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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.
| 5951. |
In marketperiod, supplycan adjustitself tothe changingdemand. |
| Answer» SOLUTION :FALSE :Marketperiodis a veryshort PERIODAND supply CANNOTBE changed in response to thechangeindemand. | |
| 5952. |
Let TR be total revenue. 'Q' be quantity of output , and 'n' the number of units, then MR is equal to ? |
| Answer» SOLUTION :`MR =TR_(N)-TR_(n-1)` or `MR=(DeltaTR)/(DELTAQ)` | |
| 5953. |
Total costof productionis the sum total of variable cost and marginal cost. |
| Answer» SOLUTION :FALSE. TOTAL cost is the sumtotal of VARIABLE cost and fixed cost. TC= TVC+TFC | |
| 5954. |
What is imperfect oligopoly? |
| Answer» SOLUTION :If in an oligopoly MARKET, the FIRMS produce DIFFERENTIATED PRODUCTS, it is called oligopoly, | |
| 5955. |
At a price higher than the equilibrium price, there is an excess demand. |
| Answer» Solution :There is excess SUPPLY at a PRICE HIGHER than the EQUILIBRIUM price. | |
| 5956. |
If due to fail in price of good X, demand for good Y rises, the two goods are: |
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Answer» Substitutes |
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| 5957. |
What is the mode in the series with following variables. 1,2,2,1,3,3,2,3 |
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Answer» 1 |
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| 5958. |
Growth of resources shifts the production possibility frontier towards right. |
| Answer» SOLUTION :GROWTH of resources increases the CAPACITY of economy to produce more. It shifts the PRODUCTION possibility frontier TOWARDS right. | |
| 5959. |
In a perfectly competitive market the buyers treat products of all the firms as homogeneous. Explain the signigicance of this feature. |
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| 5960. |
A consumer consumes only two goods. If price of one of the good falls, the indifference curve: |
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Answer» SHIFTS LEFTWARD |
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| 5961. |
Law of Variable Proportions' operates in the long period. |
| Answer» Solution :Low of Variable Proportions operates in the short period and not in the long period as in the short period, a FIRM can not vary all the inputs, as some of the REMAIN fixed. Under this LAW, output is increase by changing only one INPUT while keeping other inputs UNCHANGED. | |
| 5962. |
What is the difference between positive and negative correlation . |
| Answer» SOLUTION :The difference between positive and NEGATIVE correlation is that in positive correlation , variables move in the same direction whereas in the negative correlation, they move in DIFFERENT directions . | |
| 5963. |
When marginal product rises, total product: (Choose the correct alternative) |
| Answer» Solution :Rises | |
| 5964. |
Define Macroeconomics. |
| Answer» Solution :Macroeconomiccs is that part of ECONOMIC theory which studies that BEHAVIOUR of the AGGREGATES of an ECONOMY as a WHOLE. | |
| 5965. |
What change in TR will result in a decreases in MR ? |
| Answer» SOLUTION :When TR INCREASES at a diminishing rate and when TR FALLS. | |
| 5966. |
What are the main demerits of random sampling ? |
| Answer» SOLUTION :1. EXPENSIVE2. REQUIRED more SKILL | |
| 5967. |
What do you mean by complements ? Give examples of two goods which are complements of each other. |
| Answer» SOLUTION :COMPLEMENTS refers to those goods which are USED together to satisfy a particular want. For examples : Tea and SUGAR , Car and Petrol. | |
| 5968. |
Define variable coasts . OR What is the meaningof prime costs ? |
| Answer» Solution :Variable costs (or PRIME costs) REFER tothose which VARY directly with the level of output. For example,WAGES ofcasual labour, payment of raw material. | |
| 5969. |
Name the steps in drawing Lorenz Curve . |
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Answer» Solution :To draw a Lorenz Curve, FOLLOW these steps: 1)Gather the data (e.g. census data from two cities) 2) For each set of data, rank the CATEGORIES and order them by rank in a table 3)Convert each value in a % of the total 4)CALCULATE the running totals (ie cumulative %, by adding the % of one line to the ONES before) 5)Graph ranks (horizontal) against cumulative % (vertical) 6) Draw the "even distribution line" running from (rank = 0, % = 0) to (rank = MAX, % = 100%), which represents the line if all the categories were the same size. |
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| 5970. |
Categorise the following changes as expansion, contraction, increase or decrease in demand (assuming the given commodity is a normal good) : (i) When prices of a substitude rises (ii) When price of the given commodity increases (iii) When income of the consumers increases (iv) When price of the given commodity is expected to fall in further (v) When the given commodity becomes a fashion good (vi) When there is sudden decrease in population due to an earthquake (vii) When the price of the given commodity falls. |
| Answer» SOLUTION :Expansion in DEMAND : (vii) , Contraction in demand (ii) , Increase in demand (i),(III),(v) , Decrease in demand (IV),(vi). | |
| 5971. |
Product per unit of labour employed is termed as : |
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Answer» AVERAGE product |
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| 5972. |
Why does SMC curve cut the AC at its minimum? |
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Answer» SOLUTION :SMC curve cuts AC curve at its minimum. It is because, 1. When MC lt AC, AC falls 2. When MC gt AC, AC rises 3. Changes in AC depend on CHANGE in MC. When MC lies below AC, It pulls AC downwards and when MC lies above AC, it pulls AC upwards. As a result MC cuts AC at its minimum POINT. 
