June 2015 - Paper 2

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4. Paper 2

1:  

If the demand for using the Naida express way is given by :

Q = 40,000 - 2500P

Where Q is the number of users (vehicles) and P is the amount of toll collected per unit who

uses the express way. In light of this information which of the following is true:

A.	At P = र 6 and Q = 14,000 ; demand is price inelastic
B.	At P = र 7 and Q = 16,500 ; demand is unitary elastic
C.	At P= र4 and Q=9,500, demand is price elastic
D.	All of the above
	Answer Report Discuss
	Option: C Explanation : Click on Discuss to view users comments. Write your comments here: Updating your Comments.. Updating your Comments..

2:  

If a 100% scale-efficient plant has 92% technical efficiency and 88.5% allocative-efficiency,

then its overall efficiency will be :

A.	88.5%
B.	90.25%
C.	93.0%
D.	81.42%
	Answer Report Discuss
	Option: D Explanation : Click on Discuss to view users comments. Write your comments here: Updating your Comments.. Updating your Comments..

3:  

The market share data for an industry, comprising five companies, is given below:

Company                                  Market   Share(%)

A                                          35

B                                          25

C                                         18

D                                         12

E                                          10

This industry's three-firm~erfindahl-Hirschman index shall be :

A.	0.234
B.	0.217
C.	0.151
D.	0.0175
	Answer Report Discuss
	Option: B Explanation : Click on Discuss to view users comments. Write your comments here: Updating your Comments.. Updating your Comments..

4:  

For an economy which consist of single automobile maker and that in year 2014, 30,000 vehicles are produced with an average price of ~ 5 lakh. For this economy what would be the increase in the nominal GOP for 2015 compared with 2014 with the 4% greater automobile production and 8% inflation.

A.	4.0%
B.	12.0%
C.	6.0%
D.	12.32%
	Answer Report Discuss
	Option: D Explanation : Click on Discuss to view users comments. Write your comments here: Updating your Comments.. Updating your Comments..

5:  

Demand policies targeted to reduce the unemployment become ineffective in presence of the I

following:

A.	Vertical phillips curve
B.	Money illusion and ignorance among workers
C.	Horizontal phillips curve
D.	None of the above
	Answer Report Discuss
	Option: A Explanation : Click on Discuss to view users comments. Write your comments here: Updating your Comments.. Updating your Comments..

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