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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.
3451. |
Calculate Marginal Propensity to Consume from the following |
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/marginal-555038" style="font-weight:bold;" target="_blank" title="Click to know more about MARGINAL">MARGINAL</a> <a href="https://interviewquestions.tuteehub.com/tag/propensity-607436" style="font-weight:bold;" target="_blank" title="Click to know more about PROPENSITY">PROPENSITY</a> to Consume=0.8</body></html> | |
3452. |
Distinguish between stock and flow. Give an example of each. |
Answer» <html><body><p></p>Solution : A stock variable is measured at one specific <a href="https://interviewquestions.tuteehub.com/tag/time-19467" style="font-weight:bold;" target="_blank" title="Click to know more about TIME">TIME</a>, and represents a quantity existing at that point in time (say, December 31, <a href="https://interviewquestions.tuteehub.com/tag/2004-289971" style="font-weight:bold;" target="_blank" title="Click to know more about 2004">2004</a>), which may have accumulated in the past. A flow variable is measured over an interval of time. Therefore a flow would be measured per unit of time (say a year). Flow is <a href="https://interviewquestions.tuteehub.com/tag/roughly-614920" style="font-weight:bold;" target="_blank" title="Click to know more about ROUGHLY">ROUGHLY</a> analogous to rate or speed in this sense. For example, U.S. nominal gross domestic product refers to a total number of dollars spent over a time period, such as a year. Therefore it is a flow variable, and has units of dollars/year. In contrast, the U.S. nominal capital stock is the total <a href="https://interviewquestions.tuteehub.com/tag/value-1442530" style="font-weight:bold;" target="_blank" title="Click to know more about VALUE">VALUE</a>, in dollars, of equipment, <a href="https://interviewquestions.tuteehub.com/tag/buildings-905283" style="font-weight:bold;" target="_blank" title="Click to know more about BUILDINGS">BUILDINGS</a>, inventories, and other real assets in the U.S. economy, and has units of dollars.</body></html> | |
3453. |
Free samples distributed by a business enterprise for advertisement will not be included in national income. |
Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/true-713260" style="font-weight:bold;" target="_blank" title="Click to know more about TRUE">TRUE</a>. Such <a href="https://interviewquestions.tuteehub.com/tag/free-465311" style="font-weight:bold;" target="_blank" title="Click to know more about FREE">FREE</a> samples are part of intermediate <a href="https://interviewquestions.tuteehub.com/tag/consumption-931383" style="font-weight:bold;" target="_blank" title="Click to know more about CONSUMPTION">CONSUMPTION</a> expenditure.</body></html> | |
3454. |
Market for a good is in equilibrium. The supply of the good 'Increases'. Explain the chain of effects of this change. |
Answer» <html><body><p></p>Solution :When the market is in equilibrium, this implies that the market demand is equal to the market supply at the equilibrium <a href="https://interviewquestions.tuteehub.com/tag/point-1157106" style="font-weight:bold;" target="_blank" title="Click to know more about POINT">POINT</a>. Now, in case the market supply increases, this <a href="https://interviewquestions.tuteehub.com/tag/leads-540453" style="font-weight:bold;" target="_blank" title="Click to know more about LEADS">LEADS</a> to a rightward shift in the market supply curve. This is because, an increase in supply refers to a <a href="https://interviewquestions.tuteehub.com/tag/rise-1189674" style="font-weight:bold;" target="_blank" title="Click to know more about RISE">RISE</a> in the supply of the given commodity due to change in factors other than price. Thus, in the given case the supply curve will shift towards right. As a result, there will exist a situation of <a href="https://interviewquestions.tuteehub.com/tag/excess-978535" style="font-weight:bold;" target="_blank" title="Click to know more about EXCESS">EXCESS</a> supply at the equilibrium point. This can be shown in the following diagram. <br/><img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/CBSE_COMM_SP_XII_ECO_E02_005_S01.png" width="80%"/> <br/>As the market supply increases, the initial supply shifts rightwards to the new supply curve `S_(2)S_(2)` from `S_(1)S_(1)`. Not at the initial market price of `OP_(1)`, there exists excess supply. Due to the excess supply, some of the existing firms are ready to sell the output at comparatively lower prices to increase their sale, <a href="https://interviewquestions.tuteehub.com/tag/therefore-706901" style="font-weight:bold;" target="_blank" title="Click to know more about THEREFORE">THEREFORE</a>, the market price will tend to fall. The fall in the market price will continue until it reaches `OP_(2)`. The new market equilibrium will occur at point `E_(2)`, where the new market supply curve intersects the initial demand curve. The total quantity supplied will be equal to the quantity demanded at `Oq_(2)` and the new equilibrium price will fall to `OP_(2)`.</body></html> | |
3455. |
Explain 'Paradox of Thrift'. Hint: The 'Pardox of Thrift' is an economic theory, propounded by J.M Keynes. Accordings to Keynes, when people start saving money instead of spending it, in response to growing cercons about a recession, they actually make the recession worse Rise in MPS means a fall in MPC. When MPC falls, aggregate consumptions in the economy falls. It leads to rise in inventory of producers. To clear the unwanted increase in inventory, firms would plan to reduce the production. It will reduce the demand for factor services and factor incomes. As a result the total volume of saving genreated in the economy would fail (or remain unchanged). This theory is referred as a paradox because the theory seems to be beneficial, but is actually deterimental(disadvantageous) for the economy. |
