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This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your Class 12 knowledge and support exam preparation. Choose a topic below to get started.
| 51. |
Define : (a) Nominal GNP and (b) Real GNP. |
| Answer» <html><body><p></p>Solution :(a) <a href="https://interviewquestions.tuteehub.com/tag/gnp-468856" style="font-weight:bold;" target="_blank" title="Click to know more about GNP">GNP</a> measured at current prices is called nominal GNP. <br/> (<a href="https://interviewquestions.tuteehub.com/tag/b-387190" style="font-weight:bold;" target="_blank" title="Click to know more about B">B</a>) GNP measured at <a href="https://interviewquestions.tuteehub.com/tag/constant-930172" style="font-weight:bold;" target="_blank" title="Click to know more about CONSTANT">CONSTANT</a> prices is called Real GNP.</body></html> | |
| 52. |
Identify the following as Normal Residents of India : Indian employes working in W.H.O.located in India. |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<a href="https://interviewquestions.tuteehub.com/tag/normal-1123860" style="font-weight:bold;" target="_blank" title="Click to know more about NORMAL">NORMAL</a> <a href="https://interviewquestions.tuteehub.com/tag/residents-1186245" style="font-weight:bold;" target="_blank" title="Click to know more about RESIDENTS">RESIDENTS</a>.</body></html> | |
| 53. |
Under monopoly all firms can sell at any price. |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<a href="https://interviewquestions.tuteehub.com/tag/false-459184" style="font-weight:bold;" target="_blank" title="Click to know more about FALSE">FALSE</a>: Under <a href="https://interviewquestions.tuteehub.com/tag/monopoly-1101092" style="font-weight:bold;" target="_blank" title="Click to know more about MONOPOLY">MONOPOLY</a> there is only <a href="https://interviewquestions.tuteehub.com/tag/one-585732" style="font-weight:bold;" target="_blank" title="Click to know more about ONE">ONE</a> <a href="https://interviewquestions.tuteehub.com/tag/firm-989667" style="font-weight:bold;" target="_blank" title="Click to know more about FIRM">FIRM</a>.</body></html> | |
| 54. |
With the help of suitable example explain the problem of 'for whom to produce' |
| Answer» <html><body><p></p>Solution :This <a href="https://interviewquestions.tuteehub.com/tag/economic-448435" style="font-weight:bold;" target="_blank" title="Click to know more about ECONOMIC">ECONOMIC</a> problem basically focuses on the distribution of final goods and serives produced. The distribution of the final goods and services is equivalent to the distribution of National Income (or National Product) among the factors of production such as land, <a href="https://interviewquestions.tuteehub.com/tag/labour-1065391" style="font-weight:bold;" target="_blank" title="Click to know more about LABOUR">LABOUR</a>, capital and entreprenur. <br/> For instance, imagine an economy producing two goods-normal rice (priced at Rs 15/kg) and graded rice (priced at Rs 100/kg). If the economy decided to cater the needs of the lower section of the society, then it would produce more of normal rice and less of the graded rice. In such a case, the PPC curve will be as <a href="https://interviewquestions.tuteehub.com/tag/depicted-7375268" style="font-weight:bold;" target="_blank" title="Click to know more about DEPICTED">DEPICTED</a> in <a href="https://interviewquestions.tuteehub.com/tag/figure-987693" style="font-weight:bold;" target="_blank" title="Click to know more about FIGURE">FIGURE</a> (ii). On the other hand, if the economy decided to cater the needs of the <a href="https://interviewquestions.tuteehub.com/tag/higher-1022060" style="font-weight:bold;" target="_blank" title="Click to know more about HIGHER">HIGHER</a> section of the society, then it would produce more of the graded rice and less of the normal rice. In such a case, the PPC curve will be as depicted in figure (i) <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/CBSE_COMM_SP_XII_ECO_E01_014_S01.png" width="80%"/></body></html> | |
| 55. |
Give the meaning of: (i) Barter Exchange, (ii) Money, (iii) Money Supply. |
| Answer» <html><body><p></p>Solution : (i) Barter Exchange: In trade, barter (derived from baretor) is a <a href="https://interviewquestions.tuteehub.com/tag/system-1237255" style="font-weight:bold;" target="_blank" title="Click to know more about SYSTEM">SYSTEM</a> of exchange where participants in a transaction directly exchange goods or services for other goods or services without using a medium of exchange, such as money.(ii) Money: Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of <a href="https://interviewquestions.tuteehub.com/tag/debts-435567" style="font-weight:bold;" target="_blank" title="Click to know more about DEBTS">DEBTS</a>, such as taxes, in a <a href="https://interviewquestions.tuteehub.com/tag/particular-1147539" style="font-weight:bold;" target="_blank" title="Click to know more about PARTICULAR">PARTICULAR</a> country or socio-economic context.(iii) Money Supply: The money supply is the total value of money available in an economy at a point of time. There are several ways to define "money", but standard <a href="https://interviewquestions.tuteehub.com/tag/measures-1091959" style="font-weight:bold;" target="_blank" title="Click to know more about MEASURES">MEASURES</a> usually include currency in circulation and demand deposits. Each country’s central bank may use its own <a href="https://interviewquestions.tuteehub.com/tag/definitions-14853" style="font-weight:bold;" target="_blank" title="Click to know more about DEFINITIONS">DEFINITIONS</a> of what constitutes money for its purposes.</body></html> | |
| 56. |
Global warming is caused by : |
| Answer» <html><body><p>Heat <a href="https://interviewquestions.tuteehub.com/tag/generated-2093392" style="font-weight:bold;" target="_blank" title="Click to know more about GENERATED">GENERATED</a> by sun rays passing through earth<br/>A <a href="https://interviewquestions.tuteehub.com/tag/part-596478" style="font-weight:bold;" target="_blank" title="Click to know more about PART">PART</a> of sun's rays heat <a href="https://interviewquestions.tuteehub.com/tag/reflected-2982114" style="font-weight:bold;" target="_blank" title="Click to know more about REFLECTED">REFLECTED</a> back towards space.<br/>Reflection of heat into space blocked by greenhouse gases.<br/>None of the above</p>Answer :C</body></html> | |
