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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.
| 3351. |
Define Ex-ante investments. |
| 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> :Ex-ante <a href="https://interviewquestions.tuteehub.com/tag/investments-25466" style="font-weight:bold;" target="_blank" title="Click to know more about INVESTMENTS">INVESTMENTS</a> refers to the amount of investments which <a href="https://interviewquestions.tuteehub.com/tag/investors-1050943" style="font-weight:bold;" target="_blank" title="Click to know more about INVESTORS">INVESTORS</a> plan to invest at <a href="https://interviewquestions.tuteehub.com/tag/different-951434" style="font-weight:bold;" target="_blank" title="Click to know more about DIFFERENT">DIFFERENT</a> levels of income in an economy.</body></html> | |
| 3352. |
A consumer consumes only two goods X and Y. At a consumption level of these two goods , he finds that the ratio of marginal utility to price in case of X is higher than that in case. of X is higher than that in case of Y . Explain the reaction of consumer. |
| Answer» <html><body><p></p>Solution :As, we know conditions for consumer equilibrium is ,<br/>Necessary Condition<br/> Marginal <a href="https://interviewquestions.tuteehub.com/tag/utility-1441817" style="font-weight:bold;" target="_blank" title="Click to know more about UTILITY">UTILITY</a> of last rupee spent on each commodity is same . <br/><a href="https://interviewquestions.tuteehub.com/tag/suppose-656311" style="font-weight:bold;" target="_blank" title="Click to know more about SUPPOSE">SUPPOSE</a> there are two commodities, X and Y respectively. <br/> So , for commodity X, the condition is, Marginal Utility of Money = Price of X<br/> Or `(" Marginal in Util Product in Util " [MU_x])/( "Marginal Utility of One Rupee " [MU_R])` = Price of X <br/> or `(MU_x)/(P_x) = MU_R "".....(1)` <br/> Similarly, for commodity Y , the condition is, <br/> `(MU_y)/P_y=MU_R ""....(2)` <br/> Putting <a href="https://interviewquestions.tuteehub.com/tag/equation-974081" style="font-weight:bold;" target="_blank" title="Click to know more about EQUATION">EQUATION</a> (2) in (1), we get <br/> `(MU_x)/(P_y)=(MU_y)/P_y` <br/> But as given in the question that the ratio of marginal utility to price 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 X is <a href="https://interviewquestions.tuteehub.com/tag/higher-1022060" style="font-weight:bold;" target="_blank" title="Click to know more about HIGHER">HIGHER</a> than that in case of Y, i.e., `(MU_x)/P_x gt (MU_y)/P_y` <br/> It means marginal utility from the last rupee spent on commodity X is more than marginal utility from the last rupee spent on commodity Y. So, to attain the equilibrium consumer must increase the quantity of X, which decreases the `MU_x` and decreases the quantity of Y, which will increase the `MU_y` Increase in quantity of X and decrease in quantity of Y continue till `(MU_x)/P_x = (MU_y)/P_y` .</body></html> | |
| 3353. |
Which of the following is a correct measure of primary deficit ? |
| Answer» <html><body><p>fiscal <a href="https://interviewquestions.tuteehub.com/tag/deficit-946992" style="font-weight:bold;" target="_blank" title="Click to know more about DEFICIT">DEFICIT</a> minus revenue deficit <br/>revenue deficit minus interest <a href="https://interviewquestions.tuteehub.com/tag/payments-1149318" style="font-weight:bold;" target="_blank" title="Click to know more about PAYMENTS">PAYMENTS</a> <br/>fiscal deficit minus interest payments <br/><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/expenditure-980222" style="font-weight:bold;" target="_blank" title="Click to know more about EXPENDITURE">EXPENDITURE</a> minus revenue expenditure</p>Answer :<a href="https://interviewquestions.tuteehub.com/tag/c-7168" style="font-weight:bold;" target="_blank" title="Click to know more about C">C</a></body></html> | |
| 3354. |
Suppose a ban is imposed on consumption of liquor in the country. Examine its effects on (a) gross domestic product and (b) welfare. |
| 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> :Following are the effectsofban on consumption ofliquor in the country1. Gross domestic product :If a ban is imposed on the consumption of liquor , gross domestic product will will be adversely affected <a href="https://interviewquestions.tuteehub.com/tag/atleastin-2447984" style="font-weight:bold;" target="_blank" title="Click to know more about ATLEASTIN">ATLEASTIN</a> short run . Alcohol industryis one of the <a href="https://interviewquestions.tuteehub.com/tag/biggest-897026" style="font-weight:bold;" target="_blank" title="Click to know more about BIGGEST">BIGGEST</a> industries. It would result in problem of unemployment and decline in tourism . The sale of liquor contributes to the economy through tax to the government2. Welfare-It a ban is imposed on consumption of liquor , welfare of the countrywould improve . A number of social <a href="https://interviewquestions.tuteehub.com/tag/problems-13702" style="font-weight:bold;" target="_blank" title="Click to know more about PROBLEMS">PROBLEMS</a> originate from the consumption pf liquor , there would be a decline in number of accidents ,<a href="https://interviewquestions.tuteehub.com/tag/rapes-1177138" style="font-weight:bold;" target="_blank" title="Click to know more about RAPES">RAPES</a> and murders</body></html> | |
