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This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your knowledge and support exam preparation. Choose a topic below to get started.
| 5501. |
When is rank correlation more precise than simple correlation cofficient ? |
| Answer» SOLUTION :When a PRECISE MEASUREMENT of the VARIABLES is not POSSIBLE. | |
| 5502. |
Give the meaning of producer's equilibrium .A producer produces that quantity of his product at whichmarginal cost and marginal revenue are equal. Is the earning maximum profit ? Give reasons for your answer. |
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| 5503. |
Deigrams which simultaneously presetn total values as well as part values of a set data are called……………… (percentage bar diagrams/sub-divided bar diagrams) |
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| 5504. |
The following table gives the total product schedule of labour. Find the corresponding product and marginal product schedules of labour. |{:("Labour",0,1,2,3,4,5),("TP of labour (units)",0,15,35,50,40,48):}| |
Answer» SOLUTION :
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| 5505. |
Explain the construction of Lorenz curve taking an imaginary set of data. |
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| 5506. |
In which situation, can PPC be a straight line: |
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Answer» When MRT is decreasing |
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| 5507. |
Toothpaste is a product of which type of market form |
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Answer» MONOPOLIST COMPETITION |
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| 5508. |
Total cost rises only when marginal cost rises. |
| Answer» Solution :False. TOTAL cost rises at a diminshing RATE when marignal cost FALLS and total cost rises at an INCREASING rate when marginal cost increases. | |
| 5509. |
In a Poetry Recitation Competition , 10 participants were accorded following marks by two different judges, X and Y : |
Answer» Solution :There are 10 ITEMS each in the two series in this question. We MAY accord, the highest rank, i.e, 10 to highest value/ item in each series , i.e., 18 in series X and 15 in series Y, and accord the lowest rank,i.e, 1 to the lowest value/item in each series, i.e., 9 in series X and 2 in series Y.  `r_(K)=1-(6sumD^(2))/(N^(3)-N)` Here, N=10,`SUMD^(2)=86` `r_(k)=1-(6xx86)/((10)^(3)-10)` `=1-(516)/(1,000-10)` `=1-0.52` `=0.48` Coefficient of Rank Correlation `(r_(k))=0.48` Thus, there is a positive rank correlation of a moderate degree of 0.48. |
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| 5510. |
How does an increase in number of firms in a market affect the market supply curve? |
| Answer» SOLUTION :Increase in no. of firms increases PRODUCTION LEVEL and HENCE the market supply increases and the market supply curve will shift to the RIGHT. | |
| 5511. |
The price elasticity of supply of a commodity is 2.5 . At a price of Rs. 5 per unit, its quantity supplied is 300 units. Calculate its quantity supplied at a price Of Rs. 4 unit. |
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Answer» Solution :`E_(s)=(P)/(Q_(s))XX(DeltaQ_(s))/(DELTAP)` `2.5=(5)/(300)xx(DeltaQ_(s))/(-1)` `-750=5DeltaQ_(s)` `DeltaQ_(s)=-150` New `Q=Q_(s)+ DeltaQ=300+(-150)=300-150=150` units |
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| 5512. |
Calculate the correlation cofficient between X and Y and comment on their relationship. |
Answer» Solution : `bar(X)=(sumX)/(N)=(0)/(6)=(sumY)/(N)=(28)/(6)=4.67` Here, `sumxy=0, sumx^(2)=28, sumy^(2)=65.34` `R=(sumxy)/(sqrt(sumx^(2)xxsumy^(2)))=(0)/(sqrt(28xx65.34))=0` Correlation COEFFICIENT (r)=0 Since r=o , the two VARIABLES X and Y are uncorrelated. That is, there is no LINEAR relationship between X and Y. |
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| 5513. |
One basic charactertistics of monopolistic competition which separates this market from a perfectly competitive market is : |
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Answer» LARGE NUMBER of buyers |
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| 5514. |
Differentiate between histogram and bar diagrams. |
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| 5515. |
Let there be three bundles containing good X and Y , Bundle (20,10) , Bundle (20,20) and Bundle (8,20). If a consumer has monotonic preferences, which bundle will be preferred by him ? |
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| 5516. |
State 2 features of resources that give rise to an economic problem. |
| Answer» Solution :The two FEATURES of resources that give rise to an ECONOMIC PROBLEM are: (i) Resources are LIMITED, (ii) They have economics uses. | |
| 5517. |
When is a firm called price maker ? |
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| 5518. |
What do you mean by monotonic preferences ? |
| Answer» SOLUTION :MONOTONIC preference means that a rational CONSUMER always prefers more of a commodity as it offers him a higher level of SATISFACTION. | |
| 5519. |
Draw unitary elastic demand cruve. What does it reflect ? |
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| 5520. |
Distinguish between (i) fixed cost and variable cost giving examples and (ii) average cost and marginal cost giving an example. |
