitrary integer. If we know that X implies Y. JNU or DSE Photostat shop. Y and Z be statements. and Z is false Y is false. Suppose we know that X implies Y.

available from.ecopoint. JNU or DSE Photostat shop.JNU Entrance Examination Papers JNU Entrance Exam www. please check JNU Sample papers for any errors. 74. .in 73. The terms of trade are (a) (b) (c) (d) The countries production possibilities curve The autarky equilibrium The exchange rate of the two goods being traded The value of exports. Even though. You should have a copy of JNU papers available from JNU or DSE. Equilibrium has been reached with the maximum amount of international trade. 75. This document is for reference purposes only. The United States is a major exporter of (a) (b) (c) (d) Diamond Bauxite Coffee Corn. (d) ECOPOINT MA Economics Entrance Coaching Page 28 All care has been taken to keep this document free from errors. Autarky means that (a) (b) (c) A country’s consumption possibilities are given by its production possibilities Equilibrium attained with the maximum gains from specialization and trade. The nation has such a high standard of living that there are no poor people.

in 76. Linear accelerator has the following characteristic (a) (b) (c) (d) Depends on expectations and has the dimension of time. (a) (b) (c) (d) Warranted rate of growth is greater than the natural rate of growth. . 77. You should have a copy of JNU papers available from JNU or DSE. in how many ways can he make round trip? (a) (b) 72 144 ECOPOINT MA Economics Entrance Coaching Page 29 All care has been taken to keep this document free from errors. Does not depend on expectations and has the dimension of time. Warranted rate of growth is less than the natural rate of growth. 78. Even though. Depends on expectations and has the dimension of inverse time. and the population rate of growth is 3%. JNU or DSE Photostat shop. If he does not want to use a bus route more than once. There are four bus routes between A and B and three us routes between B and C.ecopoint. please check JNU Sample papers for any errors. there are constant returns to scale and no technical progress. The economy will always grow at more than 3% rate of growth. available from.JNU Entrance Examination Papers JNU Entrance Exam www. The economy will always grow at 3% rate of growth. Does not depend on expectations and has no time dimension. This document is for reference purposes only. If the saving propensity is 14% and the incremental capital output ratio is 4. A man can travel round trip in number of ways by bus from A to C via B.

80. . The Economics Nobel Prize for the year 2009 was awarded to (a) (b) (c) (d) Elinor Ostrom and Oliver Williamson. Even though. John Nash.00002 There is no minimum number in set A. You should have a copy of JNU papers available from JNU or DSE. please check JNU Sample papers for any errors. This document is for reference purposes only. available from.in (c) (d) 14 19 79.001 0.ecopoint. Paul Krugman.JNU Entrance Examination Papers JNU Entrance Exam www. JNU or DSE Photostat shop. (a) USA ECOPOINT MA Economics Entrance Coaching Page 30 All care has been taken to keep this document free from errors. choose the one which has a positive trade surplus. What is the minimum number that belongs to set A? (a) (b) (c) (d) 0 0. In the list of five countries given below. Consider the set A = {x|0<x<1}. 81. Robert Aumann and Thomas Schelling.

Even though. JNU or DSE Photostat shop. then value added in the process is (a) (b) (c) (d) 40 50 100 10 ECOPOINT MA Economics Entrance Coaching Page 31 All care has been taken to keep this document free from errors. please check JNU Sample papers for any errors.JNU Entrance Examination Papers JNU Entrance Exam www. 82. The tertiary sector of the Indian economy is 50% of the GDP. 10. 100 are produced with steel worth Rs. 10. Which one of the statements given below is correct for the year 2000-01? (a) (b) (c) The primary sector of the Indian economy is 50% of the GDP. .in (b) (c) (d) Great Britain Greece China. (d) 83. wages paid are Rs. You should have a copy of JNU papers available from JNU or DSE.ecopoint. This document is for reference purposes only. 50. available from. If utensils worth Rs. The GDP contribution of the primary sector of the Indian economy is larger than that of the secondary sector. depreciation of machinery is 0 and other material purchased is Rs. The GDP contribution of the secondary sector of the Indian economy is larger than that of the tertiary sector.

4. 30 billion per year with a capital stock of Rs. 4.3.2.in 84.5 billion. m = 0. available from. Even though.JNU Entrance Examination Papers JNU Entrance Exam www. t = 0.5 billion. You should have a copy of JNU papers available from JNU or DSE. JNU or DSE Photostat shop. with values a= 0. .5 as pure number. Flow variable with a value of 4. please check JNU Sample papers for any errors. Flow variable with a value of Rs.m] = 50/3 1/[1 – a + t + m] = 2 86. 135 billion.1. If an economy produces GDP of Rs. Stock variable with a value 4. The ‘Sub-prime Lending’ crisis was originated in (a) (b) (c) India USA UK ECOPOINT MA Economics Entrance Coaching Page 32 All care has been taken to keep this document free from errors.5 years. As economy has a proportionate income tax at the rate t marginal propensity to consume of a and marginal propensity to import of m. then capital output ratio is a (a) (b) (c) (d) Stock variable with a value of Rs. 85. This document is for reference purposes only.ecopoint. The short run investment multiplier of the economy will be (a) (b) (c) (d) 1/[1 – a(1 – t) + m] = 50/23 1/[1 – (a – m) (1 – t) = 25/11 1/[1 – a(1 – t) .

In the following statements. available from. Even though.in (d) China. You draw money from your savings bank account of State Bank of India (SBI) and invest in SBI mutual fund share. (ii) (iii) Indicate which combination of statements is correct.JNU Entrance Examination Papers JNU Entrance Exam www. transaction in (ii) represented an act of net saving. . You should have a copy of JNU papers available from JNU or DSE. ‘investment’ is meant to be investment from a macroeconomic point of view. 87. transaction in (ii) represented an act of net positive saving. This document is for reference purposes only. (ii) and (iii) have taken place in the economy: (i) Your family has taken out a mortgage from a bank and purchased a new house with the loan advanced to your family by the bank. transaction in (iii) represented an act of net positive saving Transaction in (i) represented an act net positive investment. transaction in (ii) represented an act of net positive saving. transaction in (iii) represented an act of net zero saving (b) (c) (d) ECOPOINT MA Economics Entrance Coaching Page 33 All care has been taken to keep this document free from errors. transaction in (iii) represented an act of net positive investment Transaction in (i) represented an act of net positive zero investment.ecopoint. please check JNU Sample papers for any errors. transaction in (ii) represented an act of net saving. JNU or DSE Photostat shop. The following transaction (i). transaction in (iii) represented an act of net positive saving Transaction in (i) represented an act net positive investment. You have used your salary to buy share of the Steel Authority of India Ltd. (a) Transaction in (i) represented an act net zero investment.

Which of the following will be inverse function of f(x)=x2? (a) (b) (c) (d) g(y)=1/y g(y)=y2 g(y)=½ y There is no inverse function 90. The sum of the first n odd integers is (a) (b) (c) (d) n2 n3 n 4n 89. The share of the primary sector in the Indian Labour Force in 2000 was approximately around (a) (b) (c) (d) 50 percent 60 percent 70 percent 80 percent ECOPOINT MA Economics Entrance Coaching Page 34 All care has been taken to keep this document free from errors. This document is for reference purposes only. JNU or DSE Photostat shop. You should have a copy of JNU papers available from JNU or DSE. please check JNU Sample papers for any errors.in 88. Even though. available from.ecopoint.JNU Entrance Examination Papers JNU Entrance Exam www. .

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91.

The country with the largest external debt in the world today is (a) (b) (c) (d) Brazil Argentina China United State

92.

The beginning of modern industry in India occurred in (a) (b) (c) (d) the late 18th century the beginning of the 19th century the middle of the 19th century the turn of the 20th century

93.

Market capitalization in the Bombay Stock Exchange (BSE) rose by 100 percent in a single year. This means that (a) (b) (c) (d) the sensex rose by 100 percent during that year the value of share traded at the BSE over the year increased by 100 percent when compared with the precious year the value of all outstanding shares of companies listed at the BSE rose by 100 percent the price of every share listed at the BSE rose by 100 percents

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94.

Two event are said to be independent if (a) (b) (c) (d) Prob(A and B)=Prob(A). Prob(B) Prob(A and B)=Prob(A)+ Prob(B) Prob(A /B)=Prob(A)-Prob(B) Prob(A/B)=Prob(A)-Prob(B)+ Prob(A and B)

95.

Which of the following is not a tool of monetary policy? (a) (b) (c) (d) The tax rate The interest rate The cash-reserve ratio Open market operations of the central bank

Read the following passage and answer the questions 96-100: “In the beginning, money was a commodity like any other, save that its physical characteristics allowed of its being divided into parts of varying but specific weight, and it had high enough worth in small enough bulk so that it could be readily carried around. Thus it served as an intermediate step in exchange, eliminating the inherent awkwardness of barter. And it was a convenient way of holding wealth- a storehouse of value. But in major measure the separate of money, its personality, was discovered with the establishment of banks; through banks the supply of money could be increased or, on occasion, sharply diminished, and this, more or less at will. The funds thus made available could be used for investment, necessary or frivolous consumption or the needs of the state.

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Together, the deposits and the banknotes were in excess of the value of the metal on which they were based. This, however, was entirely safe and acceptable for so long as everyoneoriginal depositors, borrowers, note holders-did not come at the same time for the hard money. Unless there were fear, panic or spreading rumor and unease about the competence and solidity of the bank- all by one means negligible possibilities- this would not happen. Given the profit possible from this manufacture of money- the return in interest for an effortless act of lending- the temptation to overdo a quite wonderful thing was obvious. Out of temptation were born the central banks and much of the structure of modern bank regulation. In return for various privileges, including in letter times the exclusive right to issue notes, central banks came into existence. They then proceeded to regulate the lending and money creation of the lesser banks, which they did in an inconveniently disciplinary way by returning to the smaller banks their notes for payments in metal and by enforcing minimum levels of reserves against deposits.”

96.

Galbraith argues that (a) (b) (c) (d) Money was a commodity like any other central banks were created Money was at first a commodity that could be easily divided by weight and carried around easily The physical feature of money being something that can be carried around easily gives it a special personality Money can never be more than an intermediate feature in exchange

97.

The presence of banks means that (a) (b) (c) Money in circulation can be in excess of the supply of metal that is money Deposits in banks must always be equal to the notes issued by banks Money is always safe in banks and this is acceptable to all

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(d)

Banks are the basic storehouse of value

98.

Central banks exist because (a) (b) (c) (d) Banks earn profits- in the form of a return 9in interest-from an effortless act of lending The funds loaned out can be used for investment, necessary or frivolous consumption or the needs of the State All banks want the exclusive power to issue notes It is necessary to regulate the lending and money creation of lesser banks, given the temptation to overdo lending

99.

Minimum levels of reserves against deposits (a) (b) (c) (d) Is a rule that money creation necessarily imposes on all banks Are necessary because depositors, borrowers and note holders all come to banks at the same time for their money Are part of the regulatory actions of central banks Are return for various privileges that are accorded to banks

100.

The supply of money on an economy can be increased or decreased at will (a) (b) Because of the inherent awkwardness of barter Through the activities of banks

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where q and p represent quantity and price respectively.1 + Y – 5000 + i G = 200 and T = 200 ………………………………. 5 Calculate the Lerner’s index when the demand function is given by q=kp-t. please check JNU Sample papers for any errors. ECONOMICS (With Specialization in the World Economy) 1. 2010 M.4 + Yd I = 100 + 0. The income effect on the first commodity (whose quantity is measured by the variable x1) is zero. This document is for reference purposes only. (a) State with adequate reasoning if the following statements are True or False: (i) Consider a utility function U(x)1. Even though. ……………………………… ECOPOINT MA Economics Entrance Coaching Page 39 All care has been taken to keep this document free from errors.A. . + x2) = u(x1) + x2. Consider an economy characterized by the following relationships: C = 500 + 0.JNU Entrance Examination Papers JNU Entrance Exam www. You should have a copy of JNU papers available from JNU or DSE. (None that Learner’s index is a measure of price margin) 10 (ii) 2. k > 0. available from.ecopoint. JNU or DSE Photostat shop.in (c) (d) Because money is a storehouse of value Since deposits and banknotes cannot be in excess of the metal on which they are based ENTRANCE EXAMINATION.

x > 1 Find the limit. G is government spending. 2]? 5 (b) 4. Ya is the interest rate. (a) ECOPOINT MA Economics Entrance Coaching Page 40 All care has been taken to keep this document free from errors. y = x} Draw the set A in the xy plane. 10 Now assume that the Central Bank increase the real money supply to 2000. A = {(x. 1]? Is it continuous on [1. (a) What is factory intensity reversal? Critically evaluate (with diagrams) the validity of the Heckscher-Ohlin theory of trade in the presence of such reversal. 3. This document is for reference purposes only. (M/P)D is the real money demand and (M/P)5 is the real money supply. available from. Even though. y) ε R2+ : 1 < x < 7. 10 What are the invisibles in the balance of payments? Examine the mechanism and the implication of the fixed and the flexible exchange rate systems to achieve the equilibrium in the balance of payments. You should have a copy of JNU papers available from JNU or DSE. (a) (b) Calculate the equilibrium real income and the interest rate in this economy. please check JNU Sample papers for any errors. 10 (i) Consider the set Ac R2 (that is. x ≤ 1 3/2. A is a subset of R2) as defined by the following. JNU or DSE Photostat shop. I is investment. Is this set open? Is it bounded? 5 (ii) Let ƒ : R - R be defined by ƒ(x) = x2.ecopoint.in Where C is consumption. What is the charge in the real income and the interest rate under this policy? Provide the economic rationale. Is this function continuous at x =1? Is it continuous on [0. lim ƒ(x). T are taxes Y is real income.JNU Entrance Examination Papers JNU Entrance Exam www. .

The expenditure on food declines.” Discuss giving economic arguments. Even though. 10). and Pr (X = 1) = 1 – 2p. 5 5. available from. This document is for reference purposes only. None of the above.ecopoint.in (b) (i) (ii) A random variable X has a uniform distribution distribution) in the range (-5. JNU or DSE Photostat shop. The proportion of income spent on food declines. .1 The essence of Engel’s law is that as household incomes rise (a) (b) (c) (d) (e) The savings rate increases. ECOPOINT MA Economics Entrance Coaching Page 41 All care has been taken to keep this document free from errors. It the Government’s response to the concerns about recent trends in food price inflation in India adequate? What additional fiscal.JNU Entrance Examination Papers JNU Entrance Exam www. 2010 M. it is given that Pr (X = O) = Pr (X = 2) = p.A. ECONOMICS PART – A A. please check JNU Sample papers for any errors. (rectangular 5 For a discrete random variable X. ≤ ½. monetary and trade policies could be proposed to deal with it? (b) ENTRANCE EXAMINATION. You should have a copy of JNU papers available from JNU or DSE. where 0 ≤ p. Find the value of p that maximizes the variance of X. The proportion of income spent on luxuries declines. Obtain Pr(|X|>4]. Answer any one of the following questions (in not more than 500 words): 20 (a) “International cooperation/coordination of policy responses is needed to deal with the problem of global warming and climate change.

12 or more. ECOPOINT MA Economics Entrance Coaching Page 42 All care has been taken to keep this document free from errors. A. please check JNU Sample papers for any errors. available from.3 A competitive firm has constant marginal cost of 12 per unit of output. JNU or DSE Photostat shop. 28 per cent.ecopoint. (a) (b) (c) (d) (e) 12 units of output. 71.5 per cent. This document is for reference purposes only. A. Unemployed to employed workers in the labour force. To maximize profit. .25 with me when I went to the market and I spent Rs.2 I had Rs. You should have a copy of JNU papers available from JNU or DSE.4 The dependency ratio is the ratio of (a) (b) Children to adults in the population. None of the above.5 per cent. None of the above.JNU Entrance Examination Papers JNU Entrance Exam www.in A.7 in all. Even though. Any amount of output Any amount of output provided the price per unit is Rs. Any amount of output provided the average cost is increasing. What percentage of the total did I have at the end of my market visit? (a) (b) (c) (d) (e) 72 per cent. it sells. 63.

The level of relative inequality.5 The capital-output ratio in an economy is the ratio of (a) (b) (c) (d) (e) A flow variable to a stock variable. JNU or DSE Photostat shop. please check JNU Sample papers for any errors. . A stock variable to a flow variable. Non-working are-group population to working age-group population.6 The Gini coefficient provides a measure of (a) (b) (c) (d) (e) The level of poverty.ecopoint. A. None of the above. available from. Two flow variables. Even though. A. Disguised unemployment. A. The rate of growth. None of the above. None of the above.JNU Entrance Examination Papers JNU Entrance Exam www. You should have a copy of JNU papers available from JNU or DSE. Two stock variables.7 The marginal propensity to consume is usually expressed as ECOPOINT MA Economics Entrance Coaching Page 43 All care has been taken to keep this document free from errors.in (c) (d) (e) Foreign aid to total GNP. This document is for reference purposes only.

Unemployment and prices decreased. available from. and output decreased. provided marginal rate of substitution is diminishing. Unemployment and output decreased.9 During the Great Depression.in (a) (b) (c) (d) (e) A pure number. Marginal rate of substitution is equal to the price ratio. None of the above. Rupees per unit of time. A number per unit of time. please check JNU Sample papers for any errors. This document is for reference purposes only. and output and prices decreased. and output increased. Marginal rate of substitution is equal to the price ratio. if all goods are being purchased at equilibrium. JNU or DSE Photostat shop. Marginal utilities are equal to prices. Even though. Unemployment. You should have a copy of JNU papers available from JNU or DSE.8 Which of the following is a necessary and sufficient condition for consumers’ equilibrium? (a) (b) (c) (d) (e) Marginal rate of substitution is equal to the price ratio. None of the above. A. and price increased. . ECOPOINT MA Economics Entrance Coaching Page 44 All care has been taken to keep this document free from errors.ecopoint.JNU Entrance Examination Papers JNU Entrance Exam www. (a) (b) (c) (d) Unemployment and prices increased. Paise per unit of time. A.

This document is for reference purposes only. A.JNU Entrance Examination Papers JNU Entrance Exam www. please check JNU Sample papers for any errors.11 Which of the following is not a leak from the circular flow of income/expenditure? (a) (b) (c) (d) (e) Taxes. six-sided dice are relied. Transfers Net imports Savings None of the above. available from. Even though.in (e) Unemployment and output increased. JNU or DSE Photostat shop. . A.12 CENVAT is related to (a) (b) Sales Tax.10 Suppose two fair. Excise Duty. and prices decreased. ECOPOINT MA Economics Entrance Coaching Page 45 All care has been taken to keep this document free from errors. The probability of obtaining a value from the first die that is equal to the value from the second die is(a) (b) (c) (d) (e) 1/6 5/18 9/12 ½ 1/12 A. You should have a copy of JNU papers available from JNU or DSE.ecopoint.

A. A.JNU Entrance Examination Papers JNU Entrance Exam www.ecopoint. when ECOPOINT MA Economics Entrance Coaching Page 46 All care has been taken to keep this document free from errors. Between 25 and 35 per cent. please check JNU Sample papers for any errors.15 GDP equals GNP. JNU or DSE Photostat shop. Between 35 and 25 per cent. You should have a copy of JNU papers available from JNU or DSE. available from.13 According to official estimates. A. then E{(2 + 3X)2} is approximately equal to (a) (b) (c) (d) (e) 123 156 143 150 None of the above.in (c) (d) (e) Customs duty Service Tax None of the above. Above 45 per cent.14 If E(x2) = 16 and var (X) = 4. Even though. . This document is for reference purposes only. the proportion of people living below the poverty line in India is (a) (b) (c) (d) (e) Below 15 per cent Between 15 and 25 per cent.

The money multiplier. please check JNU Sample papers for any errors. Between zero and one. You should have a copy of JNU papers available from JNU or DSE.in (a) (b) (c) (d) (e) The value of exports of goods equals the value of imports of goods. Even though. JNU or DSE Photostat shop. None of the above. Additions to inventory stocks of final goods. Additions to inventory stocks of intermediate goods.ecopoint. The value of exports of goods and services equals the value of imports of goods are services.17 GDP does not include (a) (b) (c) (d) Government spending to clean up pollution caused by factories.JNU Entrance Examination Papers JNU Entrance Exam www. Payments to technical consultants abroad. The income velocity of money. ECOPOINT MA Economics Entrance Coaching Page 47 All care has been taken to keep this document free from errors. A. This document is for reference purposes only. .16 The relationship between the stock of money and the stock of high-powered money is (a) (b) (c) (d) (e) Determined solely by the reserve-deposit ratio. Determined solely by the currency deposit ratio. The value of exports less imports equals the net flow of invisibles into the country. A. There are no net factor incomes from abroad. available from.

A. please check JNU Sample papers for any errors. Average revenue > Marginal cost. Even though.in (e) None of the above. Therefore (a) (b) (c) (d) (e) X is a linear function of Y X is a linear function of in Y In X is a linear function of Y In X is a linear function of in Y None of the above. Suppose 1000 students wrote the test.18 The elasticity of a variable X with a variable Y is a constant.19 Suppose only a single firm has the technology to produce a commodity for which the demand curve is perfectly elastic. This means that ECOPOINT MA Economics Entrance Coaching Page 48 All care has been taken to keep this document free from errors. Which of the following conditions must necessarily be true for the firm at equilibrium? (a) (b) (c) (d) (e) Average revenue = Marginal cost. Total variable cost of the firm increases more than proportionally with firm output.ecopoint. A. Average revenue > Marginal revenue None of the above. available from. Average revenue > Average cost. A. You should have a copy of JNU papers available from JNU or DSE.20 The student discovers that the marks she has obtained (63 out of 100) in a recent test was the 73rd percentile in the frequency distribution of test scores.JNU Entrance Examination Papers JNU Entrance Exam www. . This document is for reference purposes only. JNU or DSE Photostat shop.

21 An investment is worth making.22 The acceleration principle states that the rate of investment in the economy is proportional to (a) (b) (c) (d) The rate of increase in aggregate demand The rate of increase in unplanned inventories The rate of increase in business savings The rate of increase in the rate of profit. At least 27 per cent of the students got 73 or more None of the above.ecopoint. available from. None of the above. if over the lifetime of the project (a) (b) (c) (d) (e) Cash inflows are positive Net cash inflows (inflows minus outflows) are positive Cash inflows discounted by an appropriate rate of interest are positive Net cash inflows (inflows minus outflows) discounted by an appropriate rate of interest are positive. You should have a copy of JNU papers available from JNU or DSE. Even though. This document is for reference purposes only. JNU or DSE Photostat shop. A. A. please check JNU Sample papers for any errors.JNU Entrance Examination Papers JNU Entrance Exam www. ECOPOINT MA Economics Entrance Coaching Page 49 All care has been taken to keep this document free from errors. .in (a) (b) (c) (d) (e) At least 73 per cent of the students got 73 or more At least 270 students got 63 or more At least 270 students got 63 or less.

Even though. Setup a two-part tariff in pricing and charge the consumer a flat fee of 1250 and a price of 50 per unit.25 The production function Q = x11/2 x21/3.24 Suppose a market demand curve for an individual is given by q = 100 – p. JNU or DSE Photostat shop. Devaluation.in (e) None of the above. Deindustrialization. He will then (a) (b) (c) (d) (e) Charge a price of 50 for all units. Charge a price of 1250 per unit. You should have a copy of JNU papers available from JNU or DSE. A. available from. reflects ECOPOINT MA Economics Entrance Coaching Page 50 All care has been taken to keep this document free from errors. A. Charge a price of 60 for the first 25 units and a price of 50 for the rest. where Q is output and x1. The market price prevailing is 50. x2 are quantities of inputs. This document is for reference purposes only. The supplier of the units is a monopolist and wants to perform first degree price discrimination. None of the above.23 The Marshall Lerner conditions relate to the effect on the balance of trade of (a) (b) (c) (d) (e) Deflation. . Set up a two part tariff in pricing and charge the consumer a flat fee of 1250 and a price of 60 per unit. Depression. A.JNU Entrance Examination Papers JNU Entrance Exam www. please check JNU Sample papers for any errors.ecopoint.

B. You should have a copy of JNU papers available from JNU or DSE. The consumer has a budget of Rs. please check JNU Sample papers for any errors.in (a) (b) (c) (d) (e) Constant returns to scale.8 and the GDP falls short of full employment output by 5000. y). . B. Decreasing returns to scale.2 Does the following maximization problem have a solution? Maximise x2 subject to 0 < x < 1 Explain your answer. the utility function is given by U(x. where Q stands for units of output. Even though. available from.4 Consider an economy operating at less than full employment. PART – B B. What is his optimum consumption bundle? B. then compute the level of output at which short-run marginal cost is equal to average cost. None of the above.3 In a two-good economy. ECOPOINT MA Economics Entrance Coaching Page 51 All care has been taken to keep this document free from errors. No returns to scale.100. Increasing returns to scale.JNU Entrance Examination Papers JNU Entrance Exam www. The marginal propensity to consume is 0. JNU or DSE Photostat shop. y) = min (x.ecopoint.1 If the short-run average cost for a firm is given by (Q – 15) 2 + 4. The prices of both x and y are Re 1 per unit. in which the government has a balanced budget. This document is for reference purposes only.

the price of X increased from 1 in period 1 to 1. Therefore.7 In an economy with only two goods X and Y.8 Consider the following components of the balance of payments: ECOPOINT MA Economics Entrance Coaching Page 52 All care has been taken to keep this document free from errors. If food prices are determined by demand and supply.6 In a closed economy in which the GDP is growing at 7 per cent per annum and the population at 2 per cent per annum.2? B.5 Construct an example to prove that the following argument is incorrect A and B are two non-empty sets of positive integers.in (a) (b) What is the minimum required increase in government spending that could bring about full employment in a closed economy? How would this change in an open economy if exports are constant and the economy has an import propensity of 0.ecopoint. the income elasticity of demand for food is 0-4. Assuming that tastes of these two individuals have not changed. . B. please check JNU Sample papers for any errors.5 in period 2. and 3 units of X and 2 units of Y in period 2. while that of Y remained constant at 1. JNU or DSE Photostat shop. Consumer A consumed 2 units of X and 3 units of Y in period 1. which individual is clearly better off in period 2 compared to period 1? B. if the price of food is to remain constant? B. available from.JNU Entrance Examination Papers JNU Entrance Exam www. B does not contain the number 2. If B contains a number. then A contains the same number. Even though. Consumer B consumed 3 units of X and 2 units of Y in period 1. This document is for reference purposes only. A does not contain the number 2. at what rate must food supply increase. and 1 unit of X and 3 units of Y in period 2. You should have a copy of JNU papers available from JNU or DSE.

State the category to which each of the following transaction belongs (Write None of the above if none of the above accounts is applicable): Import of chocolate Export of software Change in official reserves External commercial borrowing Tourism abroad Royalty payments for technology Unilateral transfers in the form of workers’ remittances.in    Merchandise trade account Invisibles account. Loans from the World Bank.ecopoint. JNU or DSE Photostat shop. Import of capital equipment Purchase of foreign securities. please check JNU Sample papers for any errors. Even though. ECOPOINT MA Economics Entrance Coaching Page 53 All care has been taken to keep this document free from errors. B. available from.9 If a and b are two positive numbers. define their arithmetic mean and their geometric mean. Capital account. This document is for reference purposes only.JNU Entrance Examination Papers JNU Entrance Exam www. Prove that the arithmetic mean cannot be less than the geometric mean. You should have a copy of JNU papers available from JNU or DSE. .

If it is one of the latter aspects in which we are interested. Whenever our interest is in general phenomena. You should have a copy of JNU papers available from JNU or DSE. on which we shall fix our attention. or norm. 100 per kg. and the same apples are priced in India at Rs. Hicks (a) (b) How many attributes of historical events does Hicks identify? What is the fundamental basis of distinction between these attributes? ECOPOINT MA Economics Entrance Coaching Page 54 All care has been taken to keep this document free from errors.in B. But the distinction is not. available from. theory (economic or other social theory) may be relevant. (a) (b) What is the real exchange rate based on apples alone? Comment on using the above real exchange rate as an indicator of Purchasing Power Parity. otherwise usually not.JNU Entrance Examination Papers JNU Entrance Exam www. the questions want to ask about economic history deal mainly with groupings that can be made to possess it. not the individual. PART – C C.10 A 10 kg basket of Royal Delicious Grade A apples sells for $ 15 in the US. please check JNU Sample papers for any errors.” J. Even though. but nearly always there are other aspects in which it is a member of a group. of the group which is what we shall be trying to explain … Economics is rather specially concerned with such statistical behavior.1 Consider the following passage : “One of the things which we have learned – a general point which must be emphasized at the outset – is to distinguish between those historical questions which can be usefully discussed in terms of the notion of statistical uniformity and those which cannot. often of quite a large group. can be regarded as having this statistical character.R. The distinction is between an interest in general phenomena and an interest in particular stories. . JNU or DSE Photostat shop. Most of the phenomena of economic history (however widely considered) do have it. 50 per US dollar. in principle. The nominal exchange rate is Rs. it will be the group. a distinction between economics and other kinds of history. The historical phenomena to which a theory of history might apply are those which in the light of our interest in them. This document is for reference purposes only.ecopoint. Every historical event has some aspect in which it is unique. it will be the average.

Even though.in (c) (d) (e) What is the reason for making this distinction? According to Hicks. (a) (b) Between 1990-91 and 2006-07. JNU or DSE Photostat shop. You should have a copy of JNU papers available from JNU or DSE.4 I and I is autonomously determined.75 Y. (c) (d) C. (a) (b) What is the value of the investment multiplier in the economy? If the maximum value of imports of goods and services which the economy can finance is 60000 units of the economy’s currency. slower or the same as that of aggregate GDP over the entire period? Calculate the implicit price deflator for agriculture in 2000-01 and for services in 2006-07. please check JNU Sample papers for any errors. what feature do most phenomena of economic history have? According to Hicks.3 Consider an economy wherein equilibrium Y = C + 1 – M and C = 0. Was the growth of industry faster.ecopoint. This document is for reference purposes only. what is the maximum value of Y possible in such an equilibrium? ECOPOINT MA Economics Entrance Coaching Page 55 All care has been taken to keep this document free from errors.2 C + 0. available from.JNU Entrance Examination Papers JNU Entrance Exam www. when is theory relevant? C. where M = 0. which sector grew most rapidly and which most slowly in current price terms? Was it the same in constant price terms? How did the share of the agriculture and services in total GDP change between 1990-91 and 2006-07? Answer for both constant and current price terms. .2 Consider the following table with data on GDP by sectors: SPACE FOR TABLE.