| 3355. |
A consumer buys 20 units of a good at Rs. 10 per unit. The price elasticity of demand of this good is (-)1. Calculate quantity demanded by the consumer when price falls to Rs. 8 per unit. |
| Answer» <html><body><p><<a href="https://interviewquestions.tuteehub.com/tag/p-588962" style="font-weight:bold;" target="_blank" title="Click to know more about P">P</a>></p>Solution :`{:("PED" =[-]1),("Initial Price (P) = 10Initial Quantity "(Q)=<a href="https://interviewquestions.tuteehub.com/tag/20-287209" style="font-weight:bold;" target="_blank" title="Click to know more about 20">20</a>),("New Price "(P_(1))=<a href="https://interviewquestions.tuteehub.com/tag/8-336412" style="font-weight:bold;" target="_blank" title="Click to know more about 8">8</a> "New Quantity " (Q_(1))=?),(Delta P=[-]<a href="https://interviewquestions.tuteehub.com/tag/2-283658" style="font-weight:bold;" target="_blank" title="Click to know more about 2">2</a> "" Delta Q=?):}`<br/>`PED=(Delta Q)/(Delta P)xx(P)/(Q) "or" (-)1=(Delta Q)/((-)2)xx(10)/(20)`<br/>`Delta Q=4`<br/> As, Price is falling, than <a href="https://interviewquestions.tuteehub.com/tag/demand-436956" style="font-weight:bold;" target="_blank" title="Click to know more about DEMAND">DEMAND</a> must rise by `Delta Q`.<br/> So, New Quantity = Initial Quantity `+Delta Q=20+4+24`</body></html> | |
| 3356. |
What is meant by margin requirement? |
| Answer» <html><body><p></p>Solution :The difference between the <a href="https://interviewquestions.tuteehub.com/tag/market-25464" style="font-weight:bold;" target="_blank" title="Click to know more about MARKET">MARKET</a> value of <a href="https://interviewquestions.tuteehub.com/tag/security-11642" style="font-weight:bold;" target="_blank" title="Click to know more about SECURITY">SECURITY</a> <a href="https://interviewquestions.tuteehub.com/tag/offered-7257483" style="font-weight:bold;" target="_blank" title="Click to know more about OFFERED">OFFERED</a> and the value of amount <a href="https://interviewquestions.tuteehub.com/tag/lent-536982" style="font-weight:bold;" target="_blank" title="Click to know more about LENT">LENT</a> is called margin requirement.</body></html> | |
| 3357. |
What is the meant by excess demand in Macroeconomics? |
| Answer» <html><body><p></p>Solution :Excess <a href="https://interviewquestions.tuteehub.com/tag/demand-436956" style="font-weight:bold;" target="_blank" title="Click to know more about DEMAND">DEMAND</a> <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 the <a href="https://interviewquestions.tuteehub.com/tag/situation-1210683" style="font-weight:bold;" target="_blank" title="Click to know more about SITUATION">SITUATION</a> when <a href="https://interviewquestions.tuteehub.com/tag/aggregate-851607" style="font-weight:bold;" target="_blank" title="Click to know more about AGGREGATE">AGGREGATE</a> demand is more than the aggregate supply <a href="https://interviewquestions.tuteehub.com/tag/corresponding-935567" style="font-weight:bold;" target="_blank" title="Click to know more about CORRESPONDING">CORRESPONDING</a> to the full employment level in the economy.</body></html> | |
| 3358. |
What is devaluation ? |
| 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/devaluations-7677799" style="font-weight:bold;" target="_blank" title="Click to know more about DEVALUATIONS">DEVALUATIONS</a> issaid tooccur when the exchange <a href="https://interviewquestions.tuteehub.com/tag/rate-1177476" style="font-weight:bold;" target="_blank" title="Click to know more about RATE">RATE</a> is <a href="https://interviewquestions.tuteehub.com/tag/increased-1040402" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASED">INCREASED</a> by the governmentunder fixedexchange rate <a href="https://interviewquestions.tuteehub.com/tag/system-1237255" style="font-weight:bold;" target="_blank" title="Click to know more about SYSTEM">SYSTEM</a></body></html> | |
| 3359. |
Define barter exchange |
| 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/exchange-454713" style="font-weight:bold;" target="_blank" title="Click to know more about EXCHANGE">EXCHANGE</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> for goods (C-C <a href="https://interviewquestions.tuteehub.com/tag/economy-21801" style="font-weight:bold;" target="_blank" title="Click to know more about ECONOMY">ECONOMY</a>)</body></html> | |
| 3360. |
What is foreign exchange rate? |
| Answer» <html><body><p></p>Solution :Foreign exchange rate refers to the rate at which the currency of one country is <a href="https://interviewquestions.tuteehub.com/tag/exchanged-2075520" style="font-weight:bold;" target="_blank" title="Click to know more about EXCHANGED">EXCHANGED</a> with the currency of another country, for example, if <a href="https://interviewquestions.tuteehub.com/tag/rs-625947" style="font-weight:bold;" target="_blank" title="Click to know more about RS">RS</a> 60 are to <a href="https://interviewquestions.tuteehub.com/tag/paid-1145567" style="font-weight:bold;" target="_blank" title="Click to know more about PAID">PAID</a> to buy one US dollar, then the exchange rate between two <a href="https://interviewquestions.tuteehub.com/tag/currencies-940734" style="font-weight:bold;" target="_blank" title="Click to know more about CURRENCIES">CURRENCIES</a> is `$<a href="https://interviewquestions.tuteehub.com/tag/1-256655" style="font-weight:bold;" target="_blank" title="Click to know more about 1">1</a> = Rs 60.`</body></html> | |