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| 5973. |
What is 'loss of information ' in classified data ? |
| Answer» Solution :This term is used in two entirely different SENSES: (a) to denote the actual loss of information in the ordinary sense, e.g. by the destruction of RECORDS; (b) to denote FAILURE to extract all the information which exists in the available data about a PARTICULAR matter. | |
| 5974. |
What is meant by equilibrium output of a producer ? |
| Answer» SOLUTION :Equilibrium output of a producer REFERS to that LEVEL of output at which the profits of a producer are maximum. | |
| 5975. |
For calculating median, all items of the series are arranged in |
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Answer» descending ORDER |
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| 5976. |
The data collected without any objective is called numbers. (True/False) |
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Answer» |
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| 5977. |
A student obtained 60 marks in English, 75 inHindi, 63 in Mathematics, 59 in Economics and 55 in Statistics. Calculate weighted mean of the marks if weights are respectively 2, 1, 5, 5 and 3. |
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Answer» |
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| 5978. |
What is coperative oligopoly Or What is meant by collusive oligopoly? |
| Answer» Solution :When in an OLIGOPOLY MARKET, the firms coperate with each other in determining PRICE and output it is CALLED Coperative Oligopoly. | |
| 5979. |
Which branch of economics studies aspects concerning people of the country as a whole? |
| Answer» SOLUTION :MACROECONOMICS | |
| 5980. |
Cross demand states the relationship between : |
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Answer» Demand of given COMMODITY and price of RELATED goods |
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| 5981. |
In the following diagram , producer's equilibrium is achieved at poin "_________" |
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Answer» K |
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| 5982. |
State any one assumption for the construction of the curve that shows the possibilities of potential production of 2 goods in an economy. |
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Answer» Solution :Any ONE ASSUMPTION from the following : (i) The RESOURCES AVAILABLE are fixed (II) The resources are employed (iii) The resources are not equally efficient in production of all products. |
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| 5983. |
If a firm's total revenue curve takes the form of a straight line which passess through the origin, then: |
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Answer» PRICE `gt` Marginal REVENUE |
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| 5984. |
State and three features of a monopoly market. |
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| 5985. |
In which phase a rational producer will operate in the short run ? |
| Answer» SOLUTION :A RATIONAL PRODUCER will OPERATE in the second PHASE in short run since it is only in this phase that the Total Product is maximum. | |
| 5986. |
Identify the different output levels, which mark the three phases of the operation of the low of Variable Proportions, from the following table : |{:("Units of variable factor",0,1,2,3,4,5),("TP (in units)",0,8,20,28,28,20):}| |
Answer» SOLUTION :
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| 5987. |
Define a Budget line |
| Answer» Solution :The Budget LINE, also called as Budget Constraint shows all the combinations of TWO commodities that a consumer can afford at given market PRICES and within the particular income LEVEL. | |
| 5988. |
What is budget line ? |
| Answer» Solution :Budget line is a graphical representation of all POSSIBLE combinations of two goods which a consumer can afford, GIVEN purchased with given INCOME and prices such that the COST of each of these combinations is EQUAL to the money income of consumer. | |
| 5989. |
Define market supply curve. |
| Answer» SOLUTION :Market SUPPLY curve for a good is the locus of points where each point represents the QUANTITY of good, all sellers fo that good are willing to sell at a given price during a given PERIOD of time other things being equal. | |
| 5990. |
Calculate mean salary by Step-deviation Method of the following data: |
Answer» SOLUTION : `barX=A+(sumfd')/(sumf)xxC` `=112.5+(-3)/30xx15=112.5-3/30xx15` `112.5-1.5=111` Thus, Mean SALARY = RS. 111. |