Solve for the consumer’s Marshallian demand functions. available from. JNU or DSE Photostat shop. Consider a consumer with a utility function U(x1.in (c) Suppose the economy can finance an additional 1 currency unit of imports.A. This document is for reference purposes only. Even though. x2) = e1xi+in x2)1/3.ecopoint. 10 (Hint: You could transform the utility function to make it easier to solve) ECOPOINT MA Economics Entrance Coaching Page 56 All care has been taken to keep this document free from errors. x2 ≥ 0 (a) (b) Does the above function satisfy the standard properties of utility function? 6 Let p1 and p2 be the prices of goods 1 and 2 respectively and m denote the income of the consumer. You should have a copy of JNU papers available from JNU or DSE. ECONOMICS 1. 2009 M. please check JNU Sample papers for any errors. . What is the increase in the maximum possible value of Y? PART – D (a) (b) (c) (d) (e) Is it correct to argue that the current global financial crisis was caused by financial deregulation? Under what conditions can high aggregate income growth be accompanies by increased poverty? Is labour market inflexibility responsible for show industrial growth in India? What factors explain the recent rise and decline in global food prices? What are the assumptions and the basic propositions made in the Lewis twosector growth model? ENTRANCE EXAMINATION.JNU Entrance Examination Papers JNU Entrance Exam www. x1 > x2 0.

is applicable under a condition of less than full employment”. 9. why not? 10 3.2 and ratio of currency to money demand of 0. Even though. necessarily. Distinguish the Heckscher-Ohlin theory from the Ricardian theory of trade.800 billion. Examine some possible consequences of trade on factor rewards and commodity prices. You should have a copy of JNU papers available from JNU or DSE. reserve ratio. reserves (R) and deposits in equilibrium.5. (i) (ii) (iii) Find the demands for currency (C).JNU Entrance Examination Papers JNU Entrance Exam www. This document is for reference purposes only. why? If no. 10 Under what conditions. 2 Find the money multiplier.900 billion.ecopoint. If the central bank wants to decrease the money supply by Rs. 3 (iv) (b) What is the paradox of thrift? Does it arise in the classical model? If yes. (Note: 1 billion = 1000 million). strictly positive? 2. . 500 million (in order to raise the interest rate). available from.1. 10 (b) ECOPOINT MA Economics Entrance Coaching Page 57 All care has been taken to keep this document free from errors. (a) Given deposits (D) of Rs. like Keynesian multiplier. JNU or DSE Photostat shop. please check JNU Sample papers for any errors. of 0. Write True or False. m. what amount of bounds would it have to buy/sell? 3 “Money multiplier.in (c) Will the demands for both the goods be. would currency devaluation have a positive effect on trade balance? Provide a mathematical derivation. total money supply (M S) of Rs. (a) State the assumptions of the Heckscher-Ohlin theory of international trade. Five reasons.

Event A is said to occur when a six is obtained in the second die and event B is said to occur when a total of seven is obtained. Plot its graph. You should have a copy of JNU papers available from JNU or DSE. (b) ENTRANCE EXAMINATION. 2008 M. ECONOMICS SECTION – A Answer all questions. Show that E(X-b)2. JNU or DSE Photostat shop.A.in 4.ecopoint. Verify whether events A and B are independent and whether they are mutually exclusive. Each question carries 1 mark ECOPOINT MA Economics Entrance Coaching Page 58 All care has been taken to keep this document free from errors. Do you think that trade liberalization is likely to enhance the process of industrialization in India? Substantiate your arguments. 5 Let X be a random variable with mean u and variance o 2. please check JNU Sample papers for any errors. . Even though. Answer any one of the following questions (in not more than 300 words): (a) 20 Examine under what conditions the transfer of labour from agriculture to industry may not have any impact on agricultural productivity. available from. Do you agree with the view that ‘outsourcing’ is the result of increasing protectionism in the developed world? Examine as to how outsourcing could be justified from a developing country’s viewpoint.JNU Entrance Examination Papers JNU Entrance Exam www. (a) (b) Find the area bounded by the curve |x|+y=1 and the x-axis. and their face values are noted. two dice are rolled simultaneously. is minimized when b=u. as a function of b. 10 (i) In a random experiment. This document is for reference purposes only. 5 (ii) 5.

You should have a copy of JNU papers available from JNU or DSE.68. Even though.1 Answer twenty-five articles. nine are defective.2 A standard normal distribution has (a) (b) (c) (d) (e) mean equal to 1 and variance equal to 1 mean equal to 0 and variance equal to 1 mean equal to 0 and standard deviation equal to 0 mean equal to -1 and variance equal to 1 None of the above. available from. is +4.JNU Entrance Examination Papers JNU Entrance Exam www. (a) (b) (c) (d) (e) 1/3 ¼ 6/25 2/25 None of the above. A. measured in feet.3 In a given group. measured in pounds. Determine the probability that an article selected at random has major defects given that it has defects. six having only minor defects and three having major defects.ecopoint. . JNU or DSE Photostat shop. Which of the following would after the value of r? (a) (b) (c) If height is expressed in centimeters If weight is expressed in kilograms Both of the above will affect r. A. This document is for reference purposes only. please check JNU Sample papers for any errors. the correlation between height. ECOPOINT MA Economics Entrance Coaching Page 59 All care has been taken to keep this document free from errors. and weight.in A.

5. What will be the effect on supply? (a) Quantity supplied will increase. available from. 6 Rs. JNU or DSE Photostat shop.6 Suppose a technological advance in toothpaste manufacturing reduces the cost of producing each tube by Re 1.ecopoint. please check JNU Sample papers for any errors. . what is the highest hourly wage that a firm can pay her? (a) (b) (c) (d) (e) Rs. You should have a copy of JNU papers available from JNU or DSE. A. 11 Rs. A. 30 Rs.5 The optimal point on the production Possibility Frontier (PPF) depends on (a) (b) (c) (d) (e) Efficiency Preferences Feasibility All of the above None of the above. 5 A.4 If a worker’s marginal product of labour is 6 units of the good per hour and the price of the good is Rs. ECOPOINT MA Economics Entrance Coaching Page 60 All care has been taken to keep this document free from errors. This document is for reference purposes only.JNU Entrance Examination Papers JNU Entrance Exam www. None of the above.in (d) (e) Neither of the above changes will affect r. Even though.1 Rs.

Priya (a) (b) (c) (d) (e) treats shoes as an inferior good treats shoes as a luxury good prefers shoes to boots has a price-inelastic demand for shoes has a price-elastic demand for shoes. A.in (b) (c) (d) (e) The supply curve will shift inward. available from.8 Last year. ECOPOINT MA Economics Entrance Coaching Page 61 All care has been taken to keep this document free from errors. Priya bought 6 pairs of shoes when her income was Rs.7 Hari’s total spending on grapes rises when the price falls from Rs. please check JNU Sample papers for any errors. A. This document is for reference purposes only. The supply curve will shift outward.000. 40.2/kg to Re 1/kg. JNU or DSE Photostat shop. and show purchased 10 pair of shoes.ecopoint. her income is Rs 50. . This year. Even though.JNU Entrance Examination Papers JNU Entrance Exam www. You should have a copy of JNU papers available from JNU or DSE. There will be no change in supply Demand will go down since there will be less toothpaste supplied.000. What can we say about the price elasticity of his demand for grapes? (a) (b) (c) (d) (e) It is greater than 1 It is less than 1 It is equal to one All of the above None of the above.

what does this tell us about the marginal cost of producing the 31st chocolate? (a) (b) (c) (d) (e) It will be greater than Re 0.9 When an economist refers to the long-run.11 India’s current annual income per head of population (i.JNU Entrance Examination Papers JNU Entrance Exam www. 2008. JNU or DSE Photostat shop.10 Aparna makes chocolates. available from. This document is for reference purposes only. she is referring to (a) (b) (c) (d) (e) a length of time no shorter than 2 years a length of time no shorter than 1 month approximately the length of time such that all inputs remain flexed approximately the length of time such that all inputs are variable a marathon as opposed to a mile. is in the region of (a) (b) Rs. You should have a copy of JNU papers available from JNU or DSE.50 It will be exactly Re 0. If the total cost of 10 chocolates is Rs 10. .50 It will be less than Re 0. as given in the Economic Survey.000 Rs. Even though. A.in A.ecopoint.50 It will revert to Re 1 Any of the above is possible. A.e. 16. please check JNU Sample papers for any errors.000 ECOPOINT MA Economics Entrance Coaching Page 62 All care has been taken to keep this document free from errors. net national product per capita at factor cost). 33. and the total cost of 30 chocolates is Rs 20.

Then for all x such that 0 < x < 1 ECOPOINT MA Economics Entrance Coaching Page 63 All care has been taken to keep this document free from errors. where 0> x < 1.000 Rs. …. then (a) (b) (c) (d) (e) ac > b2 ac < b2 ac = b2 No inference can be made regarding the relative magnitude of ac and b2.ecopoint. You should have a copy of JNU papers available from JNU or DSE. Even though. A.13 If (a / b) > (b / c).JNU Entrance Examination Papers JNU Entrance Exam www. X2. then (a) (b) (c) (d) (e) Arithmetic Mean < Geometric Mean Geometric Mean ≤ Arithmetic Mean Arithmetic Mean = 0.14 Let ƒ(x) = (log (x)) / x.in (c) (d) (e) Rs. This document is for reference purposes only.12 If X1.5 (Geometric Mean) There is no fixed relationship between Arithmetic Meanand Geometric Mean None of the above. Xn are non-negative real numbers. JNU or DSE Photostat shop. 40.000 Rs. available from. 22. A.000 A. . None of the above. 12. please check JNU Sample papers for any errors.

A. a = (3√7 + 4 √7)2 and b = 343. Even though. . You should have a copy of JNU papers available from JNU or DSE.16 Beena’s average score after B class tests is 84. A. JNU or DSE Photostat shop. This document is for reference purposes only.ecopoint. (a) (b) (c) (d) 82 87 96 77 ECOPOINT MA Economics Entrance Coaching Page 64 All care has been taken to keep this document free from errors. please check JNU Sample papers for any errors.in (a) (b) (c) (d) (e) ƒ’ (x) < 0 ƒ’ (x) > 0 ƒ’ (x) > 0. if 0 < x < 0. if 0.5 ≤ x < 1 can’t say anything about the sign of ƒ’ (x) None of the above.JNU Entrance Examination Papers JNU Entrance Exam www.15 Given two numbers.5 and ƒ’ (x) < 0. In her last class test Beena has scored. which of the following must be true? (a) (b) (c) (d) (e) a>b b>a a=b a = b/2 None of the above.In her first seven class tests Beena’s average score was 85. available from.

You should have a copy of JNU papers available from JNU or DSE. What is the probability that the next throw will also give the number 6? (a) (b) (c) (d) (e) 0 1/30 1/6 5/6 None of the above. JNU or DSE Photostat shop. A.JNU Entrance Examination Papers JNU Entrance Exam www.in (e) None of the above. A.999999… is (a) (b) exactly equal to 1 slightly less than 1 ECOPOINT MA Economics Entrance Coaching Page 65 All care has been taken to keep this document free from errors. . Even though. please check JNU Sample papers for any errors.ecopoint.17 The ‘Sub-Prime Lending’ crisis originated in (a) (b) (c) (d) (e) India USA UK Australia None of the above.19 The number 0. available from.18 A fair die has given the number 6 on five consecutive throws. A. This document is for reference purposes only.

You should have a copy of JNU papers available from JNU or DSE.. . A. Then S is equal to (a) (b) (c) (d) (e) 2 4 6 1 The sum does not converge to any finite value.. A. please check JNU Sample papers for any errors. This document is for reference purposes only. …………. Even though. Which of the following statements is then necessarily true? (a) (b) (c) (d) (e) ……….. ECOPOINT MA Economics Entrance Coaching Page 66 All care has been taken to keep this document free from errors.21 Suppose A. B and C are three non-empty sets such that B. JNU or DSE Photostat shop. B = ø.JNU Entrance Examination Papers JNU Entrance Exam www. C and (C – A) ….20 Let S -= 1 +1/2 + 1/3 + ¼ + …. ……….in (c) (d) (e) slightly more than 1 All of the above. …………… None of the above.. None of the above..ecopoint. available from.

2450 None of the above.23 If a riskless bond promises a fixed annual payment of Rs. . Even though.ecopoint. It the range of a set of numbers is taken as the measure of inequality amongst the numbers in that set then after replacement.24 In W.in A. 500 Rs. A. JNU or DSE Photostat shop. A.22 Suppose anyone but the minimum of a set of 10 positive real numbers is replaced by a number which is greater than it. This document is for reference purposes only. You should have a copy of JNU papers available from JNU or DSE. 50 Rs. available from. please check JNU Sample papers for any errors. Arthur Lewis’ model of growth in a dual economy the rate of growth of the money wage rate in the modern sector is (a) (b) zero constant ECOPOINT MA Economics Entrance Coaching Page 67 All care has been taken to keep this document free from errors. 5000 Rs. 35 in perpetuity and the current market rate of interest is 7% per annum then the market value of the bond is (a) (b) (c) (d) (e) Rs.JNU Entrance Examination Papers JNU Entrance Exam www. (a) (b) (c) (d) (e) inequality will increase inequality will decrease inequality cannot increase inequality cannot decrease None of the above.

Even though. in equilibrium the household will choose a commodity bundle (a) (b) (c) (d) (e) containing only X containing only Y containing both X and Y containing at least some Y None of the above. please check JNU Sample papers for any errors. then the correlation coefficient between X and Y is (a) (b) (c) (d) (e) –1 – 0.5 1 None of the above. A. available from. y) = 16x + 13y. 11.in (c) (d) (e) equal to the rate of inflation determined by the rate of growth of the labour force None of the above.5 0.26 Suppose the utility function of a person I U(x.JNU Entrance Examination Papers JNU Entrance Exam www. where x and y are the quantities consumed of two commodities X and Y. . If the unit price of X is Rs. JNU or DSE Photostat shop. A. ECOPOINT MA Economics Entrance Coaching Page 68 All care has been taken to keep this document free from errors.ecopoint. 13 and the unit price of Y is Rs. You should have a copy of JNU papers available from JNU or DSE.25 If every unit increase in a variable X is associated with a half unit decrease in a variable Y. This document is for reference purposes only.

27 Over the last two years the US Dollar has been (a) (b) (c) (d) (e) appreciating with respect to other major currencies depreciating with respect to other major currencies showing no trend with respect to other major currencies All of the above None of the above.JNU Entrance Examination Papers JNU Entrance Exam www. please check JNU Sample papers for any errors. A. JNU or DSE Photostat shop. deposits a sum of money in a bank.ecopoint.28.29 If an individual. . available from.in A. A. Even though. This document is for reference purposes only. The terms of trade for a country refers to (a) (b) (c) (d) (e) the ratio of its currency to other currencies the ratio of its export prices to import prices the ratio of the value of its exports to the value of its imports the ratio of its export production costs to import production costs None of the above. You should have a copy of JNU papers available from JNU or DSE. then the amount of additional credit that the banking system can create is (a) (b) (c) a fraction of that sum defined by the cash reserve ratio a fraction of that sum defined by the statutory liquidity ratio a multiple of that sum defined by the cash reserve ratio ECOPOINT MA Economics Entrance Coaching Page 69 All care has been taken to keep this document free from errors.

in (d) (e) a multiple of that sum defined by the statutory liquidity ratio None of the above. X-M=-80 and S-I = 145 X–M 150 -200 G–T -50 345 S-I 150 -130 ECOPOINT MA Economics Entrance Coaching Page 70 All care has been taken to keep this document free from errors. JNU or DSE Photostat shop.1 You are given the following data for a country. You should have a copy of JNU papers available from JNU or DSE. A. G and T to government expenditure and Tax revenues. S and I refer to private savings and investment. Even though. Each question carries 3 marks B.30 Which of the following constitutional amendments deals with the Panchayati Raj Institutions? (a) (b) (c) (d) (e) 43rd Amendment 73rd Amendment 86th Amendment 93rd Amendment 2nd Amendment SECTION – B Answer all questions. available from. please check JNU Sample papers for any errors. . This document is for reference purposes only.JNU Entrance Examination Papers JNU Entrance Exam www.ecopoint. and X and M refer to Exports and Imports of goods and services: Year 205 2006 2007 The missing values in the table above are (a) G-T=0.

2 A population consists of the numbers [2003. 1. 1997. JNU or DSE Photostat shop. 2001. This document is for reference purposes only. 1.3 Suppose Rs. available from. X-M = 0 and S-I = 145 G-T = 0. please check JNU Sample papers for any errors.000 B. How much money would be there at the end of 5 years? (a) (b) (c) (d) Rs. 2005.in (b) (c) (d) (e) G-T=0. you get ECOPOINT MA Economics Entrance Coaching Page 71 All care has been taken to keep this document free from errors. Even though. to be compounded annually.ecopoint.000 Rs.6 the mean deviation 10 2010 B. The variance of the population is (a) (b) (c) (d) 11.JNU Entrance Examination Papers JNU Entrance Exam www.60.50. X-M = 0 and S-I = 145 G-T = 0.00. 1.000 are deposited in an account for five years at an interest rate of 10% per year. 2000. . X-M = 80 and S-I = 145 G-T = 80.051 Rs. X-M = 80 and S-I = -145 B. 1999.4 If you integrate the function ƒ(x) = 1 / x from 1 to 3.51. 1. You should have a copy of JNU papers available from JNU or DSE. 1995].61.051 Rs. 1.

This document is for reference purposes only. then (a) (b) (c) (d) a<b a≤b a>0 Can’t say anything from the given information. such optimal output exists. B. 40% of all profits are saved. 3 per unit of output produced. Even though.7 Suppose aggregate income in an economy is equal to total wages plus total profits. B. for all ε > 0.ecopoint. There is no fixed cost. He incurs a cost of Rs.6 A monopolist faces a demand curve q(p) = 1 / p. B. please check JNU Sample papers for any errors. . His optimal output choice is (a) (b) (c) (d) 2 3 0 No. If the share of wages in aggregate income is 60% and ECOPOINT MA Economics Entrance Coaching Page 72 All care has been taken to keep this document free from errors. You should have a copy of JNU papers available from JNU or DSE. available from. JNU or DSE Photostat shop.in (a) (b) (c) (d) 0 2 Log 3 None of the above.5 If a < b + ε.JNU Entrance Examination Papers JNU Entrance Exam www.

15 0. This document is for reference purposes only. You should have a copy of JNU papers available from JNU or DSE. where r is the percentage rate of interest. Even though. transaction demand for money MDT = 0.1Y.8 Suppose in an economy Y + C + 1. Over the same period. the fraction of wages saved in the economy is (a) (b) (c) (d) 0.16 0. I = 1000.1 5 10 B. supply of money M 5 = 1000.in the rate of saving in the economy is 0. Inflation in India is 8 per cent compared to 3 per cent inflation in the trading partners. JNU or DSE Photostat shop.ecopoint. please check JNU Sample papers for any errors.8Y.JNU Entrance Examination Papers JNU Entrance Exam www.09 0.05 0. What is the change in India’s real exchange rate? (a) (b) (c) 5 per cent appreciation 10 per cent appreciation 15 per cent appreciation ECOPOINT MA Economics Entrance Coaching Page 73 All care has been taken to keep this document free from errors. . What is the equilibrium value of r in the economy? (a) (b) (c) (d) 0.24 B.25.9 Suppose that the exchange rate of the Indian rupee appreciates by 10 per cent relative to the currencies of India’s trading partners. available from. C = 500 + 0. speculative demand for money MDS = 1000 – 75r.

10 A stratified sample of households is selected for a survey. Each question carries 10 marks. . JNU or DSE Photostat shop. please check JNU Sample papers for any errors. available from. 100 The average income of households in the population is (a) (b) (c) (d) 1509 1650 950 None of the above. 1000. Even though. 200. 300. C. (in crores) GDP at Factor Cost Net Factor Income from Abroad Net Indirect Taxes 10. You should have a copy of JNU papers available from JNU or DSE. 400. 4000.in (d) 5 per cent depreciation. SECTION – C Answer any four questions.ecopoint. 100. B.000 500 1.1 The following date are given for an economy for a particular year: Rs.500 ECOPOINT MA Economics Entrance Coaching Page 74 All care has been taken to keep this document free from errors.JNU Entrance Examination Papers JNU Entrance Exam www. This document is for reference purposes only. Data collected in the survey show that the income of sample households are as follows: Stratum A : Stratum B : 2000. 3000. The population is divided in two strata and 25 per cent of households in stratum A and 10 per cent of households in stratum B are selected through a process of random selection. 5000 500.

the technical change which is the result of some brand new discovery from that which merely represents an increase in know-how in the ability to use and exploit knowledge which has already existed. Even though. Calculate the private sector’s savings ratio out of hits disposable income. (a) (b) (c) (d) (e) (f) Calculate GDP at market prices. Calculate GNP at market prices. Current Account Deficit on Balance of Payments. .” (Nicholas Kaldor) Based on this text answer the following: (a) What are the types of technical change that the author mentions here? ECOPOINT MA Economics Entrance Coaching Page 75 All care has been taken to keep this document free from errors. Nor is it possible to distinguish.in Government (Non-Investment) Expenditure at Market Prices. You should have a copy of JNU papers available from JNU or DSE.300 If private consumption expenditure is 0. Further. This document is for reference purposes only.ecopoint. please check JNU Sample papers for any errors.JNU Entrance Examination Papers JNU Entrance Exam www. C.500 500 . Calculate Gross Private Savings in the economy. just as technical progress causes accumulation. available from. Calculate Gross Savings in the economy. and then assumes that this function continually shifts upwards with the progress of knowledge. the process of accumulation stimulates the growth of knowledge and of know-how.2 Consider the following text: “The main point is that technical change and capital accumulation go hand in hand. in general. Gross Savings of Government.75 times the GNP at market prices. in some shape or another. 1. in the minds of some people. JNU or DSE Photostat shop. Hence it is useless to analyse the effects of capital accumulation in terms of production function which assumes a given state of knowledge. and it is not really possible to isolate the effects of increased knowledge or ability or know-how from the effect of accumulation of capital. calculate Gross Investment.

Only one candidate had a distinction both in Literature and Philosophy.in (b) (c) (d) (e) What is the relationship between technical change and capital accumulation? Can the effects of technical change be clearly distinguished from the effect of capital accumulation? What kind of production function does the author feel is not useful in analyzing the effects of capital accumulation? Why is such a production function not useful in this way. D had a distinction in History. please check JNU Sample papers for any errors. C and D. Only one candidate had a distinction both in Philosophy and History. (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) Only one of the four candidates had a distinction both in Mathematics and Literature. Only one candidate had a distinction both in Literature and History. namely. according to the author? C. available from. JNU or DSE Photostat shop. Only one candidate had a distinction both in Mathematics and History. A. Even though.3 There were four candidates. Both C and D had a distinction in Literature. Both A and B had a distinction in Mathematics.JNU Entrance Examination Papers JNU Entrance Exam www. for an award. . Both B and C had a distinction in Philosophy. ECOPOINT MA Economics Entrance Coaching Page 76 All care has been taken to keep this document free from errors. Only one candidate had a distinction both in Mathematics and Philosophy.ecopoint. You should have a copy of JNU papers available from JNU or DSE. This document is for reference purposes only. B.

) C.ecopoint. One of A and B is innocent. G or H is right. and may be both.in The award was given to the candidate who had distinction in more subjects than any other candidate. D and E are both right. Which candidate was given the award? (Show the steps of your answer. B. You should have a copy of JNU papers available from JNU or DSE. . available from. Even though. Here are the statements given by the four individuals.4 A chocolate bar has been stolen by either child A or child B. please check JNU Sample papers for any errors. and may be both. Who stole the chocolate bar? (show the steps of your answer). Suppose that C and L are either both telling the truth or both lying. The statements of the criminal and his accomplice are false and those of the remaining two are true. JNU or DSE Photostat shop. B has stolen things in the past. D and F are both right. C and D has committed a crime with the help of another one of them. C.JNU Entrance Examination Papers JNU Entrance Exam www. A has stolen things in the past. Hence are the statements of witnesses and other interested parties C: D: E: F: G: H: I: J: K: L: A has not stolen the chocolate bar.5 One of A. E or F is right. D and I are both right. This document is for reference purposes only. J is right and K is wrong. E has stolen things in the past. ECOPOINT MA Economics Entrance Coaching Page 77 All care has been taken to keep this document free from errors.

Even though.ecopoint. Assume 2. there is ”two part pricing. Here log (x) stands for natural logarithm. 10 A natural monopolist has total cost C(Q)=400+250. then D must have had nothing to do with the crime.JNU Entrance Examination Papers JNU Entrance Exam www. JNU or DSE Photostat shop. output and consumer surplus when – (a) (b) (c) price is set equal to marginal cost. If B was the killer.in A: B: C: D: If B is guilty of something. This document is for reference purposes only.A. then C must be innocent. Which of the four is the criminal and who was his accomplice? (Show the steps of your answer).” That is. Under the US ‘deficiency payment’ system. ECONOMICS 1. ENTRANCE EXAMINATION. and faces the market demand Q=200-2P. a price above the free market price. please check JNU Sample papers for any errors. available from. the monopolist sets the price equal to marginal cost and charges a fixed participation fee per consumer. p. the government (as in India) can buy the farmers’ production till price is pushed to the p level. 2008 M. is guaranteed by paying to the farmer the difference between the market clearing price and p. Show that which scheme will cost more will depend on the elasticity of demand for the product.6 Show that log (x) < x for all x > 0.Solve for the monopolist’s profit. Alternatively. You should have a copy of JNU papers available from JNU or DSE. then C must be guilty. ECOPOINT MA Economics Entrance Coaching Page 78 All care has been taken to keep this document free from errors. I am innocent. If A is innocent. price is set equal to average cost. . C. Agricultural subsidies are given by almost all countries with the objective of raising the income of farmers.

c2+ ε]. What participation fee would a profit maximizing monopolist set? 10 3.in that the demand comes from 10 identical consumers. . What is the difference between cash reserve ratio (CRR)and capital adequacy ratio (CAR) in a bank’s balance sheet? What specific role does each play in policies of the central bank? “A reduction in money wages would lead to a rise in aggregates output and income. Consider a differentiable function f(x) such that f’(c1)=f’(c2)=0 . Consider the production function ƒ(z1. respectively. (b) ECOPOINT MA Economics Entrance Coaching Page 79 All care has been taken to keep this document free from errors. 6. 10 5. input 1 and input 2. 10 (a) The demand function for a product is q=15-3p1/2. supply function and factor demand functions. f”(c1)<f”(c2) Find the minimum number of roots of f’(x)=0 in the interval [c 1-ε. z2) = √z1 + z2 Where z1 and z2 are the quantities of input 1 and input 2. Let p.JNU Entrance Examination Papers JNU Entrance Exam www. Derive the profit function. respectively. w 1 and w2 be the prices of the output. 10 4.ecopoint. available from. Even though.” Discuss the Keynesian explanation to this phenomenon. c2>c1 f’(c1)=5 . Find the loss of consumer surplus resulting from a ban on purchase of this product if its current price is p=9. You should have a copy of JNU papers available from JNU or DSE. f’(c2)=10 f’(c1)=f’(c2)<0 . where ε is a small positive number. This document is for reference purposes only. please check JNU Sample papers for any errors. JNU or DSE Photostat shop. Hint: You may use graphical method.

please check JNU Sample papers for any errors. what is the probability that computer A has been sold? 7 20 8. elsewhere 8 Drive the cumulating distribution function of X.in 7. denoted as F(x). then it MUST be the case that (a) (b) (c) x. Analyze this phenomenon in the Heckscher-Ohlin framework. The success in selling one is independent of the success in selling the others. y are real numbers and it is known that x. f(x)=1/4-x/16.JNU Entrance Examination Papers JNU Entrance Exam www.ecopoint. . Each question carries 1 mark A1. Given that he is able to sell at least one computer. respectively. A salesman is assigned the job of finding customers for them. This document is for reference purposes only. (b) Two computers A and B are to be marketed. Section-A Answer all questions. If x. He has 60% and 40% chances of being able to sell computer A and computer B. JNU or DSE Photostat shop. y<2 (the product of x and y is less than 2). Answer any one following questions (in not more than 300 words): (a) (b) Stock market capitalization now exceeds the amount of bank deposits in India. You should have a copy of JNU papers available from JNU or DSE. -2<x<2 =0. Even though. y are both less than 2 x. available from. (a) X is a random variable of the continuous type with the following probability lensity function. What are the reasons for this? In India the export of IT-services has exhibited remarkable growth during the last decade. y are both positive at least one of x and y is positive ECOPOINT MA Economics Entrance Coaching Page 80 All care has been taken to keep this document free from errors.

then it MUST be the case that (a) (b) (c) 0 is a member of A The sum of all non-negative numbers of A is equal to the absolute value of the sum of all non-positive numbers N must be even and the number of non-negative numbers in A must be the same as the number of non-positive numbers in A ECOPOINT MA Economics Entrance Coaching Page 81 All care has been taken to keep this document free from errors. The median of the remaining n-2 observations is (a) (b) (c) (d) >m <m <m None of the above A4. y and z be arbitrary real numbers. Suppose n observations of variable yield n different values with median m.JNU Entrance Examination Papers JNU Entrance Exam www. then x-z>y-z if x>y. available from. You should have a copy of JNU papers available from JNU or DSE. then x. suppose the observations with the maximum value and the minimum value are omitted. Even though. then x/z>y/z if x>y. z>y. This document is for reference purposes only. please check JNU Sample papers for any errors. at least one of x and y is less than 2 Let x.ecopoint. then 1/x>1/y A3.in (d) A2. JNU or DSE Photostat shop. . Then we must have (a) (b) (c) (d) if x>y. If there are N distinct real numbers in a set A and their arithmetic mean is 0. z if x>y.