| 3361. |
Which of the following is an indirect tax ? |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/corporation-934488" style="font-weight:bold;" target="_blank" title="Click to know more about CORPORATION">CORPORATION</a> tax<br/>Personal <a href="https://interviewquestions.tuteehub.com/tag/income-25499" style="font-weight:bold;" target="_blank" title="Click to know more about INCOME">INCOME</a> tax<br/>GST<br/>None of the above</p>Answer :<a href="https://interviewquestions.tuteehub.com/tag/c-7168" style="font-weight:bold;" target="_blank" title="Click to know more about C">C</a></body></html> | |
| 3362. |
Define Fiscal deficit . |
| 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> :Fiscal <a href="https://interviewquestions.tuteehub.com/tag/deficit-946992" style="font-weight:bold;" target="_blank" title="Click to know more about DEFICIT">DEFICIT</a> refers to the excess of <a href="https://interviewquestions.tuteehub.com/tag/total-711110" style="font-weight:bold;" target="_blank" title="Click to know more about TOTAL">TOTAL</a> budgetary <a href="https://interviewquestions.tuteehub.com/tag/expenditure-980222" style="font-weight:bold;" target="_blank" title="Click to know more about EXPENDITURE">EXPENDITURE</a> over total budgetary receipts excluding <a href="https://interviewquestions.tuteehub.com/tag/borrowings-901274" style="font-weight:bold;" target="_blank" title="Click to know more about BORROWINGS">BORROWINGS</a> .</body></html> | |
| 3363. |
Following will be included in national income |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/expenditure-980222" style="font-weight:bold;" target="_blank" title="Click to know more about EXPENDITURE">EXPENDITURE</a> on <a href="https://interviewquestions.tuteehub.com/tag/construction-4021" style="font-weight:bold;" target="_blank" title="Click to know more about CONSTRUCTION">CONSTRUCTION</a> of a house<br/>expenditure on <a href="https://interviewquestions.tuteehub.com/tag/adding-2399902" style="font-weight:bold;" target="_blank" title="Click to know more about ADDING">ADDING</a> a <a href="https://interviewquestions.tuteehub.com/tag/floor-993091" style="font-weight:bold;" target="_blank" title="Click to know more about FLOOR">FLOOR</a> to the <a href="https://interviewquestions.tuteehub.com/tag/building-905221" style="font-weight:bold;" target="_blank" title="Click to know more about BUILDING">BUILDING</a> <br/>expenditure on construction of a dam<br/>all of these.</p>Answer :D</body></html> | |
| 3364. |
In case of Giffengoods, the demand curve will be : |
| 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>. <br/>downward-sloping to the <a href="https://interviewquestions.tuteehub.com/tag/right-1188951" style="font-weight:bold;" target="_blank" title="Click to know more about RIGHT">RIGHT</a>.<br/>vertical<br/>upward-slopingto the right. </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> :d</body></html> | |
| 3365. |
Value added is: |
| Answer» <html><body><p>Sale <a href="https://interviewquestions.tuteehub.com/tag/price-1165141" style="font-weight:bold;" target="_blank" title="Click to know more about PRICE">PRICE</a> <a href="https://interviewquestions.tuteehub.com/tag/minus-1098111" style="font-weight:bold;" target="_blank" title="Click to know more about MINUS">MINUS</a> pruchase price <br/><a href="https://interviewquestions.tuteehub.com/tag/sales-25569" style="font-weight:bold;" target="_blank" title="Click to know more about SALES">SALES</a> plus stocks minus purchases <br/>Sales plus not change in stocks minus intermediate <a href="https://interviewquestions.tuteehub.com/tag/costs-25578" style="font-weight:bold;" target="_blank" title="Click to know more about COSTS">COSTS</a> <br/>Value of output minus purchasses</p>Answer :C</body></html> | |
| 3366. |
With a rise in real national income, welfare of the people: (Choose the correct alternative) |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/rises-1189694" style="font-weight:bold;" target="_blank" title="Click to know more about RISES">RISES</a><br/>Falls<br/>Remains unchanged<br/>None of the above</p>Solution :A. With a rise in <a href="https://interviewquestions.tuteehub.com/tag/real-1178490" style="font-weight:bold;" target="_blank" title="Click to know more about REAL">REAL</a> national <a href="https://interviewquestions.tuteehub.com/tag/income-25499" style="font-weight:bold;" target="_blank" title="Click to know more about INCOME">INCOME</a>, <a href="https://interviewquestions.tuteehub.com/tag/welfare-734378" style="font-weight:bold;" target="_blank" title="Click to know more about WELFARE">WELFARE</a> of the people `rises`.</body></html> | |
| 3367. |
Explain the meaning of deficit in a Balance of Payments account. ORHow is balance of payment 'deficit' measured? Explain. |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/deficit-946992" style="font-weight:bold;" target="_blank" title="Click to know more about DEFICIT">DEFICIT</a> in BOP account arises when total <a href="https://interviewquestions.tuteehub.com/tag/inflows-1043702" style="font-weight:bold;" target="_blank" title="Click to know more about INFLOWS">INFLOWS</a> on account of autonomous <a href="https://interviewquestions.tuteehub.com/tag/transactions-18175" style="font-weight:bold;" target="_blank" title="Click to know more about TRANSACTIONS">TRANSACTIONS</a> are <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 total <a href="https://interviewquestions.tuteehub.com/tag/outflows-1142713" style="font-weight:bold;" target="_blank" title="Click to know more about OUTFLOWS">OUTFLOWS</a> on account of such transactions.</body></html> | |