Answer» <html><body><p></p>Solution : The 'Pardox of Thrift' is an economic <a href="https://interviewquestions.tuteehub.com/tag/theory-706806" style="font-weight:bold;" target="_blank" title="Click to know more about THEORY">THEORY</a>, propounded by J.M Keynes. Accordings to Keynes, when <a href="https://interviewquestions.tuteehub.com/tag/people-1150079" style="font-weight:bold;" target="_blank" title="Click to know more about PEOPLE">PEOPLE</a> start saving money instead of spending it, in <a href="https://interviewquestions.tuteehub.com/tag/response-1187068" style="font-weight:bold;" target="_blank" title="Click to know more about RESPONSE">RESPONSE</a> to growing concerns about a recession, they actually make the recession worse <br/> .Rise in MPS means a fall in MPC. When MPC falls, aggregate consumption in the economy falls. It leads to rise in inventory of producers. To clear the unwanted <a href="https://interviewquestions.tuteehub.com/tag/increase-1040383" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASE">INCREASE</a> in inventory, firms would plan to reduce the production. It will reduce the demand for factor services and factor incomes. As a result the total volume of saving generated in the economy would fall (or remain unchanged). <br/> This theory is <a href="https://interviewquestions.tuteehub.com/tag/referred-7264329" style="font-weight:bold;" target="_blank" title="Click to know more about REFERRED">REFERRED</a> as a paradox because the theory seems to be beneficial, but is actually deterimental(disadvantageous) for the economy.</body></html> | |
3456. |
Define national income |
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> :National income is the sum of <a href="https://interviewquestions.tuteehub.com/tag/factor-458892" style="font-weight:bold;" target="_blank" title="Click to know more about FACTOR">FACTOR</a> incomes <a href="https://interviewquestions.tuteehub.com/tag/accruing-7662409" style="font-weight:bold;" target="_blank" title="Click to know more about ACCRUING">ACCRUING</a> to the residents of a <a href="https://interviewquestions.tuteehub.com/tag/country-936956" style="font-weight:bold;" target="_blank" title="Click to know more about COUNTRY">COUNTRY</a></body></html> | |
3457. |
Which of the following flowchart correctly represents the relationship between Domestic concepts ? |
Answer» <html><body><p><img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/SG_ECO_C03_E01_020_O01.png" width="30%"/><br/><img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/SG_ECO_C03_E01_020_O02.png" width="30%"/><br/><img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/SG_ECO_C03_E01_020_O03.png" width="30%"/><br/><img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/SG_ECO_C03_E01_020_O04.png" width="30%"/></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> :because it <a href="https://interviewquestions.tuteehub.com/tag/shows-1206590" style="font-weight:bold;" target="_blank" title="Click to know more about SHOWS">SHOWS</a> the <a href="https://interviewquestions.tuteehub.com/tag/relationship-1183331" style="font-weight:bold;" target="_blank" title="Click to know more about RELATIONSHIP">RELATIONSHIP</a> between <a href="https://interviewquestions.tuteehub.com/tag/concept-928138" style="font-weight:bold;" target="_blank" title="Click to know more about CONCEPT">CONCEPT</a></body></html> | |
3458. |
(a) Explain 'standard of deferred payement'function of money . (b) Can yhou imagine business activities of today without this function of money? |
Answer» <html><body><p></p>Solution :(a) Refer tosection 5.3.2 B for detail a.<br/> (b) Money serves as a standard of future payments . Modern business is <a href="https://interviewquestions.tuteehub.com/tag/based-389387" style="font-weight:bold;" target="_blank" title="Click to know more about BASED">BASED</a> on this <a href="https://interviewquestions.tuteehub.com/tag/function-11303" style="font-weight:bold;" target="_blank" title="Click to know more about FUNCTION">FUNCTION</a> to a great extent. We cannot imagine tody's modern <a href="https://interviewquestions.tuteehub.com/tag/without-3281350" style="font-weight:bold;" target="_blank" title="Click to know more about WITHOUT">WITHOUT</a> money as money facilitates the borrowing and lending acitvites through financial institutions. To facilitte transactions in advanced economic activities, "standard of deferred payments" function <a href="https://interviewquestions.tuteehub.com/tag/plays-1156645" style="font-weight:bold;" target="_blank" title="Click to know more about PLAYS">PLAYS</a> very important <a href="https://interviewquestions.tuteehub.com/tag/role-1190667" style="font-weight:bold;" target="_blank" title="Click to know more about ROLE">ROLE</a>.</body></html> | |
3459. |
_______ incomes are not included in national income as there is no corresponding flow of goods and services. |
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/transfer-1425652" style="font-weight:bold;" target="_blank" title="Click to know more about TRANSFER">TRANSFER</a></body></html> | |
3460. |
What can be the minimum value of investment multiplier? |
Answer» <html><body><p></p>Solution :The minimum <a href="https://interviewquestions.tuteehub.com/tag/value-1442530" style="font-weight:bold;" target="_blank" title="Click to know more about VALUE">VALUE</a> ofinvestment multiplier (<a href="https://interviewquestions.tuteehub.com/tag/k-527196" style="font-weight:bold;" target="_blank" title="Click to know more about K">K</a>) can be <a href="https://interviewquestions.tuteehub.com/tag/one-585732" style="font-weight:bold;" target="_blank" title="Click to know more about ONE">ONE</a>. It is possible when MPC=0</body></html> | |
3461. |
There are various sources of income a teacher has, such as, (i) He can earn Rs. 40000 from teaching in school. (ii) He can earn Rs. 50000 by tuition/coaching (iii) He earns Rs. 60000 by writing the help book guides. What is the opportunity cost of his teaching in school? Why should he choose teaching profession? |
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> :Opportunity <a href="https://interviewquestions.tuteehub.com/tag/cost-25707" style="font-weight:bold;" target="_blank" title="Click to know more about COST">COST</a> of teaching is the writing of <a href="https://interviewquestions.tuteehub.com/tag/books-900981" style="font-weight:bold;" target="_blank" title="Click to know more about BOOKS">BOOKS</a>. He should choose teaching profession because it provides maximum social <a href="https://interviewquestions.tuteehub.com/tag/welfare-734378" style="font-weight:bold;" target="_blank" title="Click to know more about WELFARE">WELFARE</a>. <br/> <a href="https://interviewquestions.tuteehub.com/tag/value-1442530" style="font-weight:bold;" target="_blank" title="Click to know more about VALUE">VALUE</a>: Social welfare</body></html> | |
3462. |
Deficient demands leads to fall in output and employment. |
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/1-256655" style="font-weight:bold;" target="_blank" title="Click to know more about 1">1</a></body></html> | |
3463. |
What is balance of trade? |
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> :Balance of trade is the difference between exports and imports 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>(visible).</body></html> | |
