Exam Details
| Subject | general economics | |
| Paper | paper 1 | |
| Exam / Course | indian economic service and indian statistical service examination (ies/iss) | |
| Department | ||
| Organization | union public service commission | |
| Position | ||
| Exam Date | 2016 | |
| City, State | central government, |
Question Paper
Define substitution effect. Separate income effect from substitution effect for a fall in the price of a Giffen type good using a suitable diagram.
Show that if the consumer is free from money illusion, the demand function is homogeneous of degree zero.
Give the different views of equity and use utility possibility frontier to show that efficiency does not necessarily imply equity.
State the assumptions of Classical Linear Regression Model. Why are the regressors assumed to be non-stochastic in repeated samples
For the Cobb-Douglas production function Q AL^aK^ß (where symbols have usual meaning), calculate the input elasticities of output and also derive an expression for the expansion path of the firm.
Define level of significance. How is this level decided for a given problem Can we take it as or Explain.
2. Derive the demand functions from the utility function U ... qn) subject to budget constraint y p1q1 p2q2 +... pnqn and if the demand function for a commodity i ... is homogeneous of degree zero in prices and income, then show that the sum of own and cross price elasticities of demand for the commodity equals its income elasticity of demand with negative sign.
3. Show that, "If the second order condition is satisfied, every point of tangency between an isoquant and an isocost line is the solution of both a constrained maximum and a constrained minimum."
4. Distinguish between point estimation and interval estimation of a population parameter. State the small sample properties of a good estimator.
Derive the long run supply function under perfect competition when there are external economies or external diseconomies.
Consider an industry represented by two competitive firms with the total cost functions as follows
C1= a1q1^2 bq1q
C2 a2q2^2 bq2q
6. Consider a duopoly with product differentiation in which the demand and cost functions are
q1 88 4p1 2p2
C1 10q1
and q2 56 2p1 4p2
C2 8q2
for firms I II respectively.
Derive the price reaction functions for each firm on the assumption that each maximises its profits with respect to its own price. Determine the equilibrium values of price, quantity and profit for each firm.
7. "Pareto optimal allocation is contingent upon the assumption that there are no external effects on consumption and production." Examine what happens if there are external effects.
8. What is stationarity in a time series analysis Show that a random work model is non-stationary. Discuss the Dickey-Fuller test for stationarity.
Distinguish between a cooperative and a non-cooperative game.
In a non-cooperative game, find
saddle point in a pure strategy game
maximum expected pay-off in a mixed strategy game
solution of a sequential game in an 'extensive form'
10.(a) Define heteroscedasticity.
Explain:
Consequences of heteroscedasticity on OLS estimates
Detection of heteroscedasticity in a model
Estimation procedure in the presence of heteroscedasticity
11. Given the Classical Linear Regression model with usual assumptions
Yi ßo+ß1Xi+Ui i=1,2...n
Examine the goodness of fit of the model using ANOVA.
If the value of is low, how can it be improved
12. Distinguish between basic feasible solution, feasible solution and optimal solution of a Linear Programming Problem (LPP). Solve the following LPP graphically:
Maximize Y q1 2q2
subject to q1 3q2 18
q1 q2 8
2q1 q2 14
q1,q2 0
13. Examine the situation of market-equilibrium when;
supply and demand are not equal at a non-negative price-quantity combination.
supply and demand are equal at more than one non-negative price-quantity combination.
14. How is distributional inequality of various kinds measured with the help of income as a resource Name some common inequality measures and state their properties.
Show that if the consumer is free from money illusion, the demand function is homogeneous of degree zero.
Give the different views of equity and use utility possibility frontier to show that efficiency does not necessarily imply equity.
State the assumptions of Classical Linear Regression Model. Why are the regressors assumed to be non-stochastic in repeated samples
For the Cobb-Douglas production function Q AL^aK^ß (where symbols have usual meaning), calculate the input elasticities of output and also derive an expression for the expansion path of the firm.
Define level of significance. How is this level decided for a given problem Can we take it as or Explain.
2. Derive the demand functions from the utility function U ... qn) subject to budget constraint y p1q1 p2q2 +... pnqn and if the demand function for a commodity i ... is homogeneous of degree zero in prices and income, then show that the sum of own and cross price elasticities of demand for the commodity equals its income elasticity of demand with negative sign.
3. Show that, "If the second order condition is satisfied, every point of tangency between an isoquant and an isocost line is the solution of both a constrained maximum and a constrained minimum."
4. Distinguish between point estimation and interval estimation of a population parameter. State the small sample properties of a good estimator.
Derive the long run supply function under perfect competition when there are external economies or external diseconomies.
Consider an industry represented by two competitive firms with the total cost functions as follows
C1= a1q1^2 bq1q
C2 a2q2^2 bq2q
6. Consider a duopoly with product differentiation in which the demand and cost functions are
q1 88 4p1 2p2
C1 10q1
and q2 56 2p1 4p2
C2 8q2
for firms I II respectively.
Derive the price reaction functions for each firm on the assumption that each maximises its profits with respect to its own price. Determine the equilibrium values of price, quantity and profit for each firm.
7. "Pareto optimal allocation is contingent upon the assumption that there are no external effects on consumption and production." Examine what happens if there are external effects.
8. What is stationarity in a time series analysis Show that a random work model is non-stationary. Discuss the Dickey-Fuller test for stationarity.
Distinguish between a cooperative and a non-cooperative game.
In a non-cooperative game, find
saddle point in a pure strategy game
maximum expected pay-off in a mixed strategy game
solution of a sequential game in an 'extensive form'
10.(a) Define heteroscedasticity.
Explain:
Consequences of heteroscedasticity on OLS estimates
Detection of heteroscedasticity in a model
Estimation procedure in the presence of heteroscedasticity
11. Given the Classical Linear Regression model with usual assumptions
Yi ßo+ß1Xi+Ui i=1,2...n
Examine the goodness of fit of the model using ANOVA.
If the value of is low, how can it be improved
12. Distinguish between basic feasible solution, feasible solution and optimal solution of a Linear Programming Problem (LPP). Solve the following LPP graphically:
Maximize Y q1 2q2
subject to q1 3q2 18
q1 q2 8
2q1 q2 14
q1,q2 0
13. Examine the situation of market-equilibrium when;
supply and demand are not equal at a non-negative price-quantity combination.
supply and demand are equal at more than one non-negative price-quantity combination.
14. How is distributional inequality of various kinds measured with the help of income as a resource Name some common inequality measures and state their properties.