7498 + Interview Questions in Economics in Class 11 Page 117 InterviewSolution

5801.	Which formula is incorrect to determinethe value of TC :
Answer» `TC = TVC + TFC` `TC = sumMC` `TC = AC XX "OUTPUT"` `TC = sumMC + TFC` SOLUTION :N//A

Discussion

5802.	Arithmetic mean of these items : 10 , 15, X, 20, 30, is 20. Find out the missing item.
Answer» 10 15 5 12 Answer :D

Discussion

5803.	What is meant by returns to a factor ? What leads to increasing returns to a factor ? Explain
Answer» Solution :Returns to factor STUDIES the behaviour of output when more and more units of varibale factor are EMPLOYED with the fixed FACTORS. (i) Better UTILISATION of fixed factor. (ii) Effecient utilisation of variable factor. (III) Better co-ordination between factors.

Discussion

5804.	"The demand for a commodity always increases whenever the price of other goods rises". Do you agree with the given statement ?
Answer» Solution :No, I do not AGREE with the given STATEMENT. The DEMAND for a commodity will INCREASE in the price of other goods, only when such other goods are SUBSTITUTE goods. However, demand for the commodity will fall with increase in the price of other goods, if such other goods are complementary goods.

Discussion

5805.	Distinguish between monopoly and perfect competition.
Answer»

Discussion

5806.	Does the lottery method always give you a random sample ? Explain .
Answer» Solution :YES, the lottery METHOD always gives a random sample's outcome. In a random sample, each individual unit has an EQUAL CHANCE of getting selected. Similarly, in a lottery method, each individual unit is selected at random from the population and thereby has equal opportunity of getting selected.

Discussion

5807.	Explain the implicaiton of homogeneous product feature of perfect competition.
Answer» SOLUTION :N/a

Discussion

5808.	What is the behaviour of TP, when MP becomes negative ?
Answer» TP INCREASES at an INCREASING rate TP increases at DIMINISHING rate TP is at its MAXIMUM point TP decreases Answer :D

Discussion

5809.	Suppose total revenue is rising at a constant rate as more and more units of a commodity are sold, marginal revenue would be :
Answer» GREATER than Average Revenue EQUAL to Average Revenue LESS than Average Revenue RISING Solution :N/A

Discussion

5810.	In perfect competition, since the firm is a price take -curve is a horizontal straight line parallel to the X-axis.
Answer» MARGINAL cost Total cost Total Revenue Marginal Revenue Solution :N/a

Discussion

5811.	Define slope of TU curve.
Answer» SOLUTION :The slope of this TOTAL utility curve is MARGINAL utility. The shape of the total utility curve means that marginal utility is high for small QUANTITIES, declines, then becomes negative as the quantity consumed INCREASES.

Discussion

5812.	When does a producer earn maximum profits ?
Answer» Solution :Producer EARN maximum PROFITS when the DIFFERENCE between TR and TC is maximum.

Discussion

5813.	Define perfect cometition
Answer» Solution :Perfect COMPETITION to a market SITUATION where there are very large number of buyers and sellers dealing in a HOMOGENEOUS product at a PRICE FIXED by the market

Discussion

5814.	What will be the kind published by the railway department regarding the progess of railway for an investigation?
Answer» Solution :DATA published by the railway department REGARDING the PROGRESS of railway for an investigator WOULD be treated as secondary data for the investigator.

Discussion

5815.	If at a given price of commodity, there is excess demand or excess supply, how will the equilibrium price be reached ? Explain by diagram
Answer»

Discussion

5816.	The marginal utility schedule for goods A and B are given. Price of both the goods is Rs 1 each and the income of Ms. Nidhi is assumed to be Rs 8. Determine, how many units of both the commodities should be purchased by Nidhi to maximize her total utility. Also, calculate the total utility at the point of equilibrium.
Answer» Solution :MS. Nidhi should PURCHASE 5 UNITS of GOOD A and 3 units of good B; total utility=113 units

Discussion

5817.	The indifference Curve Analysis is different from the Utility Analysis because the IC Analysis is base on
Answer» Cardial utility Ordial utility LAW of diminishing marginal utility Law of equi-marginal utility ANSWER :B

Discussion

5818.	__________ is based on all the items of the distribution.
Answer» SOLUTION :MEAN

Discussion

5819.	How is the equilibrium price of a commodity affected by a rise in the prices of its substitutes? Explain the chain of effects.
Answer» Solution :A RISE in price of substitues leads to an increase in the demand for the commodity. HENCE, the demand curve will shift rightwards. With this increase in demand and supply being the same, equilibrium price will rise with an increase in COMPETITION among BUYERS. This increase in price leads to an increase in supply and a fall in demand. Hence, as a result, equilibrium price and equilibrium quantity rises.

