EconGlow Institute

The primary focus of development strategy during the 1950's was on  a. Reduction in unemployment, b. Increase in G.N.P., c. Increase in foreign trade, d. Increase in literacy a b c d

Suppose X owns property rights to the river (giving them the right to pollute) and Mr. Z can offer them a price per ton to dump less. If X and Z can negotiate and enforce waste dumping contracts costlessly, how many tons of waste will Mr. X dump into the river? Is this an efficient outcome? a) 100 tonnes, yes efficient b) 200 tonnes, not efficient c) 300 tonnes, yes efficient d) None of the above

Assume the “Solow” economy is currently in the steady state. The savings rate s = 20%; production function is Y = K4/10L 6/10; population growth rate, n and depreciation rate, δ are some positive constants. The government decides to tax both wage and capital income at the proportional rate 0 < τ < 1. Assume that the government invests the full amount of the tax proceedings. Then which of the following is true?   a. since the break-even investment lines are unaffected the economy will reach the new steady-state with lower capital-per worker ratio and lower output per worker b. total savings and investment in the economy are less than before the introduction of taxes c. total savings and investment in the economy are larger than before the introduction of taxes d. None of the above

UA = x+y; UB = x+y; total x available in the economy = 30 units; total y available in the economy = 15 units. Which of the following allocations are pareto efficient? a) (x1, y1) = (30,0) and (x2, y2) = (0,15) b) (x1, y1) = (15,15) and (x2, y2) = (15,0) c) Both of the above d) None of the above

 ECOPOINT MA Economics Entrance Course 2022 Study Material   Assessments   Reports Allarrow_drop_down ExamPracticeAll IncompleteCompletedAll NON -DSE Type Test - 56 : IGIDR Type Test - 2 (2022 Edition) [SP621P1] Practice (Any Time) Duration 2 hours Max. Attempts 1 Your Progress Attempt 1: 16/06/2022 05:34 PM Completed | Score: 0.00 | View Begin New Attempt DSE Type Test - 33 (2022 Series) [SP474P2] Practice (Any Time) Duration 2 hours Max. Attempts 1 Your Progress Attempt 1: 16/06/2022 05:40 PM Completed | Score: 0.00 | View Begin New Attempt NON -DSE Type Test - 57 : IGIDR Type Test - 3 (2022 Edition) [SP622P1] Practice (Any Time) Duration 2 hours Max. Attempts 1 Your Progress Attempt 1: 21/06/2022 10:53 AM Completed | Score: 0.00 | View Begin New Attempt DSE Type Test - 34 (2022 Series) [SP477P2] Practice (Any Time) Duration 2 hours Max. Attempts 1 Your Progress Not Attempted Begin New Attempt NON -DSE Type Test - 58 : IGIDR Type Test - 4 (2022 Edition) [SP623P1] Practice (Any Time) Duration 2 hours Max. Attempts 1 Your Progress Not Attempted Begin New Attempt NON -DSE Type Test - 59 : IGIDR Type Test - 5 (2022 Edition) [SP624P2] Practice (Any Time) Duration 2 hours Max. Attempts 1 Your Progress Attempt 1: 21/06/2022 12:05 PM Completed | Score: 0.00 | View Begin New Attempt first_pagekeyboard_arrow_left keyboard_arrow_rightlast_page arrow_upward  Quampus is a trademark and copyright of Ecollabs Infomix Pvt. Ltd. arrow_back Assessment Attempt Result Assessment: NON -DSE Type Test - 59 : IGIDR Type Test - 5 (2022 Edition) [SP624P2] You Scored 0.00 out of 50.00 Total Questions 50 0 Correct / 0 Incorrect / 50 Left Attempt details AllCorrectIncorrectLeft more 1. Comprehension and English keyboard_arrow_down 2. Basic Mathematics keyboard_arrow_down 3. Economics keyboard_arrow_down remove_circle 0.00 Question 4 1.00  |  0.00 UA = x+y; UB = x+y; total x available in the economy = 30 units; total y available in the economy = 15 units. Which of the following allocations are pareto efficient? a) (x1, y1) = (30,0) and (x2, y2) = (0,15) b) (x1, y1) = (15,15) and (x2, y2) = (15,0) c) Both of the above d) None of the above a b c d Solution keyboard_arrow_down This is "tricky." MRSA = MRSB = 1 at any allocation. Which tells us that no matter where we are in an Edgeworth Box, each consumers ICs lie on top of each other. i.e., there is never any way to make one person strictly better off without making the other worse off. This means that the contract "curve" is in fact the entire area of the Edgeworth Box.   Think about why this is. Each consumer views the goods as perfect substitutes, no matter how much of each good they have. Thus there are no differences in consumer preferences that will allow mutually beneficial trade.