3464. |
What is double coincidence of wants? |
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 refers to <a href="https://interviewquestions.tuteehub.com/tag/simultaneous-631037" style="font-weight:bold;" target="_blank" title="Click to know more about SIMULTANEOUS">SIMULTANEOUS</a> <a href="https://interviewquestions.tuteehub.com/tag/fulfilment-1001177" style="font-weight:bold;" target="_blank" title="Click to know more about FULFILMENT">FULFILMENT</a> of mutual <a href="https://interviewquestions.tuteehub.com/tag/wants-1448762" style="font-weight:bold;" target="_blank" title="Click to know more about WANTS">WANTS</a> of buyers and <a href="https://interviewquestions.tuteehub.com/tag/sellers-1200267" style="font-weight:bold;" target="_blank" title="Click to know more about SELLERS">SELLERS</a></body></html> | |
3465. |
An economy achieves "productiveefficiency" when: |
Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/resources-11387" style="font-weight:bold;" target="_blank" title="Click to know more about RESOURCES">RESOURCES</a> are employed in their most highly valued uses. <br/>The best resources are employed. <br/>The total number of produced goods is the greatest. <br/>Goods and services are produced at <a href="https://interviewquestions.tuteehub.com/tag/least-7256596" style="font-weight:bold;" target="_blank" title="Click to know more about LEAST">LEAST</a> <a href="https://interviewquestions.tuteehub.com/tag/cost-25707" style="font-weight:bold;" target="_blank" title="Click to know more about COST">COST</a> and no resources are <a href="https://interviewquestions.tuteehub.com/tag/wasted-7299457" style="font-weight:bold;" target="_blank" title="Click to know more about WASTED">WASTED</a>. </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> | |
3466. |
Distinguish between current account and capital account of BOP account. |
Answer» <html><body><p></p>Solution :<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 records (i) <a href="https://interviewquestions.tuteehub.com/tag/export-980672" style="font-weight:bold;" target="_blank" title="Click to know more about EXPORT">EXPORT</a> and import of goods, (ii) export and import of services and (<a href="https://interviewquestions.tuteehub.com/tag/iii-497983" style="font-weight:bold;" target="_blank" title="Click to know more about III">III</a>) unilateral transfers. As against it capital account records capital transfers in the form of (i) borrowings, (ii) <a href="https://interviewquestions.tuteehub.com/tag/sale-1193496" style="font-weight:bold;" target="_blank" title="Click to know more about SALE">SALE</a> of assets and (iii) change in stock of gold and reserves of foreign currency.</body></html> | |
3467. |
What are retained earnings ? |
Answer» <html><body><p></p>Solution :Retained <a href="https://interviewquestions.tuteehub.com/tag/earning-964156" style="font-weight:bold;" target="_blank" title="Click to know more about EARNING">EARNING</a> refer to that <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 <a href="https://interviewquestions.tuteehub.com/tag/profit-1168589" style="font-weight:bold;" target="_blank" title="Click to know more about PROFIT">PROFIT</a> which is <a href="https://interviewquestions.tuteehub.com/tag/kept-2146214" style="font-weight:bold;" target="_blank" title="Click to know more about KEPT">KEPT</a> as reserve after paying the corporate tax and dividends out of total <a href="https://interviewquestions.tuteehub.com/tag/profits-1168748" style="font-weight:bold;" target="_blank" title="Click to know more about PROFITS">PROFITS</a>.</body></html> | |
3468. |
What happens to domestic currency when there is depreciation of domestic currency? |
Answer» <html><body><p></p>Solution :Domestic currency <a href="https://interviewquestions.tuteehub.com/tag/becomes-1994370" style="font-weight:bold;" target="_blank" title="Click to know more about BECOMES">BECOMES</a> cheaper and <a href="https://interviewquestions.tuteehub.com/tag/exchange-454713" style="font-weight:bold;" target="_blank" title="Click to know more about EXCHANGE">EXCHANGE</a> <a href="https://interviewquestions.tuteehub.com/tag/rate-1177476" style="font-weight:bold;" target="_blank" title="Click to know more about RATE">RATE</a> becomes higher.</body></html> | |
3469. |
Explain the concept of Inflationary Gap. Explain the role of Repo Rate in reducing this gap. ORExplain the concept of Deflationary Gap and the role of 'Open Market Operations' in reducing this gap. |
Answer» <html><body><p></p>Solution :Due to the excess of aggregate demand, there exists a difference (or gap) between the <a href="https://interviewquestions.tuteehub.com/tag/actual-361632" style="font-weight:bold;" target="_blank" title="Click to know more about ACTUAL">ACTUAL</a> level of aggregate demand and full employment level of demand. This difference is termed as inflationary gap. This gap <a href="https://interviewquestions.tuteehub.com/tag/measures-1091959" style="font-weight:bold;" target="_blank" title="Click to know more about MEASURES">MEASURES</a> is termed as inflationary gap. This gap measures the amount of surplus in the level of aggregate demand. Graphically, it is represented by the vertical distance between the actual level of aggregate demand `(AD_(E))` and the full employment level of output `(AD_(F))`. In the figure, EY denotes the aggregate demand at the full employment level o output and FY denotes the actual aggregate demand. The vertical distance between these two represents inflationary gap. That is, <br/> FY-EY=FE (Inflationary Gap) <br/>Let us understand the situation of excess demand and concept of inflationary gap with the help of the following figure. <br/><img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/CBSE_COMM_SP_XII_ECO_E04_027_S01.png" width="80%"/> <br/>In the figure, `AD_(1)` and AS represents the aggregate demand curve and aggregate supply curve respectively. The economy is at full employment equilibrium at point 'E', where `AD_(1)` intersects AS curve. At this equilibrium point, OY represents full employment level and EY is aggregate demand at the full employment level of output. <br/> Let us suppose that the actual aggregate demand for output is FY, which is higher than EY. This implies that actual aggregate output demanded by the economy FY is more than the potential (full employment) aggregate output EY. Thus, the economy is facing surplus demand. This situation is termed as excess demand. As a result of the excess demand, inflationary gap arises. The inflationary gap is