Discussion

5820.	State one characteristic of a perfectly cometitive market.
Answer»

Discussion

5821.	In spatical classification, â€¦............... Becomes the classifying variable. (time/place)
Answer» SOLUTION :PLACE

Discussion

5822.	Suggest any one economic meaure by which the government can promote consumption of 'Khadi'
Answer» SOLUTION :REDUCE PRICE by GIVING SUBSIDY.

Discussion

5823.	_______ is the period of time in which all the factors of production are variable.
Answer» Short-run Long-run Medium-run None of these Answer :B

Discussion

5824.	The good which has inelastic demand is
Answer» SALT medicines textbooks all of these. Answer :D

Discussion

5825.	Marginal rate of substitution remains same the indifference curve
Answer» SOLUTION :It DIMINISHES ALONG the INDIFFERENCE CURVE.

Discussion

5826.	Which phase of Law of Viriable Proportions has been ruled out on the grounds of technical inefficiency :
Answer» INCREASING RETURNS to a factor Diminishing returns to a factor Negative returns to a factor None of these Answer :C

Discussion

5827.	A statement about supply of a good includes information on :
Answer» Quantity Price Period of time All of above Answer :D

Discussion

5828.	Explain the factors that affect demand/market demands for a commodity
Answer»

Discussion

5829.	Givenone pointof differentbetweenindividual supply and market supply.
Answer» Solution : INDIVIDUAL supply may not strictly FOLLOW the Law of supply, i.e. it is not necessary that Supply for an individual always varies directly with PRICE. However, market supply always follows law of supply, ie.market SUPLY always varies directly with price.

Discussion

5830.	(a) Arrange the following coefficients of price elasticity of demand in ascending order: 0.87, -0.53, -3.1, -0.80 (b) comment upon the degree of elasticity of demand for commodity X, if the price of the commodity falls from Rs 28 per unit to Rs 23 per unit and its quantity demanded rises from 50 units to 100 units
Answer» SOLUTION :(a) `-0.5, -0.80, -0.87, -3.1` (minus sign only represents the inverse relation between price and quantity demanded) (b) `{:("Price (in Rs)","Quantity (in units)",),("ORIGINAL" = 28,"Original " = 50,),("New " = 23,"New " = 100 ,):}` `E_(d) = ("CHANGE in Quantity Demanded")/("Change in Price") xx ("Original Price")/("Original Quantity")` `= (50)/(5) xx (28)/(5)` `= (-) 5.6 (E_(d) GT 1, " more elastic DEMAND")`

Discussion

5831.	What changes should take place in total revenue so that : (i) Marginal revenue is positive and constant, and (ii)Marginal revenue is positive and falling.
Answer» Solution :(i) Marginal revenue will be positive and constant when TOTAL revenue rises at a constant rate. (ii) Marginal revenue will be positive and FALLING when total revenue rises at a DIMINISHING rate.

Discussion

5832.	What type of changes take place in total product and marginal product when there are : (a) increasing returns to a factor ? (b) diminising returns to a factor ? why do these changes take place
Answer» Solution :(a) When there are increasing RETURNS to a factor, total product (TP) increases at an increasing rate and marginal product (MP) ALSO rises. This change takes place due to following reasons: `""` Better utilization of the fixed factor. `""` Increased EFFICIENCY of variable Factor. (b) When there are diminishing returns to a factor, TP increases at a decreasing rate and MP starts declining. This phase ends when MP is zero and TP is maximum. This change in TP and MP takes place due to following reasons : `""` Among different combinations between variable and fixed factor, there is one optimum combination, at which TP is maximum. After MAKING the optimum use of fixed factor, MP begins to fall. `""` Among different combinations between variable and fixed factor, there is one optimum combination, at which TP is maximum. After making the optimum use of fixed factor, MP begins to fall. `**""` Factors of production are imperfect substitutes of each other.