Which country to host the 2018 Global IT Challenge for Youth with Disabilities (GITC)? [A] South Korea [B] China [C] India [D] Nepal A B C D Solution keyboard_arrow_down India will host the 2018 Global IT Challenge for Youth with Disabilities (GITC), which will be held in New Delhi from November 8 to 11. For this, on April 18, the Social Justice and Empowerment Ministry’s disability division has signed an MoU with Korea’s Rehabilitation International to host the GITC. Both the parties, as per the MoU, have agreed to cooperate in making all arrangements such as financial, logistics and manpower for the success of the event. India is hosting the event along with the Ministry of Health and Family Welfare, Government of Korea, and its organising partners are Rehabilitation International, Korea, and the LG Group. The event is expected to be attended by around 300 people, including 120 youths with disabilities from 24 Asia-Pacific countries .

The Government of India (GoI) has launched which initiative to attract international students to study in India? [A] Gurukul in Bharat [B] Determine yourself in India [C] Study in India [D] Learn with Bharat A B C D Solution keyboard_arrow_down On April 18, the Government of India (GoI) has launched its flagship ‘Study in India’ programme to attract international students to study in India. It was jointly launched by External Affairs Minister Sushma Swaraj and Minister of State for Human Resources Development Satya Pal Singh in New Delhi. The website of ‘Study in India’ can be accessed at www.studyinindia.gov.in. The portal will enable students from 30 countries across South Asia, Africa and West Asia to select and apply for different courses from 150 select Indian institutions which are high on NAAC and National Institutional Ranking Framework (NIRF) ranking. The aim of Study in India is to make India a preferred destination for the foreign students to pursue their education. Currently, India is home to about 45,000 international students, which accounts for just 1% of the global student mobility. With ‘Study in India’, the government hopes the country will start attracting 1.5 lakh to 2 lakh international students by the year 2022.

The Tilaiya Dam is located in which state? [A] Punjab [B] Jammu & Kashmir [C] Jharkhand [D] Himachal Pradesh A B C D Solution keyboard_arrow_down The Tilaiya Dam is a concrete gravity dam build across the Barakar River at Tilaiya in Koderma district of Jharkhand. It has a maximum height of 30.2 metres above the river bed. The dam has a catchment area of 984 square kilometres comprising mainly forests, pastures, cultivated lands and waste lands. The annual rainfall in the area is 127 cm. It was inaugurated on 21 February 1953. It has a power generation capacity of 2 x 2 MW.

Who has taken charge as new Director General of National Cadet Corps (NCC)? [A] Vinod Vashisht [B] A Chakravarty [C] B S Sahrawat [D] PP Malhotra A B C D Solution keyboard_arrow_down Lieutenant General PP Malhotra has taken charge as new Director General of National Cadet Corps (NCC), the largest uniformed youth organization in the world. Prior to assuming his present appointment, he was the Chief Engineer of the Army’s premier Northern Command. The NCC is the Indian military cadet corps with its headquarters at New Delhi.

