As you requires I am here giving you Entrance Exam Question Papers for admission in MA Economics course at Delhi School of Economics of Delhi University (DU).

Entrance Exam Question Paper MA Economics course:

Question 1. There are two individuals, 1 and 2. Suppose, they are o
ered
a lottery that gives Rs 160 or Rs 80 each with probability equal to 1/2. The
alternative to the lottery is a
xed amount of money given to the individual.
Assume that individuals are expected utility maximizers. Suppose, individual
1 will prefer to get Rs 110 with certainty over the lottery. However, Individual
2 is happy receiving a sure sum of Rs 90 rather than facing the lottery. Which
of the following statements is correct?
(a) both individuals are risk averse
(b) 2 is risk averse but 1 loves risk
(c) 1 is risk averse but 2 loves risk
(d) none of the above
Answer: (a)

Question 2. Consider an exchange economy with agents 1 and 2 and goods
x and y. The agents' preferences over x and y are given. If it rains, 1's
endowment is (10, 0) and 2's endowment is (0, 10). If it shines, 1's endowment
is (0, 10) and 2's endowment is (10, 0).
(a) the set of Pareto e
cient allocations is independent of whether it rains
or shines
(b) the set of Pareto e
cient allocations will depend on the weather
(c) the set of Pareto e
cient allocations may depend on the weather
(d) whether the set of Pareto e
cient allocations varies with the weather
depends on the preferences of the agents
Answer: (a)

Question 3. Deadweight loss is a measure of
(a) change in consumer welfare
(b) change in producer welfare
(c) change in social welfare
(d) change in social inequality
Answer: (c)

Question 4. To regulate a natural monopolist with cost function C(q) =
a + bq, the government has to subsidize the monopolist under
(a) average cost pricing
(b) marginal cost pricing
(c) non-linear pricing
(d) all of the above
Answer: (b)

Question 5. Suppose an economic agent lexicographically prefers x to y,
then her indi
erence curves are
(a) straight lines parallel to the x axis
(b) straight lines parallel to the y axis
(c) convex sets
(d) L shaped curves
Answer: (c)

Question 6. Which of the following statements is correct?
(a) f is continuous and has partial derivatives at all points
(b) f is discontinuous but has partial derivatives at all points
(c) f is continuous but does not have partial derivatives at all points
(d) f is discontinuous and does not have partial derivatives at all points

Question 7. Which of the following statements is correct?
(a) f is continuous and di
erentiable
(b) f is discontinuous and di
erentiable
(c) f is continuous but not dierentiable
(d) f is discontinuous and non-dierentiable

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Entrance Exam Question Paper MA Economics course

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