Discussion

5833.	What is the shape of AR and MR curves under perfect competition ?
Answer» SOLUTION :Both the curves coincide into ONE CURVE which is a horizontal STRAIGHT line parallel to X-axis.

Discussion

5834.	Does correlation imply causation ? ,No.
Answer» SOLUTION : CORRELATION only IMPLIES COVARIATION

Discussion

5835.	What is meant by collusive oligopoly ?
Answer»

Discussion

5836.	What will you say about MPP of a factor in TPP is falling ?
Answer» ANSWER :MPP is NEGATIVE

Discussion

5837.	Define Price floor.
Answer» SOLUTION :Price FLOOR MEANS the minimum price the PRODUCERS are allowed to charge for a good or service. In other WORDS, price floor is fixing the price of a commodity at a level which is higher than that of the equilibrium price level.

Discussion

5838.	How would you use the random sampling method when you are select a sample of 3 out of 10 student in your class ?
Answer» Solution :The following steps would be involved while using the random sampling TECHNIQUE (lottery METHOD) to select 3 students out of 10 students.Step1: Write the NAME of each student on a different piece of paper (total 10 slips). Here, caution must be taken that the slips of paper are identical in all respects (size, colour, etc.).Step2: Place all the slips in a box or a container and shuffle well.Step 3: Draw out three slips one by one at random from the box.Step 4: Students with their name on the DRAWN slips would be selected as the sample.

Discussion

5839.	The extreme values of a class are ________. (magnitude / limits)
Answer» ANSWER :LIMITS

Discussion

5840.	What is meant by inferential statistics?
Answer» Solution :INFERENTIAL statistics refers to all such methods by which conclusions are DRAWN RELATING to the universe or population on the BASIS of a given sample.

Discussion

5841.	What are the main merit of random sampling.
Answer»

Discussion

5842.	Production Possibility Curve shows the point at which the economy actually operates.
Answer» Solution :Production Possibility Curve (PPC) dows not SHOW the point at which the economy will actually operate. It only shows the maximum AVAILABLE POSSIBILITIES, which an economy can produce. The exact point of OPERATION DEPENDS on how well the resources of the economy are used.

Discussion

5843.	Draw a flow chart showing different kinds of tables. Also, explain the various kinds of tables.
Answer» SOLUTION :N/a

Discussion

5844.	Under which market from, a firm is a price taker ?
Answer»

Discussion

5845.	A basic economic problem is that there is oil shortage in India. What measures do you suggest to meet the growing demand of oil ?
Answer» Solution :There should be optimum use of oil, as it is SCARCE. There should be massive awareness on shortage of oil and people should be ENCOURAGED to use public transport system, car POOLS etc.

Discussion

5846.	Average revenue and price are always equal under:
Answer» PERFECTLY COMPETITION only Monopolistic Competition only Monopoly Competition Oligopoly Solution :N/a

Discussion

5847.	Briefly explain the concept of cost function.
Answer» SOLUTION :A cost FUNCTION is a function of input prices and OUTPUT quantity whose value is the cost of making that output given those input prices, often applied through the use of the cost curve by companies to minimize cost and maximize production EFFICIENCY.

Discussion

5848.	Distinguish between an inferior good and a normal good. Is a good which is inferior for one consumer also inferior for all the comsumers ? Explain
Answer» Solution :When with the rise in INCOME of consumer demand for a good increases, that good is a normal good for that consumer. If with rise in income demand for the good decreases than that good is inferior for that consumer. A good is not necessarily inferior for all the CONSUMERS. A good which is inferior for a HIGHER income consumer may be a normal good for the lower income consumer. It is not the consumer but the income level of the consumer which DETERMINES whether a good is normal or inferior.

Discussion

5849.	If two demand curves intersect, which one has the higher price elasticity ?
Answer» Solution :The DEMAND curve which is FLATTER has a higher ELASTIC demand.