| 57. |
(a) State any twoprecautionsthat must be taken into considerationwhile estimatingnationalby value added method. (b) In an economy, following transactionstook place. Calculatevalue of output and value added by Firm B : (i) Firm A sold to firmB goods of Rs. 80 core, to firm C Rs. 50 crore, to household Rs. 30 crore and goods of value Rs. 10 crore remain unsold. (ii) Firm B sold to firm C goods of Rs. 70 crore, to firm D Rs. 40 crore, goods of value Rs. 30 crore were exported and goods of value Rs. 5 crore was sold to government . |
| Answer» <html><body><p></p>Solution :(a) Precautions of value added method are :<br/> (i) Value of sale and purchase of second hand goods is not <a href="https://interviewquestions.tuteehub.com/tag/considered-7257760" style="font-weight:bold;" target="_blank" title="Click to know more about CONSIDERED">CONSIDERED</a> while estimatingvalue added as the value of second hand goods is already accountedduring the year theywere <a href="https://interviewquestions.tuteehub.com/tag/produced-592947" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCED">PRODUCED</a>. <br/> (ii) Value of intermediate goodsis not included in the estimationof value added because value of intermediate goods is reflectedin the value of final goods.<br/> (b) Value of output of firm B = <a href="https://interviewquestions.tuteehub.com/tag/sales-25569" style="font-weight:bold;" target="_blank" title="Click to know more about SALES">SALES</a> of firm B to firm +Sales of firm B to firm D + Exports + Sales of firm B to Government <br/> `=70+40+30+5` <br/> = Rs. 145 crores <br/> Value Added by Firm B = Value of output by Firm B - Purchases by Firm B from firm A <br/> = 145-80 <br/> = Rs. <a href="https://interviewquestions.tuteehub.com/tag/65-331005" style="font-weight:bold;" target="_blank" title="Click to know more about 65">65</a> Crore</body></html> | |
| 58. |
Give the meaning of equilibrium price. |
| Answer» <html><body><p></p>Solution :The price at which equilibrium is <a href="https://interviewquestions.tuteehub.com/tag/reached-613673" style="font-weight:bold;" target="_blank" title="Click to know more about REACHED">REACHED</a> is <a href="https://interviewquestions.tuteehub.com/tag/called-907796" style="font-weight:bold;" target="_blank" title="Click to know more about CALLED">CALLED</a> <a href="https://interviewquestions.tuteehub.com/tag/equiibrium-2618103" style="font-weight:bold;" target="_blank" title="Click to know more about EQUIIBRIUM">EQUIIBRIUM</a> price.</body></html> | |
| 59. |
Direct tax is called direct because it is callected directly from: |
| Answer» <html><body><p>The <a href="https://interviewquestions.tuteehub.com/tag/producers-17149" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCERS">PRODUCERS</a> on <a href="https://interviewquestions.tuteehub.com/tag/goods-1009877" style="font-weight:bold;" target="_blank" title="Click to know more about GOODS">GOODS</a> produced<br/>The <a href="https://interviewquestions.tuteehub.com/tag/sellers-1200267" style="font-weight:bold;" target="_blank" title="Click to know more about SELLERS">SELLERS</a> on goods sold<br/>The <a href="https://interviewquestions.tuteehub.com/tag/buyers-906447" style="font-weight:bold;" target="_blank" title="Click to know more about BUYERS">BUYERS</a> of goods<br/>The <a href="https://interviewquestions.tuteehub.com/tag/income-25499" style="font-weight:bold;" target="_blank" title="Click to know more about INCOME">INCOME</a> earners</p>Answer :D</body></html> | |
| 60. |
When will the domestic income exceed the national income ? |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> : It happens because net factor <a href="https://interviewquestions.tuteehub.com/tag/income-25499" style="font-weight:bold;" target="_blank" title="Click to know more about INCOME">INCOME</a> from <a href="https://interviewquestions.tuteehub.com/tag/abroad-366184" style="font-weight:bold;" target="_blank" title="Click to know more about ABROAD">ABROAD</a> is <a href="https://interviewquestions.tuteehub.com/tag/zero-751093" style="font-weight:bold;" target="_blank" title="Click to know more about ZERO">ZERO</a> due to no <a href="https://interviewquestions.tuteehub.com/tag/interaction-1047666" style="font-weight:bold;" target="_blank" title="Click to know more about INTERACTION">INTERACTION</a> with the restof the world.</body></html> | |
| 61. |
Find change in income if multiplier is 4 and increase in investment is 15 crore. |
| Answer» <html><body><p></p>Solution :`<a href="https://interviewquestions.tuteehub.com/tag/k-527196" style="font-weight:bold;" target="_blank" title="Click to know more about K">K</a>=(<a href="https://interviewquestions.tuteehub.com/tag/deltay-2570681" style="font-weight:bold;" target="_blank" title="Click to know more about DELTAY">DELTAY</a>)/(DeltaI)=(DeltaY)/15` <br/> `4=(DeltaY)/("15 <a href="https://interviewquestions.tuteehub.com/tag/crore-939374" style="font-weight:bold;" target="_blank" title="Click to know more about CRORE">CRORE</a>")` <br/> `<a href="https://interviewquestions.tuteehub.com/tag/rightarrow-623803" style="font-weight:bold;" target="_blank" title="Click to know more about RIGHTARROW">RIGHTARROW</a> DeltaY=60crore`</body></html> | |
| 62. |
Explain ''freedom of entry and exist to firms in industry'' features of monopolistic competition. |
