Question 30 (2016): Algebraic Expression The

minimum value of the expression below for x >

Mathematics (PEA) 0 is: (x⁶ + 1/x⁶) - 2(x³ + 1/x³) + 6(x + 1/x) - 8 (a)
1. (b) 3. (c) 6 (d) 12.
Questions by Topic Question 2 (2017): Number of Onto Functions
How many onto functions are there from a set A
with m > 2 elements to a set B with 2 elements?
Algebra and Number Theory A. 2ᵐ B. 2ᵐ - 1 C. 2ᵐ⁻¹ - 2 D. 2ᵐ - 2.

Question 1 (2016): Polynomial Equation Question 18 (2017): Sequence Convergence

Consider the polynomial P (x) = ax³ + bx² + cx + As n → ∞, the sequence {n²+1/2n²+3} A.
d, where a, b, c, d ∈ {1, 2, . . . , 9}. If P (10) = diverges B. converges to 1/3 C. converges to 1/2
5861, then the value of c is (a) 1. (b) 2. (c) 6. (d) D. neither converges nor diverges.
5.
Question 19 (2017): Properties of x^(1/3) The
Question 4 (2016): Binomial Expansion function x¹/³ is A. differentiable at x = 0 B.
Suppose the sum of coefficients in the expansion continuous at x = 0 C. concave D. none of the
(x+y)n is 4096. The largest coefficient in the above.
expansion is: (a) 924. (b) 1024. (c) 824. (d) 724.
Question 20 (2017): Properties of sin(log x)
Question 10 (2016): Function Composition The function sin(log x), where x > 0 A. is
Let f(x) = x+√3/(1-√3x) for all x ≠ 1/√3. What is increasing B. is bounded and converges to a real
the value of f(f(x))? (a) x-√3/(1-√3x). (b) number as x → ∞ C. is bounded but does not
x²+2x√3+3/(x√3+3x). (c) x+√3/(1-2√3x). (d) converge as x → ∞ D. none of the above.
x+√3/(1-√3x).
Question 21 (2017): Maximum of Two
Question 12 (2016): Inequality The set of Functions For any two functions f₁: [0, 1] → R
values of x for which x² - 3|x| + 2 < 0 is given and f₂: [0, 1] → R, define the function g: [0, 1]
by: (a) {x : x < -2} ∪ {x : x > 1}. (b) {x : -2 < x → R as g(x) = max(f₁(x), f₂(x)) for all x ∈ [0,
< -1} ∪ {x : 1 < x < 2}. (c) {x : x < -1} ∪ {x : 1]. A. If f₁ and f₂ are linear, then g is linear B. If
x > 2}. (d) None of the above. f₁ and f₂ are differentiable, then g is
differentiable C. If f₁ and f₂ are convex, then g is
Question 17 (2016): Quadratic Polynomial
convex D. None of the above
Consider a quadratic polynomial P(x). Suppose
P(1) = -3, P(-1) = -9, P(-2) = 0. Then, which of Question 22 (2017): Maximization with
the following is true. (a) P(1/2) = 0. (b) P(5/2) = Inequality Constraint Let f: R → R be the
0. (c) P(5/4) = 0. (d) P(3/4) = 0. function f(x) = x³ - 3x ∀ x ∈ R. Find the
maximum value of f(x) on the set of real
Question 29 (2016): Functional Equation Let f
numbers x satisfying x⁴ + 36 ≤ 13x². A. 18 B. -2
: R² → R be a function. For every x, y, z ∈ R,
C. 2 D. 52
we know that f(x, y) + f(y, z) + f(z, x) = 0. Then,
for every x, y ∈ R², f(x, y) - f(x, 0) + f(y, 0) = Question 25 (2017): Sum of Arithmetic
(a) 0. (b) 1. (c) -1. (d) None of the above. Progression Real numbers a₁, a₂, ..., a₉₉ form an
arithmetic progression. Suppose that a₂ + a₅ + a₈

1
+ ... + a₉₈ = 205. Then the value of ∑₁⁹⁹ a is A. Question 11 (2019): Value of x The equation
612 B. 615 C. 618 D. none of the above. x^x = x has: (a) no solution (b) exactly one
solution (c) exactly two solutions (d) exactly
Question 30 (2017): Evaluating Integral with three solutions
Square Root ∫√(3^(2x+1))dx = A.
√(3^(2x+1))/(ln 3) + c B. Question 15 (2019): Continued Fraction The
√(3^(2x+1))√(2x+1)/(ln 3) + c C. continued fraction [x; 1, 1, 1, ...] equals: (a) (√5
√(3^(2x+1))/(ln 3) - 3√(2x+1)/(ln 3)² + c D. + 1)/2 (b) √2 (c) (√5 - 1)/2 (d) π/2
none of the above.
Question 17 (2019): Value of Limit Let a > 0.
Question 18 (2018): Non-negative Integer The value of lim(n→∞) (a¹/ⁿ - 1)/((a²)¹/ⁿ - 1) is:
Solutions Suppose the equation 2x + 5y = 103. (a) 1/2 (b) 2 (c) a (d) a²
Then how many pairs of positive integer values
can (x, y) take such that x > y? (a) 7 (b) 8 (c) 13 Question 25 (2019): Sum of Infinite Series The
(d) 14 sum of the infinite series 1 + 5/9 + 5²/9² + ... +
5ⁿ/9ⁿ + ... is: (a) 5/4 (b) 9/4 (c) 9/5 (d) 5/9
Question 20 (2018): Property of Increasing
Derivative Let f: [0, 10] → [10, 20] be a Question 26 (2019): Limit of Sequence For a
continuous and twice differentiable function sequence {aₙ}, if lim(n→∞) n(aₙ₊₁ - aₙ) = L,
such that f(0) = 10 and f(10) = 20. Suppose |f'(x)| where L is finite and non-zero, then: (a)
≤ 1/2 for all x ∈ [0, 10]. Then, the value of f''(5) lim(n→∞) aₙ is finite and non-zero (b)
is (a) 0 (b) 1/2 (c) 1 (d) cannot be determined lim(n→∞) aₙ = ∞ (c) lim(n→∞) aₙ = 0 (d)
from the given information. lim(n→∞) aₙ does not exist

Question 1 (2019): Linear Independence of Question 27 (2019): Value of Infinite Product

Vectors If v₁, v₂, ..., vₙ are linearly independent Let a₁ = 1/3, a₂ = 1/5, a₃ = 1/7, ... a_{2k-1} =
vectors in a real vector space V, then for any 1/(4k-1), a_{2k} = 1/(4k+1), ... The value of the
non-zero scalar α, the vectors αv₁, v₂, ..., vₙ are: infinite product (1+a₁)(1+a₂)(1+a₃)... is: (a) 1/2
(a) linearly dependent (b) linearly independent (b) 2/3 (c) 3/4 (d) 1
(c) orthogonal (d) none of the above
Question 2 (2020): Ordered Pairs with
Question 5 (2019): Algebraic Inequality Constraint How many ordered pairs of numbers
Consider the following function f: R → R: f(x) = (x, y) are there, where x, y ∈ {1, 2, . . . , 100},
x⁷ - 7x⁵ + 7x³ for all values of x. Then the such that |x - y| ≤ 50? (a) 2550 (b) 5050 (c) 7550
minimum value of f(x) is: (a) -5 (b) -6 (c) -7 (d) (d) None of the other options are correct
-8
Question 5 (2020): Limit Calculation
Question 7 (2019): Function Analysis f(x) = Evaluate: lim(x→∞) (e³ˣ - 5x)^(1/x) (a) e³ (b) 3
1/(3-x) Consider a function defined on the (c) 1 (d) None of the other options are correct
domain (-∞, 3) by f(x) = 1/(3-x). This function
is: (a) decreasing in (-∞, 3) (b) increasing in (-∞, Question 6 (2020): Limit with Absolute Value
3) (c) decreasing in (-∞, 0) and increasing in (0, Suppose f(x) = {|x-3|/(x-3), for x ≠ 3; 0, for x =
3) (d) increasing in (-∞, 0) and decreasing in (0, 3}. Then, lim(x→3) f(x): (a) is -1 (b) is 0 (c)
3) does not exist (d) is 1

2
Question 8 (2020): Sequence Properties The Question 10 (2022): Function Bounds Let f: R
sequence xₙ is given by the formula: for every → R be a function defined by f(x) = x/(1 + x²)
positive integer n xₙ = n³ - 9n² + 631. The for all x ∈ R. Then, (A) -1 ≤ f(x) ≤ 1 (B) -1/2 ≤
largest value of n such that xₙ > xₙ₊₁ (a) is 4 (b) f(x) ≤ 1/2 (C) -1 ≤ f(x) ≤ 1/2 (D) -1/2 ≤ f(x) ≤ 1
is 5 (c) is 6 (d) None of the other options are
correct Question 22 (2023): Binomial Expansion
Constant Term The constant term (i.e., the term
Question 12 (2020): Sum of Digits For every not involving x) in the expansion of (x + 1/x²)¹⁹
positive integer n, let S(n) denote the sum of is (a) 1 (b) 19 (c) 171 (d) none of the above
digits in n. For instance, S(387) = 3 + 8 + 7 = 18.
The value of the sum S(1) + S(2) + . . . + S(99) Question 24 (2023): Equation with Absolute
is (a) 450 (b) 495 (c) 900 (d) 990 Value Solutions How many real solutions are
there to the equation |x| + 1 = 3/|x|? (a) 0 (b) 1
Question 1 (2021): Partial Sum of Infinite (c) 2 (d) 3
Series If the nth partial sum of the series ∑∞ₙ₌₁
aₙ is sₙ = 2n²+2/3n²+1, then ∑∞ₙ₌₁ aₙ is (A) 0 Question 25 (2023): System of Equations with
(B) divergent (C) 2/3 (D) 3/2 Constraints We are given n positive integers k₁,
..., kₙ (need not be distinct) such that k₁ + ... +
Question 4 (2021): Number Divisible by 24 A kₙ = 5n 1/k₁ + ... + 1/kₙ = 1 - 4/n What is the
number is chosen randomly from the first billion maximum value of n? (a) 3 (b) 4 (c) 5 (d) 6
natural numbers. The probability that the
product of the number with its two immediate Question 30 (2023): Recursive Function
successors is divisible by 24 is closest to (A) 1/2 Evaluation Suppose f: [-1, 1] → R is a function
(B) 3/4 (C) 5/8 (D) 2/3 such that f(x) = (x²/2) - f(-x²/2), ∀x ∈ [-1, 1].
Then, f(-1) is equal to (a) -1 (b) 1 (c) 0 (d) 1/2
Question 2 (2022): Function Roots Properties
Consider the functions f(x) = x² - 1 and g(x) = x Question 1 (2024): Differentiable Function
+ 1, both defined for all real values of x. Let α₁ > Limit If f: R → R is a differentiable function at
0 be the positive real root and α₂ < 0 be the a ∈ R such that f'(a) = af(a), then what is
negative real root of the equation f(x) = 0. Let β₁ lim(x→a) (xf(a) - af(x))/(x - a)? (A) af(a) (B)
> 0 be the positive real root and β₂ < 0 be the f(a) - a (C) (1 - a²)f(a) (D) None of the previous
negative real root of the equation f(g(x)) = 0. options
After identifying the exact values of α₁, α₂, β₁
and β₂, identify which one of the following four Question 2 (2024): Sequence Limit Suppose
statements is incorrect. (A) α₁ - β₁ = α₂ - β₂ = 1 Sₙ is defined as follows for every positive
(B) α₁ + β₂ = α₂ + β₁ = 0 (C) α₁ + β₁ = -(α₂ + β₂) = integer n ≥ 2: Sₙ = 1 - 1/2² - 1/3² - ... - 1/n² The
√5 (D) α₁ + α₂ = -(β₁ + β₂) = -1 value of lim(n→∞) Sₙ is then (A) 0 (B) 1/2 (C)
1 (D) ∞
Question 3 (2022): Function Value
Calculation Let the function f(x) = 1 - x² be Question 3 (2024): Limit Calculation Suppose
defined only over all x belonging in [0, 1]. Then lim(x→0) (e^(a₁x) - 1)/(a₂x² + a₃x) = 1, where a₁,
f(1 - f(x)) equals (A) x (B) √(1 - x) (C) x² (D) 1 - a₂ and a₃ are given real numbers. Then it is
x² necessarily true that (A) a₁ = a₂ = a₃ = 1 (B) a₁ =
a₃ ≠ 0 (C) a₂ = 0 (D) a₂ + a₃ ≠ 0

3
Question 5 (2024): Function Properties on Question 1 (2017): Vector Space Dimension
Interval Consider f: [0, 1] → [0, 1] such that The dimension of the space spanned by the
f(x) = x - x². Which of the following statements vectors ((−1; 0; 1; 2); (−2; −1; 0; 1); (−3; 2; 0; 1)
is incorrect? (A) f(0) = 0 and f(1) = 0 (B) f(1-x) and (0; 0; −1; 1) is A. 1 B. 2 C. 3 D. 4.
= 1-x-f(x) (C) f is strictly concave in the interval
(0, 1) (D) f is strictly increasing in the interval Question 8 (2017): Matrix Equation
(0, 1) Properties Suppose the matrix equation Ax = b
has no solution, where A is a 3 × 3 non-zero
Question 19 (2024): Covariance Calculation matrix of real numbers and b is an 3 × 1 vector
Let X₁, X₂, ..., X₅ be independently and of real numbers. Then, A. The set of vectors x
identically distributed random variables with for which Ax = 0 is a plane. B. The set of
mean 10 and variance 4. Let X̄ = 1/5 ∑₅ᵢ₌₁ Xᵢ. vectors x for which Ax = 0 is a line. C. The rank
What is the value of Cov(X̄, X₁ - X̄)? (A) 0 (B) 1 of A is 3. D. Ax = 0 has a non-zero solution.
(C) -1 (D) None of the previous options
Question 14 (2017): Matrix Equation Solution
Question 20 (2024): Binomial Distribution Uniqueness Suppose x = 0 is the only solution
Properties Consider a discrete random variable to the matrix equation Ax = 0 where A is m × n,
which follows a binomial distribution with x is n × 1, and 0 is m × 1. Then, of the two
parameters n and p, where n, a positive integer, statements (i) The rank of A is n, and (ii) m ≥ n,
is the number of trials and p ∈ (0, 1) is the A. Only (i) must be true B. Only (ii) must be
probability of success in any trial. Which of the true C. Both (i) and (ii) must be true D. Neither
following statements is incorrect? (A) If np is an (i) nor (ii) has to be true.
integer, then the mean and mode of this
distribution coincide (B) If n is even and p = 1/2, Question 28 (2017): System of Linear
then the median of this distribution is n/2 (C) If Equations The solution of the system of
the probability of k successes out of n trials is equations x - 2y + z = 7 2x - y + 4z = 17 3x - 2y
equal to the probability of n - k successes out of + 2z = 14 is A. x = 4; y = -1; z = 3 B. x = 2; y =
n trials, ∀k ∈ {0, 1, .., n}, then p = 1/2 (D) If 4; z = 3 C. x = 2; y = -1; z = 5 D. none of the
(n+1)p - 1 is an integer, then this distribution is above.
unimodal
Question 16 (2018): System of Linear
Equations Consider the system of linear
Matrices and Linear Algebra equations: (4a - 1)x + y + z = 0; -y + z = 0; -(4a -
1)z = 0. The value of a for which this system has
Question 13 (2016): System of Linear a non-trivial solution (i.e., a solution other than
Equations The system of linear equations (4d - (0, 0, 0)) is: (a) 1/2 (b) 1/4 (c) 3/4 (d) 1
1)x + y + z = 0 -y + z = 0 (4d - 1)z = 0 has a
non-zero solution if: (a) d = 1/4. (b) d = 0. (c) d Question 6 (2019): Linear Algebra Problem
≠ 1/4. (d) d = 1. Consider two real non-zero row vectors u and v,
such that uv^T = 0. Then: (a) u and v are linearly
Question 23 (2016): Matrix Determinant Let dependent (b) u and v are linearly independent
A be an n × n matrix whose entry on the i-th row (c) u and v are orthogonal (d) none of the above
and j-th column is min(i, j). The determinant of
A is: (a) n. (b) 1. (c) n! (d) 0. Question 9 (2019): Linear Transformations
Let V be the vector space of real-valued 3×3