measured by the vertical distance between the actual aggregate demand for output and the potential (or full employment level aggregate demand. In other words, the distance between FY and EY, i.e. FE represents the inflationary gap. <br/>Reporate refers to the rate at which the central <a href="https://interviewquestions.tuteehub.com/tag/bank-13461" style="font-weight:bold;" target="_blank" title="Click to know more about BANK">BANK</a> lends to the commercial bank. In such inflationary gap, the central bank would increase repo rate. An increase in the repo rate increases the cost of borrowings for the commercial banks. This discourages the demand for loans and borrowings. Thereby, the consumption expenditure falls, and hence aggregate demand falls. <br/>OR<br/>Due to the deficiency in the aggregate demand, there exists a difference (or gap) between the actual level of aggregate demand and full employment level of demand. This difference is termed as deflationary gap. This gap measures the amount of deficiency in the level of aggregate demand. Graphically, it is represented by the vertical distance between the aggregate demand at the full employment level of output `(AD_(E))`and the actual level of aggregate demand `(AD_(f))`. In the figure below, EY denotes the aggregate demand at full employment level of output and CY denotes the actual aggregate demand. The vertical distance between these two represents deflationary gap. That is, <br/>EY-CY=EC (Deflationary GAP)<br/>Let us understand the situation of deficit demand and concept of deflationary gap with the help of the following figure. <br/><img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/CBSE_COMM_SP_XII_ECO_E04_027_S02.png" width="80%"/><br/> In the figure, `AD_(1)` and AS represents the aggregate demand curve and aggregatesupply curve. The economy is at full employment equilibrium at point 'E', where `AD_(1)` intersects AS curve. At this equilibrium point, OY represents the full employment level of output and EY is the aggregate demand at the full employment level of output. <br/>Let us suppose that the actual aggregate demand for output is only CY, which is lower than EY. This implies that actual aggregate output demanded by the economy CY falls short of the potential (full employment) aggregate output EY. Thus, the economy is facing a deficiency in demand. This situation is termed as deficit demand. As a result of the deficit demand, deflationary gap arises. The deflationary gap is measured by the vertical distance between the potential (or full employment level) aggregate demand and the actual aggregate demand for output. In other words, the distance between EY and CY, i.e. EC represents the deflationary gap. <br/> To <a href="https://interviewquestions.tuteehub.com/tag/correct-409949" style="font-weight:bold;" target="_blank" title="Click to know more about CORRECT">CORRECT</a> deflationary gap, the central bank purchases the securities in the market, thereby, <a href="https://interviewquestions.tuteehub.com/tag/increasing-1040633" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASING">INCREASING</a> the flow of money and subsequently enhancing the purchasing power of the people. The higher purchasing power increases the aggregate demand.</body></html> | |
3470. |
Production of petrol and diesel driven vehicles : |
Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/raises-1176804" style="font-weight:bold;" target="_blank" title="Click to know more about RAISES">RAISES</a> walfare<br/>Reduces walfare<br/>Both (a) and (<a href="https://interviewquestions.tuteehub.com/tag/b-387190" style="font-weight:bold;" target="_blank" title="Click to know more about B">B</a>)<br/>Has no <a href="https://interviewquestions.tuteehub.com/tag/effect-966056" style="font-weight:bold;" target="_blank" title="Click to know more about EFFECT">EFFECT</a> on walfare</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> | |
3471. |
Decrease in bank rate helps to correct___________. |
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/deficient-7361123" style="font-weight:bold;" target="_blank" title="Click to know more about DEFICIENT">DEFICIENT</a> <a href="https://interviewquestions.tuteehub.com/tag/demand-436956" style="font-weight:bold;" target="_blank" title="Click to know more about DEMAND">DEMAND</a></body></html> | |
3472. |
What are the four factors of production and what are the remunerations to each of these called ? |
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> :`|{:("Factors of production",,"Remuneration paid"),("Land",,"Rent"),("<a href="https://interviewquestions.tuteehub.com/tag/labour-1065391" style="font-weight:bold;" target="_blank" title="Click to know more about LABOUR">LABOUR</a>",,"Wages/salaries"),("Capital",,"<a href="https://interviewquestions.tuteehub.com/tag/interest-13407" style="font-weight:bold;" target="_blank" title="Click to know more about INTEREST">INTEREST</a>"),("Entrepreneur",,"Profit"):}|`</body></html> | |
3473. |
What is formalemployment . What constitutesformal employment sector in India ? |
Answer» <html><body><p></p>Solution :Formal employment refers to those employedpersonswho enjoy social securitybenefits during the periodof employment and after. The major forms of social securitybenefits are provident fund, <a href="https://interviewquestions.tuteehub.com/tag/gratuity-469150" style="font-weight:bold;" target="_blank" title="Click to know more about GRATUITY">GRATUITY</a>,pension, <a href="https://interviewquestions.tuteehub.com/tag/maternity-1089461" style="font-weight:bold;" target="_blank" title="Click to know more about MATERNITY">MATERNITY</a> benefits etc. <br/> In India all those who are <a href="https://interviewquestions.tuteehub.com/tag/employed-2611124" style="font-weight:bold;" target="_blank" title="Click to know more about EMPLOYED">EMPLOYED</a> in public sector <a href="https://interviewquestions.tuteehub.com/tag/nad-569229" style="font-weight:bold;" target="_blank" title="Click to know more about NAD">NAD</a> those private sectorestablishments whichhave 10 workers or more are treated to be in formal employment.</body></html> | |
3474. |
Explain the 'currency authority' functionof central bank. |