| Answer» <html><body><p></p>Solution :Freedom of entry and exist to firms in a monopolistic industry implies that there exists no restrction for the new entrants and existing firms to quit the industry. The new firms are attracted into the industry whenever price exceeds the minimum of short run average cost (SAC) in short run and whenever price exceeds the minimum of long run average cost (LAC) in the long run. Due to the free entry of the new firms in the industry, the quantity produced increases, which results in the rise of the supply of the <a href="https://interviewquestions.tuteehub.com/tag/output-1142821" style="font-weight:bold;" target="_blank" title="Click to know more about OUTPUT">OUTPUT</a> and finally, this pushes the equilibrium price down. Thus, the equilibrium price continues to fall, until it become <a href="https://interviewquestions.tuteehub.com/tag/equals-974070" style="font-weight:bold;" target="_blank" title="Click to know more about EQUALS">EQUALS</a> to the minimum of average cost curve, where, all the firms earns normal profit. At this point, no new firm has any incentive to entre the industry. <br/> Similarly, on the other hand, the existing firms leave the industry whenever the price falls short of the minimum of short run average cost curve (SAC) in the short run or whenever price falls short of the minimum of long run average cost (LAC) in the long run. This is because under such circumstances, the existing firms each losses and consequently wishes to quit. Now, as there are no restrictions imposed on the <a href="https://interviewquestions.tuteehub.com/tag/exit-979843" style="font-weight:bold;" target="_blank" title="Click to know more about EXIT">EXIT</a> of the firms, so firm quits the industry. This leads to the fall in the supply of the commodity. Hence, the price start rising and reaches the point at LAC where a firm earns only normal profit. ltbr. Thus, it is due freedom of the entry and exit to firms that price remains equal to the minimum of average cost implying the normal profit only.</body></html> | |
| 63. |
What are the components of capital account? |
| Answer» <html><body><p><br/></p>Solution :The components of capital account are: (i) Private <a href="https://interviewquestions.tuteehub.com/tag/transactions-18175" style="font-weight:bold;" target="_blank" title="Click to know more about TRANSACTIONS">TRANSACTIONS</a>; (<a href="https://interviewquestions.tuteehub.com/tag/ii-1036832" style="font-weight:bold;" target="_blank" title="Click to know more about II">II</a>) Official transactions; (iii) <a href="https://interviewquestions.tuteehub.com/tag/banking-21796" style="font-weight:bold;" target="_blank" title="Click to know more about BANKING">BANKING</a> capital; (iv) <a href="https://interviewquestions.tuteehub.com/tag/foreign-995515" style="font-weight:bold;" target="_blank" title="Click to know more about FOREIGN">FOREIGN</a> direct investment; (v) Portfolio investment.</body></html> | |
| 64. |
When price of a commodity falls by 50%, the quantity supplied decreases by 100%. Find out its price elasticity of supply. |
| Answer» <html><body><p></p>Solution :<img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/FM_M_ECO_XII_P1_C07_E02_058_S01.png" width="80%"/> <br/> <a href="https://interviewquestions.tuteehub.com/tag/es-446539" style="font-weight:bold;" target="_blank" title="Click to know more about ES">ES</a> `=("Percentage Change in supply")/("Percentage Change in Price")=(<a href="https://interviewquestions.tuteehub.com/tag/100-263808" style="font-weight:bold;" target="_blank" title="Click to know more about 100">100</a>%)/(50%)=2` <br/> `ES=2` (Supply is highly elastic as `ES <a href="https://interviewquestions.tuteehub.com/tag/gt-1013864" style="font-weight:bold;" target="_blank" title="Click to know more about GT">GT</a> <a href="https://interviewquestions.tuteehub.com/tag/1-256655" style="font-weight:bold;" target="_blank" title="Click to know more about 1">1</a>` ) <br/> ES is always positive due to direct relationship betweenn price and <a href="https://interviewquestions.tuteehub.com/tag/quantity-1174212" style="font-weight:bold;" target="_blank" title="Click to know more about QUANTITY">QUANTITY</a> supplied.</body></html> | |
| 65. |
The gap by which actual aggregate demand exceeds the aggregate demand required to establish full employment equilibrium is known as_________ |
| Answer» <html><body><p>Deficient Demand <br/>Deflationary <a href="https://interviewquestions.tuteehub.com/tag/gap-470788" style="font-weight:bold;" target="_blank" title="Click to know more about GAP">GAP</a> <br/>Inflationary Gap<br/>Excess Demand </p>Solution :C. The gap by which actual aggregate demand exceeds the aggregate demand <a href="https://interviewquestions.tuteehub.com/tag/required-1185621" style="font-weight:bold;" target="_blank" title="Click to know more about REQUIRED">REQUIRED</a> to <a href="https://interviewquestions.tuteehub.com/tag/establish-975526" style="font-weight:bold;" target="_blank" title="Click to know more about ESTABLISH">ESTABLISH</a> full <a href="https://interviewquestions.tuteehub.com/tag/employment-25669" style="font-weight:bold;" target="_blank" title="Click to know more about EMPLOYMENT">EMPLOYMENT</a> equilibrium is known as Inflationary Gap.</body></html> | |
| 66. |
Explain the feature of interdependence of firms' in an oligopoly market. |
| Answer» <html><body><p></p>Solution :(i) Interdependence means that actions of one firm affects the actions of other firms. <br/> (ii) Since the number of sellers is small, each firm has to take into consideration the possible reaction of its competitors, when making <a href="https://interviewquestions.tuteehub.com/tag/decisions-25560" style="font-weight:bold;" target="_blank" title="Click to know more about DECISIONS">DECISIONS</a>. <br/> (<a href="https://interviewquestions.tuteehub.com/tag/iii-497983" style="font-weight:bold;" target="_blank" title="Click to know more about III">III</a>) The business decision of a single seller will have a substantial impact on the product price, output and profits of the rival firms. <br/> (iv) For <a href="https://interviewquestions.tuteehub.com/tag/example-978283" style="font-weight:bold;" target="_blank" title="Click to know more about EXAMPLE">EXAMPLE</a> the "National Newspapers" <a href="https://interviewquestions.tuteehub.com/tag/market-25464" style="font-weight:bold;" target="_blank" title="Click to know more about MARKET">MARKET</a>, when the "Economic Times" introduced invitation pricing policy-they offered the newspaper at a price of Rs.1.50 on weekdays. The Hindustan Times was forced to reduce its prices from Rs.2.50 per copy to Rs.1.50 per copy on weekdays. When Hindustan Times was celebrating its 75 years of service, they offered the newspaper at Rs.1/- weekdays. The Times of India responded by matching the price <a href="https://interviewquestions.tuteehub.com/tag/cut-942198" style="font-weight:bold;" target="_blank" title="Click to know more about CUT">CUT</a>.</body></html> | |