4
upper triangular matrices. Consider the linear 2b - 5a ≠ 0 (b) c + 2b - 5a = 0 (c) c + 2b - 4a = 0
transformation T: V → V given by T(A) = A^T (d) None of the other options are correct
for a matrix A in V. Then: (a) The dimension of
the kernel of T is 3 (b) The dimension of the Question 5 (2021): Probability of Singular
range of T is 6 (c) The dimension of the kernel Matrix Each of the four entries of a 2 × 2 matrix
of T is 0 (d) None of the above is filled by independently choosing either 1 or -1
uniformly at random. What is the probability
Question 10 (2019): Matrix Rank Let A be a that the matrix is singular? (A) 1/16 (B) 1/4 (C)
3×3 singular matrix and let B = A^2. Then the 1/2 (D) 1/3
rank of B is at most: (a) 1 (b) 2 (c) 3 (d) 0
Question 9 (2021): Matrix Properties The rank
Question 14 (2019): Matrix Properties of the matrix [2 1 1; 0 -1 1; -1 1 2] is (A) 0 (B) 1
Consider a real symmetric n×n matrix A that (C) 2 (D) 3
satisfies A^2 = A. Then which of the following
is always true? (a) A is non-singular (b) The Question 10 (2021): Linear Transformations
eigenvalues of A are either 0 or 1 (c) The Let V be the vector space of polynomials p(x) of
eigenvalues of A are at most 1 (d) The trace of A degree less than or equal to 2 that have real
is n coefficients. Then T is a linear transformation
from V to V if T is defined by (A) T(p(x)) = x +
Question 20 (2019): Matrix Rank Consider a p(x) (B) T(p(x)) = xp(x) (C) T(p(x)) = dp(x)/dx
3×4 matrix A with rank 2, and a 4×2 matrix B (D) T(p(x)) = ∫p(x)dx where the constant of
with rank 2. Then the rank of the matrix AB is: integration is taken to be zero.
(a) 0 (b) 1 (c) 2 (d) 4
Question 5 (2022): Matrix Determinant
Question 24 (2019): Inverse Matrix Let A be a Properties Let A and B be two non-singular
square matrix such that A² = A. Then: (a) A is matrices of the same order and let C be a matrix
necessarily the identity matrix (b) A is such that C = BAB⁻¹. Then for any scalar λ, the
necessarily the zero matrix (c) A may be a value of det(C + λI) (where I is the identity
singular matrix (d) A is necessarily non-singular matrix) is (A) detA (B) detB (C) det(A + λI) (D)
det(B + λI)
Question 28 (2019): Matrix Eigenvalues The
eigenvalues of the matrix A = [0 1 1; 1 0 1; 1 1 Question 11 (2022): Matrix Rank If a 3 × 3
0] are: (a) 2, -1, -1 (b) 2, 1, -1 (c) 1, 1, -2 (d) 1, matrix A has rank 3 and a 3 × 4 matrix B has
-1, -2 rank 3, then the rank of AB is (A) 3 (B) 4 (C) 6
(D) 7
Question 29 (2019): Matrix Determinant The
determinant of the matrix A = [2 1 1; 1 2 1; 1 1 Question 12 (2022): Matrix Eigenvalue Let A
2] is: (a) 4 (b) 6 (c) 8 (d) 0 = [2 0 1; 2 3 1; 3 1 2]. Which one is an
eigenvalue of A? (A) 2 (B) 1 (C) 3 (D) 5
Question 7 (2020): System of Linear
Equations Consider the following system of Question 13 (2022): Matrix Properties with
equations in x, y, z: x + 2y - 3z = a 2x + 6y - 11z Singular Matrix Let A be a 5 × 5 non-null
= b x - 2y + 7z = c For what values of a, b, c, singular matrix. Then which of the following
does the above system have no solution? (a) c + statement is true? (A) Ax = 0 has only a trivial
solution (B) Ax = 0 has 5 solutions (C) Ax = 0

5
has no solution (D) Ax = 0 has infinitely many Question 2 (2016): Conditions for Local
solutions Maximum Let A ⊂ R, f : A → R be a twice
continuously differentiable function, and x* ∈
Question 5 (2023): Matrix and Determinant A be such that ∂f/∂x (x*) = 0. (a) ∂²f/∂x² (x*) ≤ 0
Properties Let A and B be two non-singular is a sufficient condition for x* to be a point of
matrices of the same order and let C be a matrix local maximum of f on A; (b) ∂²f/∂x² (x*) ≤ 0 is
such that C = BAB⁻¹. Then for any scalar λ, the a necessary condition for x* to be a point of
value of det(C + λI) (where I is the identity local maximum of f on A; (c) ∂²f/∂x² (x*) ≤ 0 is
matrix) is (a) detA (b) detB (c) det(A + λI) (d) necessary and sufficient for x* to be a point of
det(B + λI) local maximum of f on A; (d) ∂²f/∂x² (x*) ≤ 0 is
neither necessary nor sufficient for x* to be a
Question 16 (2023): Matrix Rank Consider the point of local maximum of f on A.
following matrix A = [1 0 1; 0 1 1; 1 1 0] The
rank of A is (a) 0 (b) 1 (c) 2 (d) 3 Question 6 (2016): Definite Integral The value
of ∫(0 to π/2) x sin x dx is: (a) 0. (b) -1. (c) 1/2.
Question 8 (2024): Determinant Calculation (d) 1
Let A be a 3 × 3 matrix having eigenvalues 2, 7,
5. What is the determinant of A + 2I? (A) 252 Question 7 (2016): Continuity and
(B) 70 (C) 420 (D) 84 Differentiability Let f : R → R be defined as
follows: f(x) = {ax + b if x ≥ 0, sin 2x if x < 0}
Question 9 (2024): Rank of Matrix Product For what values of a and b is f continuous but
Let x and y be two column vectors of length 3 not differentiable? (a) a = 2, b = 0. (b) a = 2, b =
such that ∑³ᵢ₌₁ xᵢyᵢ = 0. What is the rank of xy^T, 1. (c) a = 1, b = 1. (d) a = 1, b = 0.
where y^T is the transpose of y? (A) 0 (B) 1 (C)
2 (D) 3 Question 9 (2016): Local
Maximum/Minimum Let f : R² → R be defined
Question 10 (2024): Matrix Properties Let A by f(x, y) = 3xe^y - x³ - e^3y. Which of the
be a 3 × 3 matrix such that Ax = x for all x following statements is true? (a) (x = 1, y = 0) is
where x is a column vector of length 3. Which of a local maximum of f. (b) (x = 1, y = 0) is a local
the following statements is correct? (A) No such minimum of f. (c) (x = 1, y = 0) is neither a local
A exists (B) A = [1 1 1; 0 0 1; 0 1 0] (C) A = [1 maximum nor a local minimum of f. (d) (x = 0, y
1 1; 1 1 1; 1 1 1] (D) A exists but is different = 0) is a global maximum of f.
from the options given in parts (A) or (B) above
Question 15 (2016): Constrained
Question 11 (2024): Vector Space Properties Optimization The solution of the optimization
Let S = {(x₁, 0) : x₁ is any real number} and T = problem max(x,y) 3xy - y³ subject to 2x + 5y ≥
{(0, x₂) : x₂ is any real number}. Which of the 20 x - 2y = 5 x, y ≥ 0. is given by: (a) x = 19, y =
following statements is correct? (A) S, T and S 7. (b) x = 45, y = 20. (c) x = 15, y = 5. (d) None
∩ T are vector spaces (B) S, T and S ∪ T are of the above.
vector spaces (C) S, T and S ∩ T are vector
spaces (D) Neither S ∩ T nor S ∪ T are vector Question 16 (2016): Function Inverse Let f : R
spaces → R be a strictly increasing function. Let g be
the inverse of the function f. If f'(1) = g(1) = 1,
then g'(1) equals to (a) 0. (b) 1/2. (c) -1. (d) 1.
Calculus and Optimization

6
Question 19 (2016): Optimization with concave but not quasiconcave C. quasiconcave
Constraints Let X = {(x, y) ∈ R²: x + y ≤ 1, 2x but not concave D. none of the above.
+ y/2 ≤ 1, x ≥ 0, y ≥ 0}. Consider the
optimization problem of maximizing a function Question 4 (2017): Homogeneity of Function
f(x) = ax + by, where a, b are real numbers, The function f: R²₊ → R given by f(x, y) = xy is
subject to the constraint that (x, y) ∈ X. Which A. homogeneous of degree 0 B. homogeneous of
of the following is not an optimal value of f for degree 1 C. homogeneous of degree 2 D. not
any value of a and b? (a) x = 0, y = 1. (b) x = homothetic.
1/3, y = 2/3. (c) x = 1/4, y = 1/4. (d) x = 1/2, y =
0. Question 7 (2017): Constrained Maximization
Let 0 < p < 100. Any solution (x*, y*) of the
Question 20 (2016): Properties of Derivatives constrained maximization problem max(x,y) px
Let F : [0, 1] → R be a differentiable function + y subject to (-1/x) + y ≤ 10, x, y ≥ 0, must
such that its derivative F'(x) is increasing in x. satisfy A. y* = 10 B. x* = 10/p C. x* = 1/p D.
Which of the following is true for every x, y ∈ none of the above.
[0, 1] with x > y? (a) F(x) - F(y) = (x - y)F'(x).
(b) F(x) - F(y) ≥ (x - y)F'(x). (c) F(x) - F(y) ≤ (x Question 17 (2017): Convexity of Function
- y)F'(x). (d) F(x) - F(y) = F'(x) - F'(y). The function f: R → R given by f(x) = {x/|x|, if x
≠ 0; 1, if x = 0} is A. concave B. convex C.
Question 22 (2016): Derivative Calculation neither concave nor convex D. both concave and
Let t = x + √(x² + 2bx + c) where b² > c. Which convex
of the following statements is true? (a) dx/dt =
(t-x)/(t+b). (b) dx/dt = (t+2x)/(2t+b). (c) dx/dt = Question 23 (2017): Maximization with
1/(2x+b). (d) None of the above. Constraint Let a, b, c be real numbers. Consider
the function f(x₁, x₂) = min{a-x₁, b-x₂}. Let (x₁,
Question 25 (2016): Definite Integral The x₂) be the solution to the maximization problem
value of ∫(b to 2b) x/(x² + b²)dx, b > 0 is: (a) 1/b. max f(x₁, x₂) subject to x₁ + x₂ = c. Then x₁ - x₂
(b) ln 4b². (c) 1/2 ln(5/2). (d) None of the above. equals A. (c+a-b)/2 B. (c+b-a)/2 C. a-b D. b-a.

Question 26 (2016): Optimization with Question 26 (2017): Definite Integral For what
Constraints Let f and g be functions on R² values of x is x² - 3x - 2 < 10 - 2x A. 4 < x < 9
defined respectively by f(x, y) = 1/3 x³ - 3/2 y² + B. x < 0 C. -3 < x < 4 D. None of the above
2x, and g(x, y) = x - y. Consider the problems of
maximizing and minimizing f on the constraint Question 27 (2017): Integration Evaluation ∫(e
set C = {(x, y) ∈ R²: g(x, y) = 0}. (a) f has a to e²) 1/(x(log x)³) dx = A. 3/8 B. 5/8 C. 6/5 D.
maximum at (x = 1, y = 1), and a minimum at (x -4/5
= 2, y = 2). (b) f has a maximum at (x = 1, y =
Question 29 (2017): Properties of
1), but does not have a minimum. (c) f has a
Twice-Differentiable Function Let f: R² → R
minimum at (x = 2, y = 2), but does not have a
be a twice-differentiable function with non-zero
maximum. (d) f has neither a maximum nor a
second partial derivatives. Suppose that for
minimum.
every x ∈ R, there is a unique value of y, say
Question 3 (2017): Quasiconcavity of y*(x), that solves the problem max(y∈R) f(x,
Function The function f: R²₊ → R given by f(x, y). Then y* is increasing in x if A. f is strictly
y) = xy is A. quasiconcave and concave B.

7
concave B. f is strictly convex C. ∂²f/∂x∂y > 0 minimum at x = 1. (c) the point x = 1 is a point
D. ∂²f/∂x∂y < 0. of inflexion. (d) none of the above.

Question 17 (2018): Function Convexity The Question 3 (2019): Function's Maximum

function f: R → R given by f(x) = {x/|x|, if x ≠ Value If f(x) = ax² - bx⁴, where a, b > 0, then the
0; 1, if x = 0} is A. concave B. convex C. neither maximum value of f(x) is (a) a²/4b (b) a²/8b (c)
concave nor convex D. both concave and convex a²/16b (d) a/2b

Question 19 (2018): Multivariable Function Question 4 (2019): Maximum Value with

Extrema Let X be a discrete random variable Constraint The maximum value of the function
with probability mass function (PMF) f(x) such f(x, y) = xy subject to the constraint x² + y² = 20
that f(x) > 0 if x = 0, 1, ..., n, and f(x) = 0 is (a) 5 (b) 10 (c) 20 (d) 100
otherwise, where n is a finite integer. If Prob(X
≤ m) = f(m), then the value of m is: (a) 0 (b) 1 Question 8 (2019): Integration by Parts ∫x sin
(c) n-1 (d) none of the above. x cos x dx equals (a) sin²x/2 (b) -cos²x/2 (c)
sin²x/4 (d) cos²x/4
Question 21 (2018): Differentiable Function
Property Let f: [0, 10] → [10, 20] be a Question 12 (2019): Definite Integral ∫₀¹ x^x
continuous and twice differentiable function dx is (a) less than 1/2 (b) between 1/2 and 3/4 (c)
such that f(0) = 10 and f(10) = 20. Suppose |f'(x)| between 3/4 and 1 (d) greater than 1
≤ 1 for all x ∈ [0, 10]. Then, the value of f''(5)
is (a) 0 (b) 1/2 (c) 1 (d) cannot be determined Question 13 (2019): Partial Derivatives
from the given information. Consider a twice-differentiable function f: R² →
R. If we know that f₁₁ < 0, f₂₂ < 0, and f₁₂ = 0,
Question 22 (2018): System of Linear then at any critical point (x*, y*), the function
Equations Consider the system of linear f(x, y) has (a) a local maximum (b) a local
equations: x + 2ay + az = 0, x + 3by + bz = 0, x minimum (c) a saddle point (d) none of the
+ 4cy + cz = 0. Suppose that this system has a above
non-zero solution. Then a, b, c (a) are in
arithmetic progression. (b) are in geometric Question 16 (2019): Multivariable
progression. (c) are in harmonic progression. (d) Optimization Consider a function f: R² → R
satisfy 2a + 3b + 4c = 0. defined by f(x, y) = x³ - 3xy² + y³. Then (a) (0,
0) is a local maximum (b) (0, 0) is a local
Question 26 (2018): Function with Increasing minimum (c) (0, 0) is neither a local maximum
Derivative Suppose f: R → R is a differentiable nor a local minimum (d) (0, 0) is a saddle point
function with f'(x) > 0 for all x ∈ R and
satisfying the property lim(x→-∞) f(x) ≤ 0. Question 18 (2019): Constrained
Which of the following must be true? A. f(1) < 0 Optimization The maximum value of the
B. f(1) > 0 C. f(1) = 0 D. None of the above product xyz subject to x + y + z = 3 and x, y, z ≥
0 is (a) 1 (b) 4/3 (c) 2 (d) 27/4
Question 2 (2019): Critical Points of Function
Consider the function f(x) = 2ax log x - ax² Question 19 (2019): Function Bounds Let f: R
where a ≠ 0. Then (a) the function has a → R be a continuously differentiable function
maximum at x = 1. (b) the function has a such that f'(x) is strictly decreasing, f(0) = 0, and
f'(0) = 1. Then (a) f(1) > 1 (b) f(1) = 1 (c) f(1) <
1 (d) f(1) can be any real number

8
Question 21 (2019): Partial Derivatives If z = Question 4 (2020): Function Continuity
f(x, y) where f is a twice continuously Suppose that there are 30 MCQ type questions
differentiable function satisfying f₁(x, y) = y and where each question has four options: A, B, C,
f₂(x, y) = x for all (x, y), then f₁₂(x, y) equals (a) D. For each question, a student gets 4 marks for
0 (b) 1 (c) x (d) y a correct answer, 0 marks for a wrong answer,
and 1 mark for not attempting the question.
Question 22 (2019): Function Evaluation Let Suppose in each question, the probability that
f: R → R be a twice differentiable function such option A is correct is 0.5, option B is correct is
that f''(x) ≥ 0 for all x ∈ R. If f(0) = 1 and f(1) = 0.3, option C is correct is 0.2, and option D is
2, then f(2) is (a) ≤ 2 (b) ≥ 3 (c) ≤ 3 (d) ≥ 4 correct is 0. Two students Gupi and Bagha have
no clue about the right answers. Gupi answers
Question 23 (2019): Application of Taylor each question randomly, that is, ticks any of the
Series Let f: R → R be a four-times options with probability 0.25. Whereas Bagha
continuously differentiable function such that attempts each question with probability 0.5, but
f(0) = f'(0) = f''(0) = f'''(0) = 0 and f⁽⁴⁾(0) > 0. whenever he attempts a question, he randomly
Then for x > 0 and x close to 0, f(x) is (a) ticks an option. Which of the following is
positive and increasing (b) positive and correct? (a) Both Gupi and Bagha have expected
decreasing (c) negative and increasing (d) scores more than 30 (b) Gupi's expected score is
negative and decreasing greater than or equal to 30 and Bagha's expected
score is strictly less than 30 (c) Gupi's expected
Question 30 (2019): Probability Distribution
score is less than or equal to 30 and Bagha's
Function Consider the function f: [0, 1] → [0,
expected score is strictly more than 30 (d) None
1] such that f(x) = 1 - x. Then (a) f⁰(x) = x (b)
of the other options are correct
f²⁰²⁴(x) = x (c) f²⁰²³(x) = 1 - x (d) none of the
above Question 14 (2020): Integration Formula
Evaluate: ∫xⁿ ln xdx, where n > 1 (a) (ln
Question 1 (2020): Function Differentiability
x)xⁿ⁺¹/(n+1) - 1/(n+1)² xⁿ⁺¹ + c (b) (ln
Consider the functions f(x) = {x sin(1/x) if x ≠ 0,
x)xⁿ⁺¹/(n+1) - 1/2(n+1)² xⁿ⁺¹ + c (c) (ln
0 if x = 0} g(x) = {x² sin(1/x) if x ≠ 0, 0 if x = 0}
x)xⁿ⁺¹/(n+1) - 1/(n+1) xⁿ⁺¹ + c (d) None of the
Then (a) f is differentiable at zero but g is not
other options are correct
differentiable at zero (b) g is differentiable at
zero but f is not differentiable at zero (c) f and g Question 15 (2020): Area Bounded by Curves
are both differentiable at zero (d) Neither f nor g The area of the region bounded by the curve y =
is differentiable at zero ln(x), the Y-axis, and the lines y = 1 and y = -1
(a) is e/2 (b) is 2 (c) is e - 1/e (d) None of the
Question 3 (2020): Optimization Problem Let
other options are correct
ABC be a right angled isosceles triangle with
angle ∠ABC being right-angled. Let D be the Question 2 (2021): OLS Regression
mid-point of AB, E be the foot of the Properties Using data from a sample of size n,
perpendicular drawn from D to the side AC, and the intercept and slope coefficients from an
F be the foot of the perpendicular drawn from E ordinary least squares regression of y on x, are a
to the side BC. What is the value of FC/BC? (a) and b respectively. Which of the following is
1/√2 (b) 3/4 (c) 2 - √2 (d) None of the other false? (A) ∑ⁿᵢ₌₁(yᵢ - a - bxᵢ)xᵢ = 0 (B) 1/n ∑ⁿᵢ₌₁ xᵢ ·
options are correct ∑ⁿᵢ₌₁ yᵢ = a + b (C) a and b are the solution to