Even though. JNU or DSE Photostat shop. Consider the function y=x3 defined in the interval I= [-1. Suppose an unbiased dice is thrown repeatedly thirty times under identical conditions. X=0 is (a) (b) (c) (d) A point of local maximum in I A point of local minimum in I A point of local inflexion in I A point of global extremum in I A.6. What is the expected number of thrown in which the outcomes will be an even number greater than two or an odd number less than four? (a) (b) (c) (d) Eight Twelve Twenty Twenty four A7.JNU Entrance Examination Papers JNU Entrance Exam www. This document is for reference purposes only. please check JNU Sample papers for any errors.ecopoint. A includes 0 and the number of non-negative numbers in A is equal to the number of non-positive numbers in A A5. +1].in (d) N is odd. In a frequency distribution. available from. what percent of the total number of observations lies between the first and third quartiles? (a) 50 ECOPOINT MA Economics Entrance Coaching Page 82 All care has been taken to keep this document free from errors. . You should have a copy of JNU papers available from JNU or DSE.

where p is the unit price of the firm’s product in rupee. If the firm’s output in short -run equilibrium is 0. the inflation rate 5 percent. available from. what is the marginal cost of the firm at the equilibrium levels of output? (a) (b) (c) (d) 0-8 0-9 1-0 1-1 A14. JNU or DSE Photostat shop. Even though. please check JNU Sample papers for any errors. and the tax rate from interest 40%.in (b) (c) (d) 68 75 The question can’t be answered without knowledge of the specific distribution A12. Suppose that the nominal interest rate of an economy is 10%.JNU Entrance Examination Papers JNU Entrance Exam www. the equilibrium price of the commodity in the long run is (a) (b) (c) (d) 4 2 1 ½ A13.1 unit.ecopoint. The after-tax real rate of interest will be ECOPOINT MA Economics Entrance Coaching Page 83 All care has been taken to keep this document free from errors. You should have a copy of JNU papers available from JNU or DSE. This document is for reference purposes only. Suppose a monopolist firm faces a demand curve given by D(p)=1-p. The long-run cost function for a commodity sold in a perfectly competitive market is given by C(q)=q3-2q2+2q. .

You should have a copy of JNU papers available from JNU or DSE. Mr.700 crores. A uses his salary of Rs 2 lakhs of a month to buy AT&T shares to earn dividend. If the excess of private sector saving over investment in a year in an economy increases by Rs. . Even though.ecopoint. C: saving A: investment. c deposits his salary of Rs 2 lakhs of a month in a term deposit bank account to earn long-term interest. B: investment. B borrows Rs. This document is for reference purposes only. what is the change in the annual value of export of goods and services in the economy? (a) (b) (c) Increases by Rs 450 crores Increases by Rs 750 crores Decreases by Rs 450 crores ECOPOINT MA Economics Entrance Coaching Page 84 All care has been taken to keep this document free from errors. the net saving of the government sector in a yeardecreases by Rs 850 crores and the annual value of import of goods and services increases by Rs.2 lakhs from the bank to buy a new machine to expand his business. B: saving. Mr. Mr.in (a) (b) (c) (d) 1% 2% 3% None of the above A15. C: investment A: saving. In macroeconomics. available from. the action of A. B and C will be characterized as (a) (b) (c) (d) A: investment.600 crores. B: investment. JNU or DSE Photostat shop.JNU Entrance Examination Papers JNU Entrance Exam www. C: saving A: investment. C: investment A16. B: investment. please check JNU Sample papers for any errors.

Even though. The profit earned by Japanese shareholders of the firm form (a) (b) (c) (d) Part of Indian GDP and part of Japanese GNP Part of Indian GDP and part of Indian GNP Part of Indian GNP and part of Japanese GNP None of the above A18. available from. You should have a copy of JNU papers available from JNU or DSE. if the economy is in a liquidity trap and aggregate investment expenditure is unaffected by current income.in (d) A17. This document is for reference purposes only. 0 unit of B ECOPOINT MA Economics Entrance Coaching Page 85 All care has been taken to keep this document free from errors.0 unit of labour is required to produce a unit of commodity B.JNU Entrance Examination Papers JNU Entrance Exam www. .ecopoint. 0. and if the total amount of labour in the economy is 100 units. In the Is-LM model of an economy.5 units of A (and unaffected by how much the economy trades). how much of the commodities will the economy produce? (a) 200 units of A. JNU or DSE Photostat shop. a rise in government expenditure (other things remaining constant) would lead to a rise in the equilibrium value of (a) (b) (c) (d) The demand for money The rate of interest Aggregates savings Aggregate investment A19. In an economy where all commodities are produced with labour alone.5 unit of labour is required to produce a unit of commodity A and 1. If the international price of B is 2. please check JNU Sample papers for any errors. Decreases by Rs 750 crores Suppose Japanese shareholders own 49% and Indian shareholders 51% of the shares of a firm producing automobiles in India.

what must be the saving rate (in percent) in the economy? (a) 24 ECOPOINT MA Economics Entrance Coaching Page 86 All care has been taken to keep this document free from errors.ecopoint.14 units of B. Consider a closed controlled economy with unlimited supplies of labour in which the incremental capital-output ratio is 4 and the rate of population growth is 1.14 units of A. neither direct non indirect A22. This document is for reference purposes only. available from.04 units of B 57. If the economy wants to attain a growth rate of per capita income of 6% per annum. Even though. . 100 units of B A20.5% per annum.in (b) (c) (d) 57. The value Added Tax is (a) (b) (c) (d) a direct tax an indirect tax a partly direct and partly indirect tax a new type of tax.04 units of A 0 unit of A. please check JNU Sample papers for any errors. You should have a copy of JNU papers available from JNU or DSE.JNU Entrance Examination Papers JNU Entrance Exam www. 71. JNU or DSE Photostat shop. Which of the following is true for the government budget? (a) (b) (c) (d) The revenue deficit is always less than the budget deficit The revenue deficit is always less than or equal to the budget deficit The revenue deficit is always greater than or equal to the budget deficit None of the above A21. 71.

Saving rate in India is (a) (b) About 10 percent About 30 percent ECOPOINT MA Economics Entrance Coaching Page 87 All care has been taken to keep this document free from errors. Which of these used in calculating the human development index? (a) (b) (c) (d) Level of income measured by per capita GDP Educational attainment measured by literacy and school attendance Condition of health measured by life expectancy All of the above A24. Even though.JNU Entrance Examination Papers JNU Entrance Exam www. JNU or DSE Photostat shop. available from.5 30 36 A23. the National Rural Employment Guarantee Programme entitled (a) (b) (c) (d) 100 days of employment to all rural families in 200 districts of India 100 days of employment to all adult in 200 districts of India 100 days of employment to all rural families in India 100 days of employment to all adults in India A25.in (b) (c) (d) 27. In 2006-07.ecopoint. You should have a copy of JNU papers available from JNU or DSE. . please check JNU Sample papers for any errors. This document is for reference purposes only.

or processor two works or both processors work. Let X be a random variable denoting the prison sentence (in years) for people convicted of car theft. The probability that processor one works is ¾ and the probability that processor two works is 7/8. Even though. JNU or DSE Photostat shop. Which of the following two options would you prefer? Option I : You receive Rs. 2]. (b) Option II : You receive Rs. …p1n). 2]. Each question carries 5 marks B1. What is the expected prison sentence on being convicted for stealing a car? Let a consumer purchase the bundle Q0 = (q01.55 after one year B3. A computer has two processors.in (c) (d) About 50 percent About 70 percent SECTION-B Answer any nine questions. ECOPOINT MA Economics Entrance Coaching Page 88 All care has been taken to keep this document free from errors. please check JNU Sample papers for any errors. .ecopoint. Find the probability that processor one is working.000 is deposited in an account for 3 years at 11% rate of interest per year. Sketch a graph of the function y = ƒ(x) = loge x on the interval [1. Suppose that the maximum sentence for stealing a car is three years and that the probability density function of X is given by ƒ(x) = (1/9) x 2. 1. The computer will function if processor one works. B2. 1. available from.JNU Entrance Examination Papers JNU Entrance Exam www. You should have a copy of JNU papers available from JNU or DSE. 55 after six months and Rs. How much money would be there at the end of 3 years? Suppose that the market rate of interest is 11% per annum. This document is for reference purposes only. as usual). The following price index numbers may be defined: B4. …. q1n) at prices p1 = (p11. q0n) at prices p0 = (p01. after one year. Prove that z is in the interval [1.00. (a) Suppose Rs. …p0n) and the bundle Q1 = (q11. ….11. Find the value of z > O such that ƒi(2) = loge 2 (the prime denotes a derivative. given that the computer is functional. compounded annually. B5.

Suppose there are 4 alternative. z and w. You should have a copy of JNU papers available from JNU or DSE. Even though. 2. I = 1. In a competitive market. …. Further suppose that there are 7 individuals. then the consumer is no-worse off at (p1. Determine which of the alternatives are Pareto-optimal. 4. B6. 7 are given by R1 : R2 : R3 : R4 : R5 : R6 : R7 : (xy) zw yzwx zw(xy) (xy) (zw) yzwx zw(xy) (xy) (zw) B7. Q1. 6 and 7. Explain your answer. ECOPOINT MA Economics Entrance Coaching Page 89 All care has been taken to keep this document free from errors. Calculate the pre-tax and the post-tax equilibrium price and output. Ri. If Y < Pp.in Space for figure Now show that – (a) (b) If Y > P1. 1. available from. Q1). 5. y. the demand and supply curves of a product are given by qd = 200 – p and q2 = (1/2) p – 25. JNU or DSE Photostat shop.ecopoint. please check JNU Sample papers for any errors. The individuals’ rankings (orderings) of the four alternatives. then the consumer is no better off at (p1. This document is for reference purposes only.JNU Entrance Examination Papers JNU Entrance Exam www. There is an imposition of commodity tax of 30 per unit on the output. x. 3. . Also find out the incidence f tax burden on consumer and producer per unit of output.

what will be the level of income when with unchanged investment and taxrate. government expenditure is such that the budget is balanced? B10. what money supply should it set? B9. In an economy where 20 percent of income is taxed.ecopoint. P = 2. What happens to the equilibrium interest rate if the supply of money is raised from 1000 to 1200? If the Central Bank of the economy wants to raise the interest rate to 7 percent. Suppose the money demand function of an economy is Md/P = 1000 – 100r Where Md is the quantity of money demanded. what is the budget deficit. If the level of investment is 500 and government expenditure is 1100. You should have a copy of JNU papers available from JNU or DSE. then the former is preferred to the latter. JNU or DSE Photostat shop. consumption is 75 percent of post-tax income. You are given the following information about the Indian Economy: ECOPOINT MA Economics Entrance Coaching Page 90 All care has been taken to keep this document free from errors.in [Notation : Alternatives inside the parentheses are indifferent to each other. please check JNU Sample papers for any errors.JNU Entrance Examination Papers JNU Entrance Exam www. If an alternative is written to the left of another alternative. Let M denote the exogenously determined quantity of money in circulation. Even though. (a) (b) (c) Find the equilibrium interest rate if M = 1000. then – (a) (b) (c) what is the level of income.] B8. . P denotes the price level and r the rate of interest (in percentage). This document is for reference purposes only. available from.

since the attempt to do so will necessarily raise incomes to a level at which the sums which individuals choose to save add up to a figure exactly equal to the amount of investment. that. available from. Every such attempt to save more by reducing consumption will so affect incomes that the attempt necessarily defeats itself. This document is for reference purposes only. ECOPOINT MA Economics Entrance Coaching Page 91 All care has been taken to keep this document free from errors. You should have a copy of JNU papers available from JNU or DSE. just as impossible for the community as a whole to save less than the amount of current investment. and what change. (c) SECTION – D Answer all the questions of D1. of course.” (J. please check JNU Sample papers for any errors. . fall.JNU Entrance Examination Papers JNU Entrance Exam www. M. employment and productivity. This section carries 10 marks D1. when an individual saves he increases his own wealth. answer the following questions: (a) (b) Can an individual increase his wealth by saving more? Can an individual increase aggregate wealth by saving more? Explain your answer in not more than two sentences of your own.in SPACE FOR TABLE (a) (b) Which sector registered the highest productivity (output per worker) in 1990 and which showed the lowest? In what direction – raise. JNU or DSE Photostat shop. It is. or neither – did productivity change in these sectors over the period 1990 to 2005. is seen in the ranking of the sectors by productivity comparing 2005 with 1990? Explain the economic reasons for the observed trends in output. if any. “It is true. the reactions of the amount of his consumption on the incomes of others makes it impossible for all individuals simultaneously to save any given sums.ecopoint. Keynes) On the basis of the above passage. But the conclusion that he also increases aggregate wealth fails to allow for the possibility that an act of individual saving may react on someone else’s savings and hence on someone else’s wealth… For although the amount of his own saving is unlikely to have any significant influence on his own income. Even though.

available from. JNU or DSE Photostat shop. Even though. ECONOMICS PART – A 1. This document is for reference purposes only. You should have a copy of JNU papers available from JNU or DSE.ecopoint.JNU Entrance Examination Papers JNU Entrance Exam www. . The long-run equilibrium in a competitive industry is taken to be where (a) (b) Price=LRMC Price=LRAC ECOPOINT MA Economics Entrance Coaching Page 92 All care has been taken to keep this document free from errors. 2004 M. The isoquants are taken to be download sloping because (a) (b) (c) (d) It is assumed that the marginal products are positive It is assumed that the marginal products are negative Constant returns to scale is assumed Of diminishing returns to factors 2. please check JNU Sample papers for any errors.A.in (c) (d) (e) (f) What happens when the community as a whole decides to save less than the current investment? Does an individual’s decision to save more affect his own income? Can all individuals end up with a higher aggregate saving by deciding simultaneously to consume less and save more? Can all individuals end up with a lower aggregate saving by deciding simultaneously to consume more and save less? ENTRANCE EXAMINATION.

available from.JNU Entrance Examination Papers JNU Entrance Exam www. For a competitive firm.x2.. the short-run supply curve is given by (a) (b) (c) (d) Short-run MC curve Short-run MC curve above the short-run average cost curve Upward portion of the short-run average cost curve Upward portion of the short-run average cost curve above the short run average variable cost curve 4. Even though.ecopoint. .in (c) (d) Price=min LRAC Price=min LRMC 3.…….xn are non-negative real numbers. please check JNU Sample papers for any errors.5 (Geometric mean) There is no fixed relationship between Arithmetic mean and Geometric mean 5. In the rural economy of India cover the 1990s (a) (b) The rate of employment growth has been about the same as the rate of population growth The rate of employment growth has been greater than the rate of population growth ECOPOINT MA Economics Entrance Coaching Page 93 All care has been taken to keep this document free from errors. If x1. then (a) (b) (c) (d) Arithmetic mean > Geometric mean Arithmetic mean < Geometric mean Arithmetic mean=0. This document is for reference purposes only. You should have a copy of JNU papers available from JNU or DSE. JNU or DSE Photostat shop.

there is no technical progress and there are constant returns to scale (a) (b) (c) (d) The warranted rate of growth is greater than the natural rate of growth The warranted rate of growth is lower than the natural rate of growth The economy will grow at 3% rate of growth The economy will grow at more than 3% rate of growth 8. population growth rate is 3%. You should have a copy of JNU papers available from JNU or DSE. The tax GDP ratio of Government of India changed between 1991 and 2003 from (a) 8. . Even though. please check JNU Sample papers for any errors. JNU or DSE Photostat shop. the Gini Coefficient will be (a) (b) (c) (d) 0 1 Infinity 0.ecopoint.JNU Entrance Examination Papers JNU Entrance Exam www.5% to 15% ECOPOINT MA Economics Entrance Coaching Page 94 All care has been taken to keep this document free from errors.5 7. This document is for reference purposes only. In a society with perfectly equality in the distribution of wealth. Assume that the saving propensity is 18%. incremental capital-output ratio is 5. available from.in (c) (d) The rate of employment growth has been lower than the rate of population growth There is no data on employment in this period 6.

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(b) (c) (d)

15% to 8.5% 11% to 9.5% 9.5% to 11%

9.

The proposition that public investment ‘crowds out’ private investment is based on the assumption that (a) (b) (c) (d) Public and private investment compete because they are invested in the same sector of the economy There already exists excess capacity in the public sector units There already exists excess capacity in the private sector units There is full employment of resources like labour and machinery

10.

The smoot-Hawley tariff wad significant because it affected (a) (b) (c) (d) Steel imports into the USA in 2001 Textile imports from the UK to the USA in 1928 Banana imports from the Caribbean to the USA in 1998 Most imports into the USA from 1930s

11.

The Charter Act referred to (a) (b) The Charter of demands drawn up by Paine in the American Revolution The act conferring monopoly trading rights on the East India Company

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(c) (d)

The people’s Charter drawn up by the Chartists in Britain in the 19 th century The common term for the Magna Carta

12.

Which comes closest to the stock of foreign exchange reserves in India now? (a) (b) (c) (d) Less than 25 billion dollars Between 25 and 50 billion dollars Between 50 and 75 billion dollars Greater than 75 billion dollars

13.

On whose idea was the second Five-year Plan based? (a) (b) (c) (d) P.C. Mahalanodis A.K. sen VKRV Rao None of the above

14.

Trend rate of growth of the index of industrial production during the 1990s as compared to the 1980s was (a) (b) (c) Close to double Almost the same Close to half

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(d)

None of the above

15.

Which of the following is not a measure of inequality (a) (b) (c) (d) Median Coefficient of variation Range Gini Coefficient

16.

The number of permutations of n distinct objects arranged in a circle is (a) (b) (c) (d) n! (n- 1)! (n- 2)! None of the above

17.

A customer makes a choice randomly and independently among three dishes A, B and C and there beverages X, Y and Z in a restaurant. She selects one dish and one beverage. What is the probability that she will select dish A and beverage X? (a) (b) (c) 2/3 1/3 1/6

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(d)

1/9

18.

The coefficient of variation of income of people in a country is %. Due to change in units of currency, everybody’s income is doubled. The coefficient o f variation will now become (a) (b) (c) (d) 10 5 12 12/5

19.

Let x > 0. Then (a) (b) (c) (d) Log x > x always Log x < x always Log x is a fixed proportion of x None of the above

20.

Which Five-year Plan is currently going on in India? (a) (b) (c) 9th 10th 11th

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You should have a copy of JNU papers available from JNU or DSE. (P’ < 0) and a cost curve C(x). Each question is of 5 marks. This document is for reference purposes only..000 ECOPOINT MA Economics Entrance Coaching Page 99 All care has been taken to keep this document free from errors.. Let S (n) denote the sum of first n positive integers.. Prove that it will always choose a price that will exceed MC whenever it produces a positive a positive level of output 24.(iii) A+2=0…. The following data are given for an economy: GDP at factor cost = 10.(v) 2=-2…. please check JNU Sample papers for any errors. Prove by the method of induction that S(n)=1/2n (n+1) 23.(i) A2-4=0……(ii) (A-2) (A+2)=0…. (C’(x)>0 and C”(x)>0) where x is quantity. A monopolist solves the profit maximizing problem given an inverse demand curve P=P(x).in (d) None of the above PART-B ( This Part has 12 questions..(vi) 4=0….) 21.(vii) 22. available from. Identify the erroneous steps in the problem below and provide explanations: Let A=2…. . Even though.JNU Entrance Examination Papers JNU Entrance Exam www.ecopoint.(iv) A=-2…. JNU or DSE Photostat shop. You are required to do any 9 out of 12 questions.

JNU Entrance Examination Papers JNU Entrance Exam www. starting from some initial situation. how much do private savings increase by? ECOPOINT MA Economics Entrance Coaching Page 100 All care has been taken to keep this document free from errors. You should have a copy of JNU papers available from JNU or DSE. In a closed economy consumption is given by C=1000+0. Even though. available from. how much does the tax revenue increase by. how much does fiscal deficit increase by. JNU or DSE Photostat shop. then – (a) (b) (c) (d) (e) how much does income increase by. The income tax rate is uniformly 25% on all income. .ecopoint. This document is for reference purposes only. If investment in this economy rises by 500 and government expenditure by 100. how much does consumption increase by. 25.8 (Y-T) where Y denotes income and T the revenue from income tax.in Net current account balance = -500 Gross investment = 2000 Net factor incomes from abroad = -800 Depreciation = 1000 Net indirect taxes = 1300 Calculate: (a) (b) (c) (d) (e) GDP at market prices GNP at market prices Gross savings Net savings NNP at factor cost. please check JNU Sample papers for any errors.

JNU or DSE Photostat shop.ecopoint. . please check JNU Sample papers for any errors. The following data for an economy are given: Merchandise exports = 500 Merchandise imports = 400 Exports of services = 150 Imports of services = 100 Income receipts on assets abroad = 100 Income payments of foreign assets = 150 Net unilateral transfers = -10 Change in assets abroad = 500 Change in foreign assets held in a country = 400 Calculate – (a) (b) (c) (d) the merchandise trade balance. the balance on current account. This document is for reference purposes only.in 26. Consider the following evidence on labour requirements per unit or output: Case – 1 Case – 2 ECOPOINT MA Economics Entrance Coaching Page 101 All care has been taken to keep this document free from errors. 27. Even though. the balance on investment income.JNU Entrance Examination Papers JNU Entrance Exam www. available from. the statistical discrepancy. You should have a copy of JNU papers available from JNU or DSE.

JNU Entrance Examination Papers JNU Entrance Exam www. y) = min (x.in UB Beer Chips (a) (b) 28. how much would the equilibrium income of the country increase by and why? 30. Indicate in each case.ecopoint. the commodity in which each country has comparative advantage. A fair dice is being rolled.6 and the government decides to increase its expenditure by 100 local currency units. You should have a copy of JNU papers available from JNU or DSE. then prove that their geometric mean is equal to the geometric mean of their arithmetic and harmonic means. Prove that 0. 4 1 Mexico 1 2 Beer Chips US 4 2 Mexico 2 1 In each case indicate. What is the probability that a six appears in at most n attempts? 32.999999 … = 1 31. Even though. ECOPOINT MA Economics Entrance Coaching Page 102 All care has been taken to keep this document free from errors. If the marginal propensity to consume in a closed economy is 0. What is his optimum choice of commodity bundle? 29. JNU or DSE Photostat shop. available from. . If x and y are two positive numbers. the commodity in which each country has absolute advantage/disadvantage. A customer’s utility function is given as follows: U(x. please check JNU Sample papers for any errors. This document is for reference purposes only. y) His total income is 100. price of x is 2 and price of y is 3.

We define two random variable X1 and Y. This document is for reference purposes only. I the multiplication problem A. J stand for distinct integer. G. F. if the I the roll gives an odd number =0.JNU Entrance Examination Papers JNU Entrance Exam www.in PART – C (This Part has 4 questions. D. A based dice is rolled independently three times with the probability of an even number appearing being twice that of an odd number. C. Find values and provide explanations: C D 9 F 4 G -------------------------J A 4 D 4 C 4 B A G F D A C J -------------------------B B 4 O 4 B 4 -------------------------A B 34. B. Find the probability distribution of Y.ecopoint. O stands for zero. . You should have a copy of JNU papers available from JNU or DSE. JNU or DSE Photostat shop. otherwise Y = X1+X2+X3 (a) (b) Find the probability distribution of Xi. Each question is of 10 marks. X1=1. Even though. E. available from. ECOPOINT MA Economics Entrance Coaching Page 103 All care has been taken to keep this document free from errors. You are required to do 2 out of 4 questions) 33. please check JNU Sample papers for any errors.

Below are given the forecasts made by these students: A: D will win the logic contest B: C will win the economics contest C: A will not win the mathematics contest D: B will win the literature contest. available from. literature and economics contests and each one of them won one contest. 36. Hoe does the Government of India define the poverty line? Do you agree with it? Discuss. You should have a copy of JNU papers available from JNU or DSE. C.JNU Entrance Examination Papers JNU Entrance Exam www. D competed in mathematics. It turned out that the forecasts made by the winners of the literature and economics contests were wrong.ecopoint. Four students A.in (c) What are the mean and variance of Y? 35. logic. ECOPOINT MA Economics Entrance Coaching Page 104 All care has been taken to keep this document free from errors. and those made by the winners of the mathematics and logic contests were right. JNU or DSE Photostat shop. This document is for reference purposes only. July 02 –November 03. Who an essay on any one of the following five topics: (a) (b) (c) Why are prices for comparable good lower in poorer countries? Discuss the relation between the Great Depression and Keynes’ theory. Explain why the largest exports of foodgrains (17 million tones) in India’s history of the entire past century took place in the period.D 37. B. please check JNU Sample papers for any errors. although there was a severe drought and output was 15% lower than in the previous year. Who won which contest? PART . Even though. .

Discuss the concept of exploitation in Marx. Indifference curves are downward-sloping: (a) (b) (c) (d) because both goods are assumed to be desirable because of the assumption of diminishing marginal utility because of the assumption of diminishing marginal rate of substitution because of the assumption that prices are positive. ENTRANCE EXAMINATION. available from.JNU Entrance Examination Papers JNU Entrance Exam www.A. You should have a copy of JNU papers available from JNU or DSE. ECONOMICS PART – A (This Part has 20 multiple-choice questions. Even though. 2. JNU or DSE Photostat shop. You are required to do all 20 questions) 1. .in (d) (e) Discuss the rationale of the strategy of import substituting industrialization in India during the 1950s and 1960s. 2003 M. Each question is of 1 mark.ecopoint. If marginal cost is increasing then (a) (b) it is necessarily the case that average cost is increasing it is necessarily the case that average cost is decreasing ECOPOINT MA Economics Entrance Coaching Page 105 All care has been taken to keep this document free from errors. please check JNU Sample papers for any errors. This document is for reference purposes only.

Employment : 200. . Even though. The random variable X has two properties : (i) the mean of X is 2.JNU Entrance Examination Papers JNU Entrance Exam www. The rate of profit in the economy is (a) (b) (c) (d) 3% 10% 20% There is not enough information to calculate the rate of profit.ecopoint.4. This document is for reference purposes only. 3. Output-capital ratio : 0. Capital Stock : 1000. please check JNU Sample papers for any errors. Wage rate : 1. You should have a copy of JNU papers available from JNU or DSE. and (ii) the mean of X2 in 9. In an economy where capital and labour are the only factors of production. Between two periods in a closed economy everybody’s propensity to save (a) (b) (c) (d) savings double income doubles savings remain unchanged income remains unchanged 4.in (c) (d) it is necessarily the case that average cost is constant None of the above. What is the variance of 4X? (a) 80 ECOPOINT MA Economics Entrance Coaching Page 106 All care has been taken to keep this document free from errors. we have for a particular period. available from. 5. JNU or DSE Photostat shop.

What is the probability that both drawn balls are red? (a) (b) (c) (d) 2/5 4/25 3/10 1/10 7. Even though. available from. At (p*. What is the monopolist’s profit maximizing q? (a) (b) (c) (d) The problem does ot have a solution. A monopolist manufactures widgets. This document is for reference purposes only.in (b) (c) (d) 20 144 112 6.q*) is a monopolist’s profit maximizing price quantity choice. 1 Infinity 0 8. You should have a copy of JNU papers available from JNU or DSE. The inverse demand curve for widgets is p(q) = 20/q.ecopoint. The total cost C(q) of producing q units is C(q) = 10q.q*). the absolute value of price elasticity of market demand is ECOPOINT MA Economics Entrance Coaching Page 107 All care has been taken to keep this document free from errors. . You draw two balls without replacement from the urn. where p denotes the market price of widgets. q that the monopolist produces must be a non-negative integer. The quantity. please check JNU Sample papers for any errors. In a particular market. (p*.JNU Entrance Examination Papers JNU Entrance Exam www. An urn contains 3 black balls and 2 red balls. JNU or DSE Photostat shop.

in (a) (b) (c) (d) zero one between zero and one greater than one 9. please check JNU Sample papers for any errors. .. y = minimum of y. ] i. Populations of two species A and B at time O are equal. and xj is the smallest number in column A] and y the smallest of the largest number in each row [i. u>0. 2 …. …. JNU or DSE Photostat shop. m and y.e. available from. let x denote the largest of the smallest number in each column [i.ecopoint. You should have a copy of JNU papers available from JNU or DSE.e. 10. This document is for reference purposes only. 2. In a rectangular array (matrix) of distinct positive numbers. (a) (b) (c) (d) x>y y>x x =y None of the above. Even though.. Then one can infer. then a’ time 1 the population of species B would be (a) (b) (c) (d) twice the population of species A log 10 times of the population of species A cu times the population of species A e times the population of species A ECOPOINT MA Economics Entrance Coaching Page 108 All care has been taken to keep this document free from errors. is the largest number in row 1]. 1. x = maximum of (xj | j ε (1.JNU Entrance Examination Papers JNU Entrance Exam www.e. If the instantaneous rates of growth of populations of species A and B are u and u + 1 respectively. which has m rows and n columns.

available from. by the government are used to build roads and bridges. please check JNU Sample papers for any errors.in 11. Suppose in both the closed economics A and B annual real income (Y) is equal to the sum of annual real consumption expenditure (C) and annual real government expenditure (G). This document is for reference purposes only. Gross domestic savings rate of the Indian economy is approximately (a) 23% ECOPOINT MA Economics Entrance Coaching Page 109 All care has been taken to keep this document free from errors.ecopoint. . B : 200 A : 400. while in A the goods and services purchased. What are the equilibrium levels of Y in A and B? (a) (b) (c) (d) A : 400. You should have a copy of JNU papers available from JNU or DSE.JNU Entrance Examination Papers JNU Entrance Exam www. in B they are used for birthday celebrations of public servants. However. Even though. C=100+0 SY and the government purchases 100 units of final goods and services per year. JNU or DSE Photostat shop. Suppose in both A and B. B : 200 A : 200. B : 400 A : 200. B : 400 12. Current account balance of payments deficit of an open economy is (a) (b) (c) (d) deficit of foreign trade + inflow of foreign direct investment imports of goods and services -0 exports of goods and services + depletion of foreign exchange reserve imports of goods and services – exports of goods and services + external assistance and foreign commercial borrowing imports of goods and services – exports of goods and services – net remittances out of factor incomes received from abroad 13.

ecopoint. How many different pairs of Presidents and Vice-Presidents can the society possibly have? (a) (b) (c) (d) 1200 1152 1920 None of the above. Every year the society elects two members as its President and Vice-President.5 ECOPOINT MA Economics Entrance Coaching Page 110 All care has been taken to keep this document free from errors. please check JNU Sample papers for any errors. the ZONK of the set is defined to be the average of the maximum and the minimum numbers in the set. Even though. the GRAND ZONK of the set is defined to be the maximum of the ZONKs of all possible subsets of five real numbers included in this set. integers? (a) (b) (c) 7. 14. This document is for reference purposes only.5 5 2. Three-fifth of dog-lovers and one-fifth of cat-lovers are male. What is the GRAND ZONK of the set consisting of the first ten positive. The Society for Prevention of Cruelty to Cats and Dogs has 100 members of whom 60 members love dogs more than cats and 40 members love cats more than dogs. 15. . Give a set of five distinct real numbers. Given a set of ten distinct real numbers. available from. JNU or DSE Photostat shop.JNU Entrance Examination Papers JNU Entrance Exam www. The post of President is reserved for a dog-lover while the post of Vice-President is reserved for a female catlover.in (b) (c) (d) 30% 19% None of the above. You should have a copy of JNU papers available from JNU or DSE.

