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Questions › DSE › DSE 2004

DSE 2004 question paper

All 29 questions from the DSE 2004 Delhi School of Economics MA entrance paper. Open any question for the worked solution.

  1. Q1Consider sets A, B and C, and the following propositions: (i) If (A∪ B)∩(A∪ C)=∅, then B∩ C=∅. (ii) If (A∩ B)∪(A∩ C)=∅, then B∩ C=∅.
  2. Q2Suppose an astronomer asserts 'Every solar system in the Milky Way galaxy contains a planet such that all the moons revolving around that planet…
  3. Q3Consider a competitive exchange economy with two agents (1 and 2) and two goods (X and Y). Agent 1 's endowment of (X,Y) is (1000,0) and Agent 2 's…
  4. Q4For the exchange economy with Agent 1 endowment (1000,0), Agent 2 endowment (0,1000), and each maximizing min {xᵢ,yᵢ}: the set of all competitive…
  5. Q5Consider the exchange economy with two goods and two min -utility agents, but now Agent 1 's endowment of (X,Y) is (999,0) (Agent 2 's endowment is…
  6. Q6For the exchange economy with Agent 1 endowment (999,0), Agent 2 endowment (0,1000), and each maximizing min {xᵢ,yᵢ}: the set of all competitive…
  7. Q7For the exchange economy with Agent 1 endowment (999,0), Agent 2 endowment (0,1000), and each maximizing min {xᵢ,yᵢ}: assuming the sum of prices is…
  8. Q8Consider a Cournot duopoly with inverse demand p=1-q₁-q₂, where p is the market price and qᵢ is firm i 's output. Firm 1 's cost function is…
  9. Q9For the Cournot duopoly with p=1-q₁-q₂, C₁(q₁)=cq₁ and C₂(q₂)=q₂/2: is the derived Cournot outcome Pareto efficient from the point-of-view of the…
  10. Q10For the Cournot duopoly with p=1-q₁-q₂, C₁(q₁)=cq₁ and C₂(q₂)=q₂/2: suppose, prior to the choice of quantities, Firm 1 can choose c by investing…
  11. Q11For the setting with p=1-q₁-q₂, C₁(q₁)=cq₁ and C₂(q₂)=q₂/2: suppose Firm 1 takes over Firm 2 to become a monopolist and c=2/3. The new monopolist…
  12. Q12For the setting with p=1-q₁-q₂, C₁(q₁)=cq₁ and C₂(q₂)=q₂/2: suppose c=1/2 and Firm 1 can credibly commit itself to producing any output level q₁…
  13. Q13Consider a person who consumes water and bread, deriving utility xy if x is the amount of water and y is the amount of bread. Income is Rs. 10, the…
  14. Q14For the consumer with u=xy, income Rs. 10, bread price Rs. 3, subsidized water price Re. 1 (true cost Rs. 2): if the government provides this person…
  15. Q15For the consumer with u=xy, income Rs. 10, bread price Rs. 3, water price rising from Re. 1 to Rs. 2 on removal of the subsidy: the income effect of…
  16. Q16For the water-subsidy problem (u=xy, income 10, bread price 3, water subsidy of Re. 1 per unit): the effect on the government's budget of the…
  17. Q17For the water-subsidy problem, assuming that government funds have a positive opportunity cost, the government can make a Pareto improvement by
  18. Q18Suppose Y is aggregate real income, r the real interest rate, M the exogenous nominal money stock, P the price level and G real government…
  19. Q20Let w=W/P be the real wage rate, W the nominal wage and P the price level. Labour demand is D(w)=1-w and labour supply is S(w)=w. If N is the…
  20. Q21Consider the labour market with D(w)=1-w, S(w)=w (w=W/P), but now the nominal wage W is always such that it minimizes |D(W/P)-S(W/P)| subject to W≥…
  21. Q22For the labour market with a minimum nominal wage W₀ (D(w)=1-w, S(w)=w, W=max {W₀,P/2}): given the price level P, the employment level is
  22. Q23For the labour market with a minimum nominal wage W₀: given the price level P such that 1/2≤ 1-W₀/P, the aggregate supply is
  23. Q24Consider the economy combining the IS-LM aggregate demand (of the macro model above) with the wage-floor aggregate supply. The effects of an…
  24. Q25For the same economy (IS-LM aggregate demand with wage-floor aggregate supply): the effects of a contractionary fiscal policy on equilibrium output…
  25. Q26Consider an examinee answering a multiple-choice examination. For a particular question with 4 choices, the probability that the examinee knows the…
  26. Q27Each of four economists is asked to prescribe one out of four economic policies. Each economist is equally likely to prescribe any of the four…
  27. Q28There are three identical boxes, each with two drawers. Box A contains a gold coin in each drawer. Box B contains a silver coin in each drawer. Box…
  28. Q2910 outcomes of a random variable were recorded. The sample mean is 0 and the sample variance is 4. It is discovered that two outcomes were recorded…
  29. Q30Suppose X and Y are independent random variables with standard Normal distributions. The probability of X<-1 is some p∈(0,1). What is the…