| 3368. |
In an economy with every increase in income 15% of the increased income is saved. Suppose a fresh investment of600 crore takes place in the economy, calculate the following: (1) Change in income (ii) Change in consumption. |
| 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/4000-315574" style="font-weight:bold;" target="_blank" title="Click to know more about 4000">4000</a> <a href="https://interviewquestions.tuteehub.com/tag/crore-939374" style="font-weight:bold;" target="_blank" title="Click to know more about CRORE">CRORE</a>, 3400 crore</body></html> | |
| 3369. |
Calculate the elasticity of demand by total expenditure method.{:("Price (Rs.)Total Expenditure (Rs.)"),("550"),("650"):} |
| 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> :Demand is unitary elastic (ED = <a href="https://interviewquestions.tuteehub.com/tag/1-256655" style="font-weight:bold;" target="_blank" title="Click to know more about 1">1</a>) as the total <a href="https://interviewquestions.tuteehub.com/tag/expenditure-980222" style="font-weight:bold;" target="_blank" title="Click to know more about EXPENDITURE">EXPENDITURE</a> remains constant at Rs. <a href="https://interviewquestions.tuteehub.com/tag/50-322056" style="font-weight:bold;" target="_blank" title="Click to know more about 50">50</a> with an increase in price from Rs. <a href="https://interviewquestions.tuteehub.com/tag/5-319454" style="font-weight:bold;" target="_blank" title="Click to know more about 5">5</a> to Rs. 6.<br/> Demand is unitary elastic (ED = 1).</body></html> | |
| 3370. |
Import of machines is recorded in current account. |
| Answer» <html><body><p></p>Solution :True. All imports and <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 goods are recorded in <a href="https://interviewquestions.tuteehub.com/tag/trade-711631" style="font-weight:bold;" target="_blank" title="Click to know more about TRADE">TRADE</a> account which is 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 current account, because it is simply import/export of a good.</body></html> | |
| 3371. |
In order to reducescreditin the country ,RBI may: |
| Answer» <html><body><p>Buysecuritiesin <a href="https://interviewquestions.tuteehub.com/tag/theopen-705683" style="font-weight:bold;" target="_blank" title="Click to know more about THEOPEN">THEOPEN</a> <a href="https://interviewquestions.tuteehub.com/tag/market-25464" style="font-weight:bold;" target="_blank" title="Click to know more about MARKET">MARKET</a> <br/>Sell securitiesin theopenmarket <br/>Reduce cashreseve <a href="https://interviewquestions.tuteehub.com/tag/ratio-13379" style="font-weight:bold;" target="_blank" title="Click to know more about RATIO">RATIO</a> <br/>None of these</p>Solution :B. In <a href="https://interviewquestions.tuteehub.com/tag/order-1138220" style="font-weight:bold;" target="_blank" title="Click to know more about ORDER">ORDER</a> to reducescreditin the country ,RBI may Sell securitiesin theopenmarket.</body></html> | |
| 3372. |
Define operating Surplus. State its components. |
| Answer» <html><body><p></p>Solution :Operating surplus refers to the sum of total of income from propertyand income from entrepreneurship.its components :<a href="https://interviewquestions.tuteehub.com/tag/rent-1184968" style="font-weight:bold;" target="_blank" title="Click to know more about RENT">RENT</a>, <a href="https://interviewquestions.tuteehub.com/tag/royalty-1191832" style="font-weight:bold;" target="_blank" title="Click to know more about ROYALTY">ROYALTY</a>, <a href="https://interviewquestions.tuteehub.com/tag/interest-13407" style="font-weight:bold;" target="_blank" title="Click to know more about INTEREST">INTEREST</a> , profit</body></html> | |
| 3373. |
Explain how can governmentbudget be helpful in reducinginequalities in incomes. |
| Answer» <html><body><p></p>Solution :Governmentcan achieve objective by imposinghigher <a href="https://interviewquestions.tuteehub.com/tag/rate-1177476" style="font-weight:bold;" target="_blank" title="Click to know more about RATE">RATE</a> of tax on income of the rich and 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> and services <a href="https://interviewquestions.tuteehub.com/tag/consumed-2540963" style="font-weight:bold;" target="_blank" title="Click to know more about CONSUMED">CONSUMED</a> by the rich. This will <a href="https://interviewquestions.tuteehub.com/tag/reduce-1181332" style="font-weight:bold;" target="_blank" title="Click to know more about REDUCE">REDUCE</a> disposableincome of the rich. Themoney so collected can be spent on poor byreducing tax on income and on providingsubsidizedor free goods and servicesto the poor. This will <a href="https://interviewquestions.tuteehub.com/tag/raise-1176780" style="font-weight:bold;" target="_blank" title="Click to know more about RAISE">RAISE</a> disposable incomeof the poor. In this way the extent of inequalitybetween rich and the poor can be reduced.</body></html> | |
| 3374. |