. JNU or DSE Photostat shop. This document is for reference purposes only.ecopoint. Bhopal. In a year’s time both the indices increased by 15 [i. Even though. None of the above. Lucknow. The secondary sector of the economy is approximately 50% of the GDP. Which of the following is a possible sequence of combinations for the salesman to visit in two successive years? (a) Year 1 : Pune.in (d) None of the above. Chandigarh. Bangalore. . ECOPOINT MA Economics Entrance Coaching Page 111 All care has been taken to keep this document free from errors. 17. 18. The tertiary sector of the economy is approximately 50% of the GDP. Year 2 : Bangalore.e. In 1990-91. 16. the price index of agricultural commodities became 215 and that of manufactured products 165] Consequently. available from. the terms of trade between agriculture and industry (a) (b) (c) (d) moved in favour of agriculture moved in favour of industry remained unchanged None of the above. please check JNU Sample papers for any errors. Which one of the statements given below is correct for the year 2000-2001? (a) (b) (c) (d) The primary sector of the economy is approximately 50% of the GDP. the price index of agricultural commodities was 200 and that of manufactured products 150.JNU Entrance Examination Papers JNU Entrance Exam www. You should have a copy of JNU papers available from JNU or DSE.

JNU Entrance Examination Papers JNU Entrance Exam www. the salesman visits Pune. Bhopal and Lucknow. Bhopal. Bhopal. Bhopal and Lucknow. ECOPOINT MA Economics Entrance Coaching Page 112 All care has been taken to keep this document free from errors. Lucknow. Bhopal. Bangalore and Chandigarh in the first year. available from.in (b) (c) (d) Year 1 : Pune. Bangalore. I. Chandigarh and Bhopal Chandigarh.ecopoint. . 19. Year 2 : Pune. Lucknow and Bhopal in the first year. Chandigarh Year 1 : Bangalore. You should have a copy of JNU papers available from JNU or DSE. Bangalore and Bhopal Pune. Bangalore and Chandigarh Pune. Year 1 : Pune. 20. Lucknow. Bangalore. Bangalore. Year 2 : Pune. which of the following combination must be visited in the eleventh year? (a) (b) (c) (d) Pune. please check JNU Sample papers for any errors. Even though. Lucknow and Bhopal Pune. Lucknow. Bangalore and Bhopal Pune. JNU or DSE Photostat shop. Year 2 : Pune. This document is for reference purposes only. which of the following combinations must be visited in the third year? (a) (b) (c) (d) Pune. Bhopal. Chandigarh and Bhopal Chandigarh. Chandigarh. If the salesman visit Pune.

(i) Each of 1000 buyers has the following demand function: Demand = = (ii) 0 if price (p) > 100 100 – 2p if 0 ≤ p 100 Each of 500 buyers has the following demand function: Demand = = 0 if p > 100 200 – 2p if 0 ≤ p ≤ 100 (iii) Each of the remaining 500 buyers has the following demand function: Demand = = 0 if p > 100 400 – 4p of 0 ≤ p ≤ 100 (iv) Each of the 2000 sellers has the following supply function: Supply = = (a) (b) 0 if p < 1 2p – 2 if p ≥ 1 Find market demand and supply functions.ecopoint. Even though. Calculate the market equilibrium price and quantity. JNU or DSE Photostat shop.in PART – B [This part has 12 questions. ECOPOINT MA Economics Entrance Coaching Page 113 All care has been taken to keep this document free from errors. This document is for reference purposes only. available from. You should have a copy of JNU papers available from JNU or DSE. The market for a particular good consists of 2000 buyers and 2000 sellers. Each question is of 5 marks.JNU Entrance Examination Papers JNU Entrance Exam www. You are required to do any 9 out of 12 questions] 21. . please check JNU Sample papers for any errors.

however.33 5. 10) by a competitive firm: Output 1 2 3 4 5 6 7 8 9 10 Average Cost 11.50 5. JNU or DSE Photostat shop. A’s house number. You should have a copy of JNU papers available from JNU or DSE. A’s house ECOPOINT MA Economics Entrance Coaching Page 114 All care has been taken to keep this document free from errors.00 5. Both these facts are known to all three individuals B asks A.50 It is also given that the total variable cost of producing B units of output is 36. The following table shows the average cost of producing n units of output (n u 1. two questions : (i) “Is your house number a perfect square? (ii) ‘Is your house number greater than 50?’ Assuming A’s answers to be correct. when B is not present. .in 22. is not the same as inferred by B because A answered only the second question truthfully. This document is for reference purposes only.43 5.11 6. (a) (b) (c) (d) What is the total cost of producing 5 units of output? What is the average variable cost of producing 4 units of output? What is the marginal cost of producing the 9 th unit of output.00 6. when C is not present. …. two questions: (i) ‘Is your house number a perfect cube?’ (ii) ‘Is your house number greater than 25?’ Assuming A’s answers to be correct.75 6.00 5.JNU Entrance Examination Papers JNU Entrance Exam www. 2. The house numbers of three individuals A. available from. B and C are (i) distinct from each other and (ii) lie between 1 and 99. Even though.ecopoint. C is able to infer the house number of A from the answers to the two questions given by A. C asks A.17 5. please check JNU Sample papers for any errors. B is able to infer the house number of A from the answer to the two questions given by A. What is the profit maximizing output for the firm if the market price of the good is 6? 23.

You should have a copy of JNU papers available from JNU or DSE. JNU or DSE Photostat shop.ecopoint. Suppose that in short-run equilibrium in an economy. when the amount of capital is fixed at K*. available from. In the long run (month) when both inputs can be varied. I* : arbitrary positive amount of investment]. (a) At the beginning of the month of January. Show that the value of the investment multiplier in the economy is inversely related to the value of I* 25.25. however. Y=C+I where C=Y 1/2 and I = I* (Y : flow of real income.JNU Entrance Examination Papers JNU Entrance Exam www. . The market supply curve is given by : QS=3Ps where Ps is the price received by suppliers. Deduce the house numbers of the three individuals given that (i) A’s house number is less than the house numbers of both B and C and (ii) the sum of the house numbers of the three individuals is a perfect square multiplied by two. Petrol is sold in a competitive market. please check JNU Sample papers for any errors. the total cost of producing Y machine tools is 20Y 2. The market demand for petrol is given by : QD=100-2Pc where Pc is the price paid by consumers. Labour can be hired at the beginning of every week while capital can be hired only at the beginning of every month Wage rate = rental rate of capital = 10. C : flow of real consumption expenditure. 24.in number. Even though. This document is for reference purposes only. What is the long-run profit maximizing number of machine tools? How many units of L and K should be the firm hire at the beginning of January? Suppose at the beginning of the third week of January. Given the above information the short run (week) total variation cost of producing Y machine tools is 10Y 4 / K*.20. What is the new short-run profit maximizing level of output? How many extra units of L will the firm hire for the rest of January? (b) 26. A price taking firm makes machine tools (Y) using labour (L) and capital (K) according to the production function: Y=L0. the firm is making long-run decisions given that the price of machine tools is 400. 1 : flow of planned real investment expenditure. is not the same as inferred by C because A answered only the second question truthfully.25 K0. the price of machine tools increases to 691. ECOPOINT MA Economics Entrance Coaching Page 115 All care has been taken to keep this document free from errors.

A fisherman takes the action [stay home ………the lake] that maximizes his net income. his net income is 0. The cost of sending a boat out to the lake is 1. the total fish caught is ƒ(b) – 10b” (so each boat catching ƒ(b) / b fish). It is known that (i) Vy is strictly larger than 1 (ii) the variance of Z is 1. respectively. A and B own equal number of camels. The price at which a fish can be sold is 2. A community of fishermen has access to a lake. what price do the consumers pay. and the price of a goat is greater than 2 and less than 10. X and Y are independent random variables. Price of a sheep is 10. The amount of money they obtain by selling the camels is just sufficient to buy an odd number of sheep and one goat. . In the new post-tax equilibrium. This document is for reference purposes only. Determine the price of a goat.ecopoint.in (a) (b) If there are taxes on petrol. Together A and B sell all the camels. Let the random variable Z be defined to be [aX + bY] where a and b are two positive real numbers. Price of a camel is the same as the total number of camels owned by A and B. and (iii) the covariance between Y and Z is 1. available from. ECOPOINT MA Economics Entrance Coaching Page 116 All care has been taken to keep this document free from errors. Should b fishermen go out to catch fish (that is. In terms of Vx and Vy what are a and b? 29. You should have a copy of JNU papers available from JNU or DSE. what will be the equilibrium price and quantity? Suppose the government imposes a unit tax of 1 per unit of petrol. and what price do the suppliers receive? How many units of period are sold? 27. please check JNU Sample papers for any errors. Even though.JNU Entrance Examination Papers JNU Entrance Exam www. how many boats will be on the lake? …………………………………… (b) 28. Let Vx and Vy denote the variance of X and Y. This price is unaffected by the level of the catch from the lake. there are b boats on the lake). his no income is : [market value of his catch] – [cost of 1]. (a) If a fisherman stays house. In equilibrium. If a fisherman takes a boat to the lake. JNU or DSE Photostat shop.

You are required to do 2 out of 3 questions. Calculate the sum: 12 + 22 + … + n 2 32. A crime has been committed by one of the four individuals X. Even though. ECOPOINT MA Economics Entrance Coaching Page 117 All care has been taken to keep this document free from errors.) 33. Let ƒ and g be two functions defined for all real numbers. The number of true statements in any set is different from the number of true statements in any other set.JNU Entrance Examination Papers JNU Entrance Exam www.in 30. JNU or DSE Photostat shop.Compute the following: (a) (b) (c) (d) (e) ƒ(2) / g(2) ƒ[g(2)] g[ƒ(2)] ƒ(t)g(-t) ƒ(-t)g(t) 31. Below are given 4 sets of 4 statements each. then |x + y | s | x | + |y| PART – C (This Part has 3 questions. This document is for reference purposes only. Determine which one of them is guilty. Each question is of 10 marks. available from. please check JNU Sample papers for any errors. Prove: If x and y are real numbers.ecopoint. Y. . You should have a copy of JNU papers available from JNU or DSE. where ƒ(x)=1+x and g(x)=1-x. Z and W.

Square root of 11 is an irrational number.ecopoint. JNU or DSE Photostat shop. ECOPOINT MA Economics Entrance Coaching Page 118 All care has been taken to keep this document free from errors. please check JNU Sample papers for any errors. Even though. If two events are mutually exclusive then they are independent. You should have a copy of JNU papers available from JNU or DSE. This document is for reference purposes only. If a and b are real numbers then a / b is a real number. If a. If a and b are complex numbers and neither of them is a real number then a+b is also a non-real complex number. . If a is a real number then a2≥ a. Y has committed the crime.JNU Entrance Examination Papers JNU Entrance Exam www.in Set A: (a) (b) (c) (d) Set B: (a) (b) (c) (d) Set C: (a) (b) (c) (d) Set D: (a) (b) There is a real number such that |x+5| = |x+6|. If a < b then 1 / a > 1 / b Z has committed the crime. c are real numbers and a>b then a-c>b-c. There is no real number x such that x4 + 2x2 + 1 = 0. b. X has committed the crime. available from. If a is a positive rational number and b is a negative irrational number then ab is an irrational number. If both real numbers a and b are non-integers then a+b is also a non-integer real number.

five individuals made forecasts. A: B: C: D: E: ‘Neither E nor 1 stole the chocolate bar. For a race.JNU Entrance Examination Papers JNU Entrance Exam www. Statements by individual 3 : D will win a medal. 35.’ ‘Both A and B are lying.’ ‘C’s statement is not true. E will win a medal. Statements by individual 2 : C will win a medal D will not win a medal.’ ‘It was A or C who stole it. Determine who won which medal. and two of them always untruthfully. B will not win the silver medal. Find out which of the boys stole the chocolate bar. Statements by individual 4 : D will not win the silver medal. C will not win a medal.in (c) (d) Every positive real number has two distinct real square roots. JNU or DSE Photostat shop. or E. a chocolate bar was stolen by one of the five boys A. During the lunch hour at a school. Even though. . E will not win the bronze medal. Three of the boys always speak truthfully.ecopoint. B. D. Statements by individual 5 : A will win a medal. W has committed the crime. 34. C. one of A and B is lying and the other is speaking the truth. at least one of which turned out to be false. available from.’ ECOPOINT MA Economics Entrance Coaching Page 119 All care has been taken to keep this document free from errors. This document is for reference purposes only. Statements by individual 1 : A will not win the gold medal. The statements made by the five boys are given below. please check JNU Sample papers for any errors.’ ‘What D said is wrong. Each of them made two statements. You should have a copy of JNU papers available from JNU or DSE.

other things remaining the same. available from. JNU or DSE Photostat shop. The Public Distribution System in India.ecopoint. Even though. Demand necessarily falls as price rises. Causes of Unemployment in India.A. other things remaining the same. 1 ECOPOINT MA Economics Entrance Coaching Page 120 All care has been taken to keep this document free from errors. 2002 M. An Interior good is a good for which (a) (b) (c) (d) Demand necessarily rises as price rises. other things remaining the same. Parliamentary Democracy. The Impact of Trade in Agriculture on Indian Agriculture. Write an essay on any one of the following five topics: (a) (b) (c) (d) (e) The idea of Sustainable Development. You should have a copy of JNU papers available from JNU or DSE. Demand necessarily rises as income rises.in PART – D 36. ECONOMICS PART – A 1. please check JNU Sample papers for any errors. This document is for reference purposes only. Demand necessarily falls as Income rises. .JNU Entrance Examination Papers JNU Entrance Exam www. other things remaining the same. ENTRANCE EXAMINATION.

1. Assuming that Payasia had no stocks of rice and milk at the beginning of the year 2001. JNU or DSE Photostat shop. the individual will purchase every week. 800 worth of payasam were produced. 1. 2. 100 units of good y.100 1 4.600 Rs. In a closed economy.ecopoint. 300 worth of milk were used up to produce the payasam that year. y). if either x > x’ or if x = x’ and y > y’. the marginal propensity to consume halves but the level of investment remains the same. 50 units of good x. Even though. rice and payasam (made out of milk and rice).JNU Entrance Examination Papers JNU Entrance Exam www. at the new equilibrium. 600 worth of milk and Rs. (a) (b) (c) (d) 25 units of good x and 50 units of good y. available from. y) and (x’ y’) in the following manner.400 Rs. Rs.900 Rs. 200 worth of rice and Rs. You should have a copy of JNU papers available from JNU or DSE. in comparison to the earlier one. Given that the individual has an Income of Rs.1. Payasia is a closed economy in which only three commodities are produced. the GNP in Payasia in 2001 was (a) (b) (c) (d) Rs. Rs. 100 per week and the price of good x is Rs. 2 per unit while the price of good y is Re 1 per unit.000 worth of rice. This document is for reference purposes only. In the year 2001.in 2. . An individual ranks any two bundles (x. Rs. the individual prefers (x. ECOPOINT MA Economics Entrance Coaching Page 121 All care has been taken to keep this document free from errors. milk. 2. 1 3. 45 units of good x and 10 units of good y. y) to (x’. please check JNU Sample papers for any errors. Assuming all other things do not change.

200 Rs. 1 7. . 1 6.in (a) (b) (c) (d) Savings doubles. You should have a copy of JNU papers available from JNU or DSE.ecopoint. Suppose that GNP at current prices in a country in the year 2002 was Rs. 125 Rs. per capita GDP of India. 175. The probability of drawing an ace from a well shuttled pack of cards ECOPOINT MA Economics Entrance Coaching Page 122 All care has been taken to keep this document free from errors. available from. Even though.000 Rs. We cannot necessarily claim any of the above.000 Rs. 20. In 2000-01. Than the GNP for this country at constant 1990 prices was (a) (b) (c) (d) Rs.000 Rs. 50 Rs. Savings is unchanged. in current prices was about (a) (b) (c) (d) Rs. 1 5. 2. This document is for reference purposes only.JNU Entrance Examination Papers JNU Entrance Exam www. 30. JNU or DSE Photostat shop. Income halves. the implicit GNP deflator (base 1990 = 100) for the year 2002 in this country was 125.000. 250. please check JNU Sample papers for any errors. 10.

JNU Entrance Examination Papers JNU Entrance Exam www. JNU or DSE Photostat shop. You should have a copy of JNU papers available from JNU or DSE.in (a) (b) (c) (d) 1/28 1/52 1/13 4/13 1 8. where a is a positive number. please check JNU Sample papers for any errors. available from. If ą. 1 9. If A and B are mutually exclusive events then (a) (b) (c) (d) A and B are independent events P(A) + P(B) = 1 P(A) + P(B) A …. B = the null set. ą<β + c then (a) (b) (c) (d) ą<β necessarily ą>β necessarily ą=β necessarily ą≤β necessarily. The function y = ax.ecopoint. has a derivative at x=2 which is given by (a) a2log0a ECOPOINT MA Economics Entrance Coaching Page 123 All care has been taken to keep this document free from errors. . This document is for reference purposes only. Even though. β are real numbers such that for any c>0. 1 10.

ecopoint. . and the median is 10.5 0. The cumulative distribution of marks was as shown along side. available from.1 0.5 Greater than 0. please check JNU Sample papers for any errors. then the probability that the student will score more than 20 is (a) (b) (c) (d) 0.2 0.5 Less than or equal to 0. You should have a copy of JNU papers available from JNU or DSE.5 ECOPOINT MA Economics Entrance Coaching Page 124 All care has been taken to keep this document free from errors.25 Class of Marks 0 to 5 5 to 10 10 to 15 15 to 20 20 to 25 Cumulative Frequency 2 10 20 40 50 12. 1 11. This document is for reference purposes only. The probability that a randomly selected person from the group will be 12 years or older is (a) (b) (c) (d) Equal to 0.5 Less than 0. the mean age is 12. if you pick-up a student at random from the class.JNU Entrance Examination Papers JNU Entrance Exam www.in (b) (c) (d) 2a a2log10a None of the above. JNU or DSE Photostat shop. Even though. A the group of persons. A class of 50 students wrote a class test of 25 marks.

Total agricultural land in each village is 200 hectares.ecopoint. Integrated Rural Development Programme was a (a) (b) (c) (d) Programme for infrastructure wage employment generation and creation of rural Credit-subsidy programme for generation of self-employment. live in each village. available from. This document is for reference purposes only. What can we say about the inequality of land distribution in A and B? (a) (b) (c) (d) Inequality is more in A than in B Inequality is less in A than in B Level of inequality is same in A and in B Any of the above could be true. inequality and educational attainment. An equal number of households. There are two villages A and B. All of the above. minor irrigation projects and rural 15. 14. Programme for electrification. You should have a copy of JNU papers available from JNU or DSE. Even though. sex ratio. sex ratio and inequality Per capita income. poverty. please check JNU Sample papers for any errors. educational attainment and life expectancy Per capita income.5 hectares in village A and 1 hectare in village B. . The median land holding is 0.in 13. ECOPOINT MA Economics Entrance Coaching Page 125 All care has been taken to keep this document free from errors. educational attainment and life expectancy Poverty. building rods. inequality. JNU or DSE Photostat shop. say 200.JNU Entrance Examination Papers JNU Entrance Exam www. Human development Index is an Index based on (a) (b) (c) (d) Per capita income.

JNU Entrance Examination Papers JNU Entrance Exam www. Even though. In kgs In Rs. If y is zero. 1 ECOPOINT MA Economics Entrance Coaching Page 126 All care has been taken to keep this document free from errors. JNU or DSE Photostat shop. then x is necessarily not equal to zero. per kg. If y is not zero. This document is for reference purposes only. then x is necessarily zero. then (a) (b) (c) (d) If y is zero. the deadweight loss due to the monopolist charging a profit maximizing price is measured. then x is necessarily zero. available from. 1 18. Official estimates of poverty in India are based on the data on (a) (b) (c) (d) Consumer expenditure of households Incomes of households Assets of households All of the above.in 1 16. You should have a copy of JNU papers available from JNU or DSE. 1 17. per kg As a pure number. (a) (b) (c) (d) In Rs. please check JNU Sample papers for any errors. None of the above is necessarily true. If demand facing a monopolist is measured in kilograms (kgs) and the price is measured in Rs. y are two real numbers and it is known that their product is zero. .ecopoint. If x.

1 PART – B Answer all questions in the space provided 21. the demand curve is given by O1 = 10/p. all other things remaining the same.in 19. p2 denote quantity and price respectively in the two markets. You should have a copy of JNU papers available from JNU or DSE. the demand curve is given by O 2 = 1000 – p2. This document is for reference purposes only. 9 per metric ton Re (1/9) per metric ton 1/9 metric ton 1/9 1 20. JNU or DSE Photostat shop. The monopolist can produce any amount of output of a constant marginal cost of 20 per unit. the value of the Keynesian multiplier will (a) (b) (c) (d) Remain the same Increase Decrease Change in an unpredictable manner. available from. If the marginal propensity to consume goes up then. the price elasticity of demand when P = Rs. .JNU Entrance Examination Papers JNU Entrance Exam www. If the demand curve is given by 0 = 100 – P where O is measured in metric tons and P in Rs. O1. per metric ton. in the other market. Even though.ecopoint. A monopolist faces two distinct and separate markets. please check JNU Sample papers for any errors. 10 per ton is (a) (b) (c) (d) Rs. in one market. How much does the monopolist sell in each market and at what price? 5 ECOPOINT MA Economics Entrance Coaching Page 127 All care has been taken to keep this document free from errors. p1 and O2.

Even though.in 22. 5 23. 1. Personal (direct) Tax Payments = Rs. 50. The following are the complete set of Items which are found in the national accounts statistics of Hibbyjibby for the year 2000-01. (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) Depreciation Allowances = Rs.200.JNU Entrance Examination Papers JNU Entrance Exam www. 250. Government Transfer Payments = Rs. Undistributed Profits = Rs. Gross National Product. available from. 100. Personal Savings = Rs. Use the above entries to compute (a) (b) (c) (d) Personal Income. 50. Use the derivative of the function y = √xi to obtain an approximate value for √16. ECOPOINT MA Economics Entrance Coaching Page 128 All care has been taken to keep this document free from errors. JNU or DSE Photostat shop. National Income. Indirect Business Taxes = Rs. You should have a copy of JNU papers available from JNU or DSE. Dividend Payments = Rs. Corporate (Profits) Taxes = 100. please check JNU Sample papers for any errors. 200. Personal Consumption Expenditures = Rs.ecopoint. . Net National Product. 200. This document is for reference purposes only.02. 200.

Y. Transfer payments by government = 62. their respective variance are given by a2 where j=X. The consumption function is specified to be C=100+0.5 and there is a uniform rate of taxes on income given by 0. In a group of 5 persons. Consider Z = a. the following is also given: Investment=50. and that X and Y are independent random variables.8Y d where Yd is disposable income. The budget surplus. X + b. You should have a copy of JNU papers available from JNU or DSE. Government Purchase=200. who spends his entire income in purchasing two goods.ecopoint. available from. (i) (ii) (iii) Equilibrium level of income. An individual. Random variables X and Y have the same mean u. b satisfy for the above to be true? Given that Z has the mean u. b would minimize the variance of Z? 5 27.Y where a. Value of the multiplier.in For Hibbyjibby for the year 2000-01. Is seen to purchase the following bundles of two goods in three situations: ECOPOINT MA Economics Entrance Coaching Page 129 All care has been taken to keep this document free from errors. It is known that Z too has the same mean u. (i) (ii) What restrictions must a.JNU Entrance Examination Papers JNU Entrance Exam www. This document is for reference purposes only. . Even though. In how many different ways can they be seated on the same side of a straight table so that no two persons of the same sex sit side by side? How many ways are there of such a seating arrangement if the table is circular? 5 26. there are at least two men and two women. 5 25.25. what choice of z. b > 0. 5 24. please check JNU Sample papers for any errors. JNU or DSE Photostat shop.

This document is for reference purposes only.524. (0. g. For your answer uses any of the following information which you find necessary: 37/64=0. available from. hit the bull’s eye at the same time. at lest once in 10 tries. d. 5.94)20 = 0. JNU or DSE Photostat shop. 5 PART – C Answer all questions in the space provided 29. In the following multiplication problem the letters a. B and C? Explain your answer carefully. It is observed that persons shooting at the target in a firing range hit the bull’s eye with probability ¼. 20). e. 1) respectively. simultaneously firing at separate targets. events which would you expect to be more likely: Even E : One person hits the bull’s eye at least once in four tries. Even though.ecopoint.JNU Entrance Examination Papers JNU Entrance Exam www. l and k stand for district integers. please check JNU Sample papers for any errors. (40. Find out what the other integers are: ECOPOINT MA Economics Entrance Coaching Page 130 All care has been taken to keep this document free from errors.in Bundle A : Bundle B : Bundle C : (100. 15).06 (0. y) refers to x units of the first good and y units of the second good. Is it possible to infer the persons preferences over the bundles A. 4) respectively. when prices of the two goods are (1.10). when prices of the two goods are (5. 5 28.275. the prices (p.32. c.94)10 = 0. when prices of the two goods are (4. (The bundle (x. a) refers to price of the first good being p per unit and that of the second being q per unit. You should have a copy of JNU papers available from JNU or DSE. Among the following.10) respectively. . 81/256=0. 0 indicates a zero. 6 of course is six. 1/16=. (50. Or Event F : Two persons.58.

000 labourers. . both X and Y are produced. whose interests are by no means the same. the masters to give as little as ECOPOINT MA Economics Entrance Coaching Page 131 All care has been taken to keep this document free from errors. (i) (ii) What is the production possibility locus in each country? Assume that there is no trade between country A and B but that in both countries. what is the range in which the post-trade relative price of X is expected to be? How does this trade benefit both countries? 10 (iii) (iv) 31. What must be relative price of good X in each country? With free trade between A and B. Read the following passage from “The Wealth of Nations” by Adam Smith and answer the questions at the end of the passage: What are the common wages of Labour. This document is for reference purposes only. JNU or DSE Photostat shop. You should have a copy of JNU papers available from JNU or DSE. Even though. please check JNU Sample papers for any errors.JNU Entrance Examination Papers JNU Entrance Exam www. Each country has 56. In Country A it takes 100 labourers to produce 1 unit of good Y while it takes 80 labourers to produce 1 unit of good Y in Country B. In country A it takes 100 labourers to produce 1 unit of good X while it takes only 40 labourers to make 1 unit of good X in Country B. available from.in a b 0 c 6 c d d g k k g g 6 a j d g j 6 o 0 6 g k 10 30.ecopoint. depends everywhere upon the contract usually made between those two parties. The workmen desire to get as much.

Even though. Among the ones you have chosen. which would you consider to be valid even to-day and why? 6 PART – D Answer any one question within 250 words. (a) What is meant by the term “Poverty Ratio”? What is the likely range of the estimate of this poverty indicator for India? List any three poverty alleviation programmes which have been undertaken by the government of India. Write an appraisal of any of them. few could subsist a month and scarce any a year without employment. In the long run the workman may be as necessary to his master as his master is to him. a master. though they did not employ a single workmen. but the necessity is not so immediate. could generally live a year or two upon the stocks which they have already acquired. the latter.. Violations of word limit will be penalized. authorizes. or does not prohibit their combinations.in possible. OR (b) What period did the Second Five Year Plan cover? What was its major thrust? Did this thrust change in the later plans? Do you think planning in India has failed? OR ECOPOINT MA Economics Entrance Coaching Page 132 All care has been taken to keep this document free from errors. in order to raise. beside. JNU or DSE Photostat shop. A landlord. Many workman could not subsist a week. the latter. please check JNU Sample papers for any errors. available from. The former are disposed to combine in order to raise. while it prohibits those of the workmen …. You should have a copy of JNU papers available from JNU or DSE.JNU Entrance Examination Papers JNU Entrance Exam www. and the law. can combine much more easily. manufacturer or merchant. a farmer. (i) (ii) List three reasons which Adam Smith mentions to support his claim that masters have an advantage over workman. 33. in order to lower the wages of labour ……. The masters being fewer in number. . 32. in all such disputes the masters can hold out much longer. This document is for reference purposes only.ecopoint.

available from. JNU or DSE Photostat shop.A. Two events A and B are equally likely and are independent.JNU Entrance Examination Papers JNU Entrance Exam www. This document is for reference purposes only.in (c) What is the Green Revolution? Which States of India led the revolution and in which crops? Has this revolution led to a sustainable growth in Indian Agriculture? 12 M. The probability of the events occurring simultaneously is 0. An individual’s indifference curves between goods X and Y are downward -sloping because (a) (b) the marginal rate of substitution between X and Y is diminishing the marginal rate of substitution between X and Y is increasing ECOPOINT MA Economics Entrance Coaching Page 133 All care has been taken to keep this document free from errors.ecopoint. (a) (b) (c) (d) is 0. 2001 ECONOMICS PART – I 1.9 is 0. ENTRANCE EXAMINATION. . The probability of event A.6 is 0.4 cannot be computed on the basis of the information given. You should have a copy of JNU papers available from JNU or DSE.36. 1 2. Even though. please check JNU Sample papers for any errors.

5. Net Domestic Product plus Net workers’ Remittances from Abroad.in (c) (d) more of any good X or Y is always better the utility function is concave.ecopoint. please check JNU Sample papers for any errors. ECOPOINT MA Economics Entrance Coaching Page 134 All care has been taken to keep this document free from errors. available from. You should have a copy of JNU papers available from JNU or DSE. Net National Product refers to (a) (b) Net Domestic Product plus Net Factor incomes from Abroad. (a) (b) (c) (d) 20 per cent 30 per cent 40 per cent 50 percent. 1 4.JNU Entrance Examination Papers JNU Entrance Exam www. JNU or DSE Photostat shop. The share of the urban population in India is approximately. The term Fiscal Deficit refers to (a) (b) (c) (d) the amount of government expenditure that has to be financed by disinvestment the excess of total government expenditure over government revenue the amount of government expenditure financed by borrowing from the Reserve Bank of India the amount of government expenditure financed by borrowing from the banking system. . Even though. This document is for reference purposes only. 1 3.