9
min(α,β) ∑ⁿᵢ₌₁(yᵢ - α - βxᵢ)² = 0 (D) a and b are a twice differentiable function satisfying f′′(x) >
the solution to min(α,β) ∑ⁿᵢ₌₁ |yᵢ - α - βxᵢ| = 0 0 for all x ∈ R. Furthermore, assume that f(1) =
1 and f(2) = 2. Then, (A) 0 < f′(2) < 1 (B) f′(2) >
Question 3 (2021): Production Function 1 (C) f′(2) = 1 (D) f′(2) = 0
Corner Solution Consider a production function
z = 2x + 3y. For what price ratio px/py will a Question 7 (2022): Limit Calculation The
corner solution in y, i.e. (x = 0) be possible, if value of lim(x→1) (log_e x - (e-x)/e) is (A) 0
the objective is to minimize the cost of (B) 1/e (C) 1 (D) None of these
producing a given positive quantity z₀ of z? (A)
px/py ≤ -2/3 (B) px/py ≥ 2/3 (C) px/py < 2/3 (D) Question 8 (2022): Function Properties Let f :
px/py = 2/3 [0, ∞) → R be a function such that f(0) = 0 and
f′′(x) > 0 for all x > 0. Then the function g : (0,
Question 7 (2021): Convex Function ∞) → R, defined by g(x) = f(x)/x, is (A)
Properties Let f : [0, 1] → R be a convex increasing in (0, ∞) (B) decreasing in (0, ∞) (C)
function with f(0) = 0. Which of the following is increasing in (0, 1] and decreasing in (1, ∞) (D)
always true for f? (A) f is differentiable (B) f decreasing in (0, 1] and increasing in (1, ∞)
may not be differentiable but it is continuous (C)
f(x) ≥ xf′(x) for all x ∈ [0, 1] if f is Question 20 (2023): Derivative Properties
differentiable (D) none of the above Suppose f : R → R is a differentiable function
such that f′(x) is strictly increasing in x (f′(x)
Question 8 (2021): Quasiconcavity Properties indicates the derivative of f(x) with respect to x).
If f : R → R is strictly quasi-concave, then it Suppose f(1/2) = 1/2 and f(1) = 1. Then which of
follows that (A) f is not strictly convex (B) f is the following is true? (a) f′(1/2) < 1 < f′(1) (b)
not linear (C) f is monotonic (D) if f is quadratic, f′(1/2) < f′(1) < 1 (c) 1 < f′(1/2) < f′(1) (d) None
then the coefficient of x² ≤ 0 of the above

Question 16 (2021): Function Derivative at Question 21 (2023): Integral Evaluation For

Endpoint Let A be a 3 × 3 matrix such that A any non-negative real number x, define f(x) to
and A² both have the same set of eigenvalues. be the largest integer not greater than x. For
Which of the following statements must be true? instance, f(1.2) = 1. Evaluate the following
(A) A is invertible (B) A is diagonalizable (C) A integral ∫(0 to √5) f(x²)dx (a) 5 (b) 4√5 - √3 - √2
is similar to a diagonal matrix (D) None of the (c) 4√5 - 3 (d) 4(√5 - 2)
above
Question 28 (2023): Function Continuity and
Question 4 (2022): Composite Function Differentiability Let f : R → R be the following
Properties Suppose f(x) is increasing, concave function f(x) = max(|x|, x²), ∀x ∈ R. Which of
and twice differentiable and g(x) is decreasing, the following is true? (a) f is not continuous (b) f
convex and twice differentiable. Then the is continuous but not differentiable (c) f is
function G(x) = g(f(x)) is (A) increasing and decreasing (d) f is increasing
convex (B) decreasing and convex (C)
increasing and concave (D) decreasing and Question 29 (2023): Set Properties with
concave Function Constraints Let f : R → R be the
following function f(x) = max(|x|, x²), ∀x ∈ R.
Question 6 (2022): Twice Differentiable Define D := {(x, y) ∈ R² : x ∈ R, y ≥ f(x)}.
Function Properties Suppose that f : R → R is Which of the following is true for D? (a) D is

10
not convex (b) R²₊\D is convex (c) R²\D is Suppose x₅ is increased. Then, (a) The mean,
convex (d) None of the above median, and variance, all increase. (b) The
median and the variance increase but the mean is
Question 4 (2024): Function Continuity Let a unchanged. (c) The variance increases but the
function f: R → R be defined as: f(x) = {cx² + ax mean and the median are unchanged. (d) None
+ b if x < 0 bx² + cx + a if 0 ≤ x < 2 ax² + bx + c of the above.
if x ≥ 2} where a, b, c are positive real numbers.
Which of the following statements is correct, Question 5 (2016): Probability with Cards
under the assumption that f is continuous? (A) f There are three cards. The first is green on both
is continuous for all values of a, b and c (B) f is sides, the second is red on both sides and the
continuous if and only if a - b = b - c (C) f is third is green on one side and red on the other. I
continuous if and only if a = b and c = 2a (D) f is choose a card with equal probability, then a side
continuous if and only if a = b = c of that card with equal probability. If the side I
choose of the card is green, what is the
Question 6 (2024): Function Differentiability probability that the other side is green? (a) 1/3.
Let f: R → R be the function f(x) = |x| + x², ∀x (b) 1/2. (c) 2/3. (d) 3/4.
∈ R Which of the following statements about f
is correct? (A) f is differentiable (B) f is concave Question 8 (2016): Regression Analysis A
but not differentiable (C) f is convex but not student wished to regress household food
differentiable (D) f is discontinuous consumption on household income. By mistake
the student regressed household income on
Question 7 (2024): Integration ∫x³e^(x²)dx household food consumption and found R² to be
equals (A) x(x-1)e^(x²)/2 (B) (x²-1)e^(x²)/2 (C) 0.35. The R² in the correct regression of
x(x+1)e^(x²)/2 (D) (x²+1)e^(x²)/2 household food consumption on household
income is (a) 0.65. (b) 0.35. c) 1 - (.35)². (d)
Question 24 (2024): Growth Rate Calculation None of the above.
Consider a Solow economy with the aggregate
production function in intensive form given by y Question 11 (2016): Probability Density
= k^(1/2), where k and y are the capital labour Function The continuous random variable X has
ratio and the per capita output respectively. probability density f(x) where f(x) = {a if 0 ≤ x
Suppose all factors are fully employed in this < k, b if k ≤ x ≤ 1, 0 otherwise} where a > b > 0
economy, there is no depreciation of capital, and and 0 < k < 1. Then E(X) is given by: (a)
the labour force grows at rate n > 0. If the steady b(1-a)²/(2a(a-b)). (b) 1/2. (c) (a-b)/(a+b). (d)
state value of capital labour ratio for this (1-2b+ab)/(2(a-b)).
economy is 50 and the current value of capital
labour ratio is 2, what is the current growth rate Question 14 (2016): Cumulative Distribution
of per capita output? (A) 24n (B) 25/n (C) 0.3 Function Suppose F is a cumulative distribution
(D) None of the previous options function of a random variable x distributed in [0,
1] defined as follows: F(x) = {ax + b if x ≥ a, x²
- x + 1 otherwise} where a ∈ (0, 1) and b is a
Probability and Statistics real number. Which of the following is true? (a)
F is continuous in (0, 1). (b) F is differentiable in
Question 3 (2016): Statistics of Data Set You
(0, 1). (c) F is not continuous at x = a. (d) None
are given five observations x₁, x₂, x₃, x₄, x₅ on a
of the above.
variable x, ordered from lowest to highest.

11
Question 21 (2016): Probability Without factor of 10, and the variance and CV by a factor
Replacement A bag contains N balls of which a of 100 D. none of the above.
(a < N) are red. Two balls are drawn from the
bag without replacement. Let p₁ denote the Question 6 (2017): Statistics with Unit
probability that the first ball is red and p₂ the Conversion You have n observations on rainfall
probability that the second ball is red. Which of in centimeters (cm) at two locations, denoted by
the following statements is true? (a) p₁ > p₂. (b) x and y respectively, and you calculate the
p₁ < p₂. (c) p₂ = (a-1)/(N-1). (d) p₂ = a/N. covariance, correlation coefficient r, and the
slope coefficient b of the regression of y on x.
Question 27 (2016): Competition Probability Now, if instead, you were given the same
A particular men's competition has an unlimited observations measured in millimeters (mm),
number of rounds. In each round, every then A. the covariance would increase by a
participant has to complete a task. The factor of 10, b by a factor of 100, and r would be
probability of a participant completing the task unchanged B. the covariance and b would
in a round is p. If a participant fails to complete increase by a factor of 100, and r would be
the task in a round, he is eliminated from the unchanged C. the covariance would increase by
competition. He participates in every round a factor of 100, and b and r would be unchanged
before being eliminated. The competition begins D. none of the above.
with three participants. The probability that all
three participants are eliminated in the same Question 10 (2017): Probability Relations If
round is: (a) (1-p)³/(1-p³). (b) 1/3 (1 - p). (c) 1/p³. Pr(A) = Pr(B) = p, then Pr(A ∩ B) must be A.
(d) None of the above. greater than p² B. equal to p² C. less than or
equal to p² D. none of the above.
Question 28 (2016): Probability of Seating
Arrangement Three married couples sit down Question 11 (2017): Probability Relations If
at a round table at which there are six chairs. All Pr(Aᶜ) = α and Pr(Bᶜ) = β, (where Aᶜ denotes the
of the possible seating arrangements of the six event 'not A'), then Pr(A ∩ B) must be A. 1 - αβ,
people are equally likely. The probability that B. (1 - α)(1 - β) C. greater than or equal to 1 - α -
each husband sits next to his wife is: (a) 2/15. β D. none of the above.
(b) 1/3. (c) 4/15. (d) None of the above.
Question 12 (2017): Normal Distribution
Question 5 (2017): Statistics with Unit Properties The density function of a normal
Conversion You have n observations on rainfall distribution with mean μ and standard deviation
in centimeters (cm) at a certain location, denoted σ has inflection points at A. μ B. μ - σ, μ + σ C.
by x, and you calculate the standard deviation, μ - 2σ, μ + 2σ D. nowhere.
variance, and coefficient of variation (CV).
Now, if instead, you were given the same Question 15 (2017): Probability in Queue Mr
observations measured in millimeters (mm), A is selling raffle tickets which cost 1 rupee per
then A. the standard deviation and CV would ticket. In the queue for tickets, there are n
increase by a factor of 10, and the variance by a people. One of them has only a 2-rupee coin
factor of 100 B. the standard deviation would while all the rest have 1-rupee coins. Each
increase by a factor of 10, the variance by a person in the queue wants to buy exactly one
factor of 100, and the CV would be unchanged ticket and each arrangement in the queue is
C. the standard deviation would increase by a equally likely to occur. Initially, Mr A has no
coins and enough tickets for everyone in the

12
queue. He stops selling tickets as soon as he is true for every n > 2? (a) Tₙ = n (b) Tₙ = 2Tₙ₋₁
unable to give the required change. The (c) Tₙ = Tₙ₋₁ + Tₙ₋₂ (d) Tₙ = ∑ⁿ⁻¹ ₌₁ T
probability that he can sell tickets to all people
in the queue is: A. (n-2)/n B. 1/n C. (n-1)/n. D. Question 28 (2018): Variance Calculation Let
(n-1)/(n+1). Y₁, Y₂, ..., Yₙ be the income of n individuals
with E(Yᵢ) = μ and Var(Yᵢ) = σ² for all i = 1, 2,
Question 16 (2017): Probability with Children ...n. These n individuals form m groups, each of
Out of 800 families with five children each, how size k. It is known that individuals within the
many families would you expect to have either 2 same group are correlated but two individuals in
or 3 boys? Assume equal probabilities for boys different groups are always independent.
and girls. A. 400 B. 450 C. 500 D. 550 Assume that when individuals are correlated, the
correlation coefficient is the same for all pairs.
Question 23 (2018): Markov Process Consider the random variable μ̂Y = 1/n ∑ⁿᵢ₌₁ Yᵢ.
Probability A monkey is sitting on 0 on the real The limiting variance of μ̂Y when m is large but
line in period 0. In every period t ∈ {0, 1, 2, . . k is finite is (a) 0 (b) 1/k (c) 1 (d) σ²/k
.}, it moves 1 to the right with probability p and
1 to the left with probability 1 - p, where p ∈ Question 29 (2018): Conditional Probability
[1/2, 1]. Let π denote the probability that the A person makes repeated attempts to destroy a
monkey will reach positive integer k in some target. Attempts are made independently of each
period t > 0. The value of π for any positive other. The probability of destroying the target in
integer k is A. p/k B. 1/p C. ((1-p)/p)^k D. p^k. any attempt is 0.8. Given that he fails to destroy
the target in the first five attempts, the
Question 24 (2018): Markov Process probability that the target is destroyed in the 8-th
Probability Refer to the previous question. attempt is (a) 0.032 (b) 0.064 (c) 0.128 (d) 0.160
Suppose p = 1/2 and π now denotes the
probability that the monkey will reach any Question 30 (2018): Probability Relations Let
integer k in some period t > 0. The value of π₀ is E and F be two events such that 0 < Prob(E) < 1
A. 0 B. 1/2^k C. 1/2 D. 1 and Prob(E|F) + Prob(E|Fᶜ) = 1. Then (a) E and
F are mutually exclusive. (b) Prob(Eᶜ|F) +
Question 25 (2018): Limit of Function Prob(Eᶜ|Fᶜ) = 1 (c) E and F are independent. (d)
Suppose f: R → R is a differentiable function Prob(E|F) + Prob(Eᶜ|Fᶜ) = 1
with f'(x) > 0 for all x ∈ R and satisfying the
property lim(x→-∞) f(x) ≤ 0. Which of the Question 2 (2019): Probability with Coins A
following must be true? A. f(1) < 0 B. f(1) > 0 player has a fair coin (with probability 1/2 of
C. f(1) = 0 D. None of the above heads and 1/2 of tails) and an unfair coin (with
probability 2/3 of heads and 1/3 of tails). The
Question 27 (2018): Probability with Stairs player chooses one of the two coins at random
Suppose that there are n stairs, where n is some and tosses it. Given that the toss results in a
positive integer. A person standing at the bottom head, the probability that the chosen coin was
wants to reach the top. The person can climb the unfair one is: (a) 1/2 (b) 3/5 (c) 4/7 (d) 2/3
either 1 stair or 2 stairs at a time. Let Tₙ be the
total number of ways in which the person can Question 3 (2019): Expected Value Let X be a
reach the top. For instance, T₁ = 1 and T₂ = 2. binomial random variable with parameters n =
Then, which one of the following statements is 100 and p = 0.5. Then the expected value of X²/n
is: (a) 12.5 (b) 25 (c) 50 (d) 100

13
Question 9 (2019): Probability Distributions Question 19 (2019): Probability with
Consider three different probability distributions Sampling A sample of size 3 is drawn randomly
on X = {1, 2, 3}: Distribution 1: p(1) = 0.2, p(2) without replacement from the set {1, 2, 3, 4, 5}.
= 0.3, p(3) = 0.5; Distribution 2: p(1) = 0.6, p(2) Let X be the median of the sample. Then P(X =
= 0.3, p(3) = 0.1; Distribution 3: p(1) = 0.4, p(2) 3) equals: (a) 3/10 (b) 2/5 (c) 1/2 (d) 3/5
= 0.3, p(3) = 0.3. Order these distributions
according to their entropy: (a) 1 > 3 > 2 (b) 2 > 3 Question 20 (2019): Probability with Multiple
> 1 (c) 3 > 1 > 2 (d) 3 > 2 > 1 Events If P(A) = 1/2, P(B) = 1/3, and P(A ∩ B)
= 1/4, then P(A ∪ B) equals: (a) 7/12 (b) 5/12
Question 14 (2019): Ball Selection Probability (c) 1/6 (d) 7/24
A bag contains n + 1 balls numbered 1, 2, ..., n +
1. Two balls are drawn at random without Question 21 (2019): Probability with Exams A
replacement. The probability that the sum of the student takes n multiple-choice tests, each with k
numbers on the two balls is even, is: (a) questions. Each question has 4 choices with
(n+1)/(2n+2) (b) (n+2)/(2n+2) (c) (n+1)/(2n) (d) exactly one correct answer. The student knows
(n+2)/(2n) the correct answer with probability p and
guesses randomly with probability 1-p. Let X be
Question 15 (2019): Raffle Ticket Probability the total number of correct answers. The
In a raffle with n tickets, each person can buy variance of X is: (a) nkp(1-p) (b) nkp(1-p) +
any number of tickets, and each ticket has the 3nk(1-p)/4 (c) nkp(1-p) + 3nk(1-p)²/4 (d) none
same chance of winning. Person A buys a tickets of the above
and person B buys b tickets, where a, b < n. The
probability that either A or B wins is: (a) (a+b)/n Question 22 (2019): Expected Value A biased
(b) 1 - (n-a-b)/n (c) 1 - (n-a-b-1)/(n-1) (d) 1 - coin that shows heads with probability p is
(n-a)(n-b)/n² tossed until a head appears. The expected
number of tosses is: (a) 1/p (b) 1/(1-p) (c)
Question 16 (2019): Family with Boys and p/(1-p) (d) (1-p)/p
Girls Out of 800 families with five children
each, how many families would you expect to Question 24 (2019): Random Selection A bag
have either 2 or 3 boys? Assume equal contains 5 red balls and 5 blue balls. Balls are
probabilities for boys and girls. (a) 400 (b) 450 drawn one by one without replacement. The
(c) 500 (d) 550 probability that the 5th ball drawn is red, given
that exactly 4 red balls are drawn in the first 9
Question 17 (2019): Conditional Probability draws, is: (a) 1/5 (b) 4/5 (c) 1/10 (d) 9/10
A drawer contains 10 red socks and 10 blue
socks. Two socks are drawn at random without Question 27 (2019): Binomial Probability The
replacement. Given that at least one of them is probability that a fair die shows an even number
red, the probability that both are red is: (a) 10/19 when rolled is 1/2. If the die is rolled 10 times,
(b) 9/19 (c) 10/20 (d) 9/18 the probability of getting exactly 5 even
numbers is: (a) 63/256 (b) 1/2 (c) 252/1024 (d)
Question 18 (2019): Random Variables A 1/32
random variable X has a probability density
function f(x) = λe^(-λx) for x > 0, and 0 Question 28 (2019): Joint Probability Let X
otherwise, where λ > 0. The expected value of X and Y be random variables with joint probability
is: (a) λ (b) 1/λ (c) λ² (d) 1/λ² density function f(x,y) = 2 for 0 ≤ x ≤ y ≤ 1, and