Answer» <html><body><p></p>Solution : Central Bank has the sole authority for issue of currency in the country. In India, Reserve Bank of India (RBI) has the sole right of issuing paper currency <a href="https://interviewquestions.tuteehub.com/tag/notes-1125324" style="font-weight:bold;" target="_blank" title="Click to know more about NOTES">NOTES</a> (except one-rupee notes and coins, which are issued by Ministry of Finance).All the currency issued by the Central Bank is its monetary liability, i.e. Central Bank is obliged to back the currency with assets of equal <a href="https://interviewquestions.tuteehub.com/tag/value-1442530" style="font-weight:bold;" target="_blank" title="Click to know more about VALUE">VALUE</a>, to enhance the <a href="https://interviewquestions.tuteehub.com/tag/public-11897" style="font-weight:bold;" target="_blank" title="Click to know more about PUBLIC">PUBLIC</a> confidence in paper currency. <br/>Advantages of Sole Authority of Note issue with RBI: <br/>(i) It leads to uniformity in note circulation.(ii) It gives the central bank power to influence money supply because currency with public is a part of money supply.(iii) It enables the government to have supervision and <a href="https://interviewquestions.tuteehub.com/tag/control-425557" style="font-weight:bold;" target="_blank" title="Click to know more about CONTROL">CONTROL</a> over the central bank with respect to issue of notes.(iv) It <a href="https://interviewquestions.tuteehub.com/tag/ensures-972243" style="font-weight:bold;" target="_blank" title="Click to know more about ENSURES">ENSURES</a> public faith in the currency system.(v) It helps in stabilization of internal and external value of currency.</body></html> | |
3475. |
An account indicating a systematic reco'rd of all economic transactions between residents of a country and residents of foreign countries during a period of account is called ____Account |
Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/balance-891682" style="font-weight:bold;" target="_blank" title="Click to know more about BALANCE">BALANCE</a> of <a href="https://interviewquestions.tuteehub.com/tag/trade-711631" style="font-weight:bold;" target="_blank" title="Click to know more about TRADE">TRADE</a> <br/>Balance of payment <br/><a href="https://interviewquestions.tuteehub.com/tag/government-1010037" style="font-weight:bold;" target="_blank" title="Click to know more about GOVERNMENT">GOVERNMENT</a> <a href="https://interviewquestions.tuteehub.com/tag/budget-25496" style="font-weight:bold;" target="_blank" title="Click to know more about BUDGET">BUDGET</a> <br/><a href="https://interviewquestions.tuteehub.com/tag/none-580659" style="font-weight:bold;" target="_blank" title="Click to know more about NONE">NONE</a> of these </p></body></html> | |
3476. |
Under which a firm's marginal revenue is always equal to price |
Answer» <html><body><p></p>Solution :Under perfect competition <a href="https://interviewquestions.tuteehub.com/tag/marginal-555038" style="font-weight:bold;" target="_blank" title="Click to know more about MARGINAL">MARGINAL</a> <a href="https://interviewquestions.tuteehub.com/tag/revenue-1188040" style="font-weight:bold;" target="_blank" title="Click to know more about REVENUE">REVENUE</a> 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> equal to price</body></html> | |
3477. |
What is equilibrium point ? |
Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/equilibrium-974342" style="font-weight:bold;" target="_blank" title="Click to know more about EQUILIBRIUM">EQUILIBRIUM</a> point is the point of intersection of the demand <a href="https://interviewquestions.tuteehub.com/tag/curve-941741" style="font-weight:bold;" target="_blank" title="Click to know more about CURVE">CURVE</a> and <a href="https://interviewquestions.tuteehub.com/tag/supply-1235254" style="font-weight:bold;" target="_blank" title="Click to know more about SUPPLY">SUPPLY</a> of <a href="https://interviewquestions.tuteehub.com/tag/commodity-923558" style="font-weight:bold;" target="_blank" title="Click to know more about COMMODITY">COMMODITY</a> .</body></html> | |
3478. |
Oligopolistic industries are characterized by- |
Answer» <html><body><p>A few dominant firms and <a href="https://interviewquestions.tuteehub.com/tag/substantial-1231557" style="font-weight:bold;" target="_blank" title="Click to know more about SUBSTANTIAL">SUBSTANTIAL</a> barriers to entry.<br/>A few <a href="https://interviewquestions.tuteehub.com/tag/large-1066424" style="font-weight:bold;" target="_blank" title="Click to know more about LARGE">LARGE</a> firms and no entry barriers.<br/>A large <a href="https://interviewquestions.tuteehub.com/tag/number-582134" style="font-weight:bold;" target="_blank" title="Click to know more about NUMBER">NUMBER</a> of small firms and no entry barriers.<br/>One dominant firm and <a href="https://interviewquestions.tuteehub.com/tag/low-537644" style="font-weight:bold;" target="_blank" title="Click to know more about LOW">LOW</a> entry barriers.</p>Answer :a</body></html> | |
3479. |
What are the revenue receipts ? |
Answer» <html><body><p></p>Solution :Revenue receipts <a href="https://interviewquestions.tuteehub.com/tag/refer-621103" style="font-weight:bold;" target="_blank" title="Click to know more about REFER">REFER</a> to those receipts of the government which do not <a href="https://interviewquestions.tuteehub.com/tag/create-427332" style="font-weight:bold;" target="_blank" title="Click to know more about CREATE">CREATE</a> any liability for the government or <a href="https://interviewquestions.tuteehub.com/tag/cause-910965" style="font-weight:bold;" target="_blank" title="Click to know more about CAUSE">CAUSE</a> any <a href="https://interviewquestions.tuteehub.com/tag/reduction-621019" style="font-weight:bold;" target="_blank" title="Click to know more about REDUCTION">REDUCTION</a> in the assets of the government . Revenue receipts consist of tax revenue and non-tax revenue (e.g., <a href="https://interviewquestions.tuteehub.com/tag/fees-986104" style="font-weight:bold;" target="_blank" title="Click to know more about FEES">FEES</a> , licence fees , fines and penalties etc.)</body></html> | |
3480. |
Give an example each of inter-dependence between Microeconomics and Macroeconomics. |
Answer» <html><body><p></p>Solution :(i) <a href="https://interviewquestions.tuteehub.com/tag/micro-1095491" style="font-weight:bold;" target="_blank" title="Click to know more about MICRO">MICRO</a> depends on Macro. Investment in <a href="https://interviewquestions.tuteehub.com/tag/one-585732" style="font-weight:bold;" target="_blank" title="Click to know more about ONE">ONE</a> industry depends upon the level of investment in the economy as a whole. <br/> (ii) Macro depends on Micro. National income in <a href="https://interviewquestions.tuteehub.com/tag/macroeconomics-1082534" style="font-weight:bold;" target="_blank" title="Click to know more about MACROECONOMICS">MACROECONOMICS</a> is the sum total of incomes <a href="https://interviewquestions.tuteehub.com/tag/earned-7273289" style="font-weight:bold;" target="_blank" title="Click to know more about EARNED">EARNED</a> at the micro-level.</body></html> | |