A country with a capital stock of Rs.10 has remained unchanged has increased by Rs. 1 8.000 crores produces an output of Rs. 12. A person takes Rs.600 each year. Its capital output ratio is (a) 3 ECOPOINT MA Economics Entrance Coaching Page 135 All care has been taken to keep this document free from errors.JNU Entrance Examination Papers JNU Entrance Exam www. 7.90.190. 100 of currency notes and puts them into a demand deposit in a bank.10 of this amount and lends out Rs. 1 6. The bank keeps Rs. This document is for reference purposes only.000 Rs. the present value of the asset is (a) (b) (c) (d) Rs. An asset which lasts forever is expected to give a return of Rs.in (c) (d) Net Domestic Product plus Net Foreign Aid from Abroad.000 crores annually. Even though. JNU or DSE Photostat shop. please check JNU Sample papers for any errors. . If the rate of interest is 12 per cent. You should have a copy of JNU papers available from JNU or DSE.90 has increased by Rs. available from.000 Rs. Net Domestic Product minus Net Dividend Payments Transferred Abroad. 2.10.000 1 7.30. As a result of these transactions. 5.200 Rs. money supply in the economy.ecopoint. (a) (b) (c) (d) has reduced by Rs.

please check JNU Sample papers for any errors.JNU Entrance Examination Papers JNU Entrance Exam www. You should have a copy of JNU papers available from JNU or DSE. available from.1 11. 1 10.ecopoint. . This document is for reference purposes only. The 73rd Constitutional Amendment relates to (a) Centre-State Finances ECOPOINT MA Economics Entrance Coaching Page 136 All care has been taken to keep this document free from errors. JNU or DSE Photostat shop.in (b) (c) (d) 1/3 3 per year 3 years. During the great Depression of the 1930s. Even though. 1 9. The Finance Commission is statutory body constituted periodically to (a) (b) (c) (d) suggest financial sector reform policies determine the investment policies of term-lending financial institutions like the IDBI and IFCI audit the finances of the Central Government determine the distribution of Central tax reserves between the Centre and the States. the net barter terms of trade (a) (b) (c) (d) moved in favour of industry and against agriculture moved in favour of agriculture and against industry remained unchanged between agriculture and industry could not be calculated between agriculture and industry.

1 13. process patents not currently in force have to be introduced. In order to make the Indian patent laws TRIPS compatible (a) (b) (c) (d) product patents currently in force have to be removed. product patents not currently in force have to be introduced. if introduced into a plant (a) (b) kills the plant itself over a period of time kills weeds ECOPOINT MA Economics Entrance Coaching Page 137 All care has been taken to keep this document free from errors. process patents currently in force have to be removed. This document is for reference purposes only. 1 14.in (b) (c) (d) The preservation of historical and religious monuments Panchayati Raj Institutions. A “terminator” gene. please check JNU Sample papers for any errors. The delineation of Lok Sabha Constitutions. John Maynard Keynes’ main contribution to economics was to show that (a) (b) (c) (d) a socialist economy is intrinsically unworkable an open economy is always superior to a closed one a capital at economy can be afflicted by a problem of demand deficiency controlling the deficit on the government’s budget is the principal economic problem of our time.JNU Entrance Examination Papers JNU Entrance Exam www. Even though. . 1 12. available from. You should have a copy of JNU papers available from JNU or DSE.ecopoint. JNU or DSE Photostat shop.

The demand curve facing a firm is as follows: q(p) = Ap-4.ecopoint. The demand curve is elastic if not only if (a) (b) A>1 A < 1 and ε > 0 ECOPOINT MA Economics Entrance Coaching Page 138 All care has been taken to keep this document free from errors. .in (c) (d) kills insect pests prevents the production of seeds that can reproduce the plant. 1 15. This document is for reference purposes only. Z is a random variable with mean equal to 2 and variance equal to 2. available from.JNU Entrance Examination Papers JNU Entrance Exam www. Over the decade of the 1990s per capita food grain availability in India has (a) (b) (c) (d) increased by 50 per cent increased by 30 per cent increased by 10 per cent not increased. Even though. 16. The variance of the random variable 2Z equals (a) (b) (c) (d) 4 0 8 16 1 17. please check JNU Sample papers for any errors. You should have a copy of JNU papers available from JNU or DSE. JNU or DSE Photostat shop.

1 19.3. and x = + 9 two more points x = +3 and x = . available from.in (c) (d) ε>1 ε<1 1 18.3 three more points x = + 3. This document is for reference purposes only. The “free rider” problem refers to (a) (b) Ticketless travel in the Indian Railways The economics of horse racing and the breeding of horses ECOPOINT MA Economics Entrance Coaching Page 139 All care has been taken to keep this document free from errors. then it also intersects the X-axis at (a) (b) (c) (d) two more points x = + 9 and x = . JNU or DSE Photostat shop. If ƒ(x) = x3 – x2 – 9x + 9 and ƒ(x) intersects the X-axis at x = 1.ecopoint.3 one more points x = +9. x = . 1 20. please check JNU Sample papers for any errors. You should have a copy of JNU papers available from JNU or DSE.JNU Entrance Examination Papers JNU Entrance Exam www. . Even though. The exchange rate between two currencies is said to reflect purchasing power parity when (a) (b) (c) (d) trade is balanced between the two economies there is zero net capital movement from one economy to the other when a bundle of commodities costs the same in the two economies at that exchange rate when the rates of inflation in the two economies are identical.

ECOPOINT MA Economics Entrance Coaching Page 140 All care has been taken to keep this document free from errors. 1 PART – II Answer any five questions in the space provided. available from. You should have a copy of JNU papers available from JNU or DSE. Even though. Find the optimal consumption bundle for the following utility function.JNU Entrance Examination Papers JNU Entrance Exam www. What are the values of x that maximize ƒ(x)? 8 3. please check JNU Sample papers for any errors. Let ƒ(x) = x – x3 and – 1 ≤ x ≤ 0. .in (c) (d) The tendency to evade taxes Preference non-revelation in the case of goods where consumption is joint.ecopoint. The following information is given: Index of Wholesale Price (1990 = 100) Weight Good A Good B Good C All three goods 25 ? ? 100 1997 150 125 140 135 The weights represent the shares of base year (1990) sales of each commodity in total sales. What is the proportion of good C sales in the total sales in 1990? 8 2. prices and income. JNU or DSE Photostat shop. 1. This document is for reference purposes only.

How much was the change in the area under foodgrains between the two periods? 8 7.4 per orange. 15 paise come back to the government as income tax. and G government expenditure. 1 investment. the total cropped area increased by 20 per cent while the area under non-foodgrains increased by 50 per cent to account for 3/8 of total cropped area in the second period. Between two periods. please check JNU Sample papers for any errors. Starting from some initial level of income in this economy. 25 paise are saved. the person buys 20 apples and 25 oranges. a person buys 16 apples and 28 oranges. what would be the increase in total domestic income? 8 6. When the market prices are Rs.JNU Entrance Examination Papers JNU Entrance Exam www. in which situation is the person better of? 8 5. 5 per apple and Rs. D disposable income. When the prices are Rs. This document is for reference purposes only. 8 4.ecopoint.6.7 D ECOPOINT MA Economics Entrance Coaching Page 141 All care has been taken to keep this document free from errors.4 per apple and Rs.4. The total cropped area in a country is used partly for producing foodgrains and partly for producing non-foodgrains. y) = max (x.in u(x.100 crores. and 10 paise are spent on imported goods. if government expenditure rises by Rs. 6 per orange. Let C denote consumption in an economy. The following relations hold: C = 15 + . . Y income. Assuming that utility is derived only from apples and oranges. and assuming that the government has no revenue other than this taxation. available from. Even though. with exports and private investment remaining unchanged. y) px = py = 1 Total Income = 2. Out of every rupee of income that accrues to the non-government sector of an economy. JNU or DSE Photostat shop. T taxation. You should have a copy of JNU papers available from JNU or DSE.

. calculate the national income assuming there is no depreciation. Even though. What is the potential output of the economy? How does it stand in relation to the national income? 8 8. You should have a copy of JNU papers available from JNU or DSE. Compute the supply of labour of this person. PART – III Answer any two questions. This document is for reference purposes only. ECOPOINT MA Economics Entrance Coaching Page 142 All care has been taken to keep this document free from errors. 20 + 20 1. What according to you explains the fact that the foodgrain stocks in the country today are at a record level of close to 45 tones? “A Pareto-Optimal state may be perfectly disgusting.” Comment. leisure hours (L) and his utility from consuming G and L is given by u = G1/2 L ¾ There is a maximum of 10 hours each day that the person can allocate between leisure and work. 3. available from. Discuss the view that the opposition to big dams is based on ignoring rational economic calculations.in T = -30 + . Assume that capital stock at the start of the period is 1200 units and that each unit of capital stock produces ¼ units of output per period. Any answer exceeding this length will be penalized. A person wants to sell his labour and spend his income entirely on the consumption of good G.2 Y D = . JNU or DSE Photostat shop. please check JNU Sample papers for any errors. The person enjoys.8 Y + 30 Given that 1 = 50 and G = 24.ecopoint. The answer must not exceed 800 words.JNU Entrance Examination Papers JNU Entrance Exam www. 2.

5.” Do you agree? “A reduction in fiscal deficit is necessary for high growth. JNU or DSE Photostat shop. You should have a copy of JNU papers available from JNU or DSE. M. Suppose only three outcomes are possible in any time period.A. Consider a society of two individuals in which a single commodity is produced. B: x = 7. y = 5.JNU Entrance Examination Papers JNU Entrance Exam www.” Do you agree? “The demand to redistribute land to the tiller is not more of relevance in India. 2000 ECONOMICS PART – I 1. please check JNU Sample papers for any errors. individual 1 getting x units and individual 2 y units of the commodity.” Do you agree? “Full employment is incompatible with the functioning of a capitalist economy. 9. 6.in 4.” Discuss. ENTRANCE EXAMINATION. Even though. available from. C : x = 5. 8. y = 12. A : x = 10. Why is the log-normal distribution the preferred distribution function for personal incomes? What is meant by the form “crowding out of private investment”? Discuss whether it has played any role in India’s economic development. This document is for reference purposes only. y. “A combination of scholarship/loans and fees which cover full costs is better than a subsidized educational system. ECOPOINT MA Economics Entrance Coaching Page 143 All care has been taken to keep this document free from errors. 7.ecopoint. .

. In a period of hyperinflation. Even though. 1 2. 19 identical and unbiased dice are thrown independently under identical conditions.5 10 None of the above.ecopoint. available from. JNU or DSE Photostat shop.in Then (a) (b) (c) (d) society will prefer B over C society will prefer C over B society will be indifferent between B and C we cannot say which of (a). 1 3. (c) will hold. This document is for reference purposes only. What is the expected value of the number of dice on which an odd number appears? (a) (b) (c) (d) 9. please check JNU Sample papers for any errors.JNU Entrance Examination Papers JNU Entrance Exam www. 1 ECOPOINT MA Economics Entrance Coaching Page 144 All care has been taken to keep this document free from errors. You should have a copy of JNU papers available from JNU or DSE. (b). which amongst the following would you generally expect to be the best store of value? (a) (b) (c) (d) Cash Bonds Gold Time deposits in banks.0 9.

if the economy is not in a liquidity to an increase in government spending. Suppose that P(A) = … and P(B) = 0. JNU or DSE Photostat shop.40 0. . What is the value of P(B/A)? (a) (b) (c) (d) 0.JNU Entrance Examination Papers JNU Entrance Exam www. 1 5. In the IS-LM model of income determination. 6.42 ECOPOINT MA Economics Entrance Coaching Page 145 All care has been taken to keep this document free from errors. You should have a copy of JNU papers available from JNU or DSE. in equilibrium (a) (b) (c) (d) reduces private investment spending increases private investment spending has no effect on private investment spending has no effect on private consumption expenditure. This document is for reference purposes only.28. Suppose A and B are two independent random events. Even though. The nature of long run equilibrium for a monopolistically competitive firm differs from that of a perfectly competitive firm because of (a) (b) (c) (d) the presence of supernormal profits the presence of excess capacity the equality between firm marginal revenue and marginal cost None of the above.28 0.in 4. available from.35 0.ecopoint. please check JNU Sample papers for any errors.

You should have a copy of JNU papers available from JNU or DSE. Not clear matter.JNU Entrance Examination Papers JNU Entrance Exam www. all income is spent and all goods are consumed in positive quantities where none of the above is necessarily true. then (a) (b) (c) (d) a/b > 1 always a/b < 1 always a/b = 1 always None of the above. if marginal costs are positive (a) (b) profit maximizing output does not exist profit maximizing output is where marginal revenue equals marginal cost and marginal revenue is decreasing ECOPOINT MA Economics Entrance Coaching Page 146 All care has been taken to keep this document free from errors. JNU or DSE Photostat shop. 8.in 7. A utility maximizing choice of a consumer’s equilibrium occurs necessarily (a) (b) (c) (d) when the marginal rate of substitution equals the price ratio where the marginal rate of substitution equals the price ratio and all income is spent where the marginal rate of substitution equals the price ratio. 1 10. please check JNU Sample papers for any errors. A monopolist faces a demand curve with unit price elasticity of demand. available from. 9.ecopoint. . This document is for reference purposes only. Even though. If a > b. For such a monopolist.

Income mobility in this policy satisfies two rules: ECOPOINT MA Economics Entrance Coaching Page 147 All care has been taken to keep this document free from errors. Even though. whenever an examinee cheats. This document is for reference purposes only. You should have a copy of JNU papers available from JNU or DSE. 1 13. However. a black dot appears on his or her answer script. 1 12. It is known that in an examination. An examiner receives an answer script with a black dot. What is the probability that the answer script come from a cheater? (a) (b) (c) (d) 0. None of the above.05 1. Consider a policy consisting of N individuals. p of the individuals are rich. . the first 18 tosses have been head.00 there is insufficient information to answer the question None of the above.in (c) (d) profit maximizing output is where average revenue equals marginal revenue and average revenue is decreasing. Then the probability of a tail in the 19th throw is: (a) (b) (c) (d) more than ½ more than ½ but no more than 18/19 ½ None of the above. please check JNU Sample papers for any errors. the rest are proof. 5 percent of the examinees cheat. JNU or DSE Photostat shop.JNU Entrance Examination Papers JNU Entrance Exam www. 1 11. A proportion.ecopoint. leaving behind a child. available from. Suppose in a toss of an unbiased coin. Each of the N individuals die.

Which of the following is true? (a) (b) (c) (d) A is a necessary condition for B but B is not a sufficient condition for A A is a necessary condition for B and B is a sufficient condition for A A is a sufficient condition for B and B is not a necessary condition for A A is a sufficient condition for B and B is a necessary condition for A. the child turns out to be poor with probability b. the child turns out to be rich with probability a. . A lumpsum tax is imposed on a monopolist. This document is for reference purposes only. Even though.in (i) (ii) If the parent is rich. please check JNU Sample papers for any errors. If the parent is poor.JNU Entrance Examination Papers JNU Entrance Exam www. 1 ECOPOINT MA Economics Entrance Coaching Page 148 All care has been taken to keep this document free from errors. You should have a copy of JNU papers available from JNU or DSE.ecopoint. available from. JNU or DSE Photostat shop. The occurrence of an event A implies the occurrence of an event B. The proportion of children who are rich is: (a) (b) (c) (d) ap a + (1 – b) p(a + 1 – b) pa + (1 – p) (1 – b) 1 14. would his output: (a) (b) (c) (d) increase decrease remain unchanged cannot be said from this information 1 15.

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16.

Suppose a perfectly competitive firm has a production function Q = AK0.4 L0.6; there A > 0, Q is the amount of output produced, and K and L are the amounts of capital and labour employed respectively, during a unit time period. What is the equilibrium ratio of wage bill to total revenue for the3 firm? (a) (b) (c) (d) 0.6 0.4 0.67 approximately Cannot be determined based on this information alone. 1

17.

Suppose the critical region for a test statistics S in a given test of significance is given by S1 ≤ S ≤ S2. Suppose that the probability (S < S1) = 0.03 and probability (S > S2 = 0.45. What is the level of significance being used in carrying out this test? (a) (b) (c) (d) 0.03 0.48 0.52 0.42 1

18.

Suppose that a consumer derives utility equal to 3x 1 + 5x2 on consuming x1 units of commodity 1 (priced at Rs. 9 per unit) and x 2 units of commodity 2 (priced at Rs. 16 per unit). At the optimum choice, which of the following is true? (a) (b) X 1 = x2 X 1 > x2

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(c) (d)

X 1 < x2 None of the above. 1

19.

All other things remaining constant, a rise in the exchange rate of the rupee against the dollar implies: (a) (b) (c) (d) a depreciation of the rupee against the dollar a depreciation of the dollar against the rupee both of the above None of the above. 1

20.

According to the 1991 census of the population, which state in India has the highest rate of literacy (age 7+)? (a) (b) (c) (d) Gujarat Kerala Punjab West Bengal. 1

PART - B 21. An individual’s preferences over two goods are given by u(x, y) = max (x, y) (where max (a, b) = a if a > b.

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What do the indifference curves look like? Are there any circumstances under which the consumer buys both goods? 5

22.

A monopolist is able to produce any amount of output at a constant cost of 40 per unit of output. There are two separated markets here the monopolist can sell output, in one market the demand curve is Q1 = 10 – P1, while in the other market the demand curve is Q2 = 100 – P+2+. How much does the monopolist sell in each market? 5

23.

The sum of two unequal numbers is x and their product is y. Show that (1) x 2 ≥ 2y and (2) the larger number is equal to x/2 + ½ √x2 – 4y. 5

24.

Show that in x < x for all x > 0.

5

25.

Consider an economy with a single commodity. Suppose that an individual lives for two periods, consuming c1 units of the commodity in period 1 and c 2 units in period 2. Suppose he earns y units of the commodity in each of the two periods. The individual can invest his savings from period 1 at a real interest rate of r. He can also borrow at the same interest rate against his future earnings. Finally, assume that the individual’s utility function is:…………………………………….. in c2, where q > 0. What is the individual’s savings in period 1? 5

26.

Not readable matter.

27.

Ms. A spots a painting. She values the painting at Rs.100. In other words, she is willing to pay upto Rs.100 to own the painting. Ms. A first declares how much she is willing to pay for the painting. This declaration, denoted by Rs. b, need not equal her true valuation (Rs. 100). Upon hearing Ms. A’s chosen b -value, she is labeled as a

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“winner” with a probability equal to Min (b/100, 1). In this event, Ms. A gets the painting and pays Rs. b. Her net surplus is Rs. (100 – b). On the other hand, if Ms. A is not labeled as a “winner”, she does not get the painting and she pays nothing. Her net surplus is Rs. 0. In order to maximize her expected net surplus, what b-value should Ms. A announce? 5 28. The number of minutes that a flight from Delhi to Bombay is carry or rate is a random, variable whose probability density function is given by: …………space for figure……………………… Where negative values are indicative of the lights being early and positive values are indicative of its being late. Find the probability that one of these flights will be at least two minutes early? 5

29.

Suppose that in Maghalaya, the probability that a rainy day is followed by a rainy day is 0.80 and the probability that a sunny day is followed by a rainy day is 0.60. Find the probability that a rainy day is followed by 1 rainy day, a sunny day and another rainy day. 5 A host decided to serve only one beverage ………………………………. (a) (b) (c) beer and wine wine and milk beer and milk

30.

PART – C 31. Consider a demand constrained economy with no foreign trade and no government sector. Suppose the consumption function is C = 10,000 + 0.75 Y and the

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JNU or DSE Photostat shop. firm X. y) = xy. available from. Even though. 33.ecopoint.5 7 10 Revenue of X 0 13 20 26 31 Profit of Y 60 54 47 38 30 ECOPOINT MA Economics Entrance Coaching Page 153 All care has been taken to keep this document free from errors. There are two firms in the economy producing X and Y.000 + 0.. the output level were 63. the price of ……………………………………. This is known in the following table: X 0 1 2 3 4 Cost of X 0 2 4. respectively. The activities ……. what is the equilibrium level of income and the size of the multiplier in this changed situation? 10 32.in investment function is 1 = 5.000.. what would be the involuntary change in inventory? If investment increases to 10.000. The utility function of a consumer is given by u(x. for some reason. also affect the profits of firm Y.000. please check JNU Sample papers for any errors. what would be the effect on equilibrium income? What is the level of saving in this new equilibrium situation? Suppose consumption behavior were to change such that C = 10.JNU Entrance Examination Papers JNU Entrance Exam www.000. You should have a copy of JNU papers available from JNU or DSE.8 Y while investment remains at the higher level of 10. where Y denotes the size of total personal disposable income: (a) (b) (c) (d) (e) What is the equilibrium level of income? If. . This document is for reference purposes only. besides affecting its own profits.

This document is for reference purposes only.ecopoint. JNU or DSE Photostat shop.A. available from. ENTRANCE EXAMINATION.JNU Entrance Examination Papers JNU Entrance Exam www. Even though. please check JNU Sample papers for any errors. what output (Xvalue) choice will maximize the profits of firm X? Suppose now that firm X has to compensate firm Y for its losses.in 5 (a) (b) (c) 14 34 28 Suppose firm X does not have to compensate firm Y for its loss. Indifference curves are downward sloping: (a) (b) (c) (d) because both goods are assumed to be desirable because of the assumption of diminishing. what will be the new profit maximizing choice of firm X? Suppose firm X and firm Y merge to become a new firm Z. what choice of X will be optimal (profit maximizing) for this new firm Z? 10 M. marginal utility because of the assumption of diminishing marginal rate of substitution because of the assumption that prices are positive 1 ECOPOINT MA Economics Entrance Coaching Page 154 All care has been taken to keep this document free from errors. 1999 ECONOMICS PART – A 1. You should have a copy of JNU papers available from JNU or DSE. .

This document is for reference purposes only. . 1 4. Between year 1 and year 2.ecopoint. As a consequence between the two years: (a) (b) (c) National income fell National income remained unchanged National income increased ECOPOINT MA Economics Entrance Coaching Page 155 All care has been taken to keep this document free from errors. while production in all other sectors remained unchanged. It is necessarily the case that average cost is decreasing. JNU or DSE Photostat shop. available from.in 2. None of the above. government employees obtained a 10 per cent salary increase. It is necessarily the case that average cost is constant. 1 3. Even though.JNU Entrance Examination Papers JNU Entrance Exam www. If the absolute value of price elasticity of demand for a particular good is greater than one. then a rise in the price of the good implies that the total expenditure on the good would (a) (b) (c) (d) increase decrease remain the same nothing can be inferred as more information is required. please check JNU Sample papers for any errors. You should have a copy of JNU papers available from JNU or DSE. If marginal cost is increasing then: (a) (b) (c) (d) It is necessarily the case that average cost is increasing.

x3. P(B) = P(AB) A U B = the universal set P(A) = P(B). x2. 1 5.JNU Entrance Examination Papers JNU Entrance Exam www. to M and arithmetic mean of x1 x2 x3 x4 is m. A….ecopoint. Let x1 < x2 < x3 < x4 < x5. Then: (a) (b) (c) (d) A and B are mutually exclusive event. 1 7. You should have a copy of JNU papers available from JNU or DSE. x5. available from. M(B) = P(AB).in (d) We cannot say anything about the movement in …………. This document is for reference purposes only. P(A). . Suppose the arithmetic mean of x1. Even though. x4. JNU or DSE Photostat shop. Not readable.B = the universal set. please check JNU Sample papers for any errors. If A and B are independent events then: (a) (b) (c) (d) A and B are mutually exclusive events. P(A) = P(B). PW. 1 ECOPOINT MA Economics Entrance Coaching Page 156 All care has been taken to keep this document free from errors. (a) (b) (c) (d) rises by 10% rises by 20% rises by 21% changes to an extent that available information cannot reveal. 1 6.

ecopoint. Between two periods in a closed economy everybody propensity to save doubles while investment remains unchanged. Even though. This document is for reference purposes only.JNU Entrance Examination Papers JNU Entrance Exam www. You should have a copy of JNU papers available from JNU or DSE. please check JNU Sample papers for any errors. the inter-sectoral terms of trade (a) (b) (c) (d) moved against agriculture and in favour of industry moved in favour of agriculture and against industry remained unchanged are a subject on which no information exists 1 9. The first railway line in India was between: (a) (b) (c) (d) Howrah and Serampore Bombay and Thane Madras and Trivellore Delhi and Bhiwandi. available from. During the years of the Great Depreciation in India. As a result (a) (b) (c) (d) Savings double Income doubles Savings remain unchanged Income remains unchanged 1 10. .in 8. 1 ECOPOINT MA Economics Entrance Coaching Page 157 All care has been taken to keep this document free from errors. JNU or DSE Photostat shop.

The production function Y = aK + bl.I. available from. Lenin Kari Marx and Friedrich Engels and V. Even though.ecopoint. Lenin 1 13. You should have a copy of JNU papers available from JNU or DSE.JNU Entrance Examination Papers JNU Entrance Exam www. . Which of the following is necessarily true? ECOPOINT MA Economics Entrance Coaching Page 158 All care has been taken to keep this document free from errors. K = capital. where Y = output. 1 14. please check JNU Sample papers for any errors. L = labour and a and b are positive constants exhibits: (a) (b) (c) (d) Constant returns to scale Increasing returns to scale Diminishing returns to scale Cannot say what returns to scale it exhibits. JNU or DSE Photostat shop. The Communist Manifesto was written by: (a) (b) (c) (d) Kari Marx Kari Marx and Friedrich Engels V. A ball of which of the following colours could be in box B? (a) (b) (c) (d) Blue White Red Yellow. I. This document is for reference purposes only. 1 12.in 11.

JNU or DSE Photostat shop. If the black ball is in a box2. The white ball is in a lower numbered box than the red ball. The black ball is in a lower numbered box than the brown ball. The white ball is in a lower numbered box than the brown ball.ecopoint. . You should have a copy of JNU papers available from JNU or DSE. 1 16. If the black ball is in a box1. This document is for reference purposes only. 1 15. xn ECOPOINT MA Economics Entrance Coaching Page 159 All care has been taken to keep this document free from errors.in (a) (b) (c) (d) The brown ball is in a lower numbered box than the yellow ball. please check JNU Sample papers for any errors. available from. balls of which of the following colours must be in boxes with consecutive numbers? (a) (b) (c) (d) Brown and Blue Brown and White Black and Yellow White and Red. Log10.JNU Entrance Examination Papers JNU Entrance Exam www. balls of which of the following colours must be in boxes with consecutive numbers? (a) (b) (c) (d) Brown and Black Brown and Yellow White and Red White and Yellow 1 17. Even though.

x 1 18. Derivative of log10 xn (a) (b) (c) (d) 1/x 1/x log. then income is equal to: (a) (b) (c) (d) 20. This document is for reference purposes only.6Y Where Y is income in the economy and C is consumption.in (a) (b) (c) (d) log. You should have a copy of JNU papers available from JNU or DSE. JNU or DSE Photostat shop. e log10 e / log.ecopoint. 10 / x 1/x log10 e 1 19. Income is equal to consumption plus investment.000 25. available from.JNU Entrance Examination Papers JNU Entrance Exam www. 10 Log. x / log10. If investment is equal to 15.000 90. please check JNU Sample papers for any errors. x / log 10 log 10 / log x log.000 40. Even though. An economy is characterised by the following consumption function: C = 1000 + 0.000. .000 1 ECOPOINT MA Economics Entrance Coaching Page 160 All care has been taken to keep this document free from errors.

Even though. 5. This person’s real income at the end of two years compar ed to the beginning: (a) (b) (c) (d) was 10% lower was unchanged was 5. A person’s income increased by 70% over a 2 years period.000 Rs.JNU Entrance Examination Papers JNU Entrance Exam www.00729 x 2. 1 PART – B 21. 1000 are deposited in a bank for four years at 10% per year. compounded annually.425 .000025 x 3. 4.in 20.33 2 22. available from. calculate the present discounted value of the following stream of returns: 2 At the end of year one: At the end of year two: At the end of year three: Rs. ECOPOINT MA Economics Entrance Coaching Page 161 All care has been taken to keep this document free from errors. JNU or DSE Photostat shop. Suppose Rs.ecopoint. please check JNU Sample papers for any errors.000 23.000 Rs. During this period the consumer price index increased by 50% in the first year and 20% in the second year.56% lower None of the above. 2. You should have a copy of JNU papers available from JNU or DSE. This document is for reference purposes only. How much money would there be at the end of 4 years? 2 Under the assumption that the market rate of interest is 10%. Calculate A correct upto 4 decimal places where A= . .

