Explore topic-wise InterviewSolutions in Class 11.

This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your Class 11 knowledge and support exam preparation. Choose a topic below to get started.

6001.

Define indifference curve/indifference map

Answer» <html><body><p></p>Solution :An <a href="https://interviewquestions.tuteehub.com/tag/indifference-1041534" style="font-weight:bold;" target="_blank" title="Click to know more about INDIFFERENCE">INDIFFERENCE</a> map is a combination of indifference <a href="https://interviewquestions.tuteehub.com/tag/curves-941810" style="font-weight:bold;" target="_blank" title="Click to know more about CURVES">CURVES</a>, which allows <a href="https://interviewquestions.tuteehub.com/tag/understanding-720012" style="font-weight:bold;" target="_blank" title="Click to know more about UNDERSTANDING">UNDERSTANDING</a> how changes in the quantity or the type of goods may change consumption <a href="https://interviewquestions.tuteehub.com/tag/patterns-1149114" style="font-weight:bold;" target="_blank" title="Click to know more about PATTERNS">PATTERNS</a>.</body></html>
6002.

Define market demand. State the law of demand and the assumptions behind it.

Answer» <html><body><p></p>Solution :Market <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 the quantity of a commodity that all consumers are willing and able to buy, at each possible price during a given period of time.<br/> The law of demand states the inverse <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 price and quantity demanded of a given commodity given that all the <a href="https://interviewquestions.tuteehub.com/tag/others-588141" style="font-weight:bold;" target="_blank" title="Click to know more about OTHERS">OTHERS</a> factors <a href="https://interviewquestions.tuteehub.com/tag/affecting-1969559" style="font-weight:bold;" target="_blank" title="Click to know more about AFFECTING">AFFECTING</a> the demand of that commodity are constant. <br/>Assumptions of law of demand :- <br/>(i) Price of related <a href="https://interviewquestions.tuteehub.com/tag/goods-1009877" style="font-weight:bold;" target="_blank" title="Click to know more about GOODS">GOODS</a> do not change. <br/>(ii) Income of the consumer does not change.<br/>(iii) There is no expectation of change in price in the future.<br/>(iv) Tastes and prefernces of the consumer remain the same.</body></html>
6003.

What is meant by inclusive series?

Answer» <html><body><p></p>Solution :An inclusive <a href="https://interviewquestions.tuteehub.com/tag/series-1201802" style="font-weight:bold;" target="_blank" title="Click to know more about SERIES">SERIES</a> is that series which includes all <a href="https://interviewquestions.tuteehub.com/tag/items-1052972" style="font-weight:bold;" target="_blank" title="Click to know more about ITEMS">ITEMS</a> upto its <a href="https://interviewquestions.tuteehub.com/tag/upper-721698" style="font-weight:bold;" target="_blank" title="Click to know more about UPPER">UPPER</a> <a href="https://interviewquestions.tuteehub.com/tag/limit-1074025" style="font-weight:bold;" target="_blank" title="Click to know more about LIMIT">LIMIT</a>.</body></html>
6004.

What is the behaviour of (a) Average Fixed Cost and (b) Average Variable Cost as more and more unitsof a goodare produced ?

Answer» <html><body><p></p>Solution :AFC falls, when <a href="https://interviewquestions.tuteehub.com/tag/output-1142821" style="font-weight:bold;" target="_blank" title="Click to know more about OUTPUT">OUTPUT</a> is increased. Since, the Total <a href="https://interviewquestions.tuteehub.com/tag/fixed-457597" style="font-weight:bold;" target="_blank" title="Click to know more about FIXED">FIXED</a> Cost remains the same with changes in output, <a href="https://interviewquestions.tuteehub.com/tag/therefore-706901" style="font-weight:bold;" target="_blank" title="Click to know more about THEREFORE">THEREFORE</a>, AFC falls steadily with increase in output. AFC curve is downward sloping.<br/>As output <a href="https://interviewquestions.tuteehub.com/tag/rises-1189694" style="font-weight:bold;" target="_blank" title="Click to know more about RISES">RISES</a>, the AVC first falls, reaches a minimum <a href="https://interviewquestions.tuteehub.com/tag/level-1072714" style="font-weight:bold;" target="_blank" title="Click to know more about LEVEL">LEVEL</a> and then begins to rise. Thus, AVC curve has a U-shape.</body></html>
6005.