3481. |
If the consuption function in an economy is C=50+0.75Y andthe autonomous investmenet is 30 crore, calculate the equilibrium level of income. |
Answer» <html><body><p></p>Solution :Rs.320 <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/> Hint. At <a href="https://interviewquestions.tuteehub.com/tag/equilibrium-974342" style="font-weight:bold;" target="_blank" title="Click to know more about EQUILIBRIUM">EQUILIBRIUM</a> AD=AS <br/> Since AD=C+I,and AS=Income (Y) <br/> `<a href="https://interviewquestions.tuteehub.com/tag/therefore-706901" style="font-weight:bold;" target="_blank" title="Click to know more about THEREFORE">THEREFORE</a> Y=C+I Rightarrow Y=(50+.075Y)+30, Find Y`</body></html> | |
3482. |
Defines excess demand. |
Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/exess-2626309" style="font-weight:bold;" target="_blank" title="Click to know more about EXESS">EXESS</a> <a href="https://interviewquestions.tuteehub.com/tag/demand-436956" style="font-weight:bold;" target="_blank" title="Click to know more about DEMAND">DEMAND</a> refers to a situation when `AD gt AS` <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 <a href="https://interviewquestions.tuteehub.com/tag/level-1072714" style="font-weight:bold;" target="_blank" title="Click to know more about LEVEL">LEVEL</a> of output in the economy. Here, Actual `AD gt "Required" AD`.</body></html> | |
3483. |
Value of marginal propensity to save can never be negative. |
Answer» <html><body><p></p>Solution :True. : <a href="https://interviewquestions.tuteehub.com/tag/since-644476" style="font-weight:bold;" target="_blank" title="Click to know more about SINCE">SINCE</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> = `DeltaS//<a href="https://interviewquestions.tuteehub.com/tag/deltay-2570681" style="font-weight:bold;" target="_blank" title="Click to know more about DELTAY">DELTAY</a>`, The <a href="https://interviewquestions.tuteehub.com/tag/individual-1041871" style="font-weight:bold;" target="_blank" title="Click to know more about INDIVIDUAL">INDIVIDUAL</a> may at <a href="https://interviewquestions.tuteehub.com/tag/tha-1243454" style="font-weight:bold;" target="_blank" title="Click to know more about THA">THA</a> most spend the entire `DeltaY` so that `DeltaS=0`. So, MPS can at the most be zero.</body></html> | |
3484. |
What is the behaviour of (a) Average Fixed Cost and (b) Average Variable Cost as more and more units of a good are produced ? OR Define Average Revenue. Show that Average Revenue and Price are same. |
Answer» <html><body><p></p>Solution :(a) Average Fixed <a href="https://interviewquestions.tuteehub.com/tag/cost-25707" style="font-weight:bold;" target="_blank" title="Click to know more about COST">COST</a> in defined as the fixed cost <a href="https://interviewquestions.tuteehub.com/tag/per-590802" style="font-weight:bold;" target="_blank" title="Click to know more about PER">PER</a> unit of output produced. It is derived by dividing the total fixed cost produced. <br/>That is, <br/><img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/CBSE_COMM_SP_XII_ECO_E01_010_S01.png" width="80%"/><br/>As more and more units of output are produced, the shape of AFC becomes that of rectangular hyperbola. That is, AFC is downward sloping rectangular hyperbola. This is because at any point on AFC <a href="https://interviewquestions.tuteehub.com/tag/curve-941741" style="font-weight:bold;" target="_blank" title="Click to know more about CURVE">CURVE</a>, if AFC is multiplied by corresponding unit output, then we get TFC. For example, at point A in the above figure, AFC is Rs.2.5 and corresponding output produced is 2 units, hence, TFC is Rs. (i.e. `Rs.2.5xx2`)<br/> (b) Average Variable Cost is defined as the variable cost per unit of output produced. It is derived by dividing the Total Variable Cost by quantity of output produced. That is, <br/><img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/CBSE_COMM_SP_XII_ECO_E01_010_S02.png" width="80%"/><br/>AVC is a U-shaped curve, That is, as output increases, the AVC curve falls and reaches its minimum point 'K' and then rises up. The reason behind the U-shape of AVC curve is the Law of Variable Proportion. <br/> OR <br/>Average Revenue (AR) is defined as revenue earned per unit of output sold. AR is same as that of <a href="https://interviewquestions.tuteehub.com/tag/price-1165141" style="font-weight:bold;" target="_blank" title="Click to know more about PRICE">PRICE</a> (P) of the output (Q). <br/> Algebraically,<br/>`AR=(TR)/(Q)` <br/>where, TR is total revenue <br/>Q=Output <br/>We know that TR = `PxxQ` <br/>`<a href="https://interviewquestions.tuteehub.com/tag/therefore-706901" style="font-weight:bold;" target="_blank" title="Click to know more about THEREFORE">THEREFORE</a> AR=(PxxQ)/(Q)implies AR=(PxxcancelQ)/(cancelQ)`<br/> AR=P <br/> Thus, AR is always equal to the price of the output.</body></html> | |
3485. |
What is meant by the assumption, other things remaining the same, on which law of supply is based ? |
Answer» <html><body><p></p>Solution :It is based on certain assumptions. If these assumptions fulfil in the economy, Law of supply states that <a href="https://interviewquestions.tuteehub.com/tag/positive-1159908" style="font-weight:bold;" target="_blank" title="Click to know more about POSITIVE">POSITIVE</a> relationship exists between price of the commodity and quantity supplied of that commodity. <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/FM_M_ECO_XII_P1_C07_E02_035_S01.png" width="80%"/> <br/> "Other things being <a href="https://interviewquestions.tuteehub.com/tag/constant-930172" style="font-weight:bold;" target="_blank" title="Click to know more about CONSTANT">CONSTANT</a> (ceteris paribus), based on the price of the commodity" is called law of supply. <br/> It means due to <a href="https://interviewquestions.tuteehub.com/tag/rise-1189674" style="font-weight:bold;" target="_blank" title="Click to know more about RISE">RISE</a> in price of a commodity its quantity supplied also rises and vice-versa. <br/> The assumptions are asunder : <br/> (a) Price of other commodity remains constant. <br/> (b) Technology of production should not change. <br/> (<a href="https://interviewquestions.tuteehub.com/tag/c-7168" style="font-weight:bold;" target="_blank" title="Click to know more about C">C</a> ) Cost of production remains costant. <br/> (d) Goal of the firm remains constant. <br/> (e ) <a href="https://interviewquestions.tuteehub.com/tag/taxation-928" style="font-weight:bold;" target="_blank" title="Click to know more about TAXATION">TAXATION</a> policy of the government should not change. <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/FM_M_ECO_XII_P1_C07_E02_035_S02.png" width="80%"/></body></html> | |