| 67. |
According to income method, domestic income is equal to : |
| Answer» <html><body><p>Rent and royalty + Interest + Profit + <a href="https://interviewquestions.tuteehub.com/tag/compensation-925503" style="font-weight:bold;" target="_blank" title="Click to know more about COMPENSATION">COMPENSATION</a> of employees + <a href="https://interviewquestions.tuteehub.com/tag/mixed-561917" style="font-weight:bold;" target="_blank" title="Click to know more about MIXED">MIXED</a> <a href="https://interviewquestions.tuteehub.com/tag/income-25499" style="font-weight:bold;" target="_blank" title="Click to know more about INCOME">INCOME</a><br/>Operating Surplus + Compensation of employees + Income of self-employed<br/>Both (a) and (b)<br/>Neither (a) nor (b)</p>Solution :According to income <a href="https://interviewquestions.tuteehub.com/tag/method-559432" style="font-weight:bold;" target="_blank" title="Click to know more about METHOD">METHOD</a>, domestic income is equal to :Rent and royalty + Interest + Profit + Compensation of employees + Mixed Income+ Operating Surplus + Compensation of employees + Income of self-employed</body></html> | |
| 68. |
Capital formation is a flow |
| Answer» <html><body><p><br/></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/capital-908677" style="font-weight:bold;" target="_blank" title="Click to know more about CAPITAL">CAPITAL</a> <a href="https://interviewquestions.tuteehub.com/tag/formation-996531" style="font-weight:bold;" target="_blank" title="Click to know more about FORMATION">FORMATION</a> is measured over a <a href="https://interviewquestions.tuteehub.com/tag/period-1151023" style="font-weight:bold;" target="_blank" title="Click to know more about PERIOD">PERIOD</a> of time.</body></html> | |
| 69. |
What is meant by measurement of value? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :It <a href="https://interviewquestions.tuteehub.com/tag/refers-1181652" style="font-weight:bold;" target="_blank" title="Click to know more about REFERS">REFERS</a> to <a href="https://interviewquestions.tuteehub.com/tag/monetary-1100648" style="font-weight:bold;" target="_blank" title="Click to know more about MONETARY">MONETARY</a> expression of the market <a href="https://interviewquestions.tuteehub.com/tag/value-1442530" style="font-weight:bold;" target="_blank" title="Click to know more about VALUE">VALUE</a> of goods and <a href="https://interviewquestions.tuteehub.com/tag/services-1202745" style="font-weight:bold;" target="_blank" title="Click to know more about SERVICES">SERVICES</a> in terms of price</body></html> | |
| 70. |
Can MC increase when AC falls? |
| Answer» <html><body><p></p>Solution :Yes, it can happen when MC is below, than <a href="https://interviewquestions.tuteehub.com/tag/ac-361271" style="font-weight:bold;" target="_blank" title="Click to know more about AC">AC</a> at the time of MC increases. The reason is that MC is confined to only one unit of the commodity produced whereas AC is <a href="https://interviewquestions.tuteehub.com/tag/relatedbrbr-2983848" style="font-weight:bold;" target="_blank" title="Click to know more about RELATED">RELATED</a> to all the units of commodity produced. As a <a href="https://interviewquestions.tuteehub.com/tag/result-1187343" style="font-weight:bold;" target="_blank" title="Click to know more about RESULT">RESULT</a> when MC increase, in <a href="https://interviewquestions.tuteehub.com/tag/case-910082" style="font-weight:bold;" target="_blank" title="Click to know more about CASE">CASE</a> of MC, the whole increase is confined to the concerned one unit but in case of AC, this increase is shared by all the units of commodity produced. As the result of, <a href="https://interviewquestions.tuteehub.com/tag/rising-1189698" style="font-weight:bold;" target="_blank" title="Click to know more about RISING">RISING</a> MC is unable to bring about an increase in AC.</body></html> | |
| 71. |
Wjhat is a central bank? |
| Answer» | |
| 72. |
What is price elasticity of demand for life saving drugs ? |
| Answer» <html><body><p></p>Solution :Life <a href="https://interviewquestions.tuteehub.com/tag/saving-1195397" style="font-weight:bold;" target="_blank" title="Click to know more about SAVING">SAVING</a> drugs are essential. So a change in their price will not affect in its quantity demanded. That is ED = <a href="https://interviewquestions.tuteehub.com/tag/0-251616" style="font-weight:bold;" target="_blank" title="Click to know more about 0">0</a>. Life saving drugs have a <a href="https://interviewquestions.tuteehub.com/tag/perfectly-7309466" style="font-weight:bold;" target="_blank" title="Click to know more about PERFECTLY">PERFECTLY</a> <a href="https://interviewquestions.tuteehub.com/tag/inelastic-7382420" style="font-weight:bold;" target="_blank" title="Click to know more about INELASTIC">INELASTIC</a> demand.</body></html> | |
| 73. |
Does quilibriumlevelofincomeandoutputalwaysindicatestateoffullemploymentin theeconomy? Explain . |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :theequilibriumlevelof <a href="https://interviewquestions.tuteehub.com/tag/income-25499" style="font-weight:bold;" target="_blank" title="Click to know more about INCOME">INCOME</a> andoutputdoesnot reflect alwaysthe <a href="https://interviewquestions.tuteehub.com/tag/stateof-2281400" style="font-weight:bold;" target="_blank" title="Click to know more about STATEOF">STATEOF</a> full employmentinthe <a href="https://interviewquestions.tuteehub.com/tag/economy-21801" style="font-weight:bold;" target="_blank" title="Click to know more about ECONOMY">ECONOMY</a>, whenaggregatedemand(<a href="https://interviewquestions.tuteehub.com/tag/ad-361679" style="font-weight:bold;" target="_blank" title="Click to know more about AD">AD</a>)isshortof Aggregatesupply(AS)at fullemploymentlevel ',thenit isunderemploymentequilibriumon thecontrarywhen ADisgreaterthan As , at fullemploymentlevel', atthattimesituationofexcessdemandfullemploymentequilibriumtakesplaceonlywhen AD=AS at full employmentlevel.</body></html> | |
| 74. |
How does a central bank influence credit creation by commercial banks "through open marketoperation '? Expalin |