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| 5991. |
Define total utility and marginal utility. Explain the consumer's equilibrium with the help of a suitable schedule and diagram |
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| 5992. |
Explain the implication of the following, (a) Product differentiation in monopolistic competition, (b) Perfect knowledge in perfect competition. |
| Answer» Solution :a) Implication of product differentiation in Monopolistic COMPETITION is that buyers of a product differentiate between the same product produced by DIFFERENT firms. THEREFORE, they are also willing to pay different prices for the same product produced by different firms. This gives some monopoly power to an individual firm to influence market price of its product.b) Implication of perfect knowledge in prefect competition is that no firm is in a POSITION to charge a different price and no buyer will pay a higher price. As a RESULT a uniform price prevails in the market. | |
| 5993. |
What do you understand by normative economic analysis? |
| Answer» SOLUTION :NORMATIVE ECONOMICS deals with what ought to be or how the ECONOMIC problems should be solved. | |
| 5994. |
Graphic presentation helps to identify correlation between the variables. (True/False) |
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Answer» |
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| 5995. |
How many units of a commodity will you consume, if you don't have to pay any price for it? |
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Answer» Point of satiety is where utility gained = utility sacrificed (Price) Even though you don't have to pay for it, you will stop consumption of the commodity where TO is maximum and MU is zeroIn the diagram given below, point of satiety is point E which shows that he will consume OQ amount of the commodity. 
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| 5996. |
The typical behaviour of TVC in the short run is that it: |
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Answer» INCREASE at increasing RATE throghtout |
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| 5997. |
When actual price of a commodity is less than equilibrium price, its price : |
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Answer» STARTS RISING |
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| 5998. |
The yield of wheat and rice per acre for 10 districts of a state is as under: Calculate for each crop, (i) Range (ii) Q.D. (iii) Mean Deviation about Mean (iv) Mean deviation about Median (v) Standard Deviation (vi) Which crop has greater variations? (vii) Compare the values of different measures for each crop. |
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Answer» Solution :[ Case of Wheat: Firstly arrange the data in ascending order:  (i) Range (R )=H-L Here, H=25, L=9 `:. ""` R=25-9=16 (ii) `"" Q_(1)`=Size of `((N+1)/(4))th" item"` =Size of `((10+1)/(4))th " item"` =Size of 2.75th item =Size of 2nd item`+(3)/(4)("Size of 3rd item"-"Size of 2nd item")` `=10+(3)/(4)(10-10)` =10+0=10 `Q_(3)="Size of"3((N+1)/(4))th " item"` `="Size of " 3((10+1)/(4))th item"` =Size of 8.25th item =Size of 8TH item `+(1)/(4)("Size of 9th item"-"Size of 8th item")` `=19+(1)/(4)(21-19)=19+(2)/(4)=19.5` Quartile Deviation`=(Q_(3)-Q_(1))/(2)=(19.5-10)/(2)=(9.5)/(2)=4.75` (iii) Mean `(barX)=(sumX)/(N)=(155)/(10)=15.5` Mean Deviation from Mean `(MD_(barX))=(sum|dx|)/(N)=(43)/(10)=4.3` (iv) Median (M)=Size of `((N+1)/(2))th" item"` =Size of `((10+1)/(2))th " item"`=Size of 5.5th item `="Size of 5th item"+"Size of 5th item")/(2)` `=(15+16)/(2)=(31)/(2)=15.5` Mean Deviation from Median `(MD_(m))=(sum|dm|)/(N)=(43)/(10)=4.3` (v) Standard Deviation `(SIGMA)=sqrt((sumx^(2))/(N))=sqrt((254.5)/(10))=sqrt(25.45)=5.04` (vi) Coefficient of Variation (CV)`=(sigma)/(barX)XX100=(5.04)/(15.5)xx100=32.52`] [Note: Students are advised to repeat this exercise using data for the rice crop. To assess the degree of variation, COMPARE CV for the two cases.] |
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| 5999. |
Identify the phase in which TP increases at an increasing rate and MP also increases. |
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Answer» INCREASING RETURNS to a factor |
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| 6000. |
Law of Variable Proportions is also known as : |
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Answer» LAW of Returns |
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