A 5 per cent fall in the price of a good raises its demand from 300 units to 318 units. Calculate its price elasticity of demand. |
| 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> :Given, the initial quantity `Q_(1) = 300` <br/> New quantity `Q_(2) = 318` <br/> So, `DQ = 318 - 300 = <a href="https://interviewquestions.tuteehub.com/tag/18-278913" style="font-weight:bold;" target="_blank" title="Click to know more about 18">18</a>` <br/> Now, percentage fall in price `= (Delta P)/(P)xx <a href="https://interviewquestions.tuteehub.com/tag/100-263808" style="font-weight:bold;" target="_blank" title="Click to know more about 100">100</a> = (-) 5%` <br/> We <a href="https://interviewquestions.tuteehub.com/tag/know-534065" style="font-weight:bold;" target="_blank" title="Click to know more about KNOW">KNOW</a>, <br/> `E_(d) = (-) ((Delta Q)/(Delta_(1)) xx 100)/((Delta P)/(P) xx 100) = (-) ((18)/(300) xx 100)/((-)5) = (-) (<a href="https://interviewquestions.tuteehub.com/tag/6-327005" style="font-weight:bold;" target="_blank" title="Click to know more about 6">6</a>)/((-) 5) = 1.2` <br/> Thus, price elasticity of demand is 1.2</body></html> | |
| 3375. |
Whether the followingchangesby theReserve Bankwill increasethe moneysupplyor decreasethe money supply ?(i) Rise In Repo rate. (ii) Purchase of SecurItIes In the open market (iii) RBI Increases the margin from 20% to 30% (iv)RBI reduces the Cash reserve ratio. |
| Answer» <html><body><p>Rise in <a href="https://interviewquestions.tuteehub.com/tag/repo-1185282" style="font-weight:bold;" target="_blank" title="Click to know more about REPO">REPO</a> rate .<br/> Purchaseof <a href="https://interviewquestions.tuteehub.com/tag/securities-1198959" style="font-weight:bold;" target="_blank" title="Click to know more about SECURITIES">SECURITIES</a> in theopen market <br/>RBI increase the marginfrom 20% to 30% .<br/>RBI reducesthe Cashreserver <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> :Increase in Money <a href="https://interviewquestions.tuteehub.com/tag/supply-1235254" style="font-weight:bold;" target="_blank" title="Click to know more about SUPPLY">SUPPLY</a> :(ii) , (iv), <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 Money Supply, (i), (ii)</body></html> | |
| 3376. |
What is autonomous investment ? |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/investment-25469" style="font-weight:bold;" target="_blank" title="Click to know more about INVESTMENT">INVESTMENT</a> <a href="https://interviewquestions.tuteehub.com/tag/expenditure-980222" style="font-weight:bold;" target="_blank" title="Click to know more about EXPENDITURE">EXPENDITURE</a> not influencedby the level of national <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 href="https://interviewquestions.tuteehub.com/tag/called-907796" style="font-weight:bold;" target="_blank" title="Click to know more about CALLED">CALLED</a> autonomous investment.</body></html> | |
| 3377. |
In an economy, a 20 percent increase in investment results in a 100 percent increase in income. Calculate marginal propensity to consume. |
| 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>/(1-MPC)=100/20=1/(1-MPC)` <br/> `<a href="https://interviewquestions.tuteehub.com/tag/5-319454" style="font-weight:bold;" target="_blank" title="Click to know more about 5">5</a>=1/(1-MPC)` <br/> `5-5 MPC=1` <br/> `5 MPC=5-1=4` <br/> `MPC=4/5 =0.8`</body></html> | |
| 3378. |
Demand curve of foreign exchange is _____ |
| Answer» <html><body><p>downward <a href="https://interviewquestions.tuteehub.com/tag/sloping-7378327" style="font-weight:bold;" target="_blank" title="Click to know more about SLOPING">SLOPING</a> <br/><a href="https://interviewquestions.tuteehub.com/tag/upward-721781" style="font-weight:bold;" target="_blank" title="Click to know more about UPWARD">UPWARD</a> sloping <br/>vertical straight <a href="https://interviewquestions.tuteehub.com/tag/ii-1036832" style="font-weight:bold;" target="_blank" title="Click to know more about II">II</a> ne parallel to Y-axis <br/>horizontal straight <a href="https://interviewquestions.tuteehub.com/tag/line-1074199" style="font-weight:bold;" target="_blank" title="Click to know more about LINE">LINE</a> parallel to X-axis </p>Answer :A</body></html> | |
| 3379. |
Inflationary gap exists when aggregate demand i sgreater tha aggregate supply. |
| 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> :False, <a href="https://interviewquestions.tuteehub.com/tag/inflationary-499215" style="font-weight:bold;" target="_blank" title="Click to know more about INFLATIONARY">INFLATIONARY</a> gap exists inflationary gap exists when <a href="https://interviewquestions.tuteehub.com/tag/aggregate-851607" style="font-weight:bold;" target="_blank" title="Click to know more about AGGREGATE">AGGREGATE</a> Demand is <a href="https://interviewquestions.tuteehub.com/tag/greater-476627" style="font-weight:bold;" target="_blank" title="Click to know more about GREATER">GREATER</a> than Aggregate supply at <a href="https://interviewquestions.tuteehub.com/tag/full-1001178" style="font-weight:bold;" target="_blank" title="Click to know more about FULL">FULL</a> employment</body></html> | |
| 3380. |