| Answer» <html><body><p></p>Solution :Central banks affect the quantity of money in circulation by buying or selling government securities through the process known as open market operations (OMO). When a central bank is looking to increase the quantity of money in circulation, it purchases government securities from commercial banks and institutions. This frees up bank assets—they now have more cash to loan. This is a part of an expansionary or easing monetary <a href="https://interviewquestions.tuteehub.com/tag/policy-602125" style="font-weight:bold;" target="_blank" title="Click to know more about POLICY">POLICY</a> which brings down the interest <a href="https://interviewquestions.tuteehub.com/tag/rate-1177476" style="font-weight:bold;" target="_blank" title="Click to know more about RATE">RATE</a> in the economy. The opposite is done in a <a href="https://interviewquestions.tuteehub.com/tag/case-910082" style="font-weight:bold;" target="_blank" title="Click to know more about CASE">CASE</a> where money needs to taken out from the system. In the United States, the Federal Reserve uses open market operations to reach a targeted federal funds rate. The federal funds rate is the interest rate at which banks and institutions <a href="https://interviewquestions.tuteehub.com/tag/lend-536975" style="font-weight:bold;" target="_blank" title="Click to know more about LEND">LEND</a> money to each other overnight. Each lending-borrowing pair negotiates their own rate, and the average of these is the federal funds rate. The federal funds rate, in turn, affects every other interest rate. Open market operations are a widely used instrument as they are flexible, easy to use, and effective.</body></html> | |
| 75. |
What is meant by variable (prime) cost of a firm? Give examples. |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :Cost of <a href="https://interviewquestions.tuteehub.com/tag/producing-2229964" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCING">PRODUCING</a> a good, in <a href="https://interviewquestions.tuteehub.com/tag/economics-260" style="font-weight:bold;" target="_blank" title="Click to know more about ECONOMICS">ECONOMICS</a>, is the sum total of explicit cost, <a href="https://interviewquestions.tuteehub.com/tag/implicit-504822" style="font-weight:bold;" target="_blank" title="Click to know more about IMPLICIT">IMPLICIT</a> cost and certain minimum profit (normal profit).</body></html> | |
| 76. |
Will the following factor incomes be a part of domestic factor income of India ? Give reasons for your answer Profit earned by an Indian company from its branch in Singapore. |
| Answer» <html><body><p><br/></p>Answer :Will not be included as it is earned <a href="https://interviewquestions.tuteehub.com/tag/outside-1143075" style="font-weight:bold;" target="_blank" title="Click to know more about OUTSIDE">OUTSIDE</a> the <a href="https://interviewquestions.tuteehub.com/tag/domestic-957937" style="font-weight:bold;" target="_blank" title="Click to know more about DOMESTIC">DOMESTIC</a> territory of India. American <a href="https://interviewquestions.tuteehub.com/tag/embassy-450547" style="font-weight:bold;" target="_blank" title="Click to know more about EMBASSY">EMBASSY</a> is domestic territory of America and not of India.</body></html> | |
| 77. |
Will the following factor incomes be a part of domestic factor income of India ? Give reasons for your answer Compensation of employees given to residents of China working in Indian Embassy in China. |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/answer-15557" style="font-weight:bold;" target="_blank" title="Click to know more about ANSWER">ANSWER</a> :Will be included as it is <a href="https://interviewquestions.tuteehub.com/tag/earned-7273289" style="font-weight:bold;" target="_blank" title="Click to know more about EARNED">EARNED</a> within domestic territory of <a href="https://interviewquestions.tuteehub.com/tag/india-54" style="font-weight:bold;" target="_blank" title="Click to know more about INDIA">INDIA</a>.</body></html> | |
| 78. |
Export of machinery is recorded in the: |
| Answer» <html><body><p>credit <a href="https://interviewquestions.tuteehub.com/tag/side-1206832" style="font-weight:bold;" target="_blank" title="Click to know more about SIDE">SIDE</a> of capital account<br/>debit sale of capital account<br/>credit side of <a href="https://interviewquestions.tuteehub.com/tag/current-940804" style="font-weight:bold;" target="_blank" title="Click to know more about CURRENT">CURRENT</a> account<br/>debit side of current account</p>Answer :C</body></html> | |
| 79. |
Will the following factor incomes be a part of domestic factor income of India ? Give reasons for your answer Salaries received by Indian residents, working in American ambassy in India. |
| Answer» <html><body><p><br/></p>Answer :Will not be <a href="https://interviewquestions.tuteehub.com/tag/included-499087" style="font-weight:bold;" target="_blank" title="Click to know more about INCLUDED">INCLUDED</a> as it is <a href="https://interviewquestions.tuteehub.com/tag/earned-7273289" style="font-weight:bold;" target="_blank" title="Click to know more about EARNED">EARNED</a> outside the domestic territory of India. <a href="https://interviewquestions.tuteehub.com/tag/american-374087" style="font-weight:bold;" target="_blank" title="Click to know more about AMERICAN">AMERICAN</a> embassy is domestic territory of <a href="https://interviewquestions.tuteehub.com/tag/america-374038" style="font-weight:bold;" target="_blank" title="Click to know more about AMERICA">AMERICA</a> and not of India.</body></html> | |
| 80. |
Will the following factor incomes be a part of domestic factor income of India ? Give reasons for your answer Profit eraned by foreign banks from their branches in India. |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/answer-15557" style="font-weight:bold;" target="_blank" title="Click to know more about ANSWER">ANSWER</a> :Will be included as it is earned <a href="https://interviewquestions.tuteehub.com/tag/within-732414" style="font-weight:bold;" target="_blank" title="Click to know more about WITHIN">WITHIN</a> <a href="https://interviewquestions.tuteehub.com/tag/domestic-957937" style="font-weight:bold;" target="_blank" title="Click to know more about DOMESTIC">DOMESTIC</a> of India.</body></html> | |
| 81. |