14
0 otherwise. Then P(X+Y ≤ 1) equals: (a) 1/3 (b) Question 10 (2020): Matrix Rank Probability
1/2 (c) 2/3 (d) 3/4 Suppose we are given a 4 × 4 square matrix A,
which satisfies Aij = 0 if i < j. Suppose the each
Question 29 (2019): Normal Distribution The diagonal entry Aii is drawn uniformly at random
random variable X follows a standard normal from {0, 1, . . . , 9}. What is the probability that
distribution. Then P(X² > 4) is approximately: A has full rank? (a) 1/10⁴ (b) 3/5 (c) 1 - 1/10⁴ (d)
(a) 0.01 (b) 0.025 (c) 0.05 (d) 0.10 (9/10)⁴

Question 30 (2019): Probability Distribution Question 13 (2020): Probability of Flush

Function Consider the function f: [0, 1] → [0, Suppose five cards are randomly drawn without
1] such that f(x) = 1 - x. Then (a) f⁰(x) = x (b) replacement from an ordinary deck of 52 playing
f²⁰²⁴(x) = x (c) f²⁰²³(x) = 1 - x (d) none of the cards, with four suits of 13 cards each, which
above has been well shuffled. Let a flush be the event
that all five cards are of the same suit. What is
Question 4 (2020): Probability of Correct the probability of getting a flush? (a)
Answers Suppose that there are 30 MCQ type (4C₁·13C₅)/52C₅ (b) (4C₂·13C₄)/52C₅ (c)
questions where each question has four options: (4P₁·13C₅)/52P₅ (d) (4C₁·12C₅)/52C₅
A, B, C, D. For each question, a student gets 4
marks for a correct answer, 0 marks for a wrong Question 11 (2021): Random Variable Bounds
answer, and 1 mark for not attempting the X is a random variable that can take values only
question. Suppose in each question, the in [0, 10]. P(X > 5) ≤ 2/5 and P(X < 1) ≤ 1/2.
probability that option A is correct is 0.5, option Then (A) E(X) ≥ 1 (B) E(X) ≤ 5 (C) E(X) ≥ 0.5
B is correct is 0.3, option C is correct is 0.2, and and E(X) ≤ 8.5 (D) None of the above is true
option D is correct is 0. Two students Gupi and
Bagha have no clue about the right answers. Question 12 (2021): Standard Deviation and
Gupi answers each question randomly, that is, Correlation Given data (-1, 1), (0, 0), (1, 1) on
ticks any of the options with probability 0.25. (x, y), the standard deviations of x and y and the
Whereas Bagha attempts each question with correlation coefficient of x and y are
probability 0.5, but whenever he attempts a respectively (A) σₓ = √2/√3, σᵧ = √2/3, r = 0 (B)
question, he randomly ticks an option. Which of σₓ = √2/3, σᵧ = √2/9, r = 0 (C) σₓ = 0, σᵧ = 0, r is
the following is correct? (a) Both Gupi and undefined (D) None of the above
Bagha have expected scores more than 30 (b)
Gupi's expected score is greater than or equal to Question 13 (2021): Vaccine Cost Expectation
30 and Bagha's expected score is strictly less with Uniform Distribution An island nation
than 30 (c) Gupi's expected score is less than or has two potential vaccine firms: denoted as 1
equal to 30 and Bagha's expected score is strictly and 2. Both need to invest in R&D to
more than 30 (d) None of the other options are manufacture vaccines. The cost of R&D for
correct firms 1 and 2 are f₁ and f₂ respectively. Once
R&D is done, the cost of per unit manufacturing
Question 9 (2020): Variance of Random of vaccine is drawn unformly from [0, 1]. The
Variable Suppose an unbiased coin is tossed 10 firms know their (fixed) cost of R&D but only
times. Let D be the random variable that denotes know that the cost of per unit manufacturing is
the number of heads minus the number of tails. uniformly drawn from [0, 1].
What is the variance of D? (a) 10 (b) 1 (c) 0 (d)
None of the other options are correct

15
Total demand of vaccine is 1 unit and if firm i ∈ probability that both are boys given that at least
{1, 2} supplies qᵢ ∈ [0, 1] units and has a per one is a boy? (A) 1/2 (B) 2/3 (C) 1/3 (D) 1/4
unit cost of cᵢ, it incurs a manufacturing cost of
cᵢqᵢ (along with fᵢ). Question 15 (2022): Random Selection
Probability Consider two boxes, one containing
Suppose both firms invest in R&D but only the one black ball and one white ball, the other
lowest per unit cost firm is chosen to supply the containing two white balls and one black ball. A
entire one unit of vaccine. What is the total box is selected at random, and a ball is selected
expected cost of vaccination (expected cost is at random from the selected box. What is the
the fixed cost of R&D and expected cost of probability that the ball is black? (A) 5/12 (B)
manufacturing)? 2/5 (C) 1/6 (D) 5/11

(A) f₁ + f₂ + 1/2 (B) f₁ + f₂ + 1/3 (C) f₁ + f₂ + 2/3 Question 23 (2022): Consumer Theory Which
(D) f₁ + f₂ + 3/4 of the following statements is correct in a
two-good world? (A) Diminishing marginal
Question 14 (2021): International Trade utility of both goods is sufficient for diminishing
Patterns India and China produce only shirts marginal rate of substitution (B) Diminishing
and phones using only 2 factors of production: marginal utility of both goods is necessary for
either higher skilled labour H or low skilled diminishing marginal rate of substitution (C)
labour L. Shirts are high skill labour intensive Diminishing marginal utility of at least one good
while phones are low skill labour intensive. The is necessary for diminishing marginal rate of
production function for each good is identical in substitution (D) Diminishing marginal utility of
both countries. India and China have equal at least one good is neither necessary nor
amounts of lower skilled labour, but India has a sufficient for diminishing marginal rate of
greater amount of higher skilled labour. Which substitution
good will India import?
Question 24 (2022): Consumer Welfare Rahul
(A) Shirts (B) Phones (C) Both Shirts and consumes two goods, X and Y, in amounts x and
Phones (D) Neither Shirts nor Phones y, respectively. Rahul's utility function is U(x, y)
= min{x, y}. Rahul makes Rs 200; the price of X
Question 18 (2021): Phillips Curve Slope If and price of Y are both Rs 2. Rahul's boss is
the short-run aggregate supply curve is steep, the thinking of sending him to another town where
Phillips curve will be: (A) flat (B) steep (C) the price of X is Rs 2 and the price of Y is Rs 3.
backward-bending (D) unrelated to the slope of The boss offers no raise in pay. Rahul, who
the short-run aggregate supply curve understands compensating and equivalent
variations perfectly, complains bitterly. He says
Question 1 (2022): Word Arrangement
that although he doesn't mind moving for its
Probability The number of ways in which the
own sake and the town is just as pleasant as the
word PANDEMIC can be arranged such that the
old, having to move is as bad as a cut in pay of
vowels appear together is (A) 6 × (3!)(5!) (B) 5
Rs A in his current location. He also says that he
× (3!)(5!) (C) 4 × (3!)(5!) (D) 1 × (3!)(5!)
would not mind moving if, when he moved, he
Question 14 (2022): Probability with Children got a raise of Rs B. What are A and B equal to?
A family has two children. What is the (A) A = 30, B = 70 (B) A = 40, B = 50 (C) A =
50, B = 75 (D) A = 60, B = 60

16
Question 27 (2022): Elasticity and Demand different fair coins (each coin either lands heads
Let eᵢ(p₀) be the price elasticity of demand for a or tails with equal probability and with each
good X of consumer i (i = 2,..., N) at price p₀, outcome independent of each other). Arjun wins
given its demand function. Consumers do not if strictly more of his coins lands on heads than
consume identical amounts of X at p₀. Then the Gukesh, and we call the probability of this event
price elasticity of demand at price p₀ for the p₁. Which of the following is correct? (a) p₁ =
aggregate demand function for X is (A) 1/3 (b) p₁ = 11/32 (c) p₁ = 3/8 (d) p₁ = 13/32
(∑ᵢ(eᵢ(p₀))²)/(∑ᵢ eᵢ(p₀)) (B) (∑ᵢ eᵢ(p₀))/N (C) ∑ᵢ
eᵢ(p₀) (D) None of these Question 26 (2023): Monkey Movement
Locations A monkey starts at the origin (0, 0)
Question 17 (2023): Probability with on R². The monkey covers a distance of 5 units
Conditional Selection Bowl A contains two red in any direction in one jump. If the monkey can
coins; Bowl B contains two white coins; and only go to integer coordinates on R², then the
Bowl C contains a white and a red coin. A bowl number of possible locations after its first jump
is selected uniformly at random and a coin is is equal to (a) 2 (b) 4 (c) 8 (d) 12
chosen from it uniformly at random. If the
chosen coin is white, what is the probability that Question 27 (2023): Probability with Random
the other coin in the bowl is red? (a) 1/3 (b) 1/4 Jump There is a strip made up of (n + 2)
(c) 1/2 (d) 1/6 squares, where n is a positive integer. The two
end squares are coloured black and other n
Question 18 (2023): Probability with Random squares are coloured white. A girl jumps to one
Numbers A girl chooses a number uniformly at of the n white squares uniformly at random and
random from {1, 2, 3, 4, 5, 6}. If she chooses n, chooses one of its two adjacent squares
then she chooses another number uniformly at uniformly at random. What is the probability
random from {1, ..., n}. What is the probability that the chosen square is white? (a) 1 - 2/(n+2)
that the second number is 5? (a) 11/180 (b) 2/45 (b) 1 - 1/n (c) 1 - 1/(n+1) (d) 1 - 1/n
(c) 1/3 (d) 1/18
Question 12 (2024): Chess Tournament
Question 19 (2023): Normal Distribution Games In a chess tournament, there are both
Problem The cumulative distribution function F boys and girls. Each player plays with another
of a standard normal distribution satisfies: F(1.4) player exactly once in the tournament. If there
= 0.92, F(0.14) = 0.555, F(-0.2) = 0.42, F(-1.6) = are 45 games in the tournament and exactly 15
0.055 A manufacturer does not know the mean of them feature only boys, then how many
and standard deviation of the diameters of ball games will feature a boy and a girl? (A) 6 (B) 15
bearings it produces. However, he knows that (C) 20 (D) 24
the diameters follow a normal distribution with
mean μ and standard deviation σ. It rejects 8% Question 13 (2024): Word Arrangement What
of bearings as too small if the diameter is less is the number of possible arrangements of the
than 1.8 cm and 5.5% bearings as too large if the letters of the word 'madam' such that the two 'a's
diameter is greater than 2.4 cm. Which of the never appear in consecutive positions? (A) 30
following is correct? (a) μ = 2 (b) μ = 2.33 (c) μ (B) 24 (C) 18 (D) 12
= 2.08 (d) μ = 2.4
Question 14 (2024): Monkey Jumps
Question 23 (2023): Probability with Coin Possibilities A monkey starts at (0, 0) on the
Tosses Arjun and Gukesh each toss three xy-plane in period 1. From any position (x, y) in

17
a period, the monkey can only jump to (a, b) in Question 18 (2016): Combinations and
the next period, where a ∈ {x + 1, x, x - 1} and Probability For any positive integers k, l with k
b ∈ {y + 1, y, y - 1}. How many possible ≥ l, let C(k, l) denote the number of ways in
positions can the monkey be in period 2? (A) 9 which l distinct objects can be chosen from k
(B) 6 (C) 4 (D) 3 objects. Consider n ≥ 3 distinct points on a circle
and join every pair of points by a line segment.
Question 15 (2024): Probability with Distance If we pick three of these line segments
Calculation In the previous question, suppose in uniformly at random, what is the probability that
every period the monkey can go to any of the we choose a triangle? (a) C(n,2)/C(C(n,2),3). (b)
possible positions in the next period with equal C(n,3)/C(C(n,2),3) (c) 2/(n-1). (d)
probability. Then what is the probability that the C(n,3)/C(C(n,2),2).
monkey is at a distance of more than 1 from (0,
0) in period 2? (A) 0 (B) 16/81 (C) 1/3 (D) 4/9 Question 24 (2016): Counting Integer
Solutions What is the number of non-negative
Question 16 (2024): Correlation Coefficient integer solutions of the equation x₁ + x₂ + x₃ =
For a given data set, let the least squares 10? (a) 66. (b) 55. (c) 100. (d) None of the
regression line be y = 10 + 2x. It is given that above.
variance of x is 9 and variance of y is 81. What
is the correlation coefficient between x and y? Question 9 (2017): Partitioning People k
(A) 1/3 (B) 1/2 (C) 2/3 (D) 3/4 people get off a plane and walk into a hall where
they are assigned to at most n queues. The
Question 17 (2024): Probability with Random number of ways in which this can be done is A.
Selection An urn contains 4 white, 6 red, and 5 C(n,k) B. P(n,k) C. nᵏk! D. n(n + 1)...(n + k - 1).
black balls. 5 balls are randomly selected from
the urn. Let X and Y denote respectively the Question 13 (2017): Arrangement with
number of white and black balls selected. Constraint In how many ways can five objects
Suppose Y = 2, i.e., 2 of the 5 balls selected are be placed in a row if two of them cannot be
black. What is the probability that X takes the placed next to each other? A. 36 B. 60 C. 72 D.
value 2? (A) 3/10 (B) 4/10 (C) 3/15 (D) 4/15 24.

Question 18 (2024): Conditional Probability Question 24 (2017): Book Packing

In answering a question on a multiple-choice test Combinations Suppose that you have 10
with 4 choices available as possible answers, a different books, two identical bags and a box.
student either knows the answer, with The bags can each contain three books and the
probability 1/4, or guesses the answer, with box can contain four books. The number of ways
probability 3/4. Assume that a student who in which you can pack all the books is A.
guesses the answer will be correct with 10!/(2!3!3!4!) B. 10!/(3!3!4!) C. 10!/(2!3!4!) D.
probability 1/4. What is the probability that a none of the above.
student knew the answer given that he answered
it correctly? (A) 3/7 (B) 4/7 (C) 3/4 (D) 1 Question 13 (2018): Arrangements in a Row
In how many ways can five objects be placed in
a row if two of them cannot be placed next to
Set Theory and each other? A. 36 B. 60 C. 72 D. 24.
Combinatorics

18
Question 11 (2019): Number of Subsets The decreases the amount of rice he consumes.
number of subsets of the set {1, 2, 3, ..., n} Mithali, on the other hand, increases both rice
having an even number of elements is: (a) and milk consumption. Both Virat and Mithali
2^(n-1) (b) 2^n - 1 (c) 2^(n-1) - 1 (d) 2^n - spend all their income on eating rice or drinking
2^(n-1) milk. For Virat's behaviour to be consistent with
standard, well-behaved indifference curves, his
Question 11 (2020): Function Properties Let a preferences over rice consumption imply that for
and b be two real numbers where b ≠ 0 and g : R him, rice must be a: (A) Inferior good (B) Giffen
→ R is a continuous function which satisfies good (C) Luxury good (D) Normal good
g(g(x)) = ag(x) + bx ∀ x ∈ R. Which of the
following must be true? (a) g is strictly Question 17 (2021): IS-LM Adjustment If the
increasing (b) g is strictly decreasing (c) short-run IS-LM equilibrium occurs at a level of
lim(x→∞) g(x) is finite (d) Either (a) or (b) income above the natural rate of output, in the
long run output will return to the natural rate via
Question 24 (2020): Consumption Function (A) an increase in the price level (B) a decrease
The consumption function is given by C = AY^β in the interest rate (C) an increase in the money
with β = 0.5 and A = 0.3. The marginal supply (D) a downward shift of the consumption
propensity to save is (a) equal to 0.5 (b) function
increasing in income, Y (c) equal to 0.3 (d)
equal to 0.7 Question 20 (2021): Balance of Payments
Suppose there are two countries, B and C, that
Question 1 (2021): Word Arrangement The have no trade and no financial transactions with
number of ways in which the word PANDEMIC any countries except each other. B imports a
can be arranged such that the vowels appear total of goods worth 10 million bollars from C,
together is (A) 6 × (3!)(5!) (B) 5 × (3!)(5!) (C) 4 where a bollar is a unit of B's currency. B has no
× (3!)(5!) (D) 1 × (3!)(5!) exports. Which of the following must be true?
(A) B has a capital account deficit (B) C has a
Question 6 (2021): Matrix Filling current account deficit (C) C is buying assets
Combinations We need to fill a 3 × 3 matrix by from B. (D) The exchange rate of collars per
either 0 or 1 such that each row has exactly one bollar is bigger than 1, where a collar is a unit of
0 and each column has exactly one 0. The C's currency.
number of ways we can do this is (A) 8 (B) 6
(C) 4 (D) 2 Question 21 (2021): Inventory Investment
Inventory investment can be expected to (A) rise
Question 15 (2021): Duopoly Pricing Consider when the real interest rate rises, other things
a duopoly with market demand p = 10-q. The being equal (B) not depend on the real interest
cost function of firm 1 is 7q₁, and that of firm 2 rate, other things being equal (C) fall when the
is 2q₂, where qᵢ is the quantity produced by firm real interest rate rises, other things being equal
i, i = 1, 2. In equilibrium, firm 2 charges a price (D) depend only on the change in real GDP
of: (A) 7 (B) 6 (C) 10 (D) 0
Question 22 (2021): Cake Division A cake of
Question 16 (2021): Consumer Theory Virat size 1 is to be divided among two individuals 1
and Mithali eat rice and drink milk in exactly the and 2. Let xᵢ be the share of the cake going to
same quantities. The price of rice falls. In individual i, i = 1, 2, where 0 ≤ xᵢ ≤ 1. The utility
response, Virat increases the amount of milk but functions are u₁(x₁, x₂) = x₁, and u₂(x₁, x₂) = x₂ +

