Exam Details
| Subject | .Economics Theory | |
| Paper | ||
| Exam / Course | RESEARCH DEGREE PROGRAMME IN ECONOMICS | |
| Department | School of Social Sciences (SOSS) | |
| Organization | indira gandhi national open university | |
| Position | ||
| Exam Date | June, 2016 | |
| City, State | new delhi, |
Question Paper
No. of Printed Pages: 3 IREC-0021
N o o RESEAROI DEGREE PROGRAMME IN ECONOMICS Term-End Examination
June, 2016
REC-002 ECONOMIC THEORY
Time 3 hours Maximum Marks: 100
Note: Answer questions from each section as per instructions.
SECTION
Answer any two questions from this section. 2x20=40
1. Consider the utility function u
Let prices be Px and py and income be m. Derive the indirect utility function and expenditure function.
2. Suppose Ahmed is planning a trip on which he will spend Rs.10,000. The utility from the trip is a function of how much he actually spends on it given by =ln y
If there is 0.25 probability that Ahmed will lose Rs. 1,000 of his cash on the trip, what is the trip's expected utility
Suppose that Ahmed can buy insurance against losing the Rs. 1,000 at an 'actuarially fair' premium of Rs. 250. Show that his expected utility is higher if he purchases this insurance than if he faces the chance of losing the Rs. 1,000 without insurance.
What is the maximum amount that Ahmed would be willing to pay to ensure his Rs. 1,000?
3. Describe the model of a representative agent maximising an inter -temporal utility function. Give the basic structure of the cass koopmans Model.
4. What is a dynamic game of incomplete information? How does it differ from a dynamic game of complete information? Discuss the relevant equilibrium concepts for both these types of games.
SECII0N
Answer any five questions from this section. 5x12=60
5. Describe the equilibrium price and output determination of a firm operating as a discriminating monopolist.
6. Discuss the search theoretic model of employment determination.
7. What are real rigidities? How do they arise? In what way do they differ from nominal rigidities?
8. Discuss the concept of a social choice function. How is it related to the concept of a social welfare function?
9. Prove the existence of general equilibrium under, conditions of production. State carefully the assumptions under which existence of equilibrium can be proved.
10. Explain:
Hotelling's Lemma
Slutsky equation
11. What is the difference between cooperative games with transferable utility and those without transferable utility? Explain nucleolus
Shapley value.
12. Describe the basic structure of a Principal-Agent model. Discuss how the principal can set up a screening mechanism.
N o o RESEAROI DEGREE PROGRAMME IN ECONOMICS Term-End Examination
June, 2016
REC-002 ECONOMIC THEORY
Time 3 hours Maximum Marks: 100
Note: Answer questions from each section as per instructions.
SECTION
Answer any two questions from this section. 2x20=40
1. Consider the utility function u
Let prices be Px and py and income be m. Derive the indirect utility function and expenditure function.
2. Suppose Ahmed is planning a trip on which he will spend Rs.10,000. The utility from the trip is a function of how much he actually spends on it given by =ln y
If there is 0.25 probability that Ahmed will lose Rs. 1,000 of his cash on the trip, what is the trip's expected utility
Suppose that Ahmed can buy insurance against losing the Rs. 1,000 at an 'actuarially fair' premium of Rs. 250. Show that his expected utility is higher if he purchases this insurance than if he faces the chance of losing the Rs. 1,000 without insurance.
What is the maximum amount that Ahmed would be willing to pay to ensure his Rs. 1,000?
3. Describe the model of a representative agent maximising an inter -temporal utility function. Give the basic structure of the cass koopmans Model.
4. What is a dynamic game of incomplete information? How does it differ from a dynamic game of complete information? Discuss the relevant equilibrium concepts for both these types of games.
SECII0N
Answer any five questions from this section. 5x12=60
5. Describe the equilibrium price and output determination of a firm operating as a discriminating monopolist.
6. Discuss the search theoretic model of employment determination.
7. What are real rigidities? How do they arise? In what way do they differ from nominal rigidities?
8. Discuss the concept of a social choice function. How is it related to the concept of a social welfare function?
9. Prove the existence of general equilibrium under, conditions of production. State carefully the assumptions under which existence of equilibrium can be proved.
10. Explain:
Hotelling's Lemma
Slutsky equation
11. What is the difference between cooperative games with transferable utility and those without transferable utility? Explain nucleolus
Shapley value.
12. Describe the basic structure of a Principal-Agent model. Discuss how the principal can set up a screening mechanism.
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Subjects
- .Economics Theory
- Research Methodology