3486. |
A firm hires the services of a chartered accountant and pays fees. For the firm, payment of fees is : |
Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/final-461168" style="font-weight:bold;" target="_blank" title="Click to know more about FINAL">FINAL</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> <br/><a href="https://interviewquestions.tuteehub.com/tag/intermediate-517438" style="font-weight:bold;" target="_blank" title="Click to know more about INTERMEDIATE">INTERMEDIATE</a> expenditure<br/>Investment expenditure<br/>Capital expenditure</p>Answer :<a href="https://interviewquestions.tuteehub.com/tag/b-387190" style="font-weight:bold;" target="_blank" title="Click to know more about B">B</a></body></html> | |
3487. |
Capital intensive technique is chosen in a |
Answer» <html><body><p>1.Labour <a href="https://interviewquestions.tuteehub.com/tag/surplus-656730" style="font-weight:bold;" target="_blank" title="Click to know more about SURPLUS">SURPLUS</a> <a href="https://interviewquestions.tuteehub.com/tag/economy-21801" style="font-weight:bold;" target="_blank" title="Click to know more about ECONOMY">ECONOMY</a>. <br/>2.Capital surplus economy. <br/>3.Developed economy. <br/>4.Developing economy. </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/b-387190" style="font-weight:bold;" target="_blank" title="Click to know more about B">B</a></body></html> | |
3488. |
In which sub-account and on which side of balance of payments account, will foreign investments in India be recorded? Give reasons. |
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> :Foreign investment will be recorded in the <a href="https://interviewquestions.tuteehub.com/tag/capital-908677" style="font-weight:bold;" target="_blank" title="Click to know more about CAPITAL">CAPITAL</a> account of the balance of the payments account because these give rise to foreign <a href="https://interviewquestions.tuteehub.com/tag/exchange-454713" style="font-weight:bold;" target="_blank" title="Click to know more about EXCHANGE">EXCHANGE</a> <a href="https://interviewquestions.tuteehub.com/tag/liabilities-1072887" style="font-weight:bold;" target="_blank" title="Click to know more about LIABILITIES">LIABILITIES</a>. <br/> Foreign investment will be recorded on the credit side because these bring in foreign exchange to 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>.</body></html> | |
3489. |
Money is an asset and can be possedssed for use in future. |
Answer» | |
3490. |
If Marginal Rate of Substitution is constant throughout, the Indifference curve will be : |
Answer» <html><body><p><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 the <a href="https://interviewquestions.tuteehub.com/tag/x-746616" style="font-weight:bold;" target="_blank" title="Click to know more about X">X</a> - axis . <br/><a href="https://interviewquestions.tuteehub.com/tag/downward-2061463" style="font-weight:bold;" target="_blank" title="Click to know more about DOWNWARD">DOWNWARD</a> sloping concave. <br/>Downward sloping convex . <br/>Downward sloping straight line.</p>Answer :d</body></html> | |
3491. |
Explain the working of investment multiplier with the help of a numerical example |
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> multiplier refers to <a href="https://interviewquestions.tuteehub.com/tag/increase-1040383" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASE">INCREASE</a> in national income as a multiple of a given increase in investment. Its value is determined by Mrginal Propensity to Consume <br/> The value equals : <br/> Multiplier `= (1)/(1-<a href="https://interviewquestions.tuteehub.com/tag/mpc-548966" style="font-weight:bold;" target="_blank" title="Click to know more about MPC">MPC</a>) or (1)/(MPS)` <br/> Suppose increase in investment is Rs 1,000 and MPC = 0.8. The increase in national income is in the folloiwng sequence <br/> ** Increase in investment raises income of those who supply investment goods by Rs 1,000. This is first round increase <br/> ** Since MPC = 0.8, the income earners speed Rs 800 on consumption. This raises the income of the suppliers of consumption goods by Rs 800. This is second round increase. <br/> ** In the similar <a href="https://interviewquestions.tuteehub.com/tag/way-1450548" style="font-weight:bold;" target="_blank" title="Click to know more about WAY">WAY</a> the third round increase is Rs `640 = 800 xx 8`. In this way national income goes on national income goes on increasing round after round. <br/> ** The total increase in income is Rs 5,000 which equal <br/> `Delta Y = Delta I xx (1)/(1-MPC)` <br/> `Delta Y = 1,000 xx (1)/(1 - 0.8) = Rs 5,000` <br/> (Working based on table is also <a href="https://interviewquestions.tuteehub.com/tag/correct-409949" style="font-weight:bold;" target="_blank" title="Click to know more about CORRECT">CORRECT</a> )</body></html> | |
3492. |
If the Nominal GDP is Rs.1,200 and Price Index (with base=100) is 120, calculate Real GDP. |
Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/real-1178490" style="font-weight:bold;" target="_blank" title="Click to know more about REAL">REAL</a> <a href="https://interviewquestions.tuteehub.com/tag/gdp-467979" style="font-weight:bold;" target="_blank" title="Click to know more about GDP">GDP</a> = `("Nominal GDP")/("<a href="https://interviewquestions.tuteehub.com/tag/price-1165141" style="font-weight:bold;" target="_blank" title="Click to know more about PRICE">PRICE</a> Index")<a href="https://interviewquestions.tuteehub.com/tag/xx100-3292680" style="font-weight:bold;" target="_blank" title="Click to know more about XX100">XX100</a>`<br/>substituting the given values in the question<br/>Real GDP=`(1200)/(<a href="https://interviewquestions.tuteehub.com/tag/120-270396" style="font-weight:bold;" target="_blank" title="Click to know more about 120">120</a>)xx100` <br/> or, Real GDP = Rs.1000</body></html> | |
3493. |
Large number of technical training institutions have been started by the government. State its economic value in the context of production possibility frontier. |