19
|x₁ - x₂|, where |a| is the absolute value of a. The compared to the case if wages were flexible (D)
Pareto optimal cake divisions include: (A) (1, 0) None of the other options.
(B) (1/2, 1/2) (C) (3/4, 1/4) (D) None of the
above Question 1 (2022): Word Arrangement The
number of ways in which the word PANDEMIC
Question 23 (2021): Consumer Choice Rohit can be arranged such that the vowels appear
spends all his money on dosas and filter coffee. together is (A) 6 × (3!)(5!) (B) 5 × (3!)(5!) (C) 4
He stays in Delhi where each dosa and filter × (3!)(5!) (D) 1 × (3!)(5!)
coffee cost the same. He eats 15 dosas and
drinks 35 filter coffees in a week. He gets a Question 9 (2022): Number of Onto Functions
chance to move to either Chennai or Bangalore. Let f : A → B be a function where A = {1, 2, 3,
In Chennai, he can just afford to have 40 dosas 4, 5} and B = {1, 2}. How many onto functions
and 10 filter coffees in a week. Like in Delhi, can one generate? (A) 2⁵ - 1 (B) 2⁵ - 2 (C) 5² - 1
each dosa and filter coffee cost the same. In (D) 5² - 2
Bangalore, he can just afford to have 10 dosas
and 20 filter coffees in a week. Here, 2 filter Question 16 (2022): Function Properties The
coffees costs the same as 1 dosa. Where will function f : R → R, defined by f(x) = (x² + 1)²⁰²²,
Rohit prefer to stay? (A) Delhi (B) Chennai (C) is (A) one-one but not onto (B) onto but not
Bangalore (D) Indifferent between Delhi and one-one (C) both one-one and onto (D) neither
Chennai one-one nor onto

Question 24 (2021): IS-LM Curve with Fixed Question 17 (2022): Consumer Optimization
Interest Rate Consider the IS-LM model with Consider an economy with two goods X and Y.
the real interest rate, R, on the vertical axis and Let the utility function be given by u(x, y) =
output, Y, on the horizontal axis. Now suppose A√xy where A > 0, x ≥ 0 is the amount of good
that the central bank chooses R for the economy, X consumed and y ≥ 0 is the amount of good Y
based on its own assessment, at R = R̄. In this consumed. Suppose that the budget constraint is
case the LM curve will (A) not exist (B) will be given by Pₓx + Pᵧy ≤ M where M > 0 is the
horizontal at R = R̄ (C) upward sloping like the money income of the consumer and Pₓ and Pᵧ are
usual LM curve (D) None of the other options the prices of the goods X and Y, respectively.
Let Pₓ = Pᵧ > 1 and let (x*, y*) be the
Question 25 (2021): Labor Market with Wage equilibrium quantities of this consumer who
Rigidity Consider a supply-demand diagram for maximizes utility subject to the budget
the labor market with an upward sloping labor constraint. Then, (A) it must always be that x* >
supply curve (Ls) and a downward sloping labor y* (B) it must always be that x* = y* (C) it must
demand curve (Ld). Let the wage be on the always be that x* < y* (D) it must always be that
vertical axis, and the level of employment (L) be x* + y* = M
on the horizontal axis. Suppose the wage is rigid
above the equilibrium wage at w̄, i.e., it fails to Question 18 (2022): Consumer Optimization
adjust to clear the labor market. Then a with Corner Solution Consider the utility
reduction in labor demand leads to (A) A larger function u(x₁, x₂) = 3x₁ + 2x₂ of a consumer
reduction in employment compared to the case if defined for all x₁ ≥ 0 and x₂ ≥ 0. Let the price of
wages were flexible (B) A smaller reduction in good 1 be p₁ > 0 and that of good 2 be p₂ > 0.
employment compared to the case if wages were Let M > 0 be the money income of the
flexible (C) The same reduction in employment consumer. Consider the optimization problem

20
max(x₁≥0,x₂≥0) 3x₁ + 2x₂ subject to 2x₁ + 3x₂ ≤ Question 21 (2022): Cournot Equilibrium
M. The associated Lagrangian function for this Suppose that there are two firms 1 and 2 that
maximization problem is L(x₁, x₂; λ) = 3x₁ + 2x₂ produce the same good. Let the inverted demand
+ λ[M - 2x₁ - 3x₂]; where λ denotes the function be P(q₁, q₂) = 1 - q₁ - q₂, where firm 1
non-negative Lagrangian multiplier. Then the produces q₁ ≥ 0 and firm 2 produces q₂ ≥ 0.
equilibrium solution (x₁*, x₂*, λ*) to this Suppose that the cost function of firm i ∈ {1, 2}
Lagrangian function maximization problem is is given by cᵢ(qᵢ) = κᵢqᵢ, where κᵢ ∈ {0, 1/2}.
(A) (x₁* = M/2, x₂* = 0, λ* = 3/2) (B) (x₁* = Note that there is no fixed cost for either firm.
M/2, x₂* = 0, λ* = 2/3) (C) (x₁* = 0, x₂* = M/3, Then, the Cournot equilibrium profit of firm 2 is
λ* = 2/3) (D) (x₁* = 0, x₂* = M/3, λ* = 3/2) (A) (1-κ₁+κ₂)²/9 (B) (1-κ₂+κ₁)²/9 (C)
(1-2κ₁+κ₂)²/9 (D) (1-2κ₂+κ₁)²/9
Question 19 (2022): Revealed Preference
Consider a two good economy where the two Question 22 (2022): Utility Representation A
goods are X and Y and consider two consumers non-transitive preference relation can be
A and B. In a month when the price of good X represented by a utility function (A) Always (B)
was Rs. 2 and that of good Y was Rs. 3, Only if preferences are complete (C) Only if
consumer A consumed 3 units of good X and 8 preferences are complete and convex (D) Never
units of good Y and consumer B consumed 6
units of both goods. In the next month, when the Question 25 (2022): Consumer Optimization
price of good X was Rs. 3 and that of good Y Let U(x, y) = -[(10-x)² + (10-y)²] be a utility
was Rs. 2, consumer A consumed 8 units of function of some consumer. All prices are equal
good X and 3 units of good Y and consumer B to 1, and income is 40. Then the optimal values
consumed 4 units of good X and 9 units of good of x and y will be (A) 10, 10 (B) 0, 0 (C) 5, 5
Y. Given this information which one of the (D) None of these
following statements is correct? (A) Both
consumers satisfy the weak axiom of revealed Question 26 (2022): Production Function
preference (B) Neither consumer satisfies the Consider a production function be F(K, L) =
weak axiom of revealed preference (C) min{K/a, L/b}; a, b > 0 and a = b. For any given
Consumer A satisfies the weak axiom of K = K̄ > 0, the marginal productivity of labor is
revealed preference but not consumer B (D) (A) 1/a if L < (b/a)K̄ and 0 otherwise (B) 0 (C)
Consumer B satisfies the weak axiom of 1/b if L < (b/a)K̄ and 0 if L > (b/a)K̄ (D) None of
revealed preference but not consumer A the above

Question 20 (2022): Production Function Let Question 28 (2022): Competitive Firm

the production function be Y(L, K) = min{2L, Equilibrium There are m identical competitive
K}, where L and K are the amounts of labor and firms in an industry. Every firm has the (total)
capital, respectively. Consider the cost function cost function C(q) = q² + 1, where q is the level
C(L, K) = wL + rK, where w > 0 denotes the of its output, q ≥ 0. Industry demand for the
price of labor and r > 0 denotes the price of product is given by D(P) = a - bP, where P is
capital. Suppose that (L*, K*) is the price, and a, b > 0. Then the short-run
combination of labor and capital at which cost is equilibrium output of each firm is (A) 0 (B)
minimized subject to the constraint Y(L, K) ≥ Ȳ. a/(m+2b) (C) a/(m+b/2) (D) a/(2m+b)
Then, (A) L* = Ȳ and K* = Ȳ/2 (B) L* = Ȳ and
Question 29 (2022): Monopoly Price Elasticity
K* = Ȳ (C) L* = Ȳ/2 and K* = Ȳ (D) None of
Suppose the (total) cost function for a
the other options is correct

21
monopolist is C = 3q² + 800, where q is its other at 3/4 (d) set up two hospitals – one at 1/3,
output. The inverse market demand function is p the other at 2/3
= 280 - 4q. What is the price elasticity of
demand at the profit maximizing price? (A) -4.5 Question 8 (2023): Inverse Demand Function
(B) -3.5 (C) -2.5 (D) -1.5 There is a unit mass of consumers who buy
either one unit of a product or nothing.
Question 30 (2022): Solow Growth Model Consumer valuation, θ, is distributed according
Consider the Solow growth model with constant to the distribution function F(θ) defined over [θ,
average saving propensity s, rate of depreciation θ̄], that is, for any θ ∈ [θ, θ̄], the proportion of
δ, and labor supply growth rate n. There is no consumers with valuation less than or equal to θ
technological progress. Then, at steady state, the is given by F(θ). Suppose that the inverse
capital-output ratio is (A) s/(n+δ) (B) n/(δ+n) demand function for the product is p(q), where p
(C) δ/(s+n) (D) 1/(s+n+δ) is market price and q is aggregate demand. Then
the slope of the inverse demand function is (a)
Question 6 (2023): Bertrand Equilibrium p′(q) = -1/F′(p(q)) (b) p′(q) = -F′(p(q)) (c) p′(q) =
Consider a market demand function p = 100 - q, -1/F′(q) (d) p′(q) = -F′(q)
where p is market price and q is aggregate
demand. There are two firms, firm 1 and firm 2, Question 22 (2024): Solow Economy - Capital
with identical cost functions cᵢ(qᵢ) = (0, if qᵢ ≤ Labor Ratio There is a Solow economy without
10; ∞, otherwise) for i = 1, 2. The firms population growth or technological change
simultaneously announce their prices, p₁ and p₂. which has a production function given by Y =
The demand coming to firm i is: Dᵢ(p₁, p₂) = K^(1/3)L^(2/3), and a depreciation rate δ = 0.05.
(100 - pᵢ, if pᵢ < p_j; (100 - pᵢ)/2, if pᵢ = p_j; 0, Suppose the savings rate is s = 0.2. What will be
otherwise) The Bertrand-Nash equilibrium is (a) the capital-labour ratio in steady state? (A) 6 (B)
(p₁ = 0, p₂ = 0) (b) (p₁ = 80, p₂ = 80) (c) (p₁ = 20, 8 (C) 2 (D) 4
p₂ = 20) (d) (p₁ = 90, p₂ = 90)
Question 23 (2024): Solow Economy -
Question 7 (2023): Hospital Location 500 Optimal Savings Suppose that a social planner
consumers (of health services) are distributed wishes to maximize steady state per-capita
uniformly over the interval [0, 1]. The consumption in this economy. What savings rate
government can set up two hospitals anywhere will be compatible with the level of per-capita
in the interval. The hospitals provide health consumption chosen by the planner? (A) 2/3 (B)
services free of cost, but the consumers have to 1/2 (C) 1/3 (D) 1/4
incur the expenses of travelling to the hospital.
The travel cost of a consumer who travels a
distance d is d. The fixed cost of setting up a
hospital is 300, and the marginal cost of
servicing an individual is 2. The worth of the
health services to an individual is 4. The
government can, of course, decide to set up no
hospital. The optimal hospital location decision
of a welfare maximizing government is: (a) set
up no hospital (b) set up two hospitals – both at
1/2 (c) set up two hospitals – one at 1/4, the

22
 tractors while Li sells low quality ones. Hu
Economics (PEA) would be willing to sell his high quality tractor
at $8000 while Lu would sell his low quality one
Questions by Topic for $5000. Consumers are willing to pay up to
$10,000 for a high quality tractor and $7000 for
a low quality one. They expect a 50% chance of
Microeconomics buying a high quality second-hand tractor. In
order to signal the quality of their tractors Hu
Question 16 (2020): Price Discrimination A and Li can offer warranties. The cost of warranty
price discriminating monopolist finds that a for a high quality tractor is 500Y and 1000Y for
person's demand for its product depends on the a low quality one (Y is the number of years of
person's age. The inverse demand function of warranty). What is the optimal number of years
someone of age y, can be written p = A(y)-q of warranty that Hu should offer so that
where A(y) is an increasing function of y. The consumers know his tractors are of good
product cannot be resold from one buyer to quality? (a) Less than 2 years (b) 0.5 years (c)
another and the monopolist knows the ages of its More than 1.5 years (d) 3 years
consumers. (This is often the case with online
subscriptions.) If the monopolist maximizes its Question 19 (2020): Labor Capacity and
profits, then (a) older people will pay higher Hiring Suppose the capacity curve for each
prices and purchase more of this product laborer is described as follows: for all payments
compared to younger people (b) everyone pays up to $100, capacity is zero and then begins to
the same price but older people consume more rise by 2 units for each additional $ paid. This
(c) older people will pay higher prices compared happens until the payment rises to $500.
to the younger people but everyone will Thereafter, an additional $ payment increases
consume the same quantity of the product (d) work capacity by only 1.1 units, until total
None of the other options are correct income paid is $1000. At this point additional
payments have no effect on work capacity.
Question 17 (2020): Rural-Urban Migration Assume all income is spent on nutrition.
Pam's family consists of herself and her 3 sisters. Suppose you are an employer faced by the above
They own a small farm in the agricultural sector capacity curve of your workers. You need 8000
in Agri-land. The value of their total output is units of work or capacity units. How many
$4000 which is divided equally amongst the workers would you hire and how much would
four. The urban sector has two kinds of jobs: you pay each worker so that you get 8000 units
informal sector (which anyone can get) pays of work at minimum cost? (a) 5 workers; $1000
$500 and formal sector jobs give $1200. Pam per worker (b) 10 workers; $700 per worker (c)
would like to maximize her own total income 10 workers; $500 per worker (d) 15 workers;
and calculates her own expected returns to $400 per worker
migration. The proportion of formal sector jobs
to urban labor force that would deter her from Question 20 (2020): Money Illusion Suppose
migrating is: (a) Less than 2/3 (b) More than 5/6 you were to believe that "money illusion" exists,
(c) More than 1/2 (d) Less than 5/7 that is as prices and income rise proportionally,
then people buy more. Which of the following
Question 18 (2020): Quality Signaling Hu and statements about demand should not be true? (a)
Li are two dealers of used tractors in a rural area Demand functions are downward sloping (b)
of China. Hu sells high quality second hand Demand functions are homogenous of degree

23
zero (c) Demand has a positive vertical intercept (a) p = 3, q = 5/3. (b) p = 3.01, q = 5/3.01 (c) p =
(d) Demand functions are homogenous of degree 2.99, q = 5/2.99 (d) p = 4.99, q = 5/4.99
one
Question 27 (2020): Insurance and Prevention
Question 21 (2020): Bertrand Competition Mr. X has an exogenous income W and his
Consider a Bertrand price competition model utility from consumption c is u(c). Mr. X knows
between two profit maximizing widget that an accident can occur with probability p and
producers, say A and B. The marginal cost of if it occurs, the monetary equivalent to the
producing a widget is 4 for each producer. Each damage is T. Mr. X can however affect the
widget producer has a capacity constraint to accident probability p through the prevention
produce only 5 widgets. There are 8 identical effort e. In particular, e can take two values -
individuals who demand 1 widget only, and zero and a and an assumption is that p(0) > p(a),
value each widget at 6. If the firms are that is by putting prevention effort, probability
maximizing profits, then the following statement of occurring an accident can be reduced. Let us
is true: (a) Firm A and B will charge 4 (b) Firm also assume that if Mr. X puts an effort e, the
A and B will charge 6 (c) Firm A and B will disutility from the effort is Ae² where A is the
charge greater than or equal to 5 (d) None of the per unit effort cost. What is the critical value of
other options are correct A, A*, below which the effort will be
undertaken, and above which the effort will not
Question 22 (2020): Agricultural Price Policy be undertaken, by Mr. X? (a) A* =
The government estimates the market demand [p(a)-p(0)][u(W -T)-u(W)]/a² (b) A* =
(QD) and market supply (QS) for turnips to be [p(a)-p(0)]a²/[u(W -T)-u(W)] (c) A* =
the following: QD = 30 - 2P, QS = 4; where P is (p(a)/p(0))·(u(W -T)/u(W))·a² (d) A* =
the per unit price and Q is the quantity measured p(a)p(0)a²/u(W -T)u(W)
in kilograms. The government aims to increase
the market price of turnips to $8 per unit to Question 5 (2018): Wage and Unemployment
improve the welfare of domestic producers of Suppose, in an economy, the demand function
turnips. Is is considering three possible choices: for labor is given by: Ld = 100 - 5w, whereas the
(i) a per unit subsidy; (ii) a price floor and supply function for labor is given by: Ls = 5w,
purchase of any surplus production, and (iii) a where w denotes the real wage rate. Total labor
production quota. Which of these policies should endowment in this economy is 80 units. Suppose
the government adopt if it wants to maximize further that the real wage rate is flexible. Then
the producers' welfare but minimize the loss of involuntary unemployment in this economy is:
efficiency? (a) A production quota (b) A price (a) 30. (b) 50. (c) 70. (d) 0.
subsidy (c) Either a price subsidy or a price floor
(d) Either a production quota or a price floor Question 6 (2018): Minimum Wage and
Unemployment Consider again the economy
Question 23 (2020): Monopoly with specified in Question 5. Suppose now that the
Competitive Fringe A monopolist faces a real wage rate is mandated by the government to
demand curve: q = 5/p. Her cost function is: be at least 11. Then total unemployment will be:
C(q) = 3q. Suppose, in the same market, there (a) 35. (b) 0. (c) 30. (d) 10.
are some competitive suppliers ready to sell the
good at the price p = 5. The monopolist's profit Question 12 (2018): Price Discrimination
maximizing price and output could be given by Consider a firm which initially operates only in
market A as a monopolist and faces market