In which situation is he better off and why? ECOPOINT MA Economics Entrance Coaching Page 162 All care has been taken to keep this document free from errors. An economy employs land and labour in a fixed ratio. What is the price elasticity of demand when market price is 3 and the consumer is buying 10 units of the commodity? 2 25.JNU Entrance Examination Papers JNU Entrance Exam www.in 24. You should have a copy of JNU papers available from JNU or DSE. In an economy where capital and labouor are the only factors of production. an individual buys 6 oranges and 4 apples.8%. 1 acre of land with 16 workers to produce 1 unit of corn. where p denotes the markets price of the good. 4 and of an apple to Rs. Even though.2.ecopoint. This document is for reference purposes only. When the prices are 5 and 4 respectively. When the price of an orange is Rs. JNU or DSE Photostat shop. he buys 5 oranges and 6 apples. 5. . If the price of X rises by 2. 10000 4 300 10 per unit labour 2 27. what effect on quantity demanded will this have? What effect does it have on the total expenditure on good X? A consumer’s demand function for a good is given by: Demand = 100 – 10p. Suppose the price elastically of demand of good X is 0. we have for a particular period: Capital stock: Output capital ratio: Employment: Wage rate: Calculate the rate of profit. (i) (ii) What is the maximum output it can produce? What would be the extent of resource unemployment at this output? 2 28. 26. please check JNU Sample papers for any errors. available from. It has 100 acres of land and 2100 workers.

ecopoint. Find the probability getting exactly 50 heads ………. what is the total distance the fly has travelled? 2 30.. a fly.in 2 29. B A …. . Calculate the rate of growth of demand for food grains in an economy where there is always full employment.… B Note: For any acts S and T we define S …. Even though. Two persons six miles apart. of an unbiased coin. T if and only if for every X. You should have a copy of JNU papers available from JNU or DSE. se S  x e T: and S … T if and only if S …. T and S T| 3 32. and so on. moves from the body of one person to the body of the other. When the two persons met. A 1 …. travelling at 6 miles an hour.JNU Entrance Examination Papers JNU Entrance Exam www. available from. 2 31. 2]. and then back to the first. Determine which of the following statement are true: (i) (ii) (iii) (iv) (v) (vi) A …. B 1 …. B A …. Let A = [1] and B = [1. start walking towards one another at 4 mile per hour. please check JNU Sample papers for any errors. Starting at the same time. A 1 . where food grains are consumed only by the workers and where the following characteristics prevail: Rate of growth of work-force 2% per annum ECOPOINT MA Economics Entrance Coaching Page 163 All care has been taken to keep this document free from errors. JNU or DSE Photostat shop. This document is for reference purposes only.

ecopoint.in Rate of growth of the wage-bill Income elasticity of demand for foodgrains 7% per annum 0. An economy has a saving propensity of .000.6 3 33.000 …………… exports are 3. Determine which of the following abatements are true? (i) (ii) (iii) (iv) (v) (vi) If a and b are rational numbers then a + b is a rational number. If a and b are rational numbers then ab is a rational number. .JNU Entrance Examination Papers JNU Entrance Exam www. Let a end b be two arbitrary real numbers. JNU or DSE Photostat shop. If and b are irrational numbers then ab is an irrational number. (i) (ii) (iii) If investment is 12. You should have a copy of JNU papers available from JNU or DSE. If a and b are irrational numbers then a+b is an irrational number. what is its level of income? What is its deficit on account of trade at this level of income? If it has to balance its trade then what should its level of investment be? 3 ECOPOINT MA Economics Entrance Coaching Page 164 All care has been taken to keep this document free from errors. Even though. 3 34.1.2 and an import propensity of . available from. If a is a rational number and b is an irrational number then a+b is an irrational number. If a is a rational number and b is an irrational number then ab is an irrational number. please check JNU Sample papers for any errors. This document is for reference purposes only.

JNU or DSE Photostat shop. 3 37. Let ƒ and q be two functions defined for all real numbers. available from.in 35. ECOPOINT MA Economics Entrance Coaching Page 165 All care has been taken to keep this document free from errors. Show that : [|x| . …………………..JNU Entrance Examination Papers JNU Entrance Exam www. Compute the following: (i) (ii) (iii) ………………….. Let a. + (n – 1)1 < n2 / 4. Determine which of the following statements are true? (i) (ii) (iii) (iv) (v) (vi) a>b a>b a>b a>b a>b a>b a+c>b+c ac > bc a–c>b–c a/c > b/c 1/a > 1/b -b > -a 3 36.|v| x – v] 3 38. b and c be arbitrary real numbers. You should have a copy of JNU papers available from JNU or DSE. . Even though.ecopoint.. where ƒ(x) = 1+x and g(x) = 1-x. please check JNU Sample papers for any errors. ………………….. Show that : 13 + 23 + …………. This document is for reference purposes only.

..0 1. Each seller has the same supply function. Find market demand and supply functions Calculate the market equilibrium price. The market for a good consists of 1000 buyers and 500 sellers. You should have a copy of JNU papers available from JNU or DSE. which is given by: Supply = = O if price (p) ≤ 10 p – 10 if price > 10 Each buyer has the same demand function.. …………………. 3 39. The following table shows the total costs of producing various levels of output by a competitive firm: Output 0 1 2 Total costs 1.3 ECOPOINT MA Economics Entrance Coaching Page 166 All care has been taken to keep this document free from errors. . please check JNU Sample papers for any errors.JNU Entrance Examination Papers JNU Entrance Exam www.ecopoint.in (iv) (v) (vi) ………………….1 1. …………………. which is given by: Demand = = (i) (ii) o if price (p) ≥ 20 20 – p if price < 20. 3 40. This document is for reference purposes only. available from. Even though. JNU or DSE Photostat shop.

0 What is the marginal cost of producing the 5 th unit of output? What is the average variable cost of producing 7 units of output? What is the profit maximizing output for the firm if the market price of the good is 1? 3 PART . JNU or DSE Photostat shop. please check JNU Sample papers for any errors. 5 In country A it takes 120 labourers to produce 1 unit of good X.0 5.2 10. Even though. Assume that each country has 72.JNU Entrance Examination Papers JNU Entrance Exam www. 42. Show that the square root of 2 is an irrational number. This document is for reference purposes only.0 6.in 3 4 5 6 7 8 9 10 (i) (ii) (iii) 1.000 labourers. (i) Calculate the production possibility set for each country.3 3. available from.0 3. You should have a copy of JNU papers available from JNU or DSE.5 8. while in country B it takes 90 labourers to produce 1 unit of Y. while in country B it takes 80 labourers to product 1 unit of X. ECOPOINT MA Economics Entrance Coaching Page 167 All care has been taken to keep this document free from errors.ecopoint. . In country A 100 labourers are needed to produce 1 unit of good Y.7 2.D 41.

ecopoint.JNU Entrance Examination Papers JNU Entrance Exam www.in (ii) Assume that in the absence of trade. Individual A is indifferent between x 1 and x2. He is also indifferent between x3 and x4. Even though. If the economy habitually saves and invests 15% of the output. She prefers x1 to any other alternative. i. B. She prefers x4 to any other alternative. She prefers x4 to any other alternative. You should have a copy of JNU papers available from JNU or DSE. In period 1. Explain your answer. Determine which of the alternative are Pareto-optimal. the relation at least as good as is transitive for every individual. out of the total labour force of 10. and if the rate of growth of its labour force is 10% per period. This document is for reference purposes only. There are 4 alternatives x1.e.000. 6L) Where K denotes capital stock and L is the labouor force. In a closed economy output is given by: Y = min (. available from. x2. Every individual has transitive preferences. Individual D is indifferent between x1 and x2. She also prefers x2 to x1. Individual C is indifferent between x 1 and x2. . She also prefers x2 to x1.4K. Consider the following information: (i) (ii) (iii) (iv) (v) (vi) (vii) There are 4 individuals A. C and D. ECOPOINT MA Economics Entrance Coaching Page 168 All care has been taken to keep this document free from errors.. each country uses half of its labour for producing each good. what would be the percentage of unemployment n period? 5 44. x3 and x4. He prefers both x1 and x2 to both x3 and x4. She also prefers x1 to x2. 5 43. Calculate the amounts of the two goods produced in each country. JNU or DSE Photostat shop. please check JNU Sample papers for any errors. 1000 are unemployed. Individual B is indifferent between x 2 and x4.

X has committed the crime. A crime has been committed by one of the individuals X. Even though. Y has committed the crime. There is a real number such that [x+1] = [x+2]. Every real number has a unique real cube root. Below are given 4 sets of 4 statements each.in PART – E 45. ECOPOINT MA Economics Entrance Coaching Page 169 All care has been taken to keep this document free from errors. Set A (i) (ii) (iii) (iv) Set B (i) (ii) (iii) (iv) Set C (i) (ii) (iii) If both real numbers a and b are non-integers then a+b is also a non-integer real number. You should have a copy of JNU papers available from JNU or DSE.ecopoint. . available from. There is no real number which satisfies the equation x 4 + 2x2 + 1 = 0. JNU or DSE Photostat shop. Y. If subsidies are removed then a Pareto-superior situation results. If a is an integer and b is a non-integer real number then a+b is not an integer. Every cubic equation with real coefficients has at least one real root. If a and b are real numbers then a/b is a real number. Determine which of them is guilty. Z and W. This document is for reference purposes only. please check JNU Sample papers for any errors. Square root of 5 is an irrational number. The number of true statements in any set is different from the number of true statements in any other set.JNU Entrance Examination Papers JNU Entrance Exam www.

You should have a copy of JNU papers available from JNU or DSE. Even though. 10 46. The Lorenz Curve. The concept of Surplus Labour. Pareto Optimality. Electoral Reforms. The Environmental Question. Write an essay on any one of the following topics (word limit 300 words). please check JNU Sample papers for any errors. where a and b are real numbers. JNU or DSE Photostat shop. De industrialization in India during the Colonial Period. (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) Parliamentary Democracy. Every non-negative real number has two distinct real square roots. 10 ECOPOINT MA Economics Entrance Coaching Page 170 All care has been taken to keep this document free from errors.in (iv) Set D (i) (ii) (iii) (iv) Z has committed the crime. This document is for reference purposes only. . Should child labour be abolished? Cardinal utility and Ordinal utility. available from. W has committed the crime. If a > b then 1/a < 1/b. A Quota for Women in Parliament.JNU Entrance Examination Papers JNU Entrance Exam www. Every rational number has a unique decimal representation.ecopoint.

εY and the level of investment in the economy is 10.000 0. Even though.JNU Entrance Examination Papers JNU Entrance Exam www. 1998 ECONOMICS SECTION – I 1.500 2.000 5.in M. please check JNU Sample papers for any errors. Given below are the Index of agricultural and industrial prices over a period of eleven years: Agriculture Industry : : 100 110 120 130 140 150 160 170 180 190 200 100 120 140 120 140 160 180 190 200 180 200 The ratio of agricultural prices to industrial prices moved in favour of agriculture in years. the values of the multiplier and the national income respectively are: (a) (b) (c) (d) 5. available from.ecopoint. This document is for reference purposes only.A.2.2. . 9 and 10 ECOPOINT MA Economics Entrance Coaching Page 171 All care has been taken to keep this document free from errors. 8. 50.000. You should have a copy of JNU papers available from JNU or DSE. (a) 4. JNU or DSE Photostat shop. 7. ENTRANCE EXAMINATION.000 0. 2. 75. Given that the aggregate consumption function is 5000 + O.

available from. what is dy/dx? (a) (b) (c) (d) (e) 1 ex x 0 Not defined. This document is for reference purposes only. For a commodity.in (b) (c) (d) 4 and 10 None of the years. If y = log (ex). the price measures and the quantity purchased falls.JNU Entrance Examination Papers JNU Entrance Exam www. You should have a copy of JNU papers available from JNU or DSE. please check JNU Sample papers for any errors. All the years except 5 and 11. Even though. 4. The fall of the Berlin wall (a) (b) (c) preceded the disintegration of the Soviet Union succeeded the disintegration of the Soviet Union was simultaneous with the disintegration of the Soviet Union 5. JNU or DSE Photostat shop. .ecopoint. 3. The total revenue (price x quantity) will remain the same if (a) (b) the change in price is greater than the change in quantity the percentage change to price is less than the percentage change in quantity ECOPOINT MA Economics Entrance Coaching Page 172 All care has been taken to keep this document free from errors.

There is only one factor of production. available from. 11 read the Hindu and the Hindustan Times. JNU or DSE Photostat shop. please check JNU Sample papers for any errors. labour. SECTION .in (c) (d) (e) the percentage change in price is greater than the percentage change in quantity the percentage change in price is three times the percentage change in quantity the percentage change in price is equal to the percentage change in quantity. 50 read the Hindustan Times. This document is for reference purposes only. 13 read the Times of India and the Hindu. A survey of 60 persons in Delhi shows: 19 read the Times of India. 18 read the Hindu. Even though. How many read no newspaper at all? How many read only the Hindustan Times? 7. 13 read the Times of India and the Hindustan Times.II 6. You should have a copy of JNU papers available from JNU or DSE. . 9 read all three newspapers. Consider two countries. The following table gives the number of units of labour required to produce one unit of each good in each country: Commodities Country I II A 125 210 B 100 150 ECOPOINT MA Economics Entrance Coaching Page 173 All care has been taken to keep this document free from errors.ecopoint.JNU Entrance Examination Papers JNU Entrance Exam www. each producing two goods.

Consider a sequence S®=1+r+r2 + … +rn 12. X + a with b. This document is for reference purposes only. . 3. JNU or DSE Photostat shop. Even though. a and x > 0. your getting a job in region your answer. Will you still migrate? Give reasons for 10.JNU Entrance Examination Papers JNU Entrance Exam www. but you reckon that the probability of B is only 0. please check JNU Sample papers for any errors. The growth rate of (GDP) of an economy. 8. your income would be Rs.25. You should have a copy of JNU papers available from JNU or DSE. Let C(X) be positive for all X >C. Derive the sum of this sequence.ecopoint. What happens if …… Let the cost per unit of output [C(x)] vary with the output (X) as X 2 – b. If you get a job in region 8. Write the total and the marginal 13. available from. what is the probability that you will get at least 3 heads? 9.000 per month. what is its share in GDP? 11.000 and B only for economic reasons. consisting of agriculture and industry is 7% per annum. Suppose you live in region consider migrating to region B. Prove if disprove that 0. The annual growth rate of agriculture is 4% and its share in GDP is 25%. A with an assured monthly income of Rs.9=1 Let r be a fraction between 0 and 1. If the annual rate of growth of industry is 8%. If you toss an unbiased coin 5 times.in Does any country have an absolute advantage in production of any good? Which country has comparative advantage in which good? Explain your answer. ECOPOINT MA Economics Entrance Coaching Page 174 All care has been taken to keep this document free from errors. indicating the method.

please check JNU Sample papers for any errors. . This document is for reference purposes only. Derive the marginal utility schedule and the elasticity of the marginal (a) (b) (c) ………………. JNU or DSE Photostat shop. Then (a) (b) (c) Draw the curve with real wage and labouor supply as axes. Suppose the labour supply curve facing an economy’s industrial employers to perfectly elastic at an institutionally fixed rea wage. 17.ecopoint. Do these two functions intersect? If yes.in cost functions and sketch the average and marginal cost functions. available from. Can the level of employment be determined by considerations of the real wage alone? Why? If food prices increase by 10% what must happened money wages to satisfy the assumptions? SECTION – III Attempt any one of the following questions in the space provided: 16. Define the term simple random sample. and why? ECOPOINT MA Economics Entrance Coaching Page 175 All care has been taken to keep this document free from errors. ……………… 15. Apply it to a situation you are familiar with in your area of study. Even though. What is the difference between simple random sample and stratified random sample? In which situations would a stratified random sample be preferred. Solve a2x/dr2 = -ax and indicate the conditions under which it generates oscillations.JNU Entrance Examination Papers JNU Entrance Exam www. You should have a copy of JNU papers available from JNU or DSE. 14. ……………….

ecopoint. This document is for reference purposes only. find out the following: (a) (b) Profit maximizing partial equilibrium short-run output and net pollution. Define the Gini coefficient as a measure of inequality in the distribution of personal income. available from. JNU or DSE Photostat shop. If the price of the product p is Rs. The cost of damage due to externality of net pollution arising for society in value unit is d=2 (w – r)2. However. You should have a copy of JNU papers available from JNU or DSE. reduction of pollution and net pollution of the firm in short-run. undertaking abatement measures which would involve cost a=0. The Discovery of India was written by ECOPOINT MA Economics Entrance Coaching Page 176 All care has been taken to keep this document free from errors.5r 2 (a is expressed in the same value unit as C).A. q = quantity of output].in 18. . What are the problems and limitations of this measure? 19. please check JNU Sample papers for any errors. Consider a single product competitive firm which has the cost function of production C=40+10q + q2 [C = total cost of production. ENTRANCE EXAMINATION. M. The production process gives rise to pollution as per the functional rule w=q. where w is the gross pollution arising. pollution can be reduced by an amount r. Even though.JNU Entrance Examination Papers JNU Entrance Exam www. What is meant by ‘underemployment equilibrium’? Under what conditions can it occur? 20. 1997 ECONOMICS SECTION – I 1. 40. Social optimum output.

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(a) (b) (c) (d) (e)

M.K. Gandhi Jawaharlal Nehru Vallabhbhai Patel Mark Tully. V.S. Naipaul.

2.

The proportion of population living below the poverty line in India is currently estimated to be around (a) (b) (c) (d) (e) one-tenth one-third one-half two-thirds three-fourths

3.

Total consumption in an economy is given by C=1000+0.6Y where Y denoted total income. Total income equals the sum of consumption and investment expenditure. If investment is 10,000 then income is (a) (b) (c) (d) 20,000 20,500 27,500 80,000

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(e)

Impossible to calculate from this data

4.

The function x2 (1 – x)2 attains its maximum at (a) (b) (c) (d) x=½ x=1 x=2 None of the above.

5.

A cylinder has a base of circumference x cm and a volume of 8x. Its height is (a) (b) (c) (d) (e) 4 cm 8 cm 32 cm 4x cm None of the above.

6.

We have the following data or a country: GDP at market prices = Rs. 20,000 crore Rs. Rs. 5,000 crore 3,000 crore

Gross Domestic Capital Formation = Depreciation =

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Exports Imports

= =

Rs. Rs. Rs. Rs.

3,000 crore 6,000 crore 2,000 crore 2,000 crore

Net invisible earnings from abroad = Indirect taxes less subsidies =

Then, the Net Domestic Product at factor cost is (a) (b) (c) (d) (e) Rs. 15,000 crore Rs. 16,000 crore Rs. 17,000 crore Rs. 18,000 crore Rs. 20,000 crore

7.

Consider the same country as in Question 6. The gross savings rate is – (a) (b) (c) (d) (e) 10 per cent 15 per cent 20 per cent 25 per cent 75 per cent.

8.

The probability of drawing a red Queen from a pack of cards is -

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(a) (b) (c) (d) (e)

1/32 1/26 1/13 1/26 x 1/51 1/51 x 1/51

9.

Suppose X and Y are two positive valued random variables, each taking 10 values. Both have the same mean, but the variance of Y is twice the variance of X. Which of the following holds? (a) (b) (c) (d) (e) Max (Xi) > Max (Yi) Max (Xi) < Max (Yi) Max (Xi) = Max (Yi) Max (Xi) < Max (Yi) None of the above.

10.

Suppose the female wage rate in agriculture is 70% of the male wage are but women workers have 50% higher probability of finding employment than men workers. Then the exported wage income of women which is – (a) (b) (c) higher than that of the men lower than that of the men the same as that of the men

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This document is for reference purposes only. the population of common…………………………………….in (d) cannot say. The Capital(a) (b) (c) 4 1/4 4 years ECOPOINT MA Economics Entrance Coaching Page 181 All care has been taken to keep this document free from errors. available from. please check JNU Sample papers for any errors. Even though. Suppose a country receives a large net inflow of portfolio capital from abroad.000 produces an annual stream of RS.JNU Entrance Examination Papers JNU Entrance Exam www. JNU or DSE Photostat shop. You should have a copy of JNU papers available from JNU or DSE. 1. 11.500. the level of foreign exchange reserves will (a) (b) (c) (d) increase decrease remain the same Cannot say 13. As a result.. but there is no change in other capital transactions of in current account transactions on the external account. . In an economy the capital ………………………… Rs.6. (a) (b) (c) (d) remained the same increased decreased Cannot say.ecopoint. 12. Over a ten year period.

Even though.in (d) (e) 4 per year None of the above. The function ƒ(x) is defined as ƒ(x) = 1 if x is rational ƒ(x) = 0 if x is rational Then ƒ(x) is (a) (b) (c) (d) continuous everywhere continuous only at x rational continuous only at x rational nowhere continuous 15. available from. You should have a copy of JNU papers available from JNU or DSE. This document is for reference purposes only.JNU Entrance Examination Papers JNU Entrance Exam www.ecopoint. please check JNU Sample papers for any errors. . ECOPOINT MA Economics Entrance Coaching Page 182 All care has been taken to keep this document free from errors. JNU or DSE Photostat shop. Define 1 x 1 = 1 = -1 Then 1 x 1 ≤ a implies (a) (b) (c) (d) –a ≥ x ≥ a –a ≤ x ≤ a X≤a if 1 > 0 if 1 < 0 None of the above. 14.

in 16. . SECTION – II 17. You should have a copy of JNU papers available from JNU or DSE. available from. Even though. We have the following data for two countries which each produces food and cloth using only labour: Labour hours required to product one unit of Food Country A Country B (a) (b) (c) 80 120 Cloth 90 100 Can these countries gain from trading with each other? Why? Which country will export food? Which country will export cloth? ECOPOINT MA Economics Entrance Coaching Page 183 All care has been taken to keep this document free from errors. Indifference curves of a consumer do not intersect because (a) (b) (c) (d) (e) marginal rates of substitution are assumed to be diminishing more is assumed to be preferred to less budget lines have to be tangential to indifference curves different indifference curves are assumed to measure different levels of utility All of the above. please check JNU Sample papers for any errors. JNU or DSE Photostat shop.ecopoint. This document is for reference purposes only.JNU Entrance Examination Papers JNU Entrance Exam www.

Even though. This document is for reference purposes only.5. What happens if c > l? Consider the function ƒ(x) = log x – x + 1 and let k be a constant.JNU Entrance Examination Papers JNU Entrance Exam www. available from. . S and D at the equilibrium. Let S = 4p + p3 be the supply of a food when p is the price.ecopoint. By working through the multiplier process.in 18. and a=0. A and a are consistants. An economy produces output Q=ALO by applying labour (L) to a fixed amount of land. (a) (b) (c) Are there diminishing returns to the application of labour? If wages are equal to the marginal product of labour. derive the level of aggregate demand in a closed economy where A is the level of autonomous demand and c is the propensity to consume. 21. such that S=D. Equilibrium is said to exist when there exists a positive p. Calculate p. please check JNU Sample papers for any errors. How many values of x will satisfy the equation? ƒ(x) = k if (a) (b) (c) K>0 K=0 K<0 20. JNU or DSE Photostat shop. ECOPOINT MA Economics Entrance Coaching Page 184 All care has been taken to keep this document free from errors. what is the share of rent in output when employment is 100? What is the marginal product of labour when output is 200 and employment is 50? 19. You should have a copy of JNU papers available from JNU or DSE. Such an equilibrium is said to be stable if at equilibrium……………………………… Check whether the equilibrium you have obtained is stable. Let D=10-5p be the demand for the same good of price p.

English couple stops having children once they have a son.000 and were observed to spend 40% of this on food. Let the price of both x and y be Re 1 per unit. By 1996. y) = 5x + 7y. 25.500. but during the intervening period food prices increased by 100%. 26. What is the expected proportion of females in the total population of this society? In 19990. subject to the constraint that the cost of the good consumed does not exceed his income. A consumer is assumed to maximise his utility function of the form u(x. ECOPOINT MA Economics Entrance Coaching Page 185 All care has been taken to keep this document free from errors. 30% on clothing and 30% on other items. The demand curve faced by a monopolist whose production costs are zero. U(x) and let his utility function be u(x. please check JNU Sample papers for any errors. 24. 1. You should have a copy of JNU papers available from JNU or DSE. How much of x and y will the consumer consume? In a society each couple can have at most two children. What is the probability that the game ends on an odd numbered toss with A losing all her money? Explain your answer. is the following: Q = 10 – p when p > 5 = 30 – p2 when p ≤ 5 Where Q is quantity and p is price. cloth prices by 50% and prices of other items by 10%. workers obtained a wage of Rs.in 22 The players A and B have Rx 2 and Re 1 respectively.ecopoint. y) where x and y are two goods consumed. They play a game using tosses of a fair coin such that it pays A Re 1 when a had appears and A pays B Re 1 when a tail appears. (a) (b) What was the percentage change in real wages? If in 1996. let the consumer’s income be Rs.JNU Entrance Examination Papers JNU Entrance Exam www. This document is for reference purposes only. 1. the money wage was Rs. cloth and other items in the ratio 30:20:50 could they have afforded this same consumption bundle in 1990? 23. JNU or DSE Photostat shop. workers are found consuming food. available from. . Even though. The game stops when one of the players loses all her money.

. A crime has been committed by one of the individuals X. B also loses her voting eights and C gets to prove and so on to D. Four persons A. What distribution should A propose in the beginning? Explain your answer. and will always vote against a distribution in which she gets zero. x > log x. X has committed this crime. B. This document is for reference purposes only. determine who has committed the crime. Set – B ECOPOINT MA Economics Entrance Coaching Page 186 All care has been taken to keep this document free from errors. the proposal is accepted. Once again. If no. By indicating true or false against each statement.JNU Entrance Examination Papers JNU Entrance Exam www. available from. Below are 3 sets of 4 statements each. If not. vote on it.in What choice of Q will maximise the monopolist’s profit and what will be the corresponding value of p? SECTION – III 27. please check JNU Sample papers for any errors. Assume that each person prefers more money to less. 4 among themselves in units of one rupee. A loses her voting rights and B gets to propose a distribution and all except A vote on it. Set – A (a) (b) (c) (d) There is a real number such that 1x + 11 – 1x + 21 The set (A……………… Find x > 1. Even though. You should have a copy of JNU papers available from JNU or DSE. C and D have to share Rs. The number of true statements in any set is different from the number of true statements in any other set. If at least 50% of those voting agree with A. First A proposes a distribution and all of them. including A. 28.ecopoint. Y or Z. JNU or DSE Photostat shop. B’s proposed is accepted if at least 50% of those eligible to vote agree on it.

such that ƒ(x) = a. .in (a) (b) (c) (d) If a is a rational number and b is an irrational number. Attempt any one of the following questions in the space provided. The sum of an infinite set of positive numbers must be infinite. You should have a copy of JNU papers available from JNU or DSE. If GDP per capita in country A is higher than in country B. Try to keep your answer within 500 words in length: (a) (b) (c) (d) Is there an economic case for land reforms in India today? Is a policy of caste-based job reservations an effective way of furthering social equity? Why? Will the reduction of import restrictions improve the efficiency of Indian industry? Why? What are the arguments for and against ‘targeting’ in a public distribution system for food? ECOPOINT MA Economics Entrance Coaching Page 187 All care has been taken to keep this document free from errors. then (a + b) is an irrational number. SECTION – IV 29. JNU or DSE Photostat shop. available from. Z has committed the crime.ecopoint. Set – C (a) (b) (c) (d) There is no real number which satisfies the equation x 1 + 2x2 + 1 = U. If ƒ(x) is a maximized at x4 then [ƒ(x)]2 must also be maximized at x*. Even though.JNU Entrance Examination Papers JNU Entrance Exam www. Y has committed the crime. please check JNU Sample papers for any errors. there need not exist. their everyone in A is better off than everyone in B. Even if ƒ(x) < a and ƒ(x) > a. This document is for reference purposes only.

ecopoint. This document is for reference purposes only. JNU or DSE Photostat shop. Discuss.JNU Entrance Examination Papers JNU Entrance Exam www. ECONOMICS 1. You should have a copy of JNU papers available from JNU or DSE.’ Discuss. What is involuntary unemployment? Can it persist in a capitalist country even if employers have complete freedom to hire and fire workers? ENTRANCE EXAMINATION. Even though. 2. Answer the following questions (in not more than 100 words each): 5 x 5 = 25 (a) Let the cost function of a competitive firm be C = 0 if q = 0 and C = 1 + q 2 if q > 0. Shut-down price Money multiplier. What is the firm’s supply curve? ECOPOINT MA Economics Entrance Coaching Page 188 All care has been taken to keep this document free from errors.A. please check JNU Sample papers for any errors. What is the case for a policy of prohibition of alcohol? What could be the economic consequences? ‘A country like India cannot afford basic science research. 2004 M. .in (e) (f) (g) (h) Ethical judgments can only be made under conditions of ignorance. available from. Define the following concepts and discuss their significance (in not more than 100 words each): 5 x3 =15 (a) (b) (c) Backward bending labour supply curve.

M and P.ecopoint. Even though. some firm will leave the industry but in the long run the output of those remaining unchanged. then X must be an inferior good. hy > Oh. The market demand functions are q1 = a1 + b1 p1 and q2 = a2 + b2 p2. r is rate of interest. then X cannot be an inferior good and (b) if the agent is a net buyer of X and the price change does not alter the amount of X he buys. fy>Ogr < O M = Ph(y. X and Y. (a) (b) Define n probability density function. Show that the pure monopoly output and discriminating monopoly output are identical. ECOPOINT MA Economics Entrance Coaching Page 189 All care has been taken to keep this document free from errors. JNU or DSE Photostat shop. The firm’s average cost is constant. ƒ(y) is consumption function. (c) (d) (e) Consider the simple Keynesian model of determination of income. Let y and r denote equilibrium income and rate of interest respectively. Find the effect of an increase in government expenditure on y and r. You should have a copy of JNU papers available from JNU or DSE. please check JNU Sample papers for any errors. If a per unit production tax is levied in a competitive industry where all firms are identical. < O Where Y is national income. Suppose that the relative price of X rises. available from. g(r) is investment function.in (b) A monopolist can discriminate between two markets. are exogenously given government expenditure. an agent possesses initial endowments of two goods. 3.f. Show that (a) if the agent is a net seller of X and the price change does not alter the amount of X he sells. In a two-good pure exchange economy. This document is for reference purposes only. r) is demand for money function and G. r). h (y. Is the statement true or false? Give reasons.d. If the autonomous consumption is zero and the marginal propensity to consume is 1. Verify that the following constitutes a valid p. What is the equilibrium level of income? Interpret your result. 10 4. Consider the following IS-LM model Y = f(y)+g(r)+G.JNU Entrance Examination Papers JNU Entrance Exam www. money supply and price level respectively. .

You should have a copy of JNU papers available from JNU or DSE.in ƒ(x) = 1/β-a β ≥ x ≥ a (c) Find the mean and variance of the above distribution. Keynesian theory shows how income and employment can be increased in an economy that has not achieved full employment. Even though. Answer any two of the following questions (in not more than 300 words each): 15 x 2 = 30 (a) (b) (c) A model of competitive markets ignores the issues related to income distribution. . Check whether the inverse function exists and find dx/dy.JNU Entrance Examination Papers JNU Entrance Exam www. Is this theory relevant in the Indian context? Discuss. JNU or DSE Photostat shop. (a) (b)k y = x3 + x + 3. 2 + 3 = 10 5. please check JNU Sample papers for any errors.ecopoint. Choose the correct answer and prove it: A  B is logically equivalent to (i) (ii) (iii) (iv) (v) AB 5 + 5 = 10 6. Discuss with reference to Pareto optimality. available from. What is elasticity pessimism in the context of exports? Discuss how it has shaped India’s development strategies in the Fifties and Sixties. BA AB BA AB ECOPOINT MA Economics Entrance Coaching Page 190 All care has been taken to keep this document free from errors. This document is for reference purposes only.