Under monopoly new firms can enter the industry to raise the supply. |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/false-459184" style="font-weight:bold;" target="_blank" title="Click to know more about FALSE">FALSE</a>: In <a href="https://interviewquestions.tuteehub.com/tag/monopoly-1101092" style="font-weight:bold;" target="_blank" title="Click to know more about MONOPOLY">MONOPOLY</a>, no other firm can enter into industry because of <a href="https://interviewquestions.tuteehub.com/tag/barrier-892650" style="font-weight:bold;" target="_blank" title="Click to know more about BARRIER">BARRIER</a> created by monopoly firm.</body></html> | |
| 3381. |
New Agricultural Strategy was also knonw as : |
| Answer» <html><body><p>White <a href="https://interviewquestions.tuteehub.com/tag/revolution-623158" style="font-weight:bold;" target="_blank" title="Click to know more about REVOLUTION">REVOLUTION</a> <br/><a href="https://interviewquestions.tuteehub.com/tag/agricultural-851840" style="font-weight:bold;" target="_blank" title="Click to know more about AGRICULTURAL">AGRICULTURAL</a> revolution <br/>Green revolution <br/><a href="https://interviewquestions.tuteehub.com/tag/land-539118" style="font-weight:bold;" target="_blank" title="Click to know more about LAND">LAND</a> revolution. </p>Answer :<a href="https://interviewquestions.tuteehub.com/tag/c-7168" style="font-weight:bold;" target="_blank" title="Click to know more about C">C</a></body></html> | |
| 3382. |
Why autonomous investment is essential? |
| Answer» <html><body><p></p>Solution : It is <a href="https://interviewquestions.tuteehub.com/tag/done-2591742" style="font-weight:bold;" target="_blank" title="Click to know more about DONE">DONE</a> by the government for social welfare or overall <a href="https://interviewquestions.tuteehub.com/tag/development-950177" style="font-weight:bold;" target="_blank" title="Click to know more about DEVELOPMENT">DEVELOPMENT</a> of the country. During depression, level of demand is low and thus inducement to invest is also low. The <a href="https://interviewquestions.tuteehub.com/tag/economy-21801" style="font-weight:bold;" target="_blank" title="Click to know more about ECONOMY">ECONOMY</a> suffers backwardness and stagnation as there is less flow of money. In such a situation, the government should make autonomous investment which is expected to give a boost to the economic system by breaking the <a href="https://interviewquestions.tuteehub.com/tag/vicious-723617" style="font-weight:bold;" target="_blank" title="Click to know more about VICIOUS">VICIOUS</a> <a href="https://interviewquestions.tuteehub.com/tag/circle-916533" style="font-weight:bold;" target="_blank" title="Click to know more about CIRCLE">CIRCLE</a> of low demand, low investment and low level of income and employment.</body></html> | |
| 3383. |
To economists, the main difference between short run and long run is that: |
| Answer» <html><body><p>1.In short <a href="https://interviewquestions.tuteehub.com/tag/run-1192138" style="font-weight:bold;" target="_blank" title="Click to know more about RUN">RUN</a> all inputs are <a href="https://interviewquestions.tuteehub.com/tag/fixed-457597" style="font-weight:bold;" target="_blank" title="Click to know more about FIXED">FIXED</a>, while in long run all inputs are variable.<br/>2.In short run the firm <a href="https://interviewquestions.tuteehub.com/tag/varies-1443299" style="font-weight:bold;" target="_blank" title="Click to know more about VARIES">VARIES</a> all of its inputs to find the least cost combination of inputs.<br/>3.In short run, at least one of the firm's input level is fixed.<br/>4.When <a href="https://interviewquestions.tuteehub.com/tag/marginal-555038" style="font-weight:bold;" target="_blank" title="Click to know more about MARGINAL">MARGINAL</a> product is at a maximum, average product equals marginal product, and total product is rising.</p>Answer :c</body></html> | |
| 3384. |
The demand for good rises by 20 percent as a result of all in its price. Its price elasticity of demand (-) 0.8. Calculate the precentage fall in price. |
| Answer» <html><body><p></p>Solution :`E_(d) = ("Percentage Change in <a href="https://interviewquestions.tuteehub.com/tag/quantity-1174212" style="font-weight:bold;" target="_blank" title="Click to know more about QUANTITY">QUANTITY</a> Demanded")/("Percentage Change in Price")` <br/> or `0.8 = (20)/("Percentage Change in Price")` <br/> or, Percentage Change in Price `= (20)/(0.8) = <a href="https://interviewquestions.tuteehub.com/tag/25-296426" style="font-weight:bold;" target="_blank" title="Click to know more about 25">25</a>%` <br/> Thus, the percentage fall in the price 25%</body></html> | |
| 3385. |
Given nominal income, how can we find real income ? Explain. |
| Answer» <html><body><p></p>Solution :Nominal income is the income one gets in money terms and real income is the amount 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 services a person can buy from the nominal income. Nominal income is calculated with <a href="https://interviewquestions.tuteehub.com/tag/current-940804" style="font-weight:bold;" target="_blank" title="Click to know more about CURRENT">CURRENT</a> year price and real income is calculated with base year' price. Real income is calculated by <a href="https://interviewquestions.tuteehub.com/tag/dividing-957391" style="font-weight:bold;" target="_blank" title="Click to know more about DIVIDING">DIVIDING</a> nominal income by the price level. For example:If Real income is Rs.400 and Price Index is <a href="https://interviewquestions.tuteehub.com/tag/105-266496" style="font-weight:bold;" target="_blank" title="Click to know more about 105">105</a>,Nominal Income will be Real Income = (Nominal Income,/Price Index of the Current Year) x 100400= (Nominal Income/105) x <a href="https://interviewquestions.tuteehub.com/tag/100-263808" style="font-weight:bold;" target="_blank" title="Click to know more about 100">100</a> nominal income= Rs.420</body></html> | |