How much would Coca-Cola be willing to pay to enable its vending machine to vary prices with the weather, that is, to have a "smart" vending machine? a) Coke will make and extra 2.50 per day per machine if it can develop the smart vending machine technology. b) Coke will make and extra 3.50 per day per machine if it can develop the smart vending machine technology. c) Coke will make and extra 4.50 per day per machine if it can develop the smart vending machine technology. d) Coke will make and extra 5.50 per day per machine if it can develop the smart vending machine technology. a b c d Solution keyboard_arrow_down Under price discrimination expected profits per day are = ((80 - 20)120 + (50 - 20)60)/2 = 4500 (in cents, or $45).  Without price discrimination profits per day (65 - 20)90 = 4050 or $40.50.  Coke will make and extra 4.50 per day per machine if it can develop the smart vending machine technology.

Alternatively, suppose that Coca-Cola continues to use its normal vending machines which must be programmed with a fixed price, independent of the weather. Assuming that Coca-Cola is risk neutral, what is the optimal price for a can of Coke? a) 90 b) 65 c) 85 d) 60 a b c d Solution keyboard_arrow_down Expected demand = (280 - 2p + 160 - 2p)/2 = 220 - 2p.  Thus p = 110 - q/2 and MR = 110 - q.  Setting MR = MC we get 20 = 110 - q or q = 90.  Thus p = 65.

Coca-Cola recently announced that it is developing a "smart" vending machine. Such machines are able to change prices according to the outside temperature.Suppose for the purposes of this problem that the temperature can be either "high" or "low". On days of "high" temperature, demand is given by Q = 280 - 2p, where Q is the number of cans of Coke sold during the day and p is the price per can measured in cents. On days of "low" temperature, demand is only Q = 160 - 2p. There are an equal number of days with "high" and "low" temperature. The marginal cost of a can of coke is 20 cents. Suppose that Coca-Cola installs a "smart" vending machine and thus is able to charge different prices for Coke on "hot" and "cold" days. What price should Coca-Cola charge on a "hot" day? What price should Coca-Cola charge on a "cold" day? a) pH = 81, pC = 51 b) pH = 50, pC = 80 c) pH = 80, pC = 50 d) pH = 51, pC = 81 a b c d Solution keyboard_arrow_down On a hot day, the inverse demand curve is p = 140 - q/2.  Thus MR = 140 - q.  Setting MR = MC we get 20 = 140 - q or q = 120.  Thus p = 80.  On a cold day the inverse demand curve is p = 80 - q/2 so MR = 80 - q.  Setting MR = MC we get 20 = 80 - q or q = 60.  Thus p = 50.

Suppose the Fed wants to keep output fixed at its current level. What, if anything, should the Fed do to the monetary base in response to this desire of households and firms to hold a larger fractions of their money in the form of currency? a) Fed should sell bonds b) Fed should purchase bonds c) Either a or b d) None of the above a b c d Solution keyboard_arrow_down The Fed should utilize open market operations (the purchase of bonds) in order to increase the monetary base. By shifting Ms out, this will counteract the rise in interest rates described in earlier part. Thus investment levels can be maintained as they were before. This will prevent AD and output from falling.

Suppose faith in the U.S. banking system starts to deteriorate. Consequently, households and firms reduce their bank deposits and hold a larger share of their money in the form of currency. If this occurs and the Federal Reserve does nothing in response, what will happen to nominal interest rate? a) Raise b) Fall c) Doesn’t change a b c d Solution keyboard_arrow_down The money multiplier for M1 decreases. One way of thinking about this is as follows: the new desire to hold more currency means that any new bank deposit will not be circulated through the banking system to the same degree (the intuitive explanation of the money-supply multiplier relies on people getting loans then re-depositing them so the banks can then re-lend the money). As money is withdrawn from banks, the money supply contracts (reverse multiplier process) and the supply of M1 thus decreases. A decrease in the money supply will raise the nominal interest rate (Ms shifts in).