. please check JNU Sample papers for any errors. people should save less. M=C+D H=C+R ECOPOINT MA Economics Entrance Coaching Page 191 All care has been taken to keep this document free from errors. GOI is very rich. ECONOMICS 1. 2. True or False? Why? Government of India (GOI) owns many large public sector undertakings.JNU Entrance Examination Papers JNU Entrance Exam www. Therefore. 2003 M.ecopoint. Answer any five of the following (in not more than 100 words each): (a) (b) (c) (d) The Keynesian model suggests that income falls with a rise in the savings rate. True or False? Why? Consider the following model for determination of the money supply.A. Even though.in ENTRANCE EXAMINATION. This document is for reference purposes only. Therefore. You should have a copy of JNU papers available from JNU or DSE. True or False? Why? Walras’ law holds even if the economy is not in equilibrium. JNU or DSE Photostat shop. available from. Define any five of the following concepts and discuss their significance (in not more than 100 words each): 5 x 5 = 25 (a) (b) (c) (d) (e) (f) Marginal utility Equilibrium under Cournot duopoly Deadweight-loss Keynesian multiplier Giffen good Spurious correlation.

a consumer maximizing utility subject to a budget constraint must consume both goods. True or False? Why? (f) 3. D is deposits. (a) The following equation tell us the probabilities for different values of x.25.JNU Entrance Examination Papers JNU Entrance Exam www. . You should have a copy of JNU papers available from JNU or DSE. This document is for reference purposes only. Given that a candidate is selected for admission what is the probability that the candidate answered this question correctly? What is the problem with the following argument? Suppose a = b > O A2 – b2 4. R is reserves of commercial banks. JNU or DSE Photostat shop.4. please check JNU Sample papers for any errors. (a) ECOPOINT MA Economics Entrance Coaching Page 192 All care has been taken to keep this document free from errors. lessly levy a profit tax on a monopolist. C is currency. available from. Even though. if this question is answered correctly the probability of getting admission is 0. Further.75 and if this question is answered incorrectly the probability of getting admission is 0. What will be the effect on equilibrium if the government reduces the rate of tax on profits from 50% to 30%? If there are two goods in an economy. C is public’s currency-deposit ratio and r is Banks’ cash reserves as a ratio of deposits and H is the exogenously given high-powered money.ecopoint. SPACE FOR EQUATION What is the probability that x has a value less than 2? (b) Suppose the probability of answering this probability question correctly is 0. (e) Assume that the government can cost.in C = cD R = rD Where M is money supply. Is the money supply infinite if r = 0? Give reasons.

please check JNU Sample papers for any errors. JNU or DSE Photostat shop. Answer any two of the following (in not more than 300 words each): (c) ENTRANCE EXAMINATION. x2 – a2 / x – a 15 x 2 = 30 (a) (b) The poorest in India are in the subsistence economy. 2002 M. This document is for reference purposes only. What is the optimal level of output? 4 (c) Solve for the following expression : Lim 5.ecopoint. ECONOMICS ECOPOINT MA Economics Entrance Coaching Page 193 All care has been taken to keep this document free from errors. one solution is a + b = O 2a = O A=O (b) Suppose the profit function of a monopoly firm is f the form P (q) = 3 + q Where q denotes the output level. Is privatization the only solution for correcting the poor performance of public sector enterprises? Discuss. should this be done by raising taxes or reducing expenditures? Discuss. Even though. The budget of the Government of India shows a large deficit.JNU Entrance Examination Papers JNU Entrance Exam www. Should this be reduced? If it is to be reduced. Discuss whether they are likely to be affected by globalization. available from. You should have a copy of JNU papers available from JNU or DSE.in (a + b) (a – b) = O Therefore. .A.

This document is for reference purposes only. .ecopoint. Monopolistic competition Backward bending supply curve. The Reserve Bank of India has been cutting the rate of interest but the economy has not been picking up. The lawyer can earn Rs.JNU Entrance Examination Papers JNU Entrance Exam www. A lawyer and some person have typing speed of 60 words and 40 words per minute respectively. or should they practice separately? Consider two alternative policies. please check JNU Sample papers for any errors. Answer any two of the following in not more than 100 words each: (a) (b) (c) (d) (e) Indian Airlines offers a 25% discount on its flights to and from the North-east. Supply creation its own demand. A ……has a production function y = K1/2 L1/2. Explain. Define any five of the following concepts and discuss their significance (in not more than 100 words each): (a) (b) (c) (d) (e) (f) Producers’ surplus. What will be the cost function of the firm if the price of a unit of both capital and labour is 1. Does it constitute a case of profit maximizing price discrimination? Explain whether indifference curves of the same individual can intersect. available from. Under the ……………………………the elasticity of employment with respect to output is 10. while the other person can earn RS. 1000/per hour if he takes a case. Even though.in 1. You should have a copy of JNU papers available from JNU or DSE. JNU or DSE Photostat shop. Should the lawyer himself person as his secretary. 200/hour as he takes a case. Marginal propensity to consume. and under the second policy the (f) ECOPOINT MA Economics Entrance Coaching Page 194 All care has been taken to keep this document free from errors. Ordinal utility 5 x 5 = 25 2.

What policy would you prefer and why? 3. Even though.JNU Entrance Examination Papers JNU Entrance Exam www. The diameters of the balls in the first set are 8 inches. consumption sector of four individuals were (8. Which set is more uniform? 3 At a given point of time the income. 3 inches and 4 inches. (a) (b) Can the following system of equations be solved: 4x + 3y + 2z = 14 X + 2y + z = 8 12x + 9y + 6z = 25. available from. (12. whereas the diameters of the balls in the second sets are 2 inches. (24. What is the probability that the outcome is at least two heads? 3 There are two sets of balls. JNU or DSE Photostat shop. 9 inches and 10 inches. Suppose the fourth individuals had an income level of 45 instead. 6) and (40.in elasticity of employment with respect to output is 0. (c) Maximise the expression (2y – y2 + 5) (4x – 2x2 + 5) Can this expression be minimized? 4 3 ECOPOINT MA Economics Entrance Coaching Page 195 All care has been taken to keep this document free from errors. 1). This document is for reference purposes only. 11) respectively. 3).ecopoint. You should have a copy of JNU papers available from JNU or DSE. . 3 (c) 4.5. (a) (b) A coin is tossed four times. What do you think his consumption would have been? 3 Differentiate using first principles: (i) (j) Y = 2x + 2 / x Y = log x. please check JNU Sample papers for any errors.

Is there a market failure here? Currently the rate of inflation in the Indian economy is low. EXAMINATION. Discuss whether this is good. . What will be the impact? Student’s from both public and private schools attend private tuition. Define any five of the following in not more than 100 words each: (a) (b) The production possibility curve and its shape. please check JNU Sample papers for any errors. ECOPOINT MA Economics Entrance Coaching Page 196 All care has been taken to keep this document free from errors. This document is for reference purposes only.JNU Entrance Examination Papers JNU Entrance Exam www. You should have a copy of JNU papers available from JNU or DSE. Discuss whether a policy of trade liberalization can be adopted to reduce poverty 3 x 10 = 30 ENT. JNU or DSE Photostat shop. Income Effect and Substitution Effect. Argue whether successful land reforms would lead to higher agricultural growth. Answer any three of the following questions in not more than 300 words each. available from. 2001 ECONOMICS (With Specialization in the World Economy) 1.ecopoint. Even though.A. M.in 5. (a) (b) (c) (d) (e) Suppose restrictions on entry of foreign firms into the Indian economy is removed.

Given that the utility function of a consumer consuming two goods is y = x a yb derive the demand functions for this consumer.JNU Entrance Examination Papers JNU Entrance Exam www. The government has cut taxes.ecopoint. Balanced Budget Multiplier. please check JNU Sample papers for any errors. You should have a copy of JNU papers available from JNU or DSE. There are two countries – India and the US. This document is for reference purposes only. 5 x 5 = 25 2. It is often argued that to raise the rate of growth of the Indian economy it is necessary to increase the savings rate. The main hours required to produced a unit of garments and computers are 5 and 4 respectively in the US and 0 and 8 respectively in India. Explain. Money Creation by Banks. . Yet the economy remains depressed. If there is trade would it be beneficial to one country only or both? 5 x 5 = 25 (e) (f) ECOPOINT MA Economics Entrance Coaching Page 197 All care has been taken to keep this document free from errors. Even though. Discuss the pattern of production in the two countries if there is trade. With a higher savings rate always lead to higher income? The Bank rate in Japan has been cut to almost zero. available from. JNU or DSE Photostat shop. Demonstration Effect. and two goods – garments and computers. Answer any five of the following in not more than 100 words each: (a) Is marginal revenue equal to marginal cost an equilibrium condition under all types of market forms? Explain. which is the fixed cost and which is the variable cost? (b) (c) (d) Can the marginal cost curve cut the average cost curve from above? Discuss (use either diagrams or algebra).in (c) (d) (e) (f) Public Goods. If C = a + b O is a cost curve.

please check JNU Sample papers for any errors. and lost power if the Indian cricket team has lost the last home series. only 1 five card suit? 3 (b) (c) 4. What is the probability of drawing 3 black balls and 3 red balls if you draw 6 balls from the bag in the case where there is replacement and in the case where there is no replacement? 4 If a probability of a c judge hand containing (i) (ii) at least 3 aces.JNU Entrance Examination Papers JNU Entrance Exam www. using Crammer’s Rule: 5x + 7y + 9z = 1 3x + 2y + 7z = -7 2x + 5y + 5z = 4 3 (c) Maximize or minimize 8x + 12y – 3z2 – 2y2 + 4xy 4 ECOPOINT MA Economics Entrance Coaching Page 198 All care has been taken to keep this document free from errors. available from. How much confidence should you have in the prediction? 4 There are two black balls and 5 red balls in a bag. This document is for reference purposes only. JNU or DSE Photostat shop. y and z. On this basis he predicts that the ruling party will retain power in the next election.ecopoint. (a) (b) Differentiate (i) y = 3x (ii) x = ox preferably using first principles. . Researcher has found that in the last 10 general election that the ruling party has won a majority in the elections if the Indian cricket team has won the last home test series before the elections.in 3. 3 Solve the following set of three equations in the three unknowns x. Even though. (a) Mr. You should have a copy of JNU papers available from JNU or DSE.

Define any five of the following concepts and discuss their significance (in not more than 100 words each) (a) (b) (c) (d) (e) Revealed Preference.JNU Entrance Examination Papers JNU Entrance Exam www. 2000 ECONOMICS (With Specialisation in the World Economy) 1. Walras Law.in 5. This document is for reference purposes only. available from. Life cycles saving hypothesis. JNU or DSE Photostat shop. Analyze in the market for electric power there is a single private producer. What will be its effect on the amount of power produced on consumer’s surplus and producer’s surplus? 3 x 10 = 30 ENT. Discuss analytically whether in the present circumstances in India the fiscal detail should be reduced. The government imposes a price ceiling. ECOPOINT MA Economics Entrance Coaching Page 199 All care has been taken to keep this document free from errors.ecopoint. EXAMINATION. External economies. . Answer any three of the following questions in not more than 300 words each: (a) (b) (c) (d) Discuss the relationship between factor size and productivity. Examine whether only toss making public enterprises should be privatized as they are a drain on the public budget. Money multiplier. You should have a copy of JNU papers available from JNU or DSE. please check JNU Sample papers for any errors. Even though.

please check JNU Sample papers for any errors. How does a lump-sum subsidy to each of the firms in a competitive industry affect the output of the original firms? Show that in long run competitive equilibrium the marginal firm produces an output large than that which minimizes as average variable cost. JNU or DSE Photostat shop. You should have a copy of JNU papers available from JNU or DSE. available from. . What is the expected proportion of ECOPOINT MA Economics Entrance Coaching Page 200 All care has been taken to keep this document free from errors. each couple can have at most two children. If a per unit production tax is levied. Will this induce everyone to increase his savings? Explain graphically. A monopolist has consistant average cost and faces a linear demand curve. will this raise price by more or less than the amount of the tax? A profit maximizing monopolist experiences a technical change which towards his total costs for evry output level.ecopoint. Answer any five of the following in not more than 100 words each: (a) (b) A rise in interest rate increases the opportunity cost of current consumption. This document is for reference purposes only. diminishing marginal productivity of inputs implies that more of one input raises the marginal product of the other. Show that. (c) (d) (e) (f) 3.JNU Entrance Examination Papers JNU Entrance Exam www.in (f) Disguised unemployment. (a) Obtain E(X – E(X)2) for the following density 1/7 0<x<7 Function ƒ(x) = 0 otherwise 5 (b) In a society. Each couple stops having children once they have a son. You may not assume anything about his marginal cost curves. 5 x 5 = 25 2. Even though. Prove that this increase his profits. under constant returns to scale.

This document is for reference purposes only. Compare the relative magnitudes of the multiplier in the simple Keynesian and the IS-SM models and identity the situation in which the two magnitudes will be identical. JNU or DSE Photostat shop. You should have a copy of JNU papers available from JNU or DSE. Discuss the role of monopolies in stimulating or retarding technical progress. please check JNU Sample papers for any errors. 5 4. Answer any three of the following questions in not more than 300 words each: (a) (b) What is the transaction demand for money? Show how it depends on the rate of interest. Can you account for the recession and the recent recovery? (c) (d) ECOPOINT MA Economics Entrance Coaching Page 201 All care has been taken to keep this document free from errors. the Indian economy faltered into a recession from which it is only now beginning to recover. After three years of rapid growth from 1993-94 to 1995-96. (a) Invert the matrix: a 0 0 0 0 b 0 0 0 0 c 0 0 0 0 d (b) Sum : …………………………….JNU Entrance Examination Papers JNU Entrance Exam www. available from.in female in the population? Assume that the probability of having a son is equal to that of having a daughter.. . Even though.ecopoint. (c) Solve: (1 + X) y dx + (1 – y) x dy = 0 4 5.

available from. The Phillips Curve. 1999 ECONOMICS (With Specialisation in World Economy) 1.JNU Entrance Examination Papers JNU Entrance Exam www. Even though. The Liquidity Trap. . JNU or DSE Photostat shop. This document is for reference purposes only. The Production Possibility Frontier. Answer any five of the following questions? (a) Describe the supply curve of a monopolist.in (e) Examine the comparative merits of the ability to pay and the benefit principles as bases for taxation. You should have a copy of JNU papers available from JNU or DSE. ECOPOINT MA Economics Entrance Coaching Page 202 All care has been taken to keep this document free from errors. 2.A. 3 x 10 = 30 M.ecopoint. ALL INDIA ENTANCE EXAMINATION. please check JNU Sample papers for any errors. Define the following concepts and discuss their significance: (a) (b) (c) (d) (e) The Permanent Income Hypothesis. Elasticity of Substitution.

both of whom like cake. He buys food in the village. 3. JNU or DSE Photostat shop. A publisher pays exactly the same fraction of his sales to his author. If the markets are competitive. but must travel by bus to town to buy clothes. You should have a copy of JNU papers available from JNU or DSE. Is this because authors are inherently quarrelsome or is there a deeper economic reason? Assume that all workers have identical leisure-income preferences. pays 10% of his sales value as commission. His wife could eat no lean. This document is for reference purposes only. A villager spends all his income on food and clothes (neither of them inferior goods). They liked the platter clean.JNU Entrance Examination Papers JNU Entrance Exam www. the author and his publisher argue endlessly about the price of the book. they offer instead a package of a given wage rate and a specific work-load – not necessarily the despite this.in (b) The owner of a mineral spring. competition among firms leads to an equilibrium in which the worker works exactly as much as would maximize his utility at the equilibrium wage. available from. . (ii) if he stops buying clothes altogether? How many different Pareto-optima are possible in each of the following situations: (i) (ii) Raja and Rani. Even though. please check JNU Sample papers for any errors. And. are dividing a cake between themselves. 3 x 10 = 30 ECOPOINT MA Economics Entrance Coaching Page 203 All care has been taken to keep this document free from errors. who sells his water to bottlers through a commission agent.ecopoint. When the bus fare rises. Answer any three of the following questions in not more than 300 words. between the two of them. what is the equilibrium relative price of Y if A’s utility function is X A YA and B’s utility function is X0 Y0 – (XA YA and X0 Y0 being A’s and B’s consumption of the two goods respectively. But while the spring owner and his agent are always in perfect agreement.” (c) (d) (e) (f) In a two consumer two-good economy. A has an endowment X of good X and B an endowment 9 of good Y. Firms deny workers the freedom to choose how much to work. will he buy more food or less (i) if he continues to buy both goods. “Jack Sprati could eat no fat.

If we differentiate the L. 5 Consider events A. we get 2x.H. Account for the stagnation of the Indian economy in the mid-sixties and seventies and its revival thereafter. please check JNU Sample papers for any errors.H. available from. Determine c. What price will he set? Compute the welfare loss compared to the socially optimal output.S. Even though. B and C with Prob (A) > Prob (B) > Prob (C) > 0. Events A and C are independent. N identical buyers for a product each have a demand curve p = 10 – 2q. This document is for reference purposes only. Even A and B are mutually exclusive and collectively exhaustive. You should have a copy of JNU papers available from JNU or DSE. JNU or DSE Photostat shop.ecopoint. (iii) (d) What are the causes of wage rigidly and what are its macroeconomic consequences? 4 (a) (b) The function ƒ(x) = cxe-2 for all real non-negative x is the probability density function of x.in (a) (b) (c) Examine the characteristics of public goods and the problems involved in their pricing and supply.S. For social welfare to be maximized.JNU Entrance Examination Papers JNU Entrance Exam www. 5 (a) ECOPOINT MA Economics Entrance Coaching Page 204 All care has been taken to keep this document free from errors. Can B and C be mutually exclusive? 5 Consider the identity x2 = ………………………………. what is the smallest N at which a perfectly discriminating monopolist can cover costs? Why is this the smallest population for which production of the good is socially desirable? Suppose K = 0 and N = 100. But if we differentiate the R. we get the sum of x ones. The goods is produced by a monopolist who cannot price-discriminate. . what quantity should each buyer get (there are no externalities)? If K = 32. The cost of production is C(Q) = 2Q + K where Q is total output: (i) (ii) Suppose K = 0. or x.

The annual inflation rate in India (in terms of the Wholesale Price index in the last five years has been in the range of – (a) (b) (c) 0 – 4 per cent 5 – 10 per cent 11 – 15 per cent ECOPOINT MA Economics Entrance Coaching Page 205 All care has been taken to keep this document free from errors. This document is for reference purposes only.JNU Entrance Examination Papers JNU Entrance Exam www. Even though.ecopoint. available from.A. Why are they different here? 5 (b) Prove that the following determinant: Space for table M. ECONOMICS (WITH SPECIALISATION IN WORLD ECONOMY) PART – A (This Part has 20 multiple-choice questions. You are required to do all 20 questions.) 1. You should have a copy of JNU papers available from JNU or DSE.in The derivatives of two sides of an identity should be the same. Each question is of 1 work.A. ENTRANCE EXAMINATION. JNU or DSE Photostat shop. . please check JNU Sample papers for any errors. 1997 M.

a – c < b – c for any real number c. . What (x) is the probability that the next throw will also give the number 6? (a) (b) (c) (d) 0 1/30 1/6 5/6 ECOPOINT MA Economics Entrance Coaching Page 206 All care has been taken to keep this document free from errors. available from. around (a) (b) (c) (d) 40 per cent 50 per cent 60 per cent 70 per cent. The share of the primary sector in the Indian Labour……………………………. A dice has given the number 6 on five consecutive throws. 4. If a.. JNU or DSE Photostat shop. Even though.JNU Entrance Examination Papers JNU Entrance Exam www. 3. then it is necessary that – (a) (b) (c) (d) a2 < b2 √a < √b a.c < b. You should have a copy of JNU papers available from JNU or DSE. please check JNU Sample papers for any errors. 2. b are real numbers and a > b.in (d) 15 – 20 per cent. This document is for reference purposes only.ecopoint.c for any real number c.

You should have a copy of JNU papers available from JNU or DSE. . Even though. available from. This document is for reference purposes only. JNU or DSE Photostat shop. please check JNU Sample papers for any errors. The beginnings of modern industry in India occurred in (a) (b) (c) (d) the late 18th century the beginning of the 19th century the middle of the 19th century the turn of the 20th century ECOPOINT MA Economics Entrance Coaching Page 207 All care has been taken to keep this document free from errors. If a.ecopoint.in 5.JNU Entrance Examination Papers JNU Entrance Exam www. The country with the largest external debt in the world today is (a) (b) (c) (d) Brazil Argentina China United States 6. b are two distinct real numbers both greater than unity. then it must be the case that (a) (b) (c) (d) a/b<1 a/b>1 a + b > 2√a.b 7.b a + b < 2√a.

You should have a copy of JNU papers available from JNU or DSE. 10. JNU or DSE Photostat shop. The Lewis model of industrialization (a) (b) (c) (d) involves industry supplying labour to agriculture involves agriculture supplying labour to industry requires the wage rate in agriculture to fall requires the wage rate in industry to fall ECOPOINT MA Economics Entrance Coaching Page 208 All care has been taken to keep this document free from errors. Even though.ecopoint. please check JNU Sample papers for any errors. Open market operations of the central bank. Which of the following is not a total of monetary policy? (a) (b) (c) (d) The tax rate. This document is for reference purposes only. How would you distribute your order for eggs so as to minimize the risk of total loss of eggs? (a) (b) (c) (d) Order all your eggs from the first boy Order all your eggs from the second boy. Distribute the order for eggs between the two boys. The interest rate. The Cash Reserve Ratio. available from. . There are two egg delivery boys you can order eggs from. The probability of the first boy falling and breaking all the eggs is ½ and the probability of the second boy falling and breaking all the eggs is 1/5. 9.in 8. Cannot say on the basis of this information.JNU Entrance Examination Papers JNU Entrance Exam www.

JNU Entrance Examination Papers JNU Entrance Exam www. Even though. . You should have a copy of JNU papers available from JNU or DSE. Then the capital-output ratio is – (a) (b) (c) (d) 2 5 7 10 12. For an economy. The investment rate is 20 per cent and the rate of growth of labour force is 2 per cent per annum. If the short-run average cost curve for a firm is a decreasing function of its output over a certain range. assuming that output is plotted on the horizontal axis and the costs are on the vertical axis 13. the long-run rate of growth of GDP is 5 per cent per annum at full employment. JNU or DSE Photostat shop. Assuming that output is plotted on the horizontal axis and the costs are on the vertical axis the location of the marginal cost curve is uncertain since it depends on whether the firm is a competitive one or not the marginal cost curve will lie above the average cost curve. then in that range (a) (b) (c) (d) the firm’s marginal cost curve must also be decreasing the marginal cost curve will lie below the average cost curve. please check JNU Sample papers for any errors. This document is for reference purposes only.ecopoint. Between 1900 and 1950 in India (a) (b) (c) agricultural output grew faster than industrial output agricultural output grew slower than industrial output agricultural output grew at the same rate as industrial output ECOPOINT MA Economics Entrance Coaching Page 209 All care has been taken to keep this document free from errors. available from.in 11.

.5.in (d) neither sector’s output grew at all. then the output sold b y the monopolist (a) (b) cannot be determined by maximum profit is determined by maximizing profits ECOPOINT MA Economics Entrance Coaching Page 210 All care has been taken to keep this document free from errors. Special Drawing Rights are – (a) (b) (c) (d) a means by which the government can draw money from local banks a means by which the government can use the foreign exchange reserves of the central bank to finance a fiscal deficit an international reserve asset created by the International Monetary Fund funds which the World Bank and the International Monetary Fund exchange among themselves 16.JNU Entrance Examination Papers JNU Entrance Exam www. Even though. Let S = 1 + ½ + 1/3 + ¼ + … Then S is equal to (a) (b) (c) (d) 3 4 6 The sum does not converge to any finite value. JNU or DSE Photostat shop. 14. If the demand curve facing a monopolist is given by p = 10q *-1.ecopoint. You should have a copy of JNU papers available from JNU or DSE. 15. This document is for reference purposes only. available from. please check JNU Sample papers for any errors.

it would purchase the stock only if the firm is expected to pay a dividend of ECOPOINT MA Economics Entrance Coaching Page 211 All care has been taken to keep this document free from errors.50 to the dollar in that year. 52. A foreign institutional investor who will settle only for returns in excess of 10 per cent. 100 but is expected to appreciate in value to Rs.ecopoint. please check JNU Sample papers for any errors.in (c) (d) is determined by maximum profits provided the cost is constant is determined by maximum profits provided the cost is an increasing function of output 17.JNU Entrance Examination Papers JNU Entrance Exam www. Even though. the aggregate consumption function is of the form C = a + 0. 50 to the dollar Rs. This document is for reference purposes only. 100 at the end of one year. available from. You should have a copy of JNU papers available from JNU or DSE.8). is considering converting dollars into rupees to purchase a stock that is valued at Rs. If the investing entity expects the rupee to depreciate in value from Rs. In a closed economy. . The value of the multiplier is (a) (b) (c) (d) 1 4 5 8 18. JNU or DSE Photostat shop. Which of the following will be an inverse function of ƒ(x) = 1/x? (a) (b) (c) (d) g(y) = y g(y) = 1/y g(y) = y2 g(y) = 1/2 y 19.

. PART – C 22.50.000 worth of other inputs to Maruti Suzuki. What is the total contribution to GDP made by the entire series of transactions? (a) (b) (c) (d) Rs. 5 per share More than Rs. 2.000. This document is for reference purposes only. for Rs.50.00. 1.50 per share Rs.50. available from.00.50. 20. You should have a copy of JNU papers available from JNU or DSE.000 Rs.ecopoint. 1.000 worth of steel to Maruti Suzuki Company and other producers sell Rs.00.JNU Entrance Examination Papers JNU Entrance Exam www. 3.in (a) (b) (c) (d) Rs.000 21. Even though. 3.000.000 Rs. 3 per share Rs. ECOPOINT MA Economics Entrance Coaching Page 212 All care has been taken to keep this document free from errors. Explain the difference between direct and indirect taxes. Write an essay on any one of the following topics: (a) The need for a universal employment guarantee scheme in rural India. please check JNU Sample papers for any errors.00. Competent Automobiles. 3. Suppose Tata Steel sells Rs. Maruti Suzuki then uses the steel and other inputs to make a car which it sells to a dealer.000 Rs. 5 per share. 3. JNU or DSE Photostat shop. 1. 2. Then the dealer sells the car to a consumer for Rs. with 2 examples of each.

2006 M. Even though. Discuss the significance of the following concepts (in not more than 100 words each): 5 x 3 = 15 (a) (b) (c) Price elasticity of demand Diminishing marginal rate of substitution. JNU or DSE Photostat shop. Answer the following questions (in not more than 100 words each): (a) Madhu spends all her income on the two goods. She views Limca and Coke as perfect substitutes. p.in (b) (c) (d) (e) (f) Business process outsourcing. p*. Why India’s foreign exchange reserves are increasing. . You should have a copy of JNU papers available from JNU or DSE. ENTRANCE EXAMINATION. Permanent income hypothesis. The price of a 200 ml can of Limca. ECONOMICS (With Specialization in the World Economy) 1. Limca and Coke. The new patents regime in India. 2. available from. What does Madhu’s Engel ECOPOINT MA Economics Entrance Coaching Page 213 All care has been taken to keep this document free from errors. please check JNU Sample papers for any errors.JNU Entrance Examination Papers JNU Entrance Exam www. Utility Possibility Curves.A. is less than the price of a 200 ml can of Coke. This document is for reference purposes only.ecopoint. Competitive markets and optimality.

2 and two goods x and y. y1) = x11/2 y11/2. respectively. 5 + 5 + + 5 = 15 ECOPOINT MA Economics Entrance Coaching Page 214 All care has been taken to keep this document free from errors. 2) e2 = (2. .in curve for Limca look like? How much does her weekly soft drink budget have to rise for her to buy one more can of Limca per week? (b) Consider the paper industry that produces a negative externality in the form of wastes that cause water pollution. This document is for reference purposes only. Suppose the inverse demand curve for paper is p = 200 – Q. available from.ecopoint. where p and Q are the price and quantity of the paper produced. The private marginal cost is MCP = 80 + Q. Consider an economy with two consumers I = 1. Compute the competitive equilibrium for the economy.JNU Entrance Examination Papers JNU Entrance Exam www. What will be the slope of the IS curve? 3. JNU or DSE Photostat shop. Even though. yi being the quantities of the goods consumed by consumer I. y2) = x2 y2 + in y2 (a) (b) (c) e1 = (6. u2(x2. with x i. 6) Derive the contract curve for this economy. You should have a copy of JNU papers available from JNU or DSE. The consumers have the following utility functions and endowments: u1(x1. Find an allocation for this economy that is Pareto optimal but not a competitive equilibrium for the given endowments for the consumers. and Px and Py denoting the prices of the two goods. and the marginal harm from waste is MCW = 3Q. (i) (ii) (c) What is the equilibrium for the monopolist? How would this equilibrium change if the monopolist has to pay for the marginal harm from the waste? Suppose the economy has autonomous investment and the rate of savings depends only on income. please check JNU Sample papers for any errors.