24
demand Q = 20 - p. Given its cost function C(Q) assume that the firm pays male workers more
= 1 - 4Q², it charges a monopoly price Pm in this than female workers. Suppose further that p > 2.
market. Now suppose that, in addition to selling Then the firm must: (a) hire more male workers
as a monopolist in market A, the firm starts than female workers. (b) hire more female
selling its products in a competitive market, B, workers than male workers. (c) hire identical
at price p̄ = 6. Under this situation the firm numbers of male and female workers. (d) hire
charges Pm in market A. Then: (a) Pm > Pm. (b) more females than males if 2 ≤ p ≤ 4, but more
Pm < Pm. (c) Pm = Pm. (d) given the available males than females if p > 4.
information we cannot say whether Pm > Pm or
Pm < Pm. Question 1 (2023): Substitution Effect A
consumer's budgetary allocation for two
Question 13 (2018): Competitive Equilibrium commodities x and y is given by m. Her demand
Two consumers, A and B, have utility functions for commodity x is given by: x(px, py, m) =
UA = min{xA, yA} and UB = xB + 1/5yB, 2m/5px. Suppose that her budget allocation (m)
respectively. Their endowments vectors are eA = and the price of commodity y (py) remains the
(100, 100) and eB = (50, 0). Consider a same at (m = Rs. 1000, py = Rs. 20) while the
competitive equilibrium price vector (PX, PY). price of commodity x (px) falls from Rs. 5 to Rs.
Then, (a) (1/5, 2/5) is the unique equilibrium 4. The substitution effect of this price change is
price vector. (b) (1/5, 2/5) is one of the many given by (a) an increase in demand for x from 80
possible equilibrium price vectors. (c) (1/5, 2/5) to 100 (b) an increase in demand for x from 90
is never an equilibrium price vector. (d) an to 100 (c) an increase in demand for x from 80
equilibrium price vector does not exist. to 92 (d) an increase in demand for x from 80 to
90
Question 14 (2018): Labor Market
Monopsony Suppose a firm is a monopsonist in Question 2 (2023): Revealed Preference You
the labor market and faces separate labor supply are given the following partial information about
functions for male and female workers. The the purchases of a consumer who consumes only
labor supply function for male workers is given two goods: Good 1 and Good 2. Year 1: Good 1
by lM = (wM)k; where lM is the amount of male - Quantity 100, Price 100; Good 2 - Quantity
labor available when the wage offered to male 100, Price 100 Year 2: Good 1 - Quantity 120,
workers is wM; and k is a positive constant. Price 100; Good 2 - Quantity x, Price 80
Analogously, the labor supply function for Suppose that the amount of Good 2 consumed in
female workers is given by lF = wF. Male and year 2 is denoted by x. Think about the range of
female workers are perfect substitutes for one x over which you would conclude that the
another. The firm produces one unit of output consumer's consumption bundle in year 1 is
from each unit of labor it employs, and sells its revealed preferred to that in year 2. Also think
output in a competitive market at a price of p per about the range of x over which you would
unit. The firm can pay male and female workers conclude that the consumer's consumption
differently if it chooses to. Suppose the firm bundle in year 2 is revealed preferred to that in
decides to pay male workers more than female year 1. Which of the following ranges of x
workers. Then it must be the case that: (a) k < ensures that the consumer's behaviour is
1/2. (b) a < k < 1. (c) k = 1. (d) k > 1. inconsistent (that is, it contradicts the weak
axiom of revealed preference)? (a) x ≤ 75 (b) x ≥
Question 15 (2018): Gender Wage Gap 70 (c) 70 < x < 75 (d) 75 < x < 80
Consider the problem in Question 14, and

25
Question 3 (2023): Cournot Equilibrium t = 0. The net will yield an output of f fish at t =
Consider a market demand function p = 100 - q, 1 and nothing at t = 2. A eats only fish and his
where p is market price and q is aggregate only source of fish is the pond. A can consume
demand. There are 23 firms, each with cost in periods t = 1 and t = 2, after which he ceases
function, cᵢ(qᵢ) = q²ᵢ/2, i ∈ 1, 2, ..., 23. The to exist. A has the option of costlessly storing
Cournot-Nash equilibrium (a) involves each firm fish at t = 1 for consumption at t = 2, without
producing 3 units (b) involves each firm depreciation, and does not discount the future.
producing 4 units (c) involves each firm His utility from consumption cₜ in any period t
producing 5 units (d) is not well defined is u(cₜ) = (cₜ)ⁿ, where 0 < n < 1. How much
fish will A optimally consume in the two
Question 4 (2023): Deadweight Loss Consider periods? (A) Any division of f fish across the
a market demand function p = 100 - q, where p two periods is optimal (B) c₁ = c₂ = f/2 (C) c₁ =
is market price and q is aggregate demand. f, c₂ = 0 (D) c₁ = 0, c₂ = f
There are 10 firms, each with cost function,
cᵢ(qᵢ) = qᵢ, i ∈ 1, 2, ..., 10. The firms compete in Question 29 (2024): Agricultural Policy
quantities. The total deadweight loss is (a) 92/2 Reform Country C, which has a closed
(b) 992/2 (c) 102/2 (d) 1002/2 economy, has 10,000 identical farmers
producing rice, with any farmer bearing cost
Question 5 (2023): Competitive Equilibrium 0.5q²ᵢ + 4qᵢ + 100 if he produces qᵢ units of rice.
Consider a market demand function p = 100 - q, C has many consumers of rice who generate an
where p is market price and q is aggregate aggregate demand function Q = -10,000p +
demand. There is a large number of firms with 400,000, where p is the price per unit of rice.
identical cost functions cᵢ(qᵢ) = (10 + 2qᵢ, if qᵢ > The price of rice in C used to be determined by
0; 0, otherwise) (a) The competitive equilibrium competitive market conditions, but is currently
price is 2 (b) The competitive equilibrium price regulated, and set at p = 30. Consumers pay this
is 10 (c) The competitive equilibrium price is 2.1 amount to buy a unit of rice, with the
(d) The competitive equilibrium price is not well government of C buying all unsold units at 30
defined per unit. The government proposes to remove
the price regulation and go back to competitive
Question 27 (2024): Consumer Theory with markets, with each farmer getting an equal flat
Giffen Good A consumer consumes two goods, payment, total payment across all farmers being
X and Y. It is observed that the consumer's equal to the savings of the government from not
consumption of good X always falls when the having to purchase unsold rice. In order to
price of X falls, ceteris paribus. Suppose the implement this proposal, each farmer has to
consumer's income rises, given prices of X and open a bank account at own cost. By how much
Y. What will happen to the consumer's does a farmer gain or lose from the policy shift,
consumption of X? (A) Consumption of X falls if it costs 300 to open an account? (A) Policy
(B) Consumption of X rises (C) Consumption of shift causes income to rise by 8 (B) Policy shift
X remains unchanged (D) Indeterminate: causes income to rise by 4 (C) Policy shift
consumption of X could rise, fall or remain causes income to fall by 4 (D) Policy shift
unchanged causes income to fall by 8
Question 28 (2024): Intertemporal Question 30 (2024): Consumer Preferences A
Consumption An individual A has a pond in consumer consumes three goods, X, Y and Z.
which he can set up a net costlessly only at time She is observed over three periods. In period 1,

26
the unit prices of X, Y and Z are respectively 2, of the latter. Aggregate planned investment is an
3 and 3, in period 2, the respective prices are 3, increasing function of GDP (Y). Start with an
2 and 3, while in period 3, the respective prices initial equilibrium situation. Now, suppose the
are 3, 3 and 2. The following consumption government imposes and collects additional
pattern is observed: in period 1, she consumes 3 taxes from Group 1 and uses the tax revenue so
units of X, 1 units of Y and 7 units of Z, in generated to make transfer payments to Group 2.
period 2, the consumption amounts are 7 units of Following this: (a) aggregate saving in the
X, 3 units of Y and 1 unit of Z, while in period economy remains unchanged. (b) aggregate
3, the consumption amounts are 1 unit of X, 7 saving in the economy declines. (c) aggregate
units of Y and 3 units of Z. Which of the saving in the economy rises. (d) aggregate
following statements regarding the preferences saving in the economy may change either way.
of the consumer over bundles of X, Y and Z is
correct? (A) Preferences are intransitive though Question 4 (2018): IS Curve Slope Suppose, in
not necessarily incomplete (B) Preferences are an economy, the level of consumption is fixed,
transitive though not necessarily complete (C) while the level of investment varies inversely
Preferences are incomplete and intransitive (D) with the rate of interest. Then the IS curve is: (a)
Preferences are complete and transitive positively sloped. (b) negatively sloped. (c)
vertical. (d) horizontal.

Macroeconomics Question 7 (2018): Price Level Changes

Consider a macro-economy defined by the
Question 1 (2018): IS Curve Slope Suppose following equations: M = kPy + L(r); S(r) = I(r);
that the level of savings varies positively with y = ȳ; where M, P, y and r represent,
the level of income and that savings is respectively, money supply, the price level,
identically equal to investment. Then the IS output and the interest rate, while k and ȳ are
curve: (a) slopes positively. (b) slopes positive constants. Furthermore, S(r) is the
negatively. (c) is vertical. (d) does not exist. savings function, I(r) is the investment demand
function and L(r) is the speculative demand for
Question 2 (2018): Solow Growth Model money function, with S'(r) > 0, I'(r) < 0 and L'(r)
Consider the Solow growth model without < 0. Then, an increase in M must: (a) increase P
technological progress. Suppose that the rate of proportionately. (b) reduce P. (c) increase P more
growth of the labor force is 2%. Then, in the than proportionately. (d) increase P less than
steady-state equilibrium: (a) per capita income proportionately.
grows at the rate of 2%. (b) per capita
consumption grows at the rate of 2%. (c) wage Question 9 (2018): Public Good Contribution
per unit of labor grows at the rate of 2%. (d) Consider two consumers. They consume one
total income grows at the rate of 2%. private good (X) and a public good (G).
Consumption of the public good depends on the
Question 3 (2018): Government Taxation sum of their simultaneously and
Consider a Simple Keynesian Model for a closed non-cooperatively chosen contributions towards
economy with government. Suppose there does the public good out of their incomes. Thus, if g₁
not exist any public sector enterprise in the and g₂ are their contributions, then the
economy. Income earners are divided into two consumption of the public good is g = g₁ + g₂.
groups, Group 1 and Group 2, such that the Let the utility function of consumer i (i = 1, 2)
saving propensity of the former is less than that be Uᵢ(xᵢ, g) = xᵢg. The price of the private good

27
is p > 0 and the income of each consumer is M > Here A, B, and C are finite and positive
0. Then the consumers' equilibrium constants. Assume that the entire labor
contributions towards the public good will be: endowment is supplied. If A > B, then in a
(a) (M/3, M/3). (b) (M/4, M/4). (c) (M/2p, labour market equilibrium (a) L = C (b) L = 0 (c)
M/2p). (d) (M/p, M/p). a < L < C (d) None of the other options are
correct
Question 10 (2018): Oligopoly and Costs
Consider two firms, 1 and 2, producing a Question 26 (2020): Mundell-Fleming Model
homogeneous product and competing in Cournot Consider the Mundell-Flemming model with
fashion. Both firms produce at constant marginal perfect capital mobility and a flexible exchange
cost, but firm 1 has a lower marginal cost than rate in the short run. A monetary expansion
firm 2. Specifically, firm 1 requires one unit of leads to a/an _____ in output; a fiscal expansion
labour and one unit of raw material to produce leads to _____ in output. (a) decrease; no change
one unit of output, while firm 2 requires two (b) increase; decrease (c) increase; no change (d)
units of labour and one unit of raw material to increase; increase
produce one unit of output. There is no fixed
cost. The prices of labour and material are given Question 28 (2020): Labor Supply in Macro
and the market demand for the product is Models Labor supply in macro models results
determined according to the function q = A - bp, from individual decision making. Let c denote
where q is the quantity demanded at price p and an individual's consumption and L denote labor
A, b > 0. Now, suppose the price of labour goes supply. Assume that individuals solve the
up, but that of raw material remains the same. following optimization problem Max(c,L) U(c,
Then, the equilibrium profit of firm 1 will: (a) L) = log c - 1/2L² subject to c + S̄ = wL where
increase. (b) decrease. (c) remain unchanged. (d) U(·) is the utility function, b > 0 is a constant, S̄
go up or down depending on the parameters. is a constant exogenous level of savings, and w
is the real wage the person can earn in the labor
Question 11 (2018): Oligopoly and Costs market. Derive the optimal labor supply. It is (a)
Considered again the problem in Question 10. increasing in w; increasing in c (b) decreasing in
As before, suppose that the price of labour goes w; decreasing in c (c) increasing in w;
up, but that of raw material remains the same. decreasing in c (d) decreasing in w; increasing in
Then, the equilibrium profit of firm 2 will: (a) c
increase. (b) decrease. (c) remain unchanged. (d)
go up or down depending on the parameters. Question 29 (2020): Solow Growth Model
Shock Consider a Solow economy that begins in
Question 24 (2020): Consumption Function steady state. Then a strong earthquake destroys
The consumption function is given by C = AY^β half the capital stock. The steady state level of
with β = 0.5 and A = 0.3. The marginal capital _____, the level of output _____ on
propensity to save is (a) equal to 0.5 (b) impact, and the growth rate of the economy
increasing in income, Y (c) equal to 0.3 (d) _____ as the economy approaches its steady
equal to 0.7 state. (a) decreases; decreases; decreases (b)
remains the same; decreases; decreases (c)
Question 25 (2020): Labor Market remains the same; decreases; increases (d)
Equilibrium The production function is given decreases; remains the same, decreases
by Y = AL. The wage rigidity constraint is given
by W ≥ B. The labour endowment is given by C.

28
Question 30 (2020): IS-LM Multiplier but the share of total income distributed to the
Suppose the economy is characterized by the workers increases. Then, in the new equilibrium,
following equations C = c₀ + c₁YD YD = Y - T I (a) aggregate savings increases and income
= b₀ + b₁Y where C = Consumption, c₀ = decreases (b) aggregate savings decreases and
Autonomous Consumption, c₁ ∈ [0, 1], YD = income increases (c) aggregate savings remains
Disposable Income, Y = Aggregate GDP, T = unchanged and income decreases (d) aggregate
Taxes, I = Investment, b₀ = Autonomous savings increases and income remains
Investment, and b₁ ∈ [0, 1]. For the multiplier unchanged
to be positive, what condition needs to be
satisfied? (a) b₁ + c₁ = 0 (b) b₁ + c₁ = 1 (c) b₁ + c₁ Question 11 (2023): Labor Demand Consider
< 1 (d) b₁ + c₁ > 1 an economy where the aggregate output in the
short run is given by Y = K^α L^(1-α), 0 < α <
Question 30 (2022): Solow Growth Model 1, where L is the aggregate labour employment
Consider the Solow growth model with constant and K is the aggregate capital stock (which is
average saving propensity s, rate of depreciation fixed in the short run). Let P and W denote the
δ, and labor supply growth rate n. There is no aggregate price level and the nominal wage rate,
technological progress. Then, at steady state, the respectively. The producers in the economy
capital-output ratio is (A) s/(n+δ) (B) n/(δ+n) maximize profit in a perfectly competitive
(C) δ/(s+n) (D) 1/(s+n+δ) market.

Question 9 (2023): Macroeconomic Savings In this economy the demand for labour as a
Consider an economy where output (income) is function of real wage rate (W/P) is given by (a)
demand determined. In this economy λ Ld = Y·K^(-α)·(1-α)^(1/(1-α))·(W/P)^(-1/(1-α))
proportion (0 < λ < 1) of the total income is (b) Ld = K·(1-α)^(1/α)·(W/P)^(-1/α) (c) Ld =
distributed to the workers, and (1 - λ) proportion K·(1-α)^(1/α)·(W/P)^(-1/α) (d) Ld =
to the capitalists. The capitalists save sc fraction K·(1-α)^(-1/α)·(W/P)^(-1/α)
(0 < sc < 1) of their income and consume the
rest; the workers save sw fraction (0 < sw < 1) Question 12 (2023): Labor Supply The above
of their income and consume the rest; also sw > economy is characterized by a representative
sc. The aggregate demand consists of total household which takes the aggregate price level
consumption demand and total investment and the nominal wage rate as given and decides
demand. Investment demand is autonomously on its consumption and labour supply by
given at I units. maximizing its utility subject to its budget
constraint. The household has a total endowment
Suppose savings propensities of both the of L̄ units of labour time, of which it supplies Ls
workers and capitalists increase. Then, in the units to the market and enjoys the rest as leisure.
new equilibrium, (a) aggregate savings increases Its utility depends on its consumption (C) and
and income decreases (b) aggregate savings leisure (L̄-Ls) in the following way: u = C^β +
decreases and income increases (c) aggregate (L̄-Ls)^β, 0 < β < 1. The only source of income
savings remains unchanged and income of the household is the wage income and it
decreases (d) aggregate savings increases and spends its entire wage earning in buying
income remains unchanged consumption goods at the price P.