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Answer» Solution :1) Fixed Cost is definite; it will incur EVEN when there is no UNITS are produced.On the other hand, variable cost remains constant in per unit. Examples of fixed cost are rent, tax, salary, depreciation, fees, duties, insurance, etc. Examples of variable cost are packing expenses, freight, material CONSUMED, WAGES, etc. (2) Marginal cost of a commodity is the cost of production of an incremental unit. AVERAGE cost is also defined as the sum of average fixed cost and average variable cost.Marginal cost refers to the cost incurred by producing the next product unit |
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| 5521. |
Eight workers earn the following income: 30, 36, 34, 40, 42, 46, 54, 62 Find out arithmetic mean. |
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| 5522. |
Which one is Macroeconomics variable? |
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Answer» (a) Foreign exchange |
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| 5523. |
Explain the law of variable proportions with the help of total product curve. Use diagram. |
Answer» Solution :According to the Law of VARIABLE Proportions as only one input is increased, other remaining unchanged, the total product increases at an increasing rate, then at a DECREASING rate and ultimately falls.  Phase I In the first phase, TP increases at an increasing rate upto point A. Phase II In the second phase. TP increases at a DIMINISHING rate between point A & B Phase III In the third phase, TP starts falling beyond point B. |
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| 5524. |
With incease in price of burgers by 22% , its deamand falls by 25%. This indicates that demand for burgers is: |
| Answer» Solution :N/a | |
| 5525. |
The statements like 'Economy should control pollution' or Unemployment in the economy ought to be reduced' fall within the scope of, |
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Answer» NORMATIVE STATEMENT |
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| 5527. |
The marginal cost curve can intersect the average cost curve ony at its minimum point. |
| Answer» Solution :False.Marginal cost curve can intersect average cost curve only at its minimum point.When the marginal cost is smaller than the average cost, AC decreases. This is because when the EXTRA unit of OUTPUT is cheaper than the average cost then the Average cost is PULLED down. SIMILARLY, when the Marginal cost is greater than THEAVERAGE cost, the Average cost is pulled up. The point of intersection between marginal cost and Average cost curves is also the minimum of the Average cost curve. | |
| 5528. |
Under random sampling, each item of the universe has ___________ chance of being selected. |
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Answer» EQUAL |
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| 5529. |
Starting from initial situation of consumer's equilibrium if price of the commodity rises , where will consumer equilibrium be determined ? |
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| 5530. |
Which of these statement is ture about production possibility curve? |
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Answer» It shows various combinations of two goods which yield same LEVEL of satisfaction. |
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| 5531. |
What is meant by a continuous series or frequency distribution? |
| Answer» Solution :Continuous series or FREQUENCY distribution is that series in which ITEMS cannot be exactly MEASURED The items ASSUME a range of values and are placed within the range or limits. | |
| 5532. |
What causes a downward movement along a supply curve? |
| Answer» Solution : DECREASE in PRICE of a COMMODITY due to any of the factorscauses a downward movement ALONG the same supply curve. | |
| 5533. |
Why MP curve cuts AP curve at its maximum point ? |
| Answer» Solution :It happens because when AP rises, MP is more than AP. When AP falls, MP is LESS than AP. So, it is only when AP is constant and at its MAXIMUM POINT, that MP is equal to AP. Therefore, MP curve cuts AP curve at its maximum point. | |
| 5534. |
What is meant by census method ? Give its merit and demerits. |
| Answer» Solution :The Census Method is ALSO called as a Complete Enumeration Survey Method wherein each and every item in the universe is selected for the data collection. ... Whenever the entire population is studied to collect the detailed data about every unit, then the census method is applied.MeritsIntensive Study – Under census investigation, you must obtain data from each and every unit of the population. Further, it enables the statistician to study more than one aspect of all items of the population.Reliable Data – The data that a statistician collects through a census investigation is more reliable, representative, and accurate. This is because, in a census, the statistician observes every item personally.Suitable Choice – It is a great choice in situations where the different items of the population are not homogeneous.The basis of various surveys – Data from a census investigation is used as a basis in various surveyDemeritsCosts – Since the statistician closely observes each and every item of the population before collecting the data, it makes a census investigation a very costly method of investigation. Usually, government organizations adopt this method to collect detailed data like the population census or agricultural census or the census of industrial protection, etc.Time-consuming – A census investigation is time-consuming and also requires manpower to collect ORIGINAL data.Possibilities of Errors – There are MANY possibilities of errors in the census investigation method due to non-response, MEASUREMENT, lack of preciseness of the definition of statistical units or even the personal BIAS of the investigators. | |