How will you treat the following while estimating national income of India ? Give reasons for your answer. (i) Salaries received by Indian residents working in Russian Embassy in India . (ii) Profits earned by an Indian bank from its branches abroad. (iii) Goods and Services Tax received by the government. |
| Answer» <html><body><p><br/></p>Solution :1.Yes, it will be <a href="https://interviewquestions.tuteehub.com/tag/included-499087" style="font-weight:bold;" target="_blank" title="Click to know more about INCLUDED">INCLUDED</a> in the national income as it is a <a href="https://interviewquestions.tuteehub.com/tag/pan-590075" style="font-weight:bold;" target="_blank" title="Click to know more about PAN">PAN</a> of factor income from abroad.2.Yes, they will be included in the national income as they are a <a href="https://interviewquestions.tuteehub.com/tag/part-596478" style="font-weight:bold;" target="_blank" title="Click to know more about PART">PART</a> of the factor income from abroad.3.NO we will not be included it in national income , because we calculate national income at factor <a href="https://interviewquestions.tuteehub.com/tag/cost-25707" style="font-weight:bold;" target="_blank" title="Click to know more about COST">COST</a> .</body></html> | |
| 82. |
Value of investment multiplier varies between zero and infinity. |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/let-11597" style="font-weight:bold;" target="_blank" title="Click to know more about LET">LET</a> <a href="https://interviewquestions.tuteehub.com/tag/us-718298" style="font-weight:bold;" target="_blank" title="Click to know more about US">US</a> consider the <a href="https://interviewquestions.tuteehub.com/tag/following-463335" style="font-weight:bold;" target="_blank" title="Click to know more about FOLLOWING">FOLLOWING</a> equation:K = 1/1-MPCwhere K is the investment <a href="https://interviewquestions.tuteehub.com/tag/multiplier-1106266" style="font-weight:bold;" target="_blank" title="Click to know more about MULTIPLIER">MULTIPLIER</a> and MPC is the <a href="https://interviewquestions.tuteehub.com/tag/marginal-555038" style="font-weight:bold;" target="_blank" title="Click to know more about MARGINAL">MARGINAL</a> Propensity to Consume.Here, if MPC is 0 , the value of investment multiplier will be 1 and if MPC is 1 , the value of investment multiplier will be infinity ( the value of MPC ranges from 0 to 1).So, value of K does not varies from 0 to infinity instead it varies from 1 to infinity.</body></html> | |
| 83. |
When planned saving is less than planned investment, It indicates a situation when: |
| Answer» <html><body><p>AD`lt`AS<br/>AD=AS<br/>AD`gt`AS<br/>None of these<br/></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/excess-978535" style="font-weight:bold;" target="_blank" title="Click to know more about EXCESS">EXCESS</a> of planned <a href="https://interviewquestions.tuteehub.com/tag/savings-1195409" style="font-weight:bold;" target="_blank" title="Click to know more about SAVINGS">SAVINGS</a> (say, 25,000 crore) over planned Investment (say, 20,000 crore) means that expenditure in the economy is less than what producers had expected.This would result in undesired build-up of unsold stock. Consequently, AD falls <a href="https://interviewquestions.tuteehub.com/tag/short-642706" style="font-weight:bold;" target="_blank" title="Click to know more about SHORT">SHORT</a> of AS. So, <a href="https://interviewquestions.tuteehub.com/tag/option1-2207247" style="font-weight:bold;" target="_blank" title="Click to know more about OPTION1">OPTION1</a> is correct.</body></html> | |
| 84. |
In an economy C=500 + 0.9Y and I= 1000, Find (i) equilibrium level of income (ii) consumption at equilibrium. |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :`15000,14000`</body></html> | |
| 85. |
A consumer consumes only two good X and Y both priced at Rs.3 per unit. If the consumer chooses a combination of these two goods with Marginal Rate of Substitution equal to 3, is the consumer in equilibrium ? Give reasons. What will a rational consumer do in this situation ? Explain. OR A consumer consumes only two goods X and Y whose prices are Rs.4 and Rs.5 per unit respectively. If the consumer chooses a combination of the two goods with marginal utility of X equal to 5 and that of Y equal to 4, is the consumer in equilibrium? Give reason. What will a rational consumer do in this situation? Use utility analysis. |
| Answer» <html><body><p></p>Solution :At the <a href="https://interviewquestions.tuteehub.com/tag/point-1157106" style="font-weight:bold;" target="_blank" title="Click to know more about POINT">POINT</a> of consumer equilibrium the following equality should be met : <br/>`MRS=(P_(x))/(P_(y))`<br/> According to the question, <br/> MRS=3 <br/> `(P_(x))/(P_(y))=(3)/(3)=1`<br/>So, MRS is greater than the price ratio. Thus, to reach the equilibrium point a <a href="https://interviewquestions.tuteehub.com/tag/rational-613044" style="font-weight:bold;" target="_blank" title="Click to know more about RATIONAL">RATIONAL</a> consumer would decrease the consumption of <a href="https://interviewquestions.tuteehub.com/tag/good-1009017" style="font-weight:bold;" target="_blank" title="Click to know more about GOOD">GOOD</a> y.<br/>OR<br/>According to the utility approach, a consumer reaches equilibrium where the following equality is met. <br/> `(MU_(x))/(P_(x))=(MU_(y))/(P_(y))`<br/>According to the given question, <br/>`(MU_(x))/(P_(x))=(5)/(4)`<br/>`(MU_(y))/(P_(y))=(4)/(5)`<br/> So, `(MU_(x))/(P_(x))` is greater than `(MU_(y))/(P_(y))`. Thus, to reach the equilibrium, a rational consumer would <a href="https://interviewquestions.tuteehub.com/tag/increase-1040383" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASE">INCREASE</a> the consumption of good x and decrease that of good y.</body></html> | |
| 86. |
Is national income a stock concept or flow concept ? |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/national-21808" style="font-weight:bold;" target="_blank" title="Click to know more about NATIONAL">NATIONAL</a> <a href="https://interviewquestions.tuteehub.com/tag/income-25499" style="font-weight:bold;" target="_blank" title="Click to know more about INCOME">INCOME</a> is a flow concept as it measured over a <a href="https://interviewquestions.tuteehub.com/tag/period-1151023" style="font-weight:bold;" target="_blank" title="Click to know more about PERIOD">PERIOD</a> of <a href="https://interviewquestions.tuteehub.com/tag/time-19467" style="font-weight:bold;" target="_blank" title="Click to know more about TIME">TIME</a>.</body></html> | |