Question 10 (2023): Income Distribution In this economy the supply of labour as a

Suppose savings propensities remain the same function of real wage rate (W/P) is given by (a)

29
Ls = L̄/(1+(W/P)^(β/(1-β))) (b) Ls = is the error term. The Solow growth model
L̄/(1+(W/P)^(-β/(1-β))) (c) Ls = predicts that the expected sign of the regression
L̄·[1-(W/P)^(β/(1-β))] (d) Ls = coefficient β₀ is (a) positive (b) negative (c) zero
L̄-[(W/P)^(β/(1-β))] (d) inconclusive

Question 13 (2023): Aggregate Supply Curve Question 21 (2024): Growth Models Consider
Given the labour demand and labour supply an economy where all factors of production are
functions as derived above, the aggregate supply fully employed and which has an aggregate
curve (output (Y) supplied as a function of the production function (in per capita form) y = Ak,
aggregate price level (P), with Y on x-axis and P where k and y are the capital-labour ratio and the
on y-axis) of this economy is (a) upward sloping output-labour ratio respectively, and A is a
(b) downward sloping (c) horizontal (d) vertical positive constant. A constant proportion s ∈ (0,
1) of income is saved and invested in this
Question 14 (2023): Aggregate Demand economy. Suppose labour force grows at the rate
Curve Consider an economy with aggregate n > 0 and the rate of depreciation of capital is
income Y and aggregate price level P. The goods given by δ ∈ (0, 1). Assume the parameter
market clearing condition is given by the values are such that positive long run growth of
savings-investment equality: S(Y, r) = I(r), y can be ensured. Then which of the following
where r is real interest rate and 0 < SY < 1, Sr > statements regarding this model economy is
0, Ir < 0. The money market clearing condition incorrect? (A) Output, capital and consumption
is given by the equality of real money supply grows at the same rate (B) If the level of
(M/P) and demand for real balances (L): M/P = investment (I) is higher than the depreciation of
L(Y, r), where M is the supply of money and LY capital (K) (i.e. I > δK), then output grows at a
> 0, Lr < 0. [For any function f(x, y), fx denotes positive rate (C) The economy is always on the
the partial derivative of f with respect to x.] steady state growth path (i.e., if you consider
any variable you will find its growth rate to be a
The slope of the aggregate demand curve constant at all times (D) Increasing the savings
(aggregate output (Y) demanded as a function of rate s will not have any effect on the long run
the aggregate price level (P), with Y on x-axis growth rate of output per worker
and P on y-axis) of this economy is (a)
-M/(P²·SY·Lr - (Sr - Ir)·LY) (b) -1/(P·SY·Lr - Question 22 (2024): Solow Economy - Capital
(Sr - Ir)·LY) (c) -(Sr - Ir)/(P²·(Sr - Ir) - SY·Lr) Labor Ratio There is a Solow economy without
(d) -(Sr - Ir)/(P·(Sr - Ir) - SY·Lr) population growth or technological change
which has a production function given by Y =
Question 15 (2023): Solow Growth Model To K^(1/3)L^(2/3), and a depreciation rate δ = 0.05.
test the prediction of the Solow growth model, Suppose the savings rate is s = 0.2. What will be
you run the following linear regression for all the capital-labour ratio in steady state? (A) 6 (B)
the countries in the world: gi = α + β₀ log yi,0 + 8 (C) 2 (D) 4
β₁ log ni + β₂ log si + γXi + εi, where gi is the
growth rate in per capita real GDP of country i Question 23 (2024): Solow Economy -
over a certain period, yi,0 is per capita real GDP Optimal Savings Suppose that a social planner
of country i at the beginning of the period under wishes to maximize steady state per-capita
consideration, ni is population growth rate of consumption in this economy. What savings rate
country i, si is savings rate of country i, Xi will be compatible with the level of per-capita
stands for a set of other control variables and εi

30
consumption chosen by the planner? (A) 2/3 (B) Question 26 (2024): International Trade -
1/2 (C) 1/3 (D) 1/4 Expenditure Patterns Suppose preferences are
such that 2/3rd of the expenditure of residents of
Question 24 (2024): Solow Economy - Growth any country is on their own good, and the rest is
Rate Consider a Solow economy with the on the other good (i.e. 2/3rd of the expenditure
aggregate production function in intensive form of residents of A is on wheat and the rest is on
given by y = k^(1/2), where k and y are the television, while 2/3rd of the expenditure of
capital labour ratio and the per capita output residents of B is on television and the rest is on
respectively. Suppose all factors are fully wheat). What is the impact on equilibrium price
employed in this economy, there is no (i.e., the price at which all markets clear) p of A
depreciation of capital, and the labour force reducing its expenditure from 100 to 70? (A) p
grows at rate n > 0. If the steady state value of will stay the same (B) p will increase (C) p will
capital labour ratio for this economy is 50 and decrease (D) The effect on p will be ambiguous
the current value of capital labour ratio is 2,
what is the current growth rate of per capita
output? (A) 24n (B) 25/n (C) 0.3 (D) None of Game Theory and Strategic
the previous options Behavior
Question 25 (2024): International Trade -
Question 8 (2018): Social Welfare Function
Price Effects There are two countries, A and B,
Two individuals, X and Y, have to share Rs. 100.
and two goods, wheat and television. A produces
The shares of X and Y are denoted by x and y
only wheat, with YA = 200, and B produces only
respectively, x, y ≥ 0; x + y = 100. Their utility
television, with YB = 250. Residents of both
functions are UX(x, y) = x + 1/4y and UY(x, y)
countries consume both wheat and television.
= y + 1/2x. The social welfare function is
Treating television as the numeraire, and
W(UX, UY) = min{UX, UY}. Then the social
therefore fixing its price at 1, let the relative
welfare maximizing allocation is: (a) (44, 56).
price of wheat be p. Let A's total expenditure
(b) (48, 52). (c) (50, 50). (d) (60, 40).
measured in terms of wheat be denoted by EA,
and let B's total expenditure measured in terms Question 9 (2018): Public Good Contribution
of television be denoted by EB. Now, total world Consider two consumers. They consume one
income must equal total world expenditure, i.e., private good (X) and a public good (G).
pYA + YB = pEA + EB, so it follows that the Consumption of the public good depends on the
trade balance of A, measured in wheat, is given sum of their simultaneously and
by TA = YA - EA. Suppose initially EA is 100, non-cooperatively chosen contributions towards
and in an attempt to improve trade balance, A the public good out of their incomes. Thus, if g1
reduces expenditure EA to 70. and g2 are their contributions, then the
consumption of the public good is g = g1 + g2.
Suppose preferences are such that 1/3rd of the
Let the utility function of consumer i (i = 1, 2)
expenditure of residents of any country is on
be Ui(xi, g) = xig. The price of the private good
wheat and the rest is on television. What is the
is p > 0 and the income of each consumer is M >
impact on equilibrium price (i.e., the price at
0. Then the consumers' equilibrium
which all markets clear) p of A reducing its
contributions towards the public good will be:
expenditure from 100 to 70? (A) p will stay the
(a) (M/3, M/3). (b) (M/4, M/4). (c) (M/2p,
same (B) p will increase (C) p will decrease (D)
M/2p). (d) (M/p, M/p).
The effect on p will be ambiguous

31
Question 10 (2018): Oligopoly and Costs tractors while Li sells low quality ones. Hu
Consider two firms, 1 and 2, producing a would be willing to sell his high quality tractor
homogeneous product and competing in Cournot at $8000 while Lu would sell his low quality one
fashion. Both firms produce at constant marginal for $5000. Consumers are willing to pay up to
cost, but firm 1 has a lower marginal cost than $10,000 for a high quality tractor and $7000 for
firm 2. Specifically, firm 1 requires one unit of a low quality one. They expect a 50% chance of
labour and one unit of raw material to produce buying a high quality second-hand tractor. In
one unit of output, while firm 2 requires two order to signal the quality of their tractors Hu
units of labour and one unit of raw material to and Li can offer warranties. The cost of warranty
produce one unit of output. There is no fixed for a high quality tractor is 500Y and 1000Y for
cost. The prices of labour and material are given a low quality one (Y is the number of years of
and the market demand for the product is warranty). What is the optimal number of years
determined according to the function q = A - bp, of warranty that Hu should offer so that
where q is the quantity demanded at price p and consumers know his tractors are of good
A, b > 0. Now, suppose the price of labour goes quality? (a) Less than 2 years (b) 0.5 years (c)
up, but that of raw material remains the same. More than 1.5 years (d) 3 years
Then, the equilibrium profit of firm 1 will: (a)
increase. (b) decrease. (c) remain unchanged. (d) Question 19 (2020): Labor Capacity and
go up or down depending on the parameters. Hiring Suppose the capacity curve for each
laborer is described as follows: for all payments
Question 11 (2018): Oligopoly and Costs up to $100, capacity is zero and then begins to
Considered again the problem in Question 10. rise by 2 units for each additional $ paid. This
As before, suppose that the price of labour goes happens until the payment rises to $500.
up, but that of raw material remains the same. Thereafter, an additional $ payment increases
Then, the equilibrium profit of firm 2 will: (a) work capacity by only 1.1 units, until total
increase. (b) decrease. (c) remain unchanged. (d) income paid is $1000. At this point additional
go up or down depending on the parameters. payments have no effect on work capacity.
Assume all income is spent on nutrition.
Question 12 (2018): Price Discrimination Suppose you are an employer faced by the above
Consider a firm which initially operates only in capacity curve of your workers. You need 8000
market A as a monopolist and faces market units of work or capacity units. How many
demand Q = 20 - p. Given its cost function C(Q) workers would you hire and how much would
= 1 - 4Q², it charges a monopoly price Pm in this you pay each worker so that you get 8000 units
market. Now suppose that, in addition to selling of work at minimum cost? (a) 5 workers; $1000
as a monopolist in market A, the firm starts per worker (b) 10 workers; $700 per worker (c)
selling its products in a competitive market, B, 10 workers; $500 per worker (d) 15 workers;
at price p̄ = 6. Under this situation the firm $400 per worker
charges Pm in market A. Then: (a) Pm > Pm. (b)
Pm < Pm. (c) Pm = Pm. (d) given the available Question 20 (2020): Money Illusion Suppose
information we cannot say whether Pm > Pm or you were to believe that "money illusion" exists,
Pm < Pm. that is as prices and income rise proportionally,
then people buy more. Which of the following
Question 18 (2020): Quality Signaling Hu and statements about demand should not be true? (a)
Li are two dealers of used tractors in a rural area Demand functions are downward sloping (b)
of China. Hu sells high quality second hand Demand functions are homogenous of degree

32
zero (c) Demand has a positive vertical intercept know that the cost of per unit manufacturing is
(d) Demand functions are homogenous of degree uniformly drawn from [0, 1].
one
Total demand of vaccine is 1 unit and if firm i ∈
Question 21 (2020): Bertrand Competition {1, 2} supplies qᵢ ∈ [0, 1] units and has a per
Consider a Bertrand price competition model unit cost of cᵢ, it incurs a manufacturing cost of
between two profit maximizing widget cᵢqᵢ (along with fᵢ).
producers, say A and B. The marginal cost of
producing a widget is 4 for each producer. Each Suppose both firms invest in R&D but only the
widget producer has a capacity constraint to lowest per unit cost firm is chosen to supply the
produce only 5 widgets. There are 8 identical entire one unit of vaccine. What is the total
individuals who demand 1 widget only, and expected cost of vaccination (expected cost is
value each widget at 6. If the firms are the fixed cost of R&D and expected cost of
maximizing profits, then the following statement manufacturing)?
is true: (a) Firm A and B will charge 4 (b) Firm
A and B will charge 6 (c) Firm A and B will (A) f₁ + f₂ + 1/2 (B) f₁ + f₂ + 1/3 (C) f₁ + f₂ + 2/3
charge greater than or equal to 5 (d) None of the (D) f₁ + f₂ + 3/4
other options are correct
Question 14 (2021): International Trade
Question 22 (2020): Agricultural Price Policy Patterns India and China produce only shirts
The government estimates the market demand and phones using only 2 factors of production:
(QD) and market supply (QS) for turnips to be either higher skilled labour H or low skilled
the following: QD = 30 - 2P, QS = 4; where P is labour L. Shirts are high skill labour intensive
the per unit price and Q is the quantity measured while phones are low skill labour intensive. The
in kilograms. The government aims to increase production function for each good is identical in
the market price of turnips to $8 per unit to both countries. India and China have equal
improve the welfare of domestic producers of amounts of lower skilled labour, but India has a
turnips. Is is considering three possible choices: greater amount of higher skilled labour. Which
(i) a per unit subsidy; (ii) a price floor and good will India import?
purchase of any surplus production, and (iii) a
(A) Shirts (B) Phones (C) Both Shirts and
production quota. Which of these policies should
Phones (D) Neither Shirts nor Phones
the government adopt if it wants to maximize
the producers' welfare but minimize the loss of Question 15 (2021): Duopoly Pricing Consider
efficiency? (a) A production quota (b) A price a duopoly with market demand p = 10-q. The
subsidy (c) Either a price subsidy or a price floor cost function of firm 1 is 7q₁, and that of firm 2
(d) Either a production quota or a price floor is 2q₂, where qᵢ is the quantity produced by firm
i, i = 1, 2. In equilibrium, firm 2 charges a price
Question 13 (2021): Vaccine Development An
of:
island nation has two potential vaccine firms:
denoted as 1 and 2. Both need to invest in R&D (A) 7 (B) 6 (C) 10 (D) 0
to manufacture vaccines. The cost of R&D for
firms 1 and 2 are f₁ and f₂ respectively. Once Question 16 (2021): Consumer Theory Virat
R&D is done, the cost of per unit manufacturing and Mithali eat rice and drink milk in exactly the
of vaccine is drawn unformly from [0, 1]. The same quantities. The price of rice falls. In
firms know their (fixed) cost of R&D but only response, Virat increases the amount of milk but

33
decreases the amount of rice he consumes. Question 20 (2022): Production Function Let
Mithali, on the other hand, increases both rice the production function be Y(L, K) = min{2L,
and milk consumption. Both Virat and Mithali K}, where L and K are the amounts of labor and
spend all their income on eating rice or drinking capital, respectively. Consider the cost function
milk. For Virat's behaviour to be consistent with C(L, K) = wL + rK, where w > 0 denotes the
standard, well-behaved indifference curves, his price of labor and r > 0 denotes the price of
preferences over rice consumption imply that for capital. Suppose that (L*, K*) is the
him, rice must be a: combination of labor and capital at which cost is
minimized subject to the constraint Y(L, K) ≥ Ȳ.
(A) Inferior good (B) Giffen good (C) Luxury Then,
good (D) Normal good
(A) L* = Ȳ and K* = Ȳ/2 (B) L* = Ȳ and K* =
Question 17 (2021): IS-LM Adjustment If the Ȳ (C) L* = Ȳ/2 and K* = Ȳ (D) None of the
short-run IS-LM equilibrium occurs at a level of other options is correct
income above the natural rate of output, in the
long run output will return to the natural rate via Question 21 (2022): Cournot Equilibrium
Suppose that there are two firms 1 and 2 that
(A) an increase in the price level (B) a decrease produce the same good. Let the inverted demand
in the interest rate (C) an increase in the money function be P(q₁, q₂) = 1 - q₁ - q₂, where firm 1
supply (D) a downward shift of the consumption produces q₁ ≥ 0 and firm 2 produces q₂ ≥ 0.
function Suppose that the cost function of firm i ∈ {1, 2}
is given by cᵢ(qᵢ) = κᵢqᵢ, where κᵢ ∈ {0, 1/2}.
Question 19 (2022): Revealed Preference Note that there is no fixed cost for either firm.
Consider a two good economy where the two Then, the Cournot equilibrium profit of firm 2 is
goods are X and Y and consider two consumers
A and B. In a month when the price of good X (A) (1-κ₁+κ₂)²/9 (B) (1-κ₂+κ₁)²/9 (C)
was Rs. 2 and that of good Y was Rs. 3, (1-2κ₁+κ₂)²/9 (D) (1-2κ₂+κ₁)²/9
consumer A consumed 3 units of good X and 8
units of good Y and consumer B consumed 6 Question 22 (2022): Utility Representation A
units of both goods. In the next month, when the non-transitive preference relation can be
price of good X was Rs. 3 and that of good Y represented by a utility function
was Rs. 2, consumer A consumed 8 units of
good X and 3 units of good Y and consumer B (A) Always (B) Only if preferences are complete
consumed 4 units of good X and 9 units of good (C) Only if preferences are complete and convex
Y. Given this information which one of the (D) Never
following statements is correct?
Question 3 (2023): Cournot Equilibrium
(A) Both consumers satisfy the weak axiom of Consider a market demand function p = 100 - q,
revealed preference (B) Neither consumer where p is market price and q is aggregate
satisfies the weak axiom of revealed preference demand. There are 23 firms, each with cost
(C) Consumer A satisfies the weak axiom of function, cᵢ(qᵢ) = q²ᵢ/2, i ∈ 1, 2, ..., 23. The
revealed preference but not consumer B (D) Cournot-Nash equilibrium (a) involves each firm
Consumer B satisfies the weak axiom of producing 3 units (b) involves each firm
revealed preference but not consumer A producing 4 units (c) involves each firm
producing 5 units (d) is not well defined

34
Question 4 (2023): Deadweight Loss Consider Question 14 (2021): International Trade
a market demand function p = 100 - q, where p Patterns India and China produce only shirts
is market price and q is aggregate demand. and phones using only 2 factors of production:
There are 10 firms, each with cost function, either higher skilled labour H or low skilled
cᵢ(qᵢ) = qᵢ, i ∈ 1, 2, ..., 10. The firms compete in labour L. Shirts are high skill labour intensive
quantities. The total deadweight loss is (a) 92/2 while phones are low skill labour intensive. The
(b) 992/2 (c) 102/2 (d) 1002/2 production function for each good is identical in
both countries. India and China have equal
Question 6 (2023): Bertrand Equilibrium amounts of lower skilled labour, but India has a
Consider a market demand function p = 100 - q, greater amount of higher skilled labour. Which
where p is market price and q is aggregate good will India import? (A) Shirts (B) Phones
demand. There are two firms, firm 1 and firm 2, (C) Both Shirts and Phones (D) Neither Shirts
with identical cost functions cᵢ(qᵢ) = (0, if qᵢ ≤ nor Phones
10; ∞, otherwise) for i = 1, 2. The firms
simultaneously announce their prices, p₁ and p₂. Question 20 (2021): Balance of Payments
The demand coming to firm i is: Dᵢ(p₁, p₂) = Suppose there are two countries, B and C, that
(100 - pᵢ, if pᵢ < p_j; (100 - pᵢ)/2, if pᵢ = p_j; 0, have no trade and no financial transactions with
otherwise) The Bertrand-Nash equilibrium is (a) any countries except each other. B imports a
(p₁ = 0, p₂ = 0) (b) (p₁ = 80, p₂ = 80) (c) (p₁ = 20, total of goods worth 10 million bollars from C,
p₂ = 20) (d) (p₁ = 90, p₂ = 90) where a bollar is a unit of B's currency. B has no
exports. Which of the following must be true?
Question 7 (2023): Hospital Location 500 (A) B has a capital account deficit (B) C has a
consumers (of health services) are distributed current account deficit (C) C is buying assets
uniformly over the interval [0, 1]. The from B. (D) The exchange rate of collars per
government can set up two hospitals anywhere bollar is bigger than 1, where a collar is a unit of
in the interval. The hospitals provide health C's currency.
services free of cost, but the consumers have to
incur the expenses of travelling to the hospital. Question 25 (2024): International Trade -
The travel cost of a consumer who travels a Price Effects There are two countries, A and B,
distance d is d. The fixed cost of setting up a and two goods, wheat and television. A produces
hospital is 300, and the marginal cost of only wheat, with YA = 200, and B produces only
servicing an individual is 2. The worth of the television, with YB = 250. Residents of both
health services to an individual is 4. The countries consume both wheat and television.
government can, of course, decide to set up no Treating television as the numeraire, and
hospital. The optimal hospital location decision therefore fixing its price at 1, let the relative
of a welfare maximizing government is: (a) set price of wheat be p. Let A's total expenditure
up no hospital (b) set up two hospitals – both at measured in terms of wheat be denoted by EA,
1/2 (c) set up two hospitals – one at 1/4, the and let B's total expenditure measured in terms
other at 3/4 (d) set up two hospitals – one at 1/3, of television be denoted by EB. Now, total world
the other at 2/3 income must equal total world expenditure, i.e.,
pYA + YB = pEA + EB, so it follows that the
trade balance of A, measured in wheat, is given
International Trade by TA = YA - EA. Suppose initially EA is 100,
and in an attempt to improve trade balance, A
reduces expenditure EA to 70.