In the following statement, take the number of letters in a word as items and number of times a word (of the same size) repeats itself as frequencies. Prepare a discreate series. "Success in the examination confers no absolute right to appointment unless government is satisfied after such an equiry as may be considered necessary that the candidate is suitable in all respects for appointment. "

Answer» <html><body><p><br/></p>Solution :Note the number of <a href="https://interviewquestions.tuteehub.com/tag/letters-541242" style="font-weight:bold;" target="_blank" title="Click to know more about LETTERS">LETTERS</a> in each <a href="https://interviewquestions.tuteehub.com/tag/word-1458917" style="font-weight:bold;" target="_blank" title="Click to know more about WORD">WORD</a> e.g., Success=7, in=2, the 3, examination=<a href="https://interviewquestions.tuteehub.com/tag/11-267621" style="font-weight:bold;" target="_blank" title="Click to know more about 11">11</a>, confers=7, no=2, absolute=8,right=5 , to =2, appointment=11, unless=6, government =10, is=2, satisfied=9,after=5,such=4, an=2, enquiry=7, as=2, may=3,be=2,considered=10,necessary=9, that=4, the =3, candidate=9, suitable=8,in=2,all=3,respects=8,for =3,appointment=11. Write these values as : <br/> 7,2,3,11,7,2,8,5,2,11,6,10,2,9,5,4,2,7,2,3,2,10,9,4,3,9,2,8,2,3,3,11. <br/> In these data, 2 is the <a href="https://interviewquestions.tuteehub.com/tag/smallest-646176" style="font-weight:bold;" target="_blank" title="Click to know more about SMALLEST">SMALLEST</a> value and 11 is the <a href="https://interviewquestions.tuteehub.com/tag/largest-1067604" style="font-weight:bold;" target="_blank" title="Click to know more about LARGEST">LARGEST</a> value . So , we shall write,</body></html>
6006.

An indifference schedule represents various bundles that give __________ level of satisfaction

Answer» <html><body><p>unequal<br/>equal<br/>zero<br/>none of these</p>Solution :<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>
6007.

If marginal Rate of Substitution is constantthroughout, 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 x-axis<br/>Downward <a href="https://interviewquestions.tuteehub.com/tag/sloping-7378327" style="font-weight:bold;" target="_blank" title="Click to know more about SLOPING">SLOPING</a> concave<br/>Downward sloping convex<br/>Downward sloping <a href="https://interviewquestions.tuteehub.com/tag/straight-633156" style="font-weight:bold;" target="_blank" title="Click to know more about STRAIGHT">STRAIGHT</a> line</p>Answer :D</body></html>
6008.

MR curve is parallel to X-axis because

Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/price-1165141" style="font-weight:bold;" target="_blank" title="Click to know more about PRICE">PRICE</a> <a href="https://interviewquestions.tuteehub.com/tag/falls-983294" style="font-weight:bold;" target="_blank" title="Click to know more about FALLS">FALLS</a> <br/>price rises<br/>price fluctuates<br/>price <a href="https://interviewquestions.tuteehub.com/tag/remains-621920" style="font-weight:bold;" target="_blank" title="Click to know more about REMAINS">REMAINS</a> uniform</p>Answer :D</body></html>
6009.

State any two features each of monopoly and monopolictic competition.

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> : The features of <a href="https://interviewquestions.tuteehub.com/tag/monopoly-1101092" style="font-weight:bold;" target="_blank" title="Click to know more about MONOPOLY">MONOPOLY</a> are: 1) Single Seller: Under Monopoly, there is a single seller selling the product. As a result, the monopoly firm and industry are one and the same thing and <a href="https://interviewquestions.tuteehub.com/tag/monopolist-1101062" style="font-weight:bold;" target="_blank" title="Click to know more about MONOPOLIST">MONOPOLIST</a> has fall <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 supply and price of the product. However, there are large no. of buyers of monopoly product and no single buyer can influence the market price. 2) No close substitutes: The product by a monopolist has no close substitutes. So, the monopoly firm has no fear of competition from new or existing products. For example, there is no close substitutes of electricity services provided by TPDDL in some parts of Delhi. However, the product may have distant substitutes like inverter and generator.The features of Monopolistic Competition are as follows: 1) Large no. of Sellers: There are large no. of firms selling closely related, but not homogeneous products. Each firm acts independently and has a limited share of the market. So, an individual firm has limited control over the market price. Large no. of firms leads to competition in the market. 2) Product differentiation: Each firm is in a position to exercise some degree of monopoly through product differentiation. Product differentiation refers to differentiating the products on the basis of brand, size, color, shape, etc. The product of a firm is close, but not substitute of other firm.</body></html>
6010.

