Explore topic-wise InterviewSolutions in .

Transfer income

Reason: It is received without rendering any productive services.

Factor income

Reason: It is earned by rendering productive services.

Transfer income

Reason: It is received without rendering any productive services.

Factor income

Reason: It is earned by rendering productive services.

Intermediate product

Reason: These are intermediate products because these are purchased for resale.

Transfer income

Reason: It is received without rendering any productive services.

Intermediate product

Reason: It is an intermediate product as sugar is used for further production during the same year.

Intermediate product

Reason: It is an intermediate product as coal is used for further production during the same year.

Final product

Reason: It is a final product as it is used by households for final consumption.

Final product

Reason: It is a final product because it is purchased for investment.

Final Product

Reason: It is a final product as it is used by a consumer for final consumption.

Final product

Reason: It is a final product as it is used by households for final consumption.

Intermediate product

Reason: These are intermediate products because fertilizer is used for further production during the same year.

Final product

Reason: It is a final product because it is purchased for investment.

Final product

Reason: It is a final product as the unsold coal is an investment for the trader.

Intermediate product

Reason: It is an intermediate product as wheat is used for further production during the same year or is meant for resale.

(c) Reserve Bank of India

(a) greater than 2

(b) saving account deposits and current account deposits.

Difference between Perfect Oligopoly and Imperfect Oligopoly: 

Perfect Oligopoly: Form of oligopoly in which each firm produces a homogeneous product is known as a perfect oligopoly. Imperfect Oligopoly: Form of oligopoly in which each firm produces a differentiated product is known as an imperfect oligopoly. Feature of "interdependence between the firms" feature of oligopoly: There exists a very high degree of mutual interdependence between the firm in an oligopoly market. The price and the quality decision of a particular firm are dependent on the price and the quality decisions of the rival (other) firm. Hence, a firm must take into consideration the problem of rival reactions, while formulating its own price and output decisions.

'The equilibrium level of output wiil be 4 units. This is because at this point the two conditions of equilibrium (using MR-MC approach are met . This can be seen as follows :

we are giver-r the Tctal Revenue (TR) and Total Cost. From here, we can find Marginal Revenue (MR) and Marginal Cost (MC), as given in the foilowing schedule :

Perfect oligopoly is a market in which there are a few sellers selling a homogeneous product. Homogeneous product is a product which is identical in quality, shape, size, colour etc. For example, steel, fertilisers, etc. Imperfect oligopoly is a market in which there are a few’ sellers selling differentiated product. Differentiated products are products of similar nature but are made different on the basis of brand name, packaging, advertising etc. For example, soap, toothpaste, cars, motorcycles etc. Oligopoly refers to a market situation in which there are few firms. Each firm can influence the price by his own action. But, a change in price and output of a product by any firm is likely to influence the output and profit of rival firms whose reaction may prove counter productive. This makes the firms mutually interdependent. For example, if there is interdependence of decision between Maruti Ltd. and Tata Motors. If Maruti Ltd. reduces the price of its cars, Tata Motors will follow the same substantially. Accordingly, while taking decision about price and output, a firm has to consider the possible reaction of rival firms in the market.

Given.

Percentage fall in demand = 20

Initial Price= Rs.10

New Price =Rs.12

% Increase in Price=2/10x100=20%

We know,

E_d=% Change in Denrand / % Change in Price

=-20/20=-1

Now, if price rises from 10 to 13

% Change in Price =3/10x100=30%

So,

% Change in Demand = % Change in Price x E_d = 30 x-1 =- 30

So, we can say that if the price rises from Rs.10 to Rs.13, i.e.by 30%, then the demand will fall by 30%. This is because the goods follows unitary elasticity,.

In a perfect competition, both buyers, as well as the sellers, are fully aware of the conditions prevailing in the market. This implies that the buyers are fully aware of the prevailing market price of the product at different places and the sellers are also aware of at what price are the buyers willing to buy the product. The implication of this feature is that if any individual firm is charging higher (or lower) price for the homogeneous product, then the buyers will shift their purchase to the other seller (or shift their purchase from other sellers to the firm selling at a lower price). 

Implication-As the buyers and the sellers are fully aware of the market conditions so no seller can either sell their products at higher prices than the market price.

The feature ‘perfect knowledge about market’ means that firms as well as the buyers have the perfect knowledge about the cost and price of the product prevailing in the different parts of the market. As a result of perfect knowledge about the market, no seller can afford to charge a price higher than the prevailing price. If he tries to charge the price more than prevailing price, he will lose all his customers to his competitors. This will lead to emergence of uniform price of the product in the market.

I contribute about my ecology where I live. I get up in the morning, clean my room and its surroundings. It is duty to all to save our ecology. We live in our society and we should make our society.

Seven years.

Wednesday 

13 June 20XX 

10:30 p.m. 

Dear Diary, 

I am very happy and excited today as the nurse who was looking after me in the hospital, informed me that I have completely recovered from m, illness and now I can go home. I have been in the hospital for many months and was waiting for this day to arrive. But all the credit goes to my younger brothers, Jacopo and Nicola, who faced many hardships to pay my medical bills. I really admire their sense of duty and love for me even though they are much younger in age. I have realized the value of having caring siblings. The way they looked after me was amazing" I had never expected to be taken care of so tenderly after my parents death. I really thank God that my brothers love me so much. I've decided that once I'm out in the world, I'll work as a singer and with the earnings I will give my brothers a good life. They have suffered a lot. But now, I can see a ray of hope. May God bless my brothers. 