35
Suppose preferences are such that 1/3rd of the
expenditure of residents of any country is on
wheat and the rest is on television. What is the
impact on equilibrium price (i.e., the price at
which all markets clear) p of A reducing its
expenditure from 100 to 70? (A) p will stay the
same (B) p will increase (C) p will decrease (D)
The effect on p will be ambiguous

Question 26 (2024): International Trade -

Expenditure Patterns Suppose preferences are
such that 2/3rd of the expenditure of residents of
any country is on their own good, and the rest is
on the other good (i.e. 2/3rd of the expenditure
of residents of A is on wheat and the rest is on
television, while 2/3rd of the expenditure of
residents of B is on television and the rest is on
wheat). What is the impact on equilibrium price
(i.e., the price at which all markets clear) p of A
reducing its expenditure from 100 to 70? (A) p
will stay the same (B) p will increase (C) p will
decrease (D) The effect on p will be ambiguous

36
 ●​ Q18: Number of non-negative integer
Complete Classification solutions
of MSQE-PEA ●​ Q20: Property of increasing derivative

Questions (2016-2024) 2019:

●​ Q1: Linear independence of vectors

●​ Q5: Algebraic inequality
Mathematics (PEA)
●​ Q7: Function analysis f(x) = 1/(3-x)
Questions by Topic ●​ Q11: Value of x
●​ Q15: Continued fraction
Algebra and Number Theory (44 ●​ Q17: Value of limit
questions) ●​ Q25: Sum of infinite series
●​ Q26: Limit of sequence
2016: ●​ Q27: Value of infinite product

●​ Q1: Polynomial equation (value of c) 2020:

●​ Q4: Binomial expansion (largest
●​ Q2: Ordered pairs with constraint
coefficient)
●​ Q5: Limit calculation
●​ Q10: Function composition f(f(x))
●​ Q6: Limit with absolute value
●​ Q12: Inequality with absolute value (x² -
●​ Q8: Sequence properties
3|x| + 2 < 0)
●​ Q12: Sum of digits
●​ Q17: Quadratic polynomial (finding
roots)
2021:
●​ Q29: Functional equation
●​ Q30: Algebraic expression (minimum ●​ Q1: Partial sum of infinite series
value) ●​ Q4: Number divisible by 24

2017: 2022:

●​ Q2: Number of onto functions ●​ Q2: Function roots properties

●​ Q18: Sequence convergence ●​ Q3: Function value calculation
(n²+1)/(2n²+3) ●​ Q10: Function bounds
●​ Q19: Properties of x^(1/3)
●​ Q20: Properties of sin(log x) 2023:
●​ Q21: Maximum of two functions
●​ Q22: Maximization with inequality ●​ Q22: Binomial expansion constant term
constraint ●​ Q24: Equation with absolute value
●​ Q25: Sum of arithmetic progression solutions
●​ Q30: Evaluating integral with square ●​ Q25: System of equations with
root constraints
●​ Q30: Recursive function evaluation
2018:
2024:

37
 ●​ Q1: Differentiable function limit ●​ Q10: Linear transformations
●​ Q2: Sequence limit
●​ Q3: Limit calculation 2022:
●​ Q5: Function properties on interval
●​ Q19: Covariance calculation ●​ Q5: Matrix determinant properties
●​ Q20: Binomial distribution properties ●​ Q11: Matrix rank
●​ Q12: Matrix eigenvalue
●​ Q13: Matrix properties with singular
Matrices and Linear Algebra (31
matrix
questions)
2023:
2016:
●​ Q5: Matrix and determinant properties
●​ Q13: System of linear equations ●​ Q16: Matrix rank
●​ Q23: Matrix determinant
2024:
2017:
●​ Q8: Determinant calculation
●​ Q1: Vector space dimension ●​ Q9: Rank of matrix product
●​ Q8: Matrix equation properties ●​ Q10: Matrix properties
●​ Q14: Matrix equation solution ●​ Q11: Vector space properties
uniqueness
●​ Q28: System of linear equations
Calculus and Optimization (64
2018: questions)

●​ Q16: System of linear equations 2016:

2019: ●​ Q2: Conditions for local maximum

●​ Q6: Definite integral
●​ Q6: Linear algebra problem ●​ Q7: Continuity and differentiability
●​ Q9: Linear transformations ●​ Q9: Local maximum/minimum
●​ Q10: Matrix rank ●​ Q15: Constrained optimization
●​ Q14: Matrix properties ●​ Q16: Function inverse
●​ Q20: Matrix rank ●​ Q19: Optimization with constraints
●​ Q24: Inverse matrix ●​ Q20: Properties of derivatives
●​ Q28: Matrix eigenvalues ●​ Q22: Derivative calculation
●​ Q29: Matrix determinant ●​ Q25: Definite integral
●​ Q26: Optimization with constraints
2020:
2017:
●​ Q7: System of linear equations
●​ Q3: Quasiconcavity of function
2021: ●​ Q4: Homogeneity of function
●​ Q7: Constrained maximization
●​ Q5: Probability of singular matrix ●​ Q17: Convexity of function
●​ Q9: Matrix properties

38
 ●​ Q23: Maximization with constraint ●​ Q16: Function derivative at endpoint
●​ Q26: Definite integral
●​ Q27: Integration evaluation 2022:
●​ Q29: Properties of twice-differentiable
function ●​ Q4: Composite function properties
●​ Q6: Twice differentiable function
2018: properties
●​ Q7: Limit calculation
●​ Q17: Function convexity ●​ Q8: Function properties
●​ Q19: Multivariable function extrema
●​ Q21: Differentiable function property 2023:
●​ Q22: System of linear equations
●​ Q26: Function with increasing ●​ Q20: Derivative properties
derivative ●​ Q21: Integral evaluation
●​ Q28: Function continuity and
2019: differentiability
●​ Q29: Set properties with function
●​ Q2: Critical points of function constraints
●​ Q3: Function's maximum value
●​ Q4: Maximum value with constraint 2024:
●​ Q8: Integration by parts
●​ Q12: Definite integral ●​ Q4: Function continuity
●​ Q13: Partial derivatives ●​ Q6: Function differentiability
●​ Q16: Multivariable optimization ●​ Q7: Integration
●​ Q18: Constrained optimization ●​ Q24: Growth rate calculation
●​ Q19: Function bounds
●​ Q21: Partial derivatives Probability and Statistics (87
●​ Q22: Function evaluation questions)
●​ Q23: Application of Taylor series
●​ Q30: Probability distribution function 2016:

2020: ●​ Q3: Statistics of data set

●​ Q5: Probability with cards
●​ Q1: Function differentiability ●​ Q8: Regression analysis
●​ Q3: Optimization problem ●​ Q11: Probability density function
●​ Q4: Function continuity ●​ Q14: Cumulative distribution function
●​ Q14: Integration formula ●​ Q21: Probability without replacement
●​ Q15: Area bounded by curves ●​ Q27: Competition probability
●​ Q28: Probability of seating arrangement
2021:
2017:
●​ Q2: OLS regression properties
●​ Q3: Production function corner solution ●​ Q5: Statistics with unit conversion
●​ Q7: Convex function properties ●​ Q6: Statistics with unit conversion
●​ Q8: Quasiconcavity properties ●​ Q10: Probability relations
●​ Q11: Probability relations

39
 ●​ Q12: Normal distribution properties ●​ Q13: Vaccine cost expectation with
●​ Q15: Probability in queue uniform distribution
●​ Q16: Probability with children ●​ Q14: International trade patterns
●​ Q18: Phillips curve slope
2018:
2022:
●​ Q23: Markov process probability
●​ Q24: Markov process probability ●​ Q1: Word arrangement probability
●​ Q25: Limit of function ●​ Q14: Probability with children
●​ Q27: Probability with stairs ●​ Q15: Random selection probability
●​ Q28: Variance calculation ●​ Q23: Consumer theory
●​ Q29: Conditional probability ●​ Q24: Consumer welfare
●​ Q30: Probability relations ●​ Q27: Elasticity and demand

2019: 2023:

●​ Q2: Probability with coins ●​ Q17: Probability with conditional

●​ Q3: Expected value selection
●​ Q9: Probability distributions ●​ Q18: Probability with random numbers
●​ Q14: Ball selection probability ●​ Q19: Normal distribution problem
●​ Q15: Raffle ticket probability ●​ Q23: Probability with coin tosses
●​ Q16: Family with boys and girls ●​ Q26: Monkey movement locations
●​ Q17: Conditional probability ●​ Q27: Probability with random jump
●​ Q18: Random variables
●​ Q19: Probability with sampling 2024:
●​ Q20: Probability with multiple events
●​ Q21: Probability with exams ●​ Q12: Chess tournament games
●​ Q22: Expected value ●​ Q13: Word arrangement
●​ Q24: Random selection ●​ Q14: Monkey jumps possibilities
●​ Q27: Binomial probability ●​ Q15: Probability with distance
●​ Q28: Joint probability calculation
●​ Q29: Normal distribution ●​ Q16: Correlation coefficient
●​ Q30: Probability distribution function ●​ Q17: Probability with random selection
●​ Q18: Conditional probability
2020:
Set Theory and Combinatorics (39
●​ Q4: Probability of correct answers questions)
●​ Q9: Variance of random variable
●​ Q10: Matrix rank probability 2016:
●​ Q13: Probability of flush
●​ Q18: Combinations and probability
2021: ●​ Q24: Counting integer solutions

●​ Q11: Random variable bounds 2017:

●​ Q12: Standard deviation and correlation
●​ Q9: Partitioning people

40
 ●​ Q13: Arrangement with constraint ●​ Q29: Monopoly price elasticity
●​ Q24: Book packing combinations ●​ Q30: Solow growth model

2018: 2023:

●​ Q13: Arrangements in a row ●​ Q6: Bertrand equilibrium

●​ Q7: Hospital location
2019: ●​ Q8: Inverse demand function

●​ Q11: Number of subsets 2024:

2020: ●​ Q22: Solow economy - capital labor

ratio
●​ Q11: Function properties ●​ Q23: Solow economy - optimal savings
●​ Q24: Consumption function

2021: Economics (PEA) Questions

●​ Q1: Word arrangement by Topic
●​ Q6: Matrix filling combinations
●​ Q15: Duopoly pricing Microeconomics (81 questions)
●​ Q16: Consumer theory
●​ Q17: IS-LM adjustment 2018:
●​ Q20: Balance of payments
●​ Q21: Inventory investment ●​ Q5: Wage and unemployment
●​ Q22: Cake division ●​ Q6: Minimum wage and unemployment
●​ Q23: Consumer choice ●​ Q12: Price discrimination
●​ Q24: IS-LM curve with fixed interest ●​ Q13: Competitive equilibrium
rate ●​ Q14: Labor market monopsony
●​ Q25: Labor market with wage rigidity ●​ Q15: Gender wage gap

2022: 2019:

●​ Q1: Word arrangement ●​ Q23: Application of Taylor series

●​ Q9: Number of onto functions ●​ Q28: Joint probability
●​ Q16: Function properties ●​ Q29: Normal distribution
●​ Q17: Consumer optimization ●​ Q30: Probability distribution function
●​ Q18: Consumer optimization with
corner solution 2020:
●​ Q19: Revealed preference
●​ Q16: Price discrimination
●​ Q20: Production function
●​ Q17: Rural-urban migration
●​ Q21: Cournot equilibrium
●​ Q18: Quality signaling
●​ Q22: Utility representation
●​ Q19: Labor capacity and hiring
●​ Q25: Consumer optimization
●​ Q20: Money illusion
●​ Q26: Production function
●​ Q21: Bertrand competition
●​ Q28: Competitive firm equilibrium

41
 ●​ Q22: Agricultural price policy ●​ Q3: Government taxation
●​ Q23: Monopoly with competitive fringe ●​ Q4: IS curve slope
●​ Q27: Insurance and prevention ●​ Q7: Price level changes
●​ Q9: Public good contribution
2022: ●​ Q10: Oligopoly and costs
●​ Q11: Oligopoly and costs
●​ Q17: Consumer optimization
●​ Q18: Consumer optimization with 2019:
corner solution
●​ Q19: Revealed preference ●​ Q2: Critical points of function
●​ Q20: Production function ●​ Q3: Function's maximum value
●​ Q21: Cournot equilibrium ●​ Q4: Maximum value with constraint
●​ Q22: Utility representation
●​ Q23: Consumer theory 2020:
●​ Q24: Consumer welfare
●​ Q25: Consumer optimization ●​ Q24: Consumption function
●​ Q26: Production function ●​ Q25: Labor market equilibrium
●​ Q27: Elasticity and demand ●​ Q26: Mundell-Fleming model
●​ Q28: Competitive firm equilibrium ●​ Q28: Labor supply in macro models
●​ Q29: Monopoly price elasticity ●​ Q29: Solow growth model shock
●​ Q30: IS-LM multiplier
2023:
2021:
●​ Q1: Substitution effect
●​ Q2: Revealed preference ●​ Q17: IS-LM adjustment
●​ Q3: Cournot equilibrium ●​ Q18: Phillips curve slope
●​ Q4: Deadweight loss ●​ Q19: International finance
●​ Q5: Competitive equilibrium ●​ Q20: Balance of payments
●​ Q6: Bertrand equilibrium ●​ Q21: Inventory investment
●​ Q7: Hospital location ●​ Q22: Cake division
●​ Q8: Inverse demand function ●​ Q23: Consumer choice
●​ Q24: IS-LM curve with fixed interest
2024: rate
●​ Q25: Labor market with wage rigidity
●​ Q27: Consumer theory with Giffen good
●​ Q28: Intertemporal consumption 2022:
●​ Q29: Agricultural policy reform
●​ Q30: Consumer preferences ●​ Q30: Solow growth model

2023:
Macroeconomics (70 questions)
●​ Q9: Macroeconomic savings
2018: ●​ Q10: Income distribution
●​ Q11: Labor demand
●​ Q1: IS curve slope
●​ Q12: Labor supply
●​ Q2: Solow growth model
●​ Q13: Aggregate supply curve

42
 ●​ Q14: Aggregate demand curve 2023:
●​ Q15: Solow growth model
●​ Q3: Cournot equilibrium
2024: ●​ Q4: Deadweight loss
●​ Q6: Bertrand equilibrium
●​ Q21: Growth models ●​ Q7: Hospital location
●​ Q22: Solow economy - capital labor
ratio International Trade (10 questions)
●​ Q23: Solow economy - optimal savings
●​ Q24: Solow economy - growth rate 2021:
●​ Q25: International trade - price effects
●​ Q26: International trade - expenditure ●​ Q14: International trade patterns
patterns ●​ Q20: Balance of payments

Game Theory and Strategic Behavior 2024:

(20 questions) ●​ Q25: International trade - price effects
●​ Q26: International trade - expenditure
2018:
patterns
●​ Q8: Social welfare function
●​ Q9: Public good contribution Summary of Question Count
2020: by Topic:
●​ Q18: Quality signaling
Mathematics: 265 questions
●​ Q19: Labor capacity and hiring
●​ Q20: Money illusion ●​ Algebra and Number Theory: 44
●​ Q21: Bertrand competition questions
●​ Q22: Agricultural price policy ●​ Matrices and Linear Algebra: 31
questions
2021:
●​ Calculus and Optimization: 64 questions
●​ Q13: Vaccine development ●​ Probability and Statistics: 87 questions
●​ Q14: International trade patterns ●​ Set Theory and Combinatorics: 39
●​ Q15: Duopoly pricing questions
●​ Q16: Consumer theory
●​ Q17: IS-LM adjustment Economics: 181 questions

2022: ●​ Microeconomics: 81 questions

●​ Macroeconomics: 70 questions
●​ Q19: Revealed preference ●​ Game Theory and Strategic Behavior:
●​ Q20: Production function 20 questions
●​ Q21: Cournot equilibrium ●​ International Trade: 10 questions
●​ Q22: Utility representation
Total questions across all topics and subtopics:
265

43