Discussion

5850.	A consumer consumer only two goods. For the consumer to be in equilibrium, why must Marginal Rate of Substitution between the two goods must be equal to the ratio of prices of these two goods ? Is it enough to ensure equilibrium ?
Answer» <P> Solution :Let the two goods be X and Y. `MRS_(XY)` is the number of units of Y the consumer is willing to sacrifice to obtain one extra unit of X. The ration of prices is `P_(X)//P_(Y)` which also equals the ratio of the number of units of Y required to be sacrificed to obtain one extra unit of X in the market. Initially, when the consumer starts purchases, `MRS_(XY)` is greater than `P_(X)//P_(Y)`. It means that to obtainone extra unit of X, the consumer is willing to sacrifice more than he has to sacrifice actually. The consumer gains. As he GOES on obtaining more and more units of X, marginal utility of X goes on declining. Therefore, the consumer is willing to sacrifices LESS and less of Y each time he OBTAINS one extra unit of X. As a result, `MRS_(XY)` falls and ULTIMATELY become equal to `P_(X)//P_(Y)` at some combination of X and Y. At this combination, the consumer is in equilibrium. If the consumer attempts to obtain more units of X beyond the equilibrium level, `MRS_(XY)` will become less than `P_(X)//P_(Y)` and his total utility will start falling. So, he will not try to obtain more of X.

Discussion

Explore topic-wise InterviewSolutions in .

Which formula is incorrect to determinethe value of TC :

Arithmetic mean of these items : 10 , 15, X, 20, 30, is 20. Find out the missing item.

What is meant by returns to a factor ? What leads to increasing returns to a factor ? Explain

"The demand for a commodity always increases whenever the price of other goods rises". Do you agree with the given statement ?

Distinguish between monopoly and perfect competition.

Does the lottery method always give you a random sample ? Explain .

Explain the implicaiton of homogeneous product feature of perfect competition.

What is the behaviour of TP, when MP becomes negative ?

Suppose total revenue is rising at a constant rate as more and more units of a commodity are sold, marginal revenue would be :

In perfect competition, since the firm is a price take -curve is a horizontal straight line parallel to the X-axis.

Define slope of TU curve.

When does a producer earn maximum profits ?

Define perfect cometition

What will be the kind published by the railway department regarding the progess of railway for an investigation?

If at a given price of commodity, there is excess demand or excess supply, how will the equilibrium price be reached ? Explain by diagram

The indifference Curve Analysis is different from the Utility Analysis because the IC Analysis is base on

__________ is based on all the items of the distribution.

How is the equilibrium price of a commodity affected by a rise in the prices of its substitutes? Explain the chain of effects.

State one characteristic of a perfectly cometitive market.

In spatical classification, â€¦............... Becomes the classifying variable. (time/place)

Suggest any one economic meaure by which the government can promote consumption of 'Khadi'

_______ is the period of time in which all the factors of production are variable.

The good which has inelastic demand is

Marginal rate of substitution remains same the indifference curve

Which phase of Law of Viriable Proportions has been ruled out on the grounds of technical inefficiency :

A statement about supply of a good includes information on :

Explain the factors that affect demand/market demands for a commodity

Givenone pointof differentbetweenindividual supply and market supply.

What changes should take place in total revenue so that : (i) Marginal revenue is positive and constant, and (ii)Marginal revenue is positive and falling.

What type of changes take place in total product and marginal product when there are : (a) increasing returns to a factor ? (b) diminising returns to a factor ? why do these changes take place

What is the shape of AR and MR curves under perfect competition ?

Does correlation imply causation ? ,No.

What is meant by collusive oligopoly ?

What will you say about MPP of a factor in TPP is falling ?

Define Price floor.

How would you use the random sampling method when you are select a sample of 3 out of 10 student in your class ?

The extreme values of a class are ________. (magnitude / limits)

What is meant by inferential statistics?

What are the main merit of random sampling.

Production Possibility Curve shows the point at which the economy actually operates.

Draw a flow chart showing different kinds of tables. Also, explain the various kinds of tables.

Under which market from, a firm is a price taker ?

A basic economic problem is that there is oil shortage in India. What measures do you suggest to meet the growing demand of oil ?

Average revenue and price are always equal under:

Briefly explain the concept of cost function.

Distinguish between an inferior good and a normal good. Is a good which is inferior for one consumer also inferior for all the comsumers ? Explain

If two demand curves intersect, which one has the higher price elasticity ?

A consumer consumer only two goods. For the consumer to be in equilibrium, why must Marginal Rate of Substitution between the two goods must be equal to the ratio of prices of these two goods ? Is it enough to ensure equilibrium ?