| 87. |
Give and explain the types of propensity to consume. |
| Answer» <html><body><p></p>Solution :Average Propensity to Consume (APC): It refers to the <a href="https://interviewquestions.tuteehub.com/tag/ratio-13379" style="font-weight:bold;" target="_blank" title="Click to know more about RATIO">RATIO</a> of consumption expenditure (C ) to the corresponding level of income(Y). `APC=(C )/(Y)` <br/> (b).Marginal Propensity to Consume (<a href="https://interviewquestions.tuteehub.com/tag/mpc-548966" style="font-weight:bold;" target="_blank" title="Click to know more about MPC">MPC</a>). It refers to the ratio of <a href="https://interviewquestions.tuteehub.com/tag/change-913808" style="font-weight:bold;" target="_blank" title="Click to know more about CHANGE">CHANGE</a> in consumption expenditure `(DeltaC)` to change in <a href="https://interviewquestions.tuteehub.com/tag/total-711110" style="font-weight:bold;" target="_blank" title="Click to know more about TOTAL">TOTAL</a> income `(DeltaY)` `MPC=(DeltaC)/(DeltaY)`</body></html> | |
| 88. |
Supply curve of foreignexchange : |
| Answer» <html><body><p> <a href="https://interviewquestions.tuteehub.com/tag/horizontal-1029056" style="font-weight:bold;" target="_blank" title="Click to know more about HORIZONTAL">HORIZONTAL</a> straight line <a href="https://interviewquestions.tuteehub.com/tag/parallel-1146369" style="font-weight:bold;" target="_blank" title="Click to know more about PARALLEL">PARALLEL</a> to X-axis<br/> Verical straight line parallel to Y-axis <br/>Slope downwards <br/>Slope upwards </p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :N//A</body></html> | |
| 89. |
Suppose there are 20 consumers for a good and they have identical demand functions : d(p) = 10 -3p for any price less than or equal to (10)/(3) and d_(1)(p) 0 at any price greater than (10)/(3). What is the market demand funciton ? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :It can be seen from the given <a href="https://interviewquestions.tuteehub.com/tag/demand-436956" style="font-weight:bold;" target="_blank" title="Click to know more about DEMAND">DEMAND</a> functions, that 20 consumer do not <a href="https://interviewquestions.tuteehub.com/tag/want-1448756" style="font-weight:bold;" target="_blank" title="Click to know more about WANT">WANT</a> to demand the goods at any <a href="https://interviewquestions.tuteehub.com/tag/price-1165141" style="font-weight:bold;" target="_blank" title="Click to know more about PRICE">PRICE</a> greater than or equal to `(10)/(3)`. All of them demand only at a price of less than Rs `(10)/(3)`.<br/> For a single consumer d[P] = 10 - 3P For 20 consumers, <br/> `d_("market")[P] = [10 xx 3P] xx 20 = 20 - 60 P`, for price `(10)/(3)` and`d_("market")[P] = <a href="https://interviewquestions.tuteehub.com/tag/0-251616" style="font-weight:bold;" target="_blank" title="Click to know more about 0">0</a>`, ......, for price `gt = (10)/(3)`</body></html> | |
| 90. |
An economyis onlyinequilibriumwherethereis fullemployment . |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/answer-15557" style="font-weight:bold;" target="_blank" title="Click to know more about ANSWER">ANSWER</a> :Falseas equilibriumcanoccur withfullemo=ployment, underemploymentand overfullemployment .</body></html> | |
| 91. |
Define total fixed cost (Supplement/ Indirect/overhead cost). |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :(i) Fixed <a href="https://interviewquestions.tuteehub.com/tag/costs-25578" style="font-weight:bold;" target="_blank" title="Click to know more about COSTS">COSTS</a> are those costs of <a href="https://interviewquestions.tuteehub.com/tag/production-14556" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCTION">PRODUCTION</a> which do not change with a change in output. <br/> (ii) These are the costs <a href="https://interviewquestions.tuteehub.com/tag/incurred-2733406" style="font-weight:bold;" target="_blank" title="Click to know more about INCURRED">INCURRED</a> on fixed factors, like rent 4of land and building, interest, <a href="https://interviewquestions.tuteehub.com/tag/etc-975753" style="font-weight:bold;" target="_blank" title="Click to know more about ETC">ETC</a>. These are unavoidable contractual costs. <br/> (iii) Fixed costs are also called overhead costs or general costs because these are common for all the units produced. These costs are also called supplementary costs or indirect costs. <br/> (iv) The shape of Total fixed Cost is horizontal (Parallel to X-Axis). They have to be incurred when the output is large or small or even zero.</body></html> | |
| 92. |
If the value of marginal propensity to save is 0.25, what is the value of multiplier ? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<a href="https://interviewquestions.tuteehub.com/tag/multiplier-1106266" style="font-weight:bold;" target="_blank" title="Click to know more about MULTIPLIER">MULTIPLIER</a> `=<a href="https://interviewquestions.tuteehub.com/tag/1-256655" style="font-weight:bold;" target="_blank" title="Click to know more about 1">1</a>/(<a href="https://interviewquestions.tuteehub.com/tag/mps-1104735" style="font-weight:bold;" target="_blank" title="Click to know more about MPS">MPS</a>)=1/0.25 =<a href="https://interviewquestions.tuteehub.com/tag/4-311707" style="font-weight:bold;" target="_blank" title="Click to know more about 4">4</a>`.</body></html> | |
| 93. |
Law of demand is one sided. It explains only the effect of change in price on the quantity demanded. It states nothing about the effect of change in quantity demanded on the price of the commodity. |