Answer» <html><body><p></p>Solution :This would lead to technological innovations in the economy. When the level of technology improves <a href="https://interviewquestions.tuteehub.com/tag/production-14556" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCTION">PRODUCTION</a> <a href="https://interviewquestions.tuteehub.com/tag/possibility-1160394" style="font-weight:bold;" target="_blank" title="Click to know more about POSSIBILITY">POSSIBILITY</a> frontier is <a href="https://interviewquestions.tuteehub.com/tag/expected-2627146" style="font-weight:bold;" target="_blank" title="Click to know more about EXPECTED">EXPECTED</a> to shift to the right. There would be better utilization of the resources and the economy will move <a href="https://interviewquestions.tuteehub.com/tag/closer-7270227" style="font-weight:bold;" target="_blank" title="Click to know more about CLOSER">CLOSER</a> to the production possibility frontier. <br/> Value: Economic Growth with technological innovation.</body></html> | |
3494. |
As margin requirements are_,borrowers tend to borrow more money from banks. |
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/reduced-1181337" style="font-weight:bold;" target="_blank" title="Click to know more about REDUCED">REDUCED</a></body></html> | |
3495. |
Purchase of securitiesin theopenmarketby the commercialbanksreduces theircreditcreditingpower . |
Answer» <html><body><p></p>Solution :TRUE : The Purchase of securities <a href="https://interviewquestions.tuteehub.com/tag/decreases-946143" style="font-weight:bold;" target="_blank" title="Click to know more about DECREASES">DECREASES</a> the <a href="https://interviewquestions.tuteehub.com/tag/reserves-1186138" style="font-weight:bold;" target="_blank" title="Click to know more about RESERVES">RESERVES</a> of <a href="https://interviewquestions.tuteehub.com/tag/commercial-923169" style="font-weight:bold;" target="_blank" title="Click to know more about COMMERCIAL">COMMERCIAL</a> banks, which reduces their <a href="https://interviewquestions.tuteehub.com/tag/credit-938523" style="font-weight:bold;" target="_blank" title="Click to know more about CREDIT">CREDIT</a> crediting power.</body></html> | |
3496. |
Define Indifference Map. |
Answer» <html><body><p></p>Solution :Indifference <a href="https://interviewquestions.tuteehub.com/tag/map-1087307" style="font-weight:bold;" target="_blank" title="Click to know more about MAP">MAP</a> is a family or collection of indifference curves that <a href="https://interviewquestions.tuteehub.com/tag/depicts-948559" style="font-weight:bold;" target="_blank" title="Click to know more about DEPICTS">DEPICTS</a> the different <a href="https://interviewquestions.tuteehub.com/tag/levels-1072811" style="font-weight:bold;" target="_blank" title="Click to know more about LEVELS">LEVELS</a> of satisfaction and preferences of a consumer. Each indifference <a href="https://interviewquestions.tuteehub.com/tag/curve-941741" style="font-weight:bold;" target="_blank" title="Click to know more about CURVE">CURVE</a> in an indifference map depicts a particular level of satisfaction.</body></html> | |
3497. |
How does a central bank act as the lender ot the last resort? |
Answer» <html><body><p></p>Solution :When <a href="https://interviewquestions.tuteehub.com/tag/commercial-923169" style="font-weight:bold;" target="_blank" title="Click to know more about COMMERCIAL">COMMERCIAL</a> banks fail to meet their financial <a href="https://interviewquestions.tuteehub.com/tag/requirements-25692" style="font-weight:bold;" target="_blank" title="Click to know more about REQUIREMENTS">REQUIREMENTS</a> from other <a href="https://interviewquestions.tuteehub.com/tag/sources-1219409" style="font-weight:bold;" target="_blank" title="Click to know more about SOURCES">SOURCES</a>, they can <a href="https://interviewquestions.tuteehub.com/tag/approach-882321" style="font-weight:bold;" target="_blank" title="Click to know more about APPROACH">APPROACH</a> the central bank for loans and advances as the lender of the last resort.</body></html> | |
3498. |
An indifference curve (IC) is convex to the origin because of increasing MRS_("xy") . |
Answer» <html><body><p></p>Solution :False : An IC is convex to the origin because of <a href="https://interviewquestions.tuteehub.com/tag/diminishing-2044202" style="font-weight:bold;" target="_blank" title="Click to know more about DIMINISHING">DIMINISHING</a> `"<a href="https://interviewquestions.tuteehub.com/tag/mrs-549296" style="font-weight:bold;" target="_blank" title="Click to know more about MRS">MRS</a>"_(<a href="https://interviewquestions.tuteehub.com/tag/xy-747762" style="font-weight:bold;" target="_blank" title="Click to know more about XY">XY</a>)`</body></html> | |
3499. |
Identifywhich of the following statements istrue ? |
Answer» <html><body><p>Fiscaldeficitis difference between <a href="https://interviewquestions.tuteehub.com/tag/planned-1155689" style="font-weight:bold;" target="_blank" title="Click to know more about PLANNED">PLANNED</a> revenueexpenditure andplanned <a href="https://interviewquestions.tuteehub.com/tag/revenue-1188040" style="font-weight:bold;" target="_blank" title="Click to know more about REVENUE">REVENUE</a> receipts <br/>Fiscal deficit is thedifference between total planned <a href="https://interviewquestions.tuteehub.com/tag/expenditure-980222" style="font-weight:bold;" target="_blank" title="Click to know more about EXPENDITURE">EXPENDITURE</a> and total planned receipts.<br/>Primary deficit is thedifferencebetween total planned <a href="https://interviewquestions.tuteehub.com/tag/receipt-1179268" style="font-weight:bold;" target="_blank" title="Click to know more about RECEIPT">RECEIPT</a> and interest payments. <br/>Fiscal deficit is the sum of primary deficit andinterestpayment.</p>Solution :(d) Sum of primary deficit and interest payments.</body></html> | |
3500. |
Classify the following transactions in current account or capital account: i) Purchase of shares of ITC by Microsoft. ii) Borrowing from IMF. iii) Repayment of loan by Indian government taken from Germany. iv) Remittance from abroad. v) Purchase of land in USA |
Answer» <html><body><p></p>Solution :Current account: (iv),<a href="https://interviewquestions.tuteehub.com/tag/capital-908677" style="font-weight:bold;" target="_blank" title="Click to know more about CAPITAL">CAPITAL</a> account: (i), (<a href="https://interviewquestions.tuteehub.com/tag/ii-1036832" style="font-weight:bold;" target="_blank" title="Click to know more about II">II</a>), (<a href="https://interviewquestions.tuteehub.com/tag/iii-497983" style="font-weight:bold;" target="_blank" title="Click to know more about III">III</a>) and (<a href="https://interviewquestions.tuteehub.com/tag/v-722631" style="font-weight:bold;" target="_blank" title="Click to know more about V">V</a>)</body></html> | |