| 3386. |
State and explain the steps to be taken in deriving saving curve from the given consumption curve. Use diagram |
| Answer» | |
| 3387. |
Quantity supplied of a commodity increases by 50% when its price rises from 8rs per unit to 10rs per unit. Calculate elasticity of supply. |
| Answer» <html><body><p><<a href="https://interviewquestions.tuteehub.com/tag/p-588962" style="font-weight:bold;" target="_blank" title="Click to know more about P">P</a>></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> :<img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/FM_M_ECO_XII_P1_C07_E02_062_S01.png" width="80%"/> <br/> Percentage change in price `= (<a href="https://interviewquestions.tuteehub.com/tag/deltap-2053537" style="font-weight:bold;" target="_blank" title="Click to know more about DELTAP">DELTAP</a>)/(P)xx100=(2)/(8)xx100=25%` <br/> ES=`("Percentage Change in supply")/("Percentage Change in Price")=(50%)/(25%)=2` <br/> `ES=2` (Supply is elastic as `ES gt 1`) <br/> ES is <a href="https://interviewquestions.tuteehub.com/tag/always-373607" style="font-weight:bold;" target="_blank" title="Click to know more about ALWAYS">ALWAYS</a> positive due to direct relationship between price and quantity supplied.</body></html> | |
| 3388. |
Define total utility . |
| 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/total-711110" style="font-weight:bold;" target="_blank" title="Click to know more about TOTAL">TOTAL</a> utility is the sum of all the utilities <a href="https://interviewquestions.tuteehub.com/tag/derived-437539" style="font-weight:bold;" target="_blank" title="Click to know more about DERIVED">DERIVED</a> from consumption of all the <a href="https://interviewquestions.tuteehub.com/tag/units-1438468" style="font-weight:bold;" target="_blank" title="Click to know more about UNITS">UNITS</a> of a particular commodity .</body></html> | |
| 3389. |
Explain the circular flow of income. |
| Answer» <html><body><p></p>Solution :The Circular flow of income can be better understood with the <a href="https://interviewquestions.tuteehub.com/tag/help-1018089" style="font-weight:bold;" target="_blank" title="Click to know more about HELP">HELP</a> of following diagram:<br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/SG_ECO_C01_E01_005_S01.png" width="80%"/>Income are generated in production units <a href="https://interviewquestions.tuteehub.com/tag/due-433472" style="font-weight:bold;" target="_blank" title="Click to know more about DUE">DUE</a> to the joint efforts of factor owners from households. <br/>These incomes are distributed to the factor owners who in turn <a href="https://interviewquestions.tuteehub.com/tag/spend-1222050" style="font-weight:bold;" target="_blank" title="Click to know more about SPEND">SPEND</a> the income on purchasing goods and services produced in production units. This makes the circular flow of income <a href="https://interviewquestions.tuteehub.com/tag/complete-423576" style="font-weight:bold;" target="_blank" title="Click to know more about COMPLETE">COMPLETE</a>.</body></html> | |
| 3390. |
Market supply of a product is prefectly elastic.Suppoe its demand increases .Explain the likely effect on the price and output of a product. |
| Answer» <html><body><p></p>Solution :When market supply of a <a href="https://interviewquestions.tuteehub.com/tag/product-25523" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCT">PRODUCT</a> is perfectly elastic and its demand increases, then equilibrium price <a href="https://interviewquestions.tuteehub.com/tag/remains-621920" style="font-weight:bold;" target="_blank" title="Click to know more about REMAINS">REMAINS</a> <a href="https://interviewquestions.tuteehub.com/tag/constant-930172" style="font-weight:bold;" target="_blank" title="Click to know more about CONSTANT">CONSTANT</a> and equilibrium quantity rises. (it) It can be explained with the help of given diagram.<br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/FM_M_ECO_XII_P1_MDQ_E01_005_S01.png" width="80%"/> <br/> (iii)In the given diagram price is measured on vertical axis and quantity <a href="https://interviewquestions.tuteehub.com/tag/demanded-7675308" style="font-weight:bold;" target="_blank" title="Click to know more about DEMANDED">DEMANDED</a> and supplied is measured on horizontal axis.Initially,the equilibrium price is OP and equilibrium quantity is OQ.But when "Supply <a href="https://interviewquestions.tuteehub.com/tag/becomes-1994370" style="font-weight:bold;" target="_blank" title="Click to know more about BECOMES">BECOMES</a> perfectly elastic and demand increases then,<br/> (a)Equalibrium price remains constant at OP, and <br/> (b)Equilibrium quantity rises OQ to `OQ_(1)`</body></html> | |
| 3391. |
Under which one of the following forms of market structure does a firm have no control over the price of its product? |
| Answer» <html><body><p>Monopoly<br/>Monopolistic competition<br/>Oligopoly<br/>Perfect competition</p>Answer :d</body></html> | |
| 3392. |