| Answer» <html><body><p></p>Solution :The conditions are : <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/FM_M_ECO_XII_P1_C03_E02_041_S01.png" width="80%"/> <br/> (i) <a href="https://interviewquestions.tuteehub.com/tag/price-1165141" style="font-weight:bold;" target="_blank" title="Click to know more about PRICE">PRICE</a> of substitute gods rises. <br/> (ii) Price of complementary goods <a href="https://interviewquestions.tuteehub.com/tag/falls-983294" style="font-weight:bold;" target="_blank" title="Click to know more about FALLS">FALLS</a>. <br/> (iii) Income of a consumer rises in case of normal goods. <br/> (<a href="https://interviewquestions.tuteehub.com/tag/iv-501699" style="font-weight:bold;" target="_blank" title="Click to know more about IV">IV</a>)Income of aconsumer falls in case of <a href="https://interviewquestions.tuteehub.com/tag/inferior-515744" style="font-weight:bold;" target="_blank" title="Click to know more about INFERIOR">INFERIOR</a> goods. <br/> (v) When the <a href="https://interviewquestions.tuteehub.com/tag/preferences-1163219" style="font-weight:bold;" target="_blank" title="Click to know more about PREFERENCES">PREFERENCES</a> are favourable.</body></html> | |
| 94. |
Discuss the difference betweenn a central bank and a commercial bank |
| Answer» | |
| 95. |
Expenditure on exports by foreigners. |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/answer-15557" style="font-weight:bold;" target="_blank" title="Click to know more about ANSWER">ANSWER</a> :<a href="https://interviewquestions.tuteehub.com/tag/net-5194" style="font-weight:bold;" target="_blank" title="Click to know more about NET">NET</a> <a href="https://interviewquestions.tuteehub.com/tag/exports-980785" style="font-weight:bold;" target="_blank" title="Click to know more about EXPORTS">EXPORTS</a> of <a href="https://interviewquestions.tuteehub.com/tag/goods-1009877" style="font-weight:bold;" target="_blank" title="Click to know more about GOODS">GOODS</a> and <a href="https://interviewquestions.tuteehub.com/tag/services-1202745" style="font-weight:bold;" target="_blank" title="Click to know more about SERVICES">SERVICES</a></body></html> | |
| 96. |
Distinguish between real gross domestic product and nominal gross domestic product. Can gross domestic product be used as an index of welfare of the people ? Give two reasons. |
| Answer» <html><body><p></p>Solution :Nominal GDP is the sum-total of the economic output produced in a <a href="https://interviewquestions.tuteehub.com/tag/year-1464599" style="font-weight:bold;" target="_blank" title="Click to know more about YEAR">YEAR</a> valued at the <a href="https://interviewquestions.tuteehub.com/tag/current-940804" style="font-weight:bold;" target="_blank" title="Click to know more about CURRENT">CURRENT</a> market <a href="https://interviewquestions.tuteehub.com/tag/price-1165141" style="font-weight:bold;" target="_blank" title="Click to know more about PRICE">PRICE</a>. Real GDP is the sum-total of the economic output produced in a year values at a <a href="https://interviewquestions.tuteehub.com/tag/predetermined-7263959" style="font-weight:bold;" target="_blank" title="Click to know more about PREDETERMINED">PREDETERMINED</a> base market price. Nominal GDP doesn't take inflation into account.GDP does not incorporate any measures of welfarebecause1.GDP only includes market transactions2.GDP ignores externalities</body></html> | |
| 97. |
In order to encourage tourism in Goa, Indian Airlines reduces the air fare to Goa. How will it affect market demand curve for air travel to Goa? |
| Answer» <html><body><p></p>Solution : There will be a <a href="https://interviewquestions.tuteehub.com/tag/downward-2061463" style="font-weight:bold;" target="_blank" title="Click to know more about DOWNWARD">DOWNWARD</a> movement along the same <a href="https://interviewquestions.tuteehub.com/tag/market-25464" style="font-weight:bold;" target="_blank" title="Click to know more about MARKET">MARKET</a> demand curve (expansion in demand) for <a href="https://interviewquestions.tuteehub.com/tag/air-852233" style="font-weight:bold;" target="_blank" title="Click to know more about AIR">AIR</a> <a href="https://interviewquestions.tuteehub.com/tag/travel-1426745" style="font-weight:bold;" target="_blank" title="Click to know more about TRAVEL">TRAVEL</a> to Goa. It happens because of <a href="https://interviewquestions.tuteehub.com/tag/decrease-946104" style="font-weight:bold;" target="_blank" title="Click to know more about DECREASE">DECREASE</a> in the air fare.</body></html> | |
| 98. |
Average revenue will always be equal to marginal revenue in all market conditions. Defend or refute. |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/refute-2247120" style="font-weight:bold;" target="_blank" title="Click to know more about REFUTE">REFUTE</a>: MR and <a href="https://interviewquestions.tuteehub.com/tag/ar-380980" style="font-weight:bold;" target="_blank" title="Click to know more about AR">AR</a> will be equal only for a perfectly competitive firm, because it is faced with a horizontal straight line demand curve. Under all other market conditions MR will always be <a href="https://interviewquestions.tuteehub.com/tag/less-1071906" style="font-weight:bold;" target="_blank" title="Click to know more about LESS">LESS</a> than AR.</body></html> | |
| 99. |
One of the following is a renewable source of energy : |
| Answer» <html><body><p>Coal<br/>Oil<br/>Solar energy<br/>Natural gas</p>Solution :N//A</body></html> | |
| 100. |
What is the basic difference between the sport market and forward market? |
| Answer» <html><body><p></p>Solution :If the operation of markets is of <a href="https://interviewquestions.tuteehub.com/tag/daily-430694" style="font-weight:bold;" target="_blank" title="Click to know more about DAILY">DAILY</a> nature, it is called sport or current market <a href="https://interviewquestions.tuteehub.com/tag/whereas-2326610" style="font-weight:bold;" target="_blank" title="Click to know more about WHEREAS">WHEREAS</a>, if the operation of market is for <a href="https://interviewquestions.tuteehub.com/tag/future-2559" style="font-weight:bold;" target="_blank" title="Click to know more about FUTURE">FUTURE</a> delivery of <a href="https://interviewquestions.tuteehub.com/tag/foreign-995515" style="font-weight:bold;" target="_blank" title="Click to know more about FOREIGN">FOREIGN</a> exchange, it is called <a href="https://interviewquestions.tuteehub.com/tag/forward-464460" style="font-weight:bold;" target="_blank" title="Click to know more about FORWARD">FORWARD</a> market.</body></html> | |