Past experience suggest that the probability of success is 5%. 3 5.ecopoint. Explain if this is possible or whether he has made some errors in calculation.in 4. (a) Let ƒ(x) = Ax12/3 x21/3 where A = 3 / 41/3 and x = (x1. C coaching schools respectively: (i) (ii) A candidate is chosen at random from a school. A researcher calculates the mean IQ of IT professionals in the two locations. What is the probability that he would fail? Assuming that a candidate fails. before and after migration. Even though. You should have a copy of JNU papers available from JNU or DSE. what is the probability that he was from School A? 2+2=4 (b) (c) 1000 IT professionals migrate from Bangalore (B) to the Silicon Valley (SV). f = 1. Out of these 200 opt for Coaching School A. 300 for School B and 500 for School C. x2) is a vector.JNU Entrance Examination Papers JNU Entrance Exam www. Show that – (i) (ii) the function ƒ(x) is increasing in x1. ECOPOINT MA Economics Entrance Coaching Page 215 All care has been taken to keep this document free from errors. . Four gloves are drawn at random. What is the probability that there will be at least one complete pair among the four gloves? There are 1000 candidates for a competitive examination. B. B and SV. xu and xSV – mean before migration yB and ySV – mean after migration and notes that yB > xB and ySV > xSV (namely. available from. the average IQ has gone up in both locations after migration). concave in x. JNU or DSE Photostat shop. please check JNU Sample papers for any errors. This document is for reference purposes only. (a) Five non-similar pairs of gloves are in a closet. 15% and 10% for A. 2.

please check JNU Sample papers for any errors.A. India is a poor country. Do you expect the same to happen if supply of electric power in India is privatized? Give reasons for your answer. Privatisation of telecommunication has resulted in improved telecommunication services at lower price. We know from Keynesian Economics that higher budget deficits lead to higher level of income. (c) ENTRANCE EXAMINATION. so in order to raise income the budget should be raised. Answer any two of the following questions (in not more than 300 words each) 15 x 2 = 30 (a) (b) Liberalization of international trade is good but liberalization of international capital flows is bad. You should have a copy of JNU papers available from JNU or DSE. available from. Do you agree with this view? Discuss.in (iii) (b) linearly homogeneous. Even though. .ecopoint. ECONOMICS (With Specialization in the World Economy) 1. 2005 M. Discuss the significance of the following concepts (in not more than 100 words each): 5 x 3 = 15 (a) Purchasing power parity ECOPOINT MA Economics Entrance Coaching Page 216 All care has been taken to keep this document free from errors. JNU or DSE Photostat shop. Do you agree? Explain your answer. This document is for reference purposes only.JNU Entrance Examination Papers JNU Entrance Exam www. 1+2+2=5 Find the extreme value of Z = 8x3 + 2xy – 3x2 + y2 + 1 5 6.

2.JNU Entrance Examination Papers JNU Entrance Exam www. Put suitable restrictions on the parameters. b. what is the Pareto efficient number of street lights to provide? Consider the following 2 Country macroeconomic model: Y1 = a + bY2 Y2 = c + dY1 where Y1 and Y2 are the real national incomes of Country 1 and Country 2 respectively. Even though.in (b) (c) Price discrimination. (c) (d) ECOPOINT MA Economics Entrance Coaching Page 217 All care has been taken to keep this document free from errors. Balanced budget multiplier. In the short run. Answer the following questions (in not more than 100 words each): (a) Derive the demand functions from the following utility function: U (x. (e) Aggregate output of an economy (Y) is produced by capital (K) and labour (L) with the following technology: Y = K1/2 L1/2. show that it receives a net non-negative subsidy. You should have a copy of JNU papers available from JNU or DSE. Suppose 20 people live on a street and that each of them is willing to pay Rs. This document is for reference purposes only. If a family is neither better off nor worse off as a result of the programme. y) = xy (b) According to anti-programme a purchase up to 10 kg of rice is subsidized and quantities purchased in excess of 10 kg are taxed. The aggregate labour supply function is (w/ p)2.ecopoint. Find the aggregate output and the real wage rate in full employment. please check JNU Sample papers for any errors. available from. JNU or DSE Photostat shop. c and d are parameters. 3 for each extra street light. and a. . K = 4. If the cost of providing z street lights is given by C(z) = z2. where w is the money wage rate and p is the price level. regardless of the number of street lights provided.

derive the first-order conditions and show that in general the consumer’ will sell one good and buy the other. please check JNU Sample papers for any errors. JNU or DSE Photostat shop. x 1 and x2 and maximizes the utility function u(x1. Even though. x2) subject to the fact that his expenditure on the two goods cannot exceed the market value of the stocks he possesses. and draw one note blind folded. . 3 + 3 + 4 = 10 5. X1 = 25.ecopoint. 100 notes. the second contains four Rs. a12 =5 II: n2 = 30.JNU Entrance Examination Papers JNU Entrance Exam www. ECOPOINT MA Economics Entrance Coaching Page 218 All care has been taken to keep this document free from errors. 50 notes and three Rs. (a) Find ………………………. 100 notes. Formulate the consumer’s optimization problem. This document is for reference purposes only. The first contains two Rs. A consumer has fixed stocks of two goods. You should have a copy of JNU papers available from JNU or DSE. available from. and the third contains five Rs. How many ways can you invite one or more of them to your birthday party? Given the following information on two data sets: I : n1 = 20. what would be your expected earning? (b) (c) You have six close friends. 100 note. Also show that the compensating variation of an increase in the relative price of a good is positive or negative depending on whether the consumer is a net buyer or a net seller of the goods 10 4. If you are allowed to pick one envelop at random. a22 = 4 Find the mean and variance (X and a2) of the composite data.in 3. (b) ………………………………. X2 = 20. (a) There are three identical looking envelopes in a drawer. 50 notes and one Rs.

please check JNU Sample papers for any errors.in (c) ………………………………. available from. 2006 M. You should have a copy of JNU papers available from JNU or DSE. then show whether the function ƒ(x) (i) is continuous at x = 1. . Each question is of 1 mark. ECONOMICS PART – A This section has 10 multiple choice questions. Explain. You are required to do all 10 questions. 1]. (ii) is differentiable at x = 1. yet the inflation rate stays fairly low.A. 2 + 2 + 2 + 4 = 10 6. When would an economy be considered to have excess foreign exchange reserves? If you think that India has excess reserves.JNU Entrance Examination Papers JNU Entrance Exam www. Even though. should it invest threes in developing some sectors of the economy. JNU or DSE Photostat shop. (d) Let ƒ(x) = 2 + x2 – 2x. This document is for reference purposes only.ecopoint. such an infrastructure? What is a merit good? How would you decide whether primary education or higher education is a merit good? **************** (c) ENTRANCE EXAMINATION. Determine the maximum value of ƒ on the interval [0. ECOPOINT MA Economics Entrance Coaching Page 219 All care has been taken to keep this document free from errors. Answer any two of the following questions (in not more than 300 words each): 15 x 2 = 30 (a) (b) An economy is characterized by a fairly high fiscal deficit.

This document is for reference purposes only. . The value of the price elasticity of demand: (a) (b) (c) (d) depends on the units used to measure quantities depends on the units used to measure price is the same as the slope of the demand curve does not depend on units of measurement of either price or quantity 3.24 and mobile phones are inferior goods ECOPOINT MA Economics Entrance Coaching Page 220 All care has been taken to keep this document free from errors. Indifference curves are downward sloping because. available from.4 and mobile phones are normal goods income elasticity of demand is 2.in 1.JNU Entrance Examination Papers JNU Entrance Exam www. A 5% increase in income leads to 1 12% increase in the demand for mobile phones. JNU or DSE Photostat shop. It follows that (a) (b) (c) (d) income elasticity of demand is 2. You should have a copy of JNU papers available from JNU or DSE. please check JNU Sample papers for any errors. (a) (b) (c) (d) more of a good is better there is constant marginal rate of substitution there is increasing marginal rate of substitution there is decreasing marginal rate of substitution 2. Even though.4 and mobile phones are inferior goods income elasticity of demand is 0.24 and mobile phones are normal goods income elasticity of demand is 0.ecopoint.

where a. in the expression (x – a) (x – b) (x . . 6.ecopoint. If a. d – are the letters of the alphabet and appear at least once.b < c. X is one of the letters of the alphabet.JNU Entrance Examination Papers JNU Entrance Exam www. b. You should have a copy of JNU papers available from JNU or DSE. A random variable is (a) (b) (c) (d) an elementary outcome an event in the sample space a number assigned to an event a probability of an event ECOPOINT MA Economics Entrance Coaching Page 221 All care has been taken to keep this document free from errors.d. a. 5. b. please check JNU Sample papers for any errors. then it must be that (a) (b) (c) (d) a/c < d/b a/c < d/b. d are non-zero numbers.in 4. c. This document is for reference purposes only.b > 0 None of the above.c). c. The value of the expression is (a) (b) (c) (d) zero infinite unity None of the above. if a. available from.(x – z). Even though. if a.b > 0 a/c > d/b.. JNU or DSE Photostat shop.

in 7. Two events are said to be independent if (a) (b) (c) (d) Prob (A and B) = Prob (A) . The country which is the largest borrower from the rest of the world is (a) (b) (c) (d) China Russia India USA 9. please check JNU Sample papers for any errors. A nation invests all it saves and its ate of saving is 30 per cent. then the production conditions must be such that it delivers a unit increment in output for every (a) (b) (c) (d) 2 units of investment 3 units of investment 5 units of investment 10 units of investment ECOPOINT MA Economics Entrance Coaching Page 222 All care has been taken to keep this document free from errors. If the annual rate of growth of that country is 6 per cent. .JNU Entrance Examination Papers JNU Entrance Exam www. available from.ecopoint.Prob (B) None of the above. Even though.Prob (B) Prob (A and B) = Prob (A) + Prob (B) Prob (A/B) = Prob (A) . JNU or DSE Photostat shop. You should have a copy of JNU papers available from JNU or DSE. This document is for reference purposes only.

You should have a copy of JNU papers available from JNU or DSE. If the price of x is Rs.JNU Entrance Examination Papers JNU Entrance Exam www. Even though.in 10. 13. Market capitalization in the Bombay Stock Exchange (BSE) rose by 100 per cent in a single year. 10 per unit and the price of y is Rs. 5 per unit. Obtain an expression for the revenue R obtained from the tax as a function of t. 11. please check JNU Sample papers for any errors. Each question is of 5 marks You are required to do all 12 questions. Consider the effect of imposing a tax at the rate of t per unit. In a competitive market. ECOPOINT MA Economics Entrance Coaching Page 223 All care has been taken to keep this document free from errors. demand and supply curves are given by Q d = 3 / p and Q5 = p – 10. The value of all outstanding shares of companies listed at the BSE rose by 100 per cent The prices of every share listed at the BSE rose by 100 per cent PART – B This section has 12 questions. JNU or DSE Photostat shop. This document is for reference purposes only. y ≥ 0 Subject to y+ 5x = 10. . An individual always consumes goods x and y in the fixed proportion of 2 : 1. compute the price elasticity of demand for good x. 12.ecopoint. available from. Consider the problem: Maximize 3x + y x ≥ 0. This means that (a) (b) (c) (d) the Sensex rose by 100 per cent during that year the value of shares traded at the BSE over the year increased by 100 per cent when compared with the previous year.

please check JNU Sample papers for any errors. What is the conditional probability that the student knew the answer to a question given that the student knew the answer to a question given that she answered at correctly? 17. available from.in Obtain a solution and check that the solution you have is indeed a maximum. There are two investment opportunities : (a) (b) X earns interest at the successive per annum rates of 8%. Even though. 16.ecopoint. 10% and 12% in three years Y earns interest at the successive per annum rates of 12%. Let p be the probability that the knows the answer and 1 –p the probability that she guesses. . You should have a copy of JNU papers available from JNU or DSE. JNU or DSE Photostat shop. a]. The probability density function is ƒ(x) = 1/a. In answering a question in a multiple choice test. 14. Which option would you recommend and why? 15. a student either knows the answer or guesses. Assume that the student who guesses at the answer you will be correct with probability 1/m. Take any five distinct real numbers and show that the maximum of the absolute values of these numbers may be equal to the absolute value of the minimum of these numbers.JNU Entrance Examination Papers JNU Entrance Exam www. What is the value of a? ECOPOINT MA Economics Entrance Coaching Page 224 All care has been taken to keep this document free from errors. This document is for reference purposes only. 10% and 8% in three years Assume that interest is compounded one yearly. It is also known that the mean of the random variable is 2. where m is the number of multiple-choice alternatives. It is given that a continuous random variable x is distributed uniformly over the interval [O.

In an economy with unlimited supplies of labour the wage rate is fixed at0. B.5 unit of consumption good per period. Suppose labour and capital equipment are used. Even though. (a) (b) (c) Calculate the level of income in the economy. (a) What is the relative price of the consumption good in terms of the machine? ECOPOINT MA Economics Entrance Coaching Page 225 All care has been taken to keep this document free from errors. Let C = 100+0.ecopoint.in 18. each of which employs one unit of labour to produce either one unit of itself or one unit of consumption good. then what is the increase in real income in the economy? If the government raises its nominal expenditure to 400. available from. The economy has a stock of machines. One of A. JNU or DSE Photostat shop. please check JNU Sample papers for any errors. Here are the statements given by the four individuals. I am innocent. If the government raise its nominal expenditure to 400. The statements of the criminal and his accomplice are false and those of the remaining two are true. then what is the fall in the percentage of unemployed in the economy? 20. Suppose the existing capital equipment is utilized fully but a quarter of the labour force is unemployed. If B was the killer. then C must be guilty. in fixed proportions in the production of output in a closed economy. C and I represent aggregate levels of income. C and D has committed a crime with the help of another one of them. . then C must be innocent. This document is for reference purposes only. consumption expenditure and investment expenditure in the economy in rupees at constant prices. then D must have had nothing to do with the crime. A: B: C: D: If B is guilty of something.JNU Entrance Examination Papers JNU Entrance Exam www.6Y. If A is innocent. You should have a copy of JNU papers available from JNU or DSE. Which one of the four is the criminal and who was his accomplice? 19. Let Y. I=500 and G=200.

The following data are given for an economy: Rs. The following data are given for an economy : ECOPOINT MA Economics Entrance Coaching Page 226 All care has been taken to keep this document free from errors.600 3.in (b) What is the rate of profit in the economy? 21. . This document is for reference purposes only.000 1. You should have a copy of JNU papers available from JNU or DSE. 10.000 500 -1. JNU or DSE Photostat shop. Even though. please check JNU Sample papers for any errors. GDP at factor cost Depreciation Net factor income from abroad Net indirect taxes Gross savings of the economy Gross investment of the economy Gross fiscal deficit Calculate : (a) (b) (c) (d) (e) Net Domestic Product at factor cost Net domestic Product at market prices Net National Product at market prices Current Account Deficit in the Balance of Payments The excess of Private Investment over Private Savings. available from.000 150 22.ecopoint.JNU Entrance Examination Papers JNU Entrance Exam www.500 2.

You should have a copy of JNU papers available from JNU or DSE. then – (a) (b) (c) calculate the national income of the economy. they make it possible to devote a higher proportion of resources of building up capital assets. health. JNU or DSE Photostat shop. the tax revenue of the underdeveloped countries is typically much smaller than in his advanced countries.000 and Exports = 1. the shortfall in revenue is ECOPOINT MA Economics Entrance Coaching Page 227 All care has been taken to keep this document free from errors. Each question is of 10 marks. Whatever the prevailing ideology or political colour of a particular government. These services must be financed out of government revenue. calculate the trade balance.ecopoint.1 and the ratio of savings to national income is always 0. communication system and so on – as a prerequisite for the country’s economic and cultural development. . The fact is that in relation to gross national product. please check JNU Sample papers for any errors. taxes and other compulsory levies provide the most appropriate instruments for increasing savings for capital formation out of domestic sources.JNU Entrance Examination Papers JNU Entrance Exam www. it must steadily expend a whole host of non-revenue yielding services – education. By providing a surplus over recurrent expenditure.2. You are required to answer both 23. available from.in Investment = 5.000 If the ratio of imports to national income is always 0. Is this an inevitable consequence of their poverty? No. investment and import ratio. Read the following passage carefully and answer the questions that come after it : “The importance of public revenue to the under developed countries can hardly be exaggerated if they are to achieve their hopes of accelerated economic progress. Even though. This document is for reference purposes only. at this level of exports. Besides meeting these needs. what should the national income be if the economy is to have balanced trade? PART – C This section has 2 questions.

” Questions: (a) (b) (c) (d) (e) Why does the author see public revenue as necessary for development? How can taxes help in building productive assets in an economy? Which group of countries does the author identify as having lower ratio of taxes to national income? What does the author identify as the major cause of this tendency for lower ratios of taxes to national income? What is meant by ‘a surplus over recurrent expenditure’? 24. available from. 2. JNU or DSE Photostat shop.in largely a reflection of failure to tax the wealthier sections of the community effectively. Population data column 7 are in million persons Net availability of foodgrains is defined as follows: Not availability of foodgrains = Production + Net imports = Change a Government stocks. This document is for reference purposes only. Read the following table carefully and answer the questions after it: SPACE FOR TABLE Notes: 1. You should have a copy of JNU papers available from JNU or DSE. Data in column 2-6 are in million tones. Questions: (a) Did government stocks increase or decrease between 1998 and 2001? ECOPOINT MA Economics Entrance Coaching Page 228 All care has been taken to keep this document free from errors.ecopoint. Even though. . please check JNU Sample papers for any errors.JNU Entrance Examination Papers JNU Entrance Exam www.

Is the increase in per capita income of a country a good indicator of development? Are India’s Government sector and Government employment too large for a poor country? Is the recent rise of the Sensex an indicator of the health of the Indian economy? Is there necessarily a trade off between unemployment and inflation? ECOPOINT MA Economics Entrance Coaching Page 229 All care has been taken to keep this document free from errors.grains between 1993 and 1998? Did off take from the public distribution system increase or decrease between 1996 and 2001? Compare the percentage increase of foodgrain production and population between 1993 and 2003.JNU Entrance Examination Papers JNU Entrance Exam www. PART – D This part carries 10 marks 25. . You should have a copy of JNU papers available from JNU or DSE. JNU or DSE Photostat shop. Write an essay on any one of the following topics: (a) (b) (c) (d) (e) Discuss the view that India’s food stocks indicate that Indian agriculture is not monsoon dependent because of the Green. please check JNU Sample papers for any errors.in (b) (c) (d) (e) Did net exports increase or decrease between 1991 and 2002? What was the absolute change in the per capita availability of ………. This document is for reference purposes only.ecopoint. Even though. Revolution. available from.

A. available from. You are required to do all 20 questions. This document is for reference purposes only. b are real numbers and a < b.in ENTRANCE EXAMINATION. ECONOMICS PART – A (This part has 20 multiple choice questions. please check JNU Sample papers for any errors. Even though. 2008 M. Each question is of 1 mark.c for any real number c a – c < b – c for any real number c ECOPOINT MA Economics Entrance Coaching Page 230 All care has been taken to keep this document free from errors. . You should have a copy of JNU papers available from JNU or DSE.c < b. then it is necessary that (a) (b) (c) (d) A2 < b2 √a < √b a. If a. JNU or DSE Photostat shop.) 1. The annual inflation rate in India (in terms of the Wholesale Price Index) in the last five years has been in the range of (a) (b) (c) (d) 0 – 4 per cent 5 – 10 per cent 11 – 15 per cent 15 – 20 per cent 2.ecopoint.JNU Entrance Examination Papers JNU Entrance Exam www.

What is the probability that the next throw will also give the number 6? (a) (b) (c) (d) 0 1/30 1/6 5/6 5.in 3. You should have a copy of JNU papers available from JNU or DSE. This document is for reference purposes only. The country with the largest external debt in the world today is (a) (b) (c) (d) Brazil Argentina China United States ECOPOINT MA Economics Entrance Coaching Page 231 All care has been taken to keep this document free from errors. JNU or DSE Photostat shop.JNU Entrance Examination Papers JNU Entrance Exam www. A dice has given the number 6 on five consecutive throws. please check JNU Sample papers for any errors. . available from. Even though. (a) (b) (c) (d) 40 per cent 50 per cent 60 per cent 70 per cent 4.ecopoint. The share of the primary sector in the Indian labour force in 2000 was around.

ecopoint. This document is for reference purposes only. The beginning of the 19th century the middle of the 19th century the turn of the 20th century 8. You should have a copy of JNU papers available from JNU or DSE.in 6. then it must be the case that – (a) (b) (c) (d) a/b < 1 a/b > 1 a + b > 2√a. b are two distinct real numbers both greater than unity.JNU Entrance Examination Papers JNU Entrance Exam www. please check JNU Sample papers for any errors. The beginnings of modern industry in India occurred in (a) (b) (c) (d) the late 18th century. JNU or DSE Photostat shop. There are two egg delivery boys you can order eggs from. If a.b 7. How would you distribute your order for eggs so as to minimize the risk of total loss of eggs? (a) (b) (c) (d) Order all your eggs from the first boy Order all your eggs from the second boy Distribute the order for eggs between the two boys Cannot say on the basis of this information ECOPOINT MA Economics Entrance Coaching Page 232 All care has been taken to keep this document free from errors. available from. The probability of the first boy falling and breaking all the eggs is ½ and the probability of the second boy falling and breaking all the eggs is 1/5. Even though.b a + b < 2√a. .

The Lewis model of industrialization (a) (b) (c) (d) involves industry supplying labour to agriculture involves agriculture supplying labour to industry requires the wage rate in agriculture to fall requires the wage rate in industry to fall 11. . This document is for reference purposes only. the long-run rate of growth of GDP is 5 per cent per annum at full employment. available from. The investment rate is 20 per cent and the rate of growth of labour force is 2 per cent per annum. Even though.in 9. For an economy. JNU or DSE Photostat shop. You should have a copy of JNU papers available from JNU or DSE. Then the capital output ratio is (a) (b) (c) (d) 2 5 7 10 ECOPOINT MA Economics Entrance Coaching Page 233 All care has been taken to keep this document free from errors. 10.ecopoint. please check JNU Sample papers for any errors.JNU Entrance Examination Papers JNU Entrance Exam www. Which of the following is not a tool of monetary policy? (a) (b) (c) (d) The tax rate The interest rate The Cash Reserve Ratio Open market operations of the central bank.

Even though.JNU Entrance Examination Papers JNU Entrance Exam www.in 12. . Between 1900 and 1950 in India (a) (b) (c) (d) agricultural output grew faster than industrial output agricultural output grew slower than industrial output agricultural output grew at the same rate as industrial output neither sector’s output grew at all 14. This document is for reference purposes only. Let S= 1 + ½ + 1/3 + ¼ + … Then S is equal to (a) (b) 2 4 ECOPOINT MA Economics Entrance Coaching Page 234 All care has been taken to keep this document free from errors. please check JNU Sample papers for any errors. then in that range (a) (b) (c) (d) the firm’s marginal cost curve must also be decreasing the marginal cost curve will lie below the average cost curve. assuming that output is plotted on the horizontal axis and the costs are on the vertical axis 13.ecopoint. If the short-run average cost curve for a film is a decreasing function of its output over a certain range. JNU or DSE Photostat shop. assuming that output is plotted on the horizontal axis and the costs are on the vertical axis the location of the marginal cost curve is uncertain since it depends on whether the firm is a competitive one or not the marginal cost curve will lie above the average cost curve. You should have a copy of JNU papers available from JNU or DSE. available from.

Special Drawing Rights are (a) (b) (c) (d) a means by which the government can draw money from local banks a means by which the government can use the foreign exchange reserves of the central bank to finance a fiscal deficit an international reserve asset created by the International Monetary Fund funds which the World Bank and the International Monetary Fund exchange among themselves 16. SY. This document is for reference purposes only.JNU Entrance Examination Papers JNU Entrance Exam www. Even though. please check JNU Sample papers for any errors. 15.ecopoint. available from.5+. JNU or DSE Photostat shop. then the output sold by the monopolist (a) (b) (c) (d) cannot be determined by maximum profits is determined by maximizing profits is determined by maximum profits provided the cost is constant is determined by maximum profits provided the cost is an increasing function of output 17. In a closed economy.in (c) (d) 6 The sum does not converge to any finite value. . You should have a copy of JNU papers available from JNU or DSE. the aggregate consumption function is of the form C = a + O. The value of the multiplier is (a) 1 ECOPOINT MA Economics Entrance Coaching Page 235 All care has been taken to keep this document free from errors. If the demand curve facing a monopolist is given by p = 10g -1.

You should have a copy of JNU papers available from JNU or DSE.ecopoint. This document is for reference purposes only. . it would purchase the stock only if the firm is expected to pay a dividend of (a) (b) (c) (d) Rs. 5 per share. 52.50 per share Rs.in (b) (c) (d) 4 5 8 18. 3 per share Rs. 100 but is expected to appreciate in value to Rs. available from. JNU or DSE Photostat shop.JNU Entrance Examination Papers JNU Entrance Exam www. 5 per share More than Rs. A foreign institutional investor who will settle only for returns in excess of 10 per cent. please check JNU Sample papers for any errors. 2. ECOPOINT MA Economics Entrance Coaching Page 236 All care has been taken to keep this document free from errors. is considering converting dollars into rupees to purchase a stock that is valued at Rs.110 at the end of one year. If the investing entity expects the rupee to depreciate in value from Rs. Even though. 50 to the dollar to Rs. Which of the following will be an inverse function of ƒ(x) = 1/x? (a) (b) (c) (d) g(y) = y g(y) = 1/y g(y) = y2 g(y) = ½y 19.50 to the dollar in that year.

Crores): GDP at factor cost 22. JNU or DSE Photostat shop. A starts and tosses a fair coin. please check JNU Sample papers for any errors. A and B are playing the following game. Suppose Tata Steel sells Rs. 1. A wins.000 Rs.000 worth of other inputs to Maruti Suzuki. Each question is of 5 marks. You should have a copy of JNU papers available from JNU or DSE.00.00.500 23.000.50.00. 22.00.ecopoint. Maruti Suzuki then uses the steel and other inputs to make a car which it sells to a dealer.000 Rs. You are required to do all 12 questions.JNU Entrance Examination Papers JNU Entrance Exam www. . Even though. What is the probability of A winning the game? The following information is given for an economy (all figures in Rs. If A fails to win. 3. who then attempts to win on her toss (as before. 3. Then the dealer sells the car to a consumer for Rs.000 PART – B (This Part has 12 questions. Prove that the sum of the first n odd integer is n2. 2. What is the total contribution to GDP made by the entire series of transactions? (a) (b) (c) (d) Rs. 3.000 1.00.000 worth of steel to Maruti Suzuki Company and other producers sell Rs. If the outcome is head. a win occurs if the outcome is head).50. available from.000 Rs. Net factor income from abroad ECOPOINT MA Economics Entrance Coaching Page 237 All care has been taken to keep this document free from errors. 3.50. for Rs. They continue to toss the coin back and forth until one of them wins. 1.50. This document is for reference purposes only.) 21. 1.in 20. Competent Automobiles. he passes the coin to B.

. If the rate of interest is 10% per annum. 100 received now and Rs. industrial workers devote 50 per cent of their total expenditure to food. How do banks create money? (Answer within 100 words) 26.000 7.000 5. How much does the Lasyeyres price index increase by between period0and period 1? ECOPOINT MA Economics Entrance Coaching Page 238 All care has been taken to keep this document free from errors. please check JNU Sample papers for any errors. (d) NNP at factory cost and (e) NNP at market prices.000 Calculate (a) the trade deficit.JNU Entrance Examination Papers JNU Entrance Exam www.000 6. 25 per cent to housing and 25 per cent to clothing. Even though. when one of the following alternatives would you choose and why? (a) (b) (c) Rs. This document is for reference purposes only. the prices of these 3 items increase by 15 per cent. In year 0. Between year 0 and year 1.ecopoint. compounded annually. 95 received after two years.400 4. 215 received after 2 years Rs. You should have a copy of JNU papers available from JNU or DSE. 12 percent and 8 per cent respectively.in Depreciation Exports Imports Gross investment Gross savings Net indirect taxes 1. 24. available from. (c) GNP at factor cost. JNU or DSE Photostat shop. 100 received twice : once at the end of one year and once at the end of two years Rs. (b) the current account deficit.500 3. 25.

b. consider a society of four individuals. JNU or DSE Photostat shop. the long run average cost function for the representative firm is given by (q – 4)2 + 40. say y. This society has five allocations to choose from a. In a perfectly competitive industry.ecopoint. This document is for reference purposes only. each with a short-run cost curve C(q) = q2 + 4q + K. Explain your answer. the long-run demand curve is given by p= 1000q. Now. The industry demand curve is q = 100. please check JNU Sample papers for any errors. How many identical firms can exist in this industry? Explain. all other things remaining the same? (q : quantity sold by a firm. There are 100 competitive firms in an industry. available from.JNU Entrance Examination Papers JNU Entrance Exam www. Even though. c. . (q : quantity sold by a firm. What limit must K satisfy for the firms to survive. You should have a copy of JNU papers available from JNU or DSE. and at least one individual considers y to be strictly better than x.10p. p : price) ECOPOINT MA Economics Entrance Coaching Page 239 All care has been taken to keep this document free from errors. p : price) 28. b over c …. where K is a positive constant. 29. d over e.in 27. Individual preferences over these allocations are as follows: Ist individual : 2nd individual : 3rd individual : 4th individual : aP1 bP1 cP1 dP1 e bP2 cP2 dP2 eP2 a cP3 dP3 eP3 aP3 b dP4 eP4 aP4 bP4 c aP1 bP1 cP1 dP1 e means that the Ist individual prefers allocation a over b. Suppose we say that an allocation x is Pareto optimal if and only if there does not exist an allocation. Find the short-run equilibrium for this industry. Find out the Pareto optimal allocations for this society. Likewise for the reference of other individuals. d and e. such that : every individual is the economy considers y to be at least as good as x.

This document is for reference purposes only. Write an essay on any one of the following topics: (a) (b) (c) (d) (e) The need for a universal employment guarantee scheme in rural India. Output is demand determined. PART – C 33. . Explain the difference between direct and indirect taxes. The capitalists save 50% of their income and consume the rest. Why India’s foreign exchange reserves are increasing Utility Possibility Curves. 32. and lose Re 1 for any odd number that shows up. the workers save 25% of their income and consume the rest. 2 for any even number that show up. (a) (b) What is the equilibrium level of income in the economy if the investment demand is equal to 100? How does the equilibrium value change if ¾ of the total income is distributed to the workers and ¼ to the capitalists? Can you economically explain the result? 31. Even though.JNU Entrance Examination Papers JNU Entrance Exam www. The aggregate demand consists of total consumption demand and total investment demand which is autonomous. with 2 examples of each.in 30. Consider a gambling game where you have to throw two dice simultaneously. What is your expected gain or loss from the game? Consider an economy where ½ of the total income (output) is distributed to the workers and the other half is distributed to the capitalists. You would gain Rs. Business process outsourcing. You should have a copy of JNU papers available from JNU or DSE.ecopoint. ECOPOINT MA Economics Entrance Coaching Page 240 All care has been taken to keep this document free from errors. The new patents regime in India. JNU or DSE Photostat shop. please check JNU Sample papers for any errors. available from.

available from.JNU Entrance Examination Papers JNU Entrance Exam www. . You should have a copy of JNU papers available from JNU or DSE. This document is for reference purposes only. **********FINISHED*************** ECOPOINT MA Economics Entrance Coaching Page 241 All care has been taken to keep this document free from errors. Even though.ecopoint.in (f) Competitive markets and optimality. please check JNU Sample papers for any errors. JNU or DSE Photostat shop.

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