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Re: DSE Entrance Papers
Here I am providing the sample question paper for Delhi School of Economics MA in Economics entrance exam. Question 1. A rural landowner can deposit his savings in a commercial bank and receive an annual interest rate of 8%. Alternatively he can lend to villagers who need credit. If all loans are of the same size and only sixty per cent of them are repaid, the interest rate that would make his earnings the same as from depositing his savings in a bank is (a) 8% (b) 48% (c) 80% (d) 120% Answer: (c) Question 2. Consider a two-person two-good exchange economy, where agents are denoted by A;B and goods are denoted by X; Y . A Pareto optimal allocation of this economy may not remain Pareto optimal if (a) Everything else remaining the same, Agent A transfers a part of her endowment to Agent B (b) Everything else remaining the same, Agent A gets additional endow-ment (c) Everything else remaining the same, Agent A's utility function is mono-tonically transformed (d) All of the above Answer: (b) For the complete question paper I have uploaded the PDF file. |
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