| 5535. |
Explain the following : (a) why is an indifference curve convex to the origin ? (b) Why does a higher indifference curve represent a higher level of satisfaction ? |
| Answer» Solution :a) The indifference curves are convex to the origin because of the DIMINISHING MARGINAL rate of substitution. The MRS diminishes because of the decline in the marginal utility, which means with more and more consumption of one commodity, the customer’s utility starts declining and he is not willing to consume it more at the cost of the other commodity.For example, let’s say there are two chocolates, DAIRY milk, and Nestle, with more and more consumption of dairy milk chocolates the utility continues to decline, and the customer will no more give up the Nestle chocolates to buy the dairy milk. Here, MRS shows the slope of the indifference curve.b)The consumer derives more satisfaction from the combination of two goods on a higher indifference curve because more units of both the commodities are used that will surely be more satisfying than the lower quantity COMBINATIONS. | |
| 5536. |
Define micro-economics . |
| Answer» Solution :MICROECONOMICS is a branch of economics that studies the behaviour of individuals and firms in making DECISIONS regarding the allocation of scarce RESOURCES and the INTERACTIONS among these individuals and firms. | |
| 5537. |
Constractionof supplyoccursdue tochangein factorsotherthanpriceof thegivencommodity. |
| Answer» SOLUTION :FALSE : Contractionof supplyoccursdue tofallin the priceofthegivencommodity,assumingno CHANGE in other FACTORS. | |
| 5538. |
The farther the Indifference Curve is from the origin, then : |
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Answer» HIGHER is the SATISFACTION LEVEL |
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| 5539. |
Explain the proces of determination of equilibrium price of a commodity under a perfectly competitive market. |
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| 5540. |
Production in an economy is below its potential due to unemployment. Government starts employment generation schemes. Explains its effect using production possibilities curve. |
Answer» Solution :Production below the potential means that total production in the ECONOMY is somewhere below the production possibility CURVE PP', for example at point U in the diagram.  When government starts EMPLOYMENT generation schemes, and since the below potential production is due to UNEMPLOYMENT, the economy moves forward in its attempt to REMOVE unemployment and each the potential. The movement forward is towards the PP' curve. |
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| 5541. |
Under mailing method, questionnaires are mailed to the ……………………………….. (informants/enumerator) |
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| 5542. |
If the arithmetic mean of the following series is 115.86, find the missing value. {:("Wages(Rs.)",110,112,113,117,?,125,128,130),("Number of Workers",25,17,13,15,14,8,6,2):} |
Answer» Solution :LET the MISSING VALUE be X.  `barX=(sumfX)/(sumf)` `115.86=(9,906+14X)/100` `115.86xx100=9,906 +14X` `14X=11,586-9,906` `14X=1,680` `X=(1,680)/14=120` Missing Value = 120. |
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| 5543. |
Why does rank correlation cofficient differ from Pearsonian correlation cofficient ? |
| Answer» Solution :Rank correlation COFFICIENT is more often used to measure the linear RELATIONSHIP between the QUALITATIVE variables whereas Karl PEARSON's method of correlation cofficient measures the linear relationship between the quantitative variables. | |
| 5544. |
A straight-line supply curve cuts X-axis in its positive range. What can you say about the elasticityof supply ? OR What is the price elasticity of supply of a straight line supply curve touching the OX-axis? |
| Answer» SOLUTION : Less elastic `(Es lt1)`. because it implies quantity SUPPLIED is less RESPONSIVE to the CHANGE in price. | |
| 5545. |
In which phase of law of variable proportions, a rational firm aims to operate ? |
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| 5546. |
What is likely to be the impact of "Make in India" appeal to the foreign investors by the prime minister of India on the production possibilities frontier of India ? Explain. |
| Answer» Solution :"MAKE in India" APPEAL signifies invitation to foreign investors to produce in India. This will BRING in foreign capitall into India and thus it will lead to increases in RESOURCES, raising production potential of the country. It will shift the PP curve upwards. | |
| 5547. |
When do we say there is excess demand for a commodity in the market? |
| Answer» SOLUTION :When at a given price, the quantity DEMANDED of a PRODUCT exceeds its quantity supplied, there is an excess demand for the commodity. | |
| 5548. |
Opportunity Costs arise: |
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Answer» When there is only course of action |
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| 5549. |
Monopoly (M) monopoly cometition (MC) and oligopoly (O) when arranged on the basic of numbers of firms in the ascending order are: |
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Answer» MC,M,O |
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| 5550. |
Expansion in demand occurs due to : |
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Answer» RISE in PRICE of the GIVEN commodity |
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