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2. (c)
8. (c)
6. (c)
12. (d)
2. (b)
3. (a)
4. (d)
5. (d) 6. (c)
7. (b)
9. (c) 10. (d) 11. (b) 12. (b) 13. (d) 14. (a)
16. (a) 17. (b) 18. (d) 19. (a) 20. (b) 21. (b)
23. (c) 24. (d) 25. (b) 26. (d) 27. (c) 28. (d)
29. (d) 30. (a)
ISI: Year 2008
2. (d) 3. (b)
4. (a)
10. (c) 11. (b) 12. (b)
18. (a) 19. (c) 20. (a)
25. (b) 26. (a) 27. (b)
5. (d)
13. (c)
21. (c)
28. (b)
6. (c)
7. (c)
14. (b) 15. (d)
22. (a) 23. (b)
29. (a) 30. (d)
8. (c)
16. (b)
24. (d)
( ( ))
(
2. ( )
)(
3. (a) By AM GM inequality , (
) , where i = 1,2,3,...,n.
Multiplying all these we have (1+a1)(1+a2)....(1+an)
, since a1a2...an=1 .
4. (b) P[X=0]=P[X=1] , where XBin(n,p) , 0<p<1.
So, (1- p)n = np(1- p)n-1 n =
p=
.
5. (a) E(X100)=E(X2.X2.X2....X2)= E(X2) E(X2).... E(X2)=1.
6. (c) So, +=a , =b , so a+b,b-a are the roots of the equation
x2 - (a+b+b-a)x + (a+b)(b-a)= 0 x2 - 2bx + b2- a2 = 0.
7. (a) f(x) = 2[(
, Let (
( )
11. (d) (a+b+c)2 0 a2+b2+c2 + 2(ab+bc+ca) 0 (ab+bc+ca) 12. (d) f(x) is not differentiable at x = 4 and 5 .
16. (c)A1 = { 2,4,6,....} , A2= {3,6,9,....}, so A1A2 ={6,12,18,...}
={6k , kN} = A5.
17. (c)
* (
(
)+
)
* (
)+
)( )
= +1 ,
where p =
19. (c) Perform these elementary row operations to the given matrix to reduce it into rowreduced matrix form : (i) R3' = R3 R2 + R4 ,
(ii) R2 is interchanged by R4,
(iii) R4' = R4 - R3 ,
Then R4 of the given matrix will vanish. So, rank is 3.
20. (d) The two integers with product is maximum is of the form (
(
).
21. (c) S = {a2+a4+a6+.......}+{ab+a2b2+a3b3+.....} =
22. (d) The necessary condition to exist maxima and minima at any point x=a is that f '(a)=0 .
But here is no real a for which f '(x)=0 . [Since x2 4x + 8 =0 doesnt have any real
solution]
25. (c) On integration, we have log(f(x))= x + c f(x) =kex f(x)= kex + m.
Given f(0)=e2 , f(1)=e3 gives k = e2 .
27. (b) Compute A2, then put the value of A2, A, I in the given form to get the answer.
28. (d) The number of permutations is =
29. (b) Mean deviation about mean cant exceed the standard deviation. To prove this
statement use Cauchy-Schwarz inequality & choose ai = xi - and bi = 1.
Solution to Sample Questions for ME II (Economics) 2013
Q.1. Agents utility maximization problem is the following :
s.t.
&
(a) Solving the above problem we get :
(
Hence , saving = w -
Q.2. (a) If the price of a MD is Rs. 20 and the marginal cost is Rs. 15 per MD , vendors profit
maximization problem is the following :
s.t.
Thus, each vendor would want to sell 100 MD a day .
(b)Given competitive behavior, free entry-exit from the industry and constant returns to scale
technology , we have zero profit condition.
That is , price equals marginal cost. Thus, demand is
d(15) = 4400 120(15) = 2600
Since each vendor sells 100 units and demand is 2600 units , there are 26 vendors selling MD in
the market .
(c) If number of vendors are 20 and each vendor produces 100 units , price is given by
p=
(d) The maximum price that a vendor is willing to pay for the permit is equal to the profit
that a vendor gets if he operates i.e. 5100=500.
Since final product can be sold at the end of the day at a per unit price of Rs. 1.
The firms profit maximization problem is :
s.t.
&
Q.4. Since monopolists sale to the government is positive, his marginal revenue at the point of
sale in the private market must be Rs. 100 . Now price in the private market is Rs. 150. We can
compute the price elasticity of demand in the following way :
TR(x) = p(x) . x
Differentiating TR(x) w.r.t. x , we get ,
MR(x) = p(x) + x
( )
( )
= p(x) + ( )
= p(x)(
( )
Now substituting p(x) = 150 and MR(x) = 100 in the above we get elasticity, = - 3 .
( ) ( )
(
(
)
).
s.t.
L0,K 0
L0,K 0
Clearly, when 0 w
(c) Also, the demand function for capital is defined when price of capital service is zero
provided w >
Q.7. E (Planned Expenditure) = C* + c(Y T) (I* bi) + G* + NX(other than investment) . Let
NX = Export Import = Export mY , where m = marginal propensity to import.
E = (C* + G* I* cT + Export) + cY mY ........(For the sake of simplicity export component is
assumed to be autonomous)
In equilibrium E = Y
Here Y( 1 (c m) ) = Autonomous component of expenditure
(
))
Q.8. Given that income elasticity of demand for all goods are positive, i.e. (
implies that (
)( )
. This