Lucia

The king in the story is foolish and superstitious. After the astrologer foretells his death due to the hundredth tiger, he single-mindedly starts killing the tigers in order to disprove the prophesy. His authoritarianism have no bounds. He used his money and power to kill innocent tigers. Besides his subjects knows to bear the brunt of his mindless pursuit. He would double the tax if he found no tigers in an area or exempt the people of the area where he did find a tiger. Thus his arbitrary and tyrannical ways put the fear of death in all. In the end when he is sure to have achieved his target, he dies due to a tiger albeit a wooden one. In employing this dramatic irony the writer effectively delivers poetic justice.

The statement is correct. In the perfect competition market, every firm will only accept the price of the commodity which is determined by the powers of market demand and market supply in the market or industry. The firms are adopting the dependent price policy, because they are producing a very minute fraction of the total supply of the market. They have no control over the prices. No firm can adopt its independent price policy. The firm will only adjust its production according to prices of the market. None of the firm is ready to sale the product below this price and none of the buyer is ready to pay more than this price. 

Whereas, In monopoly market there is only one producer of the commodity, therefore that producer is supplying 100 % of that commodity, means he is controlling the entire supply of the market. Therefore that firm can effect the Price and Supply of the Market . 

The firm adopts independent price policy, firm can increase or decrease the price of its commodity. Firms have full control over the price and therefore it is termed as price maker.

Balance of payments is always balanced. A negative balance on the current account is equated with positive balance in the capital account. The monetary authorities may finance a deficit by depleting their reserves of foreign currencies or by borrowing from the IMF etc. Hence BOP is always in balance. 

Primary deficit= Fiscal deficit- Interest Payment 

=15,000-4,000 = Rs. 11,000 crore

 (i) To purchase of goods and services from other countries. 

(ii) To send a gift abroad. 

(iii) To purchase financial assets in a particular country and 

(iv) To speculate on the value of foreign currencies. 

 Balance of Trade = Exports- Imports 

Imports= Exports – Balance of trade= 400-(-160) = 560

Or Imports = Exports + net imports = 400+160 = 560 Rs crores 

(i) foreigners purchasing home country goods and services through exports. 

(ii) Foreigners investment in home country through joint ventures and through financial market operation. 

(iii) Foreign currencies flow into the economy due to currency dealers and speculators. 

When exchange rate falls, experts become less profitable hence supply of foreign currency through exports falls.

There is a direct relation between foreign exchange rate and supply of foreign exchange higher the exchange rate, higher the supply of foreign exchange and lower the exchange rate, lower the supply of foreign exchange. Suppose the price of US $ in India falls from Rs.50 to Rs.40 it means earlier USA people could buy Rs.50 worth of good from India by giving one dollar. Now they can buy only Rs.40 worth of good from India. Indian goods become costlier for USA. Therefore USA buys less of Indian goods this reduces the supply of dollar to India and vice versa.

Balance of trade refers to difference between the amounts of exports and imports of visible items (goods). It includes only visible items (goods). 

 BOT = Export – Import 

 Balance of trade is in surplus when exports are more than imports or BOT is positive.

Flexible exchange rate system is the exchange rate system in which exchange rate is determined by the forces of demand and supply of foreign exchange in the market it is influenced by the market forces.

 Foreign exchange refers to any currency other than the domestic currency.

The supply (inflow) of foreign exchange comes from the people who receive it due to the following reasons. 

1. Exports of goods and services:Supply of foreign exchange comes through exports of goods and services. 

2. Foreign investment: The amount, which foreigners invest in their home country, increases the supply of foreign exchange. 

3. Remittances (unilateral transfers) from abroad: Supply of foreign exchange increases in the form of gifts and other remittances from abroad. 

4. Speculation: Supply of foreign exchange comes from those who want to speculate on the value of foreign exchange.

 Sources of demand of foreign exchange 

1. To purchase goods and services from other countries i.e. import. 

2. To send a gift abroad. 

Sources of supply of foreign exchange 

1. Foreigners purchasing home countries goods and services through exports. 

2.Direct foreign investment in the domestic country

Relationship between foreign exchange rate and supply of foreign exchange. There is a direct relation between foreign exchange rate and supply of foreign exchange higher the exchange rate, higher the supply of foreign exchange and lower the exchange rate, lower the supply of foreign exchange. Suppose the price of US $ in India falls from Rs.50 to Rs.40it means earlier USA people could buy Rs.50 worth of good from India by giving one dollar. Now they can buy only Rs.40 worth of good from India. Indian goods become costlier for USA. Therefore USA buys less of Indian goods this reduces the supply of dollar to India.

Foreign exchange refers to any currency other than the domestic currency. 

Foreign exchange rate is the rate at which one currency can be converted into another currency. 

Suppose foreign exchange rate falls, it means that imports etc have become cheaper because people now have to pay less for imports. As a result demand for imports etc. rises. This leads to increase in demand for foreign exchange. Similarly if exchange rate rises, the demand for foreign exchange falls. 

FDI increases the supply of foreign exchange which reduces the price of foreign exchange.

(i) Importers

(ii) Tourists going abroad

(iii) Investments abroad.

The supply of foreign currency rises in the following situations: 

1. When price of a foreign currency rises, domestic goods become relatively cheaper. It induces the foreign country to increase their imports from the domestic country. As a result, supply of foreign currency rises. 

For example, if price of 1 US dollar rises from Rs 60 to Rs 65, then exports to USA will increase as Indian goods will become relatively cheaper. It will raise the supply of US dollars. 

2. When price of a foreign currency rises,foreign direct investment (FDI) from rest of the world increases, which will increase the supply for foreign exchange. 

3. When price of a foreign currency rises, also supply of foreign currency rises as people want to make gains from speculative activities.

Management Accounting relates to Presentation of account data

Depreciation of domestic currency means a fall in the price of domestic currency (say, rupee) in terms of a foreign currency (say, $). It means, with the same amount of dollars, more goods can be purchased from India, i.e., exports to USA will increase as they will become relatively cheaper.