DSE 2006 question paper

All 58 questions from the DSE 2006 Delhi School of Economics MA entrance paper. Open any question for the worked solution.

1. Q1Suppose A and B have to divide a box of chocolates and both of them prefer to have more chocolates to fewer chocolates. An allocation that gives all…
2. Q2Among the effects of urban rent control are
3. Q3Processed and piped water is
4. Q4A situation in which all electricity generators in a state can sell their output only to the State Electricity Board is described as
5. Q5Consider a firm that produces a single good using labour and capital. Let C, Q, L, K, w, r and p denote cost of production, output, labour input…
6. Q6If the IS curve is downward sloping and the LM curve is vertical, a unit increase in government expenditure results in
7. Q7Monetary policy is completely ineffective in raising output if
8. Q8The price and quantity combinations of two services (trim and perm) sold at the 'Be Handsome' beauty parlour are as follows (Pₜ and Qₜ denote the…
9. Q9Suppose we flip a fair coin three times. The probability of getting two heads is
10. Q10Which one of the following is true?
11. Q11Consider a consumer with the utility function u(x,y)=x^(1/2)+y. Which one of the following is true?
12. Q12Consider the experiment of tossing two unbiased coins in succession. What is the probability of obtaining two heads, given that at least one of the…
13. Q13Suppose all input prices as well as output price double. The level of output produced by a profit-maximizing firm which uses a decreasing returns to…
14. Q14Consider an n× n matrix A with real entries. A is non-singular if and only if
15. Q15Consider a function f:ℜ→ℜ, where ℜ denotes the set of real numbers. If f is increasing, i.e., x≥ y implies f(x)≥ f(y), then
16. Q16Consider a singular n× n matrix A with real entries. Interchanging the positions of a pair of adjacent columns of A
17. Q18Suppose a neighbourhood has 90 Hindus and 10 Muslims. What is the probability that two randomly selected persons from that neighbourhood will have…
18. Q19Exchange rate overshooting occurs
19. Q20In an open economy with a system of fixed exchange rates
20. Q21Consider a competitive exchange economy with two agents (1 and 2) and two goods (X and Y). Agent 1 's endowment of (X,Y) is (0,5) and Agent 2 's…
21. Q22Consider the competitive exchange economy with two agents (1 and 2) and two goods (X and Y): Agent 1 's endowment is (0,5), Agent 2 's endowment is…
22. Q23For the competitive exchange economy with Agent 1 endowment (0,5), Agent 2 endowment (10,0), and each agent maximizing min {xᵢ,yᵢ}: assuming the sum…
23. Q24Consider an economy which is demand constrained. The components of aggregate demand are: (i) Household Consumption; (ii) Government Investment…
24. Q25Consider an economy where 1/2 of the total income (output) is distributed to the workers and the other half to the capitalists. The capitalists save…
25. Q26The aggregate production function in an economy at any time period t is Yₜ=min {Kₜ/2, Lₜ/4}, where Kₜ and Lₜ are respectively the aggregate stock of…
26. Q27Members of the Gymkhana Club are charged quarterly fees on the basis of their average weight, rounded to the nearest kg. Of the 560 members, 120…
27. Q28ICICI Bank collects data on 10000 respondents. Out of the 6800 men, 4200 have credit cards, and out of the 3200 women, 2500 have credit cards. Out…
28. Q29A monopolist has two plants. In plant 1, the total cost function is c₁(q₁)=2q₁, and in plant 2, the total cost function is c₂(q₂)=q₂²/2, where q…
29. Q30There are two individuals A and B. The utility function of both individuals are identical and given by u(x,y)=max {x,y}. Each of them has 1 unit of…
30. Q31Three players A, B and C take turns playing a game as follows. A and B play in the first round. The winner plays C in the second round, while the…
31. Q32For the three-player elimination contest (A and B play round 1, the winner meets C, and so on, with the contest won by the first player to win two…
32. Q33For the three-player elimination contest (won by the first player to win two rounds in succession, with each round a fair 50 - 50): the probability…
33. Q34Consider collecting a random sample that has two observations, from a population that is normally distributed with mean μ and variance 16. The…
34. Q35In an open economy with a system of flexible exchange rates and perfect capital mobility, an expansionary monetary policy
35. Q36Which of the following would make the LM curve flatter in the (Y,r) space?
36. Q37Consider the graph of the function f(x)=(x²+2x-1)/x, defined over all positive real values of x. This graph has the following asymptotes
37. Q38Which of the following statements is correct? In a closed economy, fiscal policy is more effective
38. Q39Along the long run supply curve of a perfectly competitive industry, all of the following may change, except
39. Q40Consider a market served by a pair of firms, 1 and 2. The inverse market demand curve is p=1-(x₁+x₂), where xᵢ is the output of Firm i. Firm 1 's…
40. Q41For the market with inverse demand p=1-(x₁+x₂), C₁(x₁)=x₁/2 and C₂(x₂)=x₂/3: now suppose the situation changes so that Firm 1 chooses x₁ first and…
41. Q42Suppose Asha's preferences between two commodities x₁ and x₂ can be represented by u(x₁,x₂)=min {x₁-5, x₂+3}. Given an income of Rs. 73, and facing…
42. Q43Consider the macroeconomic model: C=2000+0.4Y_D; I=500-10r+0.4Y; G=400; T=1000; (M/P)^D=0.2Y-50r; (M/P)^S=1000; where Y_D is disposable income. The…
43. Q44A negative supply shock (e.g., oil price increase) shifts the Phillips curve and the natural rate of unemployment. If the government wants to keep…
44. Q45An increase in foreign income the equilibrium output of a small open economy with uncovered interest parity and flexible exchange rates.
45. Q46Amit has a box containing 6 red balls and 3 green balls. Amita has a box containing 4 red balls and 5 green balls. Amit randomly draws one ball from…
46. Q47Two patients share a hospital room for two days. Suppose that, on any given day, a person independently picks up an airborne infection with…
47. Q48A blood test detects a given disease with probability 8/10 given that the tested person actually has the disease. With probability 2/10, the test…
48. Q49Your teacher knows 6 jokes and in each class tells 2 jokes; each joke has an equal chance of being selected. What is the probability that, in a…
49. Q50Suppose there are only two goods (X and Y), two countries (A and B), and labour is the only factor of production. The amount of labour required to…
50. Q52Consider a function f:ℜ→ℜ, where ℜ denotes the set of real numbers. If f is strictly increasing (i.e., x>y implies f(x)>f(y)) and differentiable…
51. Q53Consider the following claim: 'There is some general election and some party such that all the candidates of that party in that election are…
52. Q54Consider a Society consisting of individuals who may belong to various sets called Families and/or Gangs, with the rules: the entire Society is a…
53. Q55For the Society in which Families are closed under arbitrary intersection and finite union (with the whole Society and the empty set as Families)…
54. Q56For the Society in which Families are closed under arbitrary intersection and finite union (with the whole Society and the empty set as Families)…
55. Q57For the Society in which Families are closed under arbitrary intersection and finite union and a Gang is the complement of a Family: suppose we are…
56. Q58You have 10 pockets. What is the smallest number of one rupee coins you need to have a different number of coins in each pocket?
57. Q59There are 3 red and 5 black balls in an urn. You draw two balls in succession without replacing the first ball. What is the probability that the…
58. Q60Given that ℜ denotes the set of real numbers, which of the following mappings is a one-to-one (i.e., injective) function?