Purchase of refrigerator by a restaurant is : |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/consumption-931383" style="font-weight:bold;" target="_blank" title="Click to know more about CONSUMPTION">CONSUMPTION</a> <a href="https://interviewquestions.tuteehub.com/tag/expenditure-980222" style="font-weight:bold;" target="_blank" title="Click to know more about EXPENDITURE">EXPENDITURE</a> on <a href="https://interviewquestions.tuteehub.com/tag/durable-443572" style="font-weight:bold;" target="_blank" title="Click to know more about DURABLE">DURABLE</a> good<br/>Consumption expenditure on non-durable good<br/>Intermediate expenditure<br/>Final expenditure</p>Answer :D</body></html> | |
| 3393. |
Define utility . |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/utility-1441817" style="font-weight:bold;" target="_blank" title="Click to know more about UTILITY">UTILITY</a> is the <a href="https://interviewquestions.tuteehub.com/tag/power-2475" style="font-weight:bold;" target="_blank" title="Click to know more about POWER">POWER</a> or capacity of a commodity to satisfy human <a href="https://interviewquestions.tuteehub.com/tag/wants-1448762" style="font-weight:bold;" target="_blank" title="Click to know more about WANTS">WANTS</a> .</body></html> | |
| 3394. |
Foreign exchange received on account of export of jute will be recorded in capital account. |
| 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>. It is a <a href="https://interviewquestions.tuteehub.com/tag/component-926634" style="font-weight:bold;" target="_blank" title="Click to know more about COMPONENT">COMPONENT</a> 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> <a href="https://interviewquestions.tuteehub.com/tag/account-25640" style="font-weight:bold;" target="_blank" title="Click to know more about ACCOUNT">ACCOUNT</a>.</body></html> | |
| 3395. |
Primary deficit is equal to : |
| Answer» <html><body><p>Fiscal Deficit <a href="https://interviewquestions.tuteehub.com/tag/less-1071906" style="font-weight:bold;" target="_blank" title="Click to know more about LESS">LESS</a> <a href="https://interviewquestions.tuteehub.com/tag/interest-13407" style="font-weight:bold;" target="_blank" title="Click to know more about INTEREST">INTEREST</a> Payments <br/>Revenue Deficit Less <a href="https://interviewquestions.tuteehub.com/tag/borrowings-901274" style="font-weight:bold;" target="_blank" title="Click to know more about BORROWINGS">BORROWINGS</a> <br/>Borrowings Less Interest Payments <br/>Borrowing Less Fiscal Deficit </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</body></html> | |
| 3396. |
What is menat by money ? |
| Answer» | |
| 3397. |
Deflationarygapcan becorrectedby increasingthe levelof AD. |
| 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> : trueas it isthedeficiencyof ADwhichcausesdeflationarygap .</body></html> | |
| 3398. |
Fiscal deficit is always greater than revenue deficit. |
| Answer» <html><body><p><br/></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/fiscal-991009" style="font-weight:bold;" target="_blank" title="Click to know more about FISCAL">FISCAL</a> <a href="https://interviewquestions.tuteehub.com/tag/deficit-946992" style="font-weight:bold;" target="_blank" title="Click to know more about DEFICIT">DEFICIT</a> is the difference of <a href="https://interviewquestions.tuteehub.com/tag/overall-1143661" style="font-weight:bold;" target="_blank" title="Click to know more about OVERALL">OVERALL</a> expenditure (<a href="https://interviewquestions.tuteehub.com/tag/revenue-1188040" style="font-weight:bold;" target="_blank" title="Click to know more about REVENUE">REVENUE</a> and capital expenditure) and overall <a href="https://interviewquestions.tuteehub.com/tag/receipts-1179271" style="font-weight:bold;" target="_blank" title="Click to know more about RECEIPTS">RECEIPTS</a> (revenue and capital receipts). Clearly this makes fiscal deficit greater than revenue deficit.</body></html> | |
| 3399. |
Define money |
| Answer» <html><body><p></p>Solution :Money is any item or verifiable record that is <a href="https://interviewquestions.tuteehub.com/tag/generally-471963" style="font-weight:bold;" target="_blank" title="Click to know more about GENERALLY">GENERALLY</a> accepted as payment for <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> and repayment of debts, such as taxes, in a particular <a href="https://interviewquestions.tuteehub.com/tag/country-936956" style="font-weight:bold;" target="_blank" title="Click to know more about COUNTRY">COUNTRY</a> or socio-economic context.</body></html> | |
| 3400. |
Why is recovery of loans treated as a capital receipt ? |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/recovery-13760" style="font-weight:bold;" target="_blank" title="Click to know more about RECOVERY">RECOVERY</a> of loans is <a href="https://interviewquestions.tuteehub.com/tag/treated-1426908" style="font-weight:bold;" target="_blank" title="Click to know more about TREATED">TREATED</a> as a capital receipt because it reduces <a href="https://interviewquestions.tuteehub.com/tag/assets-885948" style="font-weight:bold;" target="_blank" title="Click to know more about ASSETS">ASSETS</a> of the <a href="https://interviewquestions.tuteehub.com/tag/government-1010037" style="font-weight:bold;" target="_blank" title="Click to know more about GOVERNMENT">GOVERNMENT</a> .</body></html> | |