Explain the need for the measures of relative dispersion .

Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/relative-1183377" style="font-weight:bold;" target="_blank" title="Click to know more about RELATIVE">RELATIVE</a> measures of dispersion are measures of the variance of a range of <a href="https://interviewquestions.tuteehub.com/tag/values-25920" style="font-weight:bold;" target="_blank" title="Click to know more about VALUES">VALUES</a> <a href="https://interviewquestions.tuteehub.com/tag/regardless-7267260" style="font-weight:bold;" target="_blank" title="Click to know more about REGARDLESS">REGARDLESS</a> of its <a href="https://interviewquestions.tuteehub.com/tag/unit-1438166" style="font-weight:bold;" target="_blank" title="Click to know more about UNIT">UNIT</a> of measure. This means that the spread of two ranges of values with different measures can be <a href="https://interviewquestions.tuteehub.com/tag/compared-7256615" style="font-weight:bold;" target="_blank" title="Click to know more about COMPARED">COMPARED</a> directly with relative measures of dispersion.</body></html>
6011.

Distinguish bewtween perfect demand and perfectly inelastic demand. Draw diagrams also.

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> :N/a</body></html>
6012.

Coke when price of Pepsi increases

Answer» <html><body><p><br/></p>Answer :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> shift <a href="https://interviewquestions.tuteehub.com/tag/towards-7269729" style="font-weight:bold;" target="_blank" title="Click to know more about TOWARDS">TOWARDS</a> right or the demand <a href="https://interviewquestions.tuteehub.com/tag/increases-1040626" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASES">INCREASES</a></body></html>
6013.

Rank colleration is a superior method of analysis in case of _____________ distribution .

Answer» <html><body><p>qualitative<br/>quantitative<br/>frequency <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>Solution :A</body></html>
6014.

A monopolist can fix both, the price of product and the quantity to be sold at that price. True or false. Give reason.

Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :False.A monopolist can <a href="https://interviewquestions.tuteehub.com/tag/fix-991779" style="font-weight:bold;" target="_blank" title="Click to know more about FIX">FIX</a> either or the <a href="https://interviewquestions.tuteehub.com/tag/quantity-1174212" style="font-weight:bold;" target="_blank" title="Click to know more about QUANTITY">QUANTITY</a>. If he fixes the price, the quantity will be determined by the market. Ifhe fixes the quantity, the price will be determined by the market.</body></html>
6015.

When MR if falling but positive, TR will also the falling and positive True of False.

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> :The Statement is false. It is because when <a href="https://interviewquestions.tuteehub.com/tag/mr-549185" style="font-weight:bold;" target="_blank" title="Click to know more about MR">MR</a> <a href="https://interviewquestions.tuteehub.com/tag/falls-983294" style="font-weight:bold;" target="_blank" title="Click to know more about FALLS">FALLS</a> positively , TR <a href="https://interviewquestions.tuteehub.com/tag/rises-1189694" style="font-weight:bold;" target="_blank" title="Click to know more about RISES">RISES</a> at diminishing rate.</body></html>
6016.

Why the problems of what, hwo and for whom to produce are known as central problems?

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> :These problems are known as <a href="https://interviewquestions.tuteehub.com/tag/central-407816" style="font-weight:bold;" target="_blank" title="Click to know more about CENTRAL">CENTRAL</a> problems because these are the most basic problems of an economy and all other problems revolve <a href="https://interviewquestions.tuteehub.com/tag/around-5602275" style="font-weight:bold;" target="_blank" title="Click to know more about AROUND">AROUND</a> them.</body></html>
6017.

Marks secured by 42 students in economics are: {:("Marks",15,20,22,23,27,35,18),("Number of Students",8,4,7,3,8,7,5):} Find average marks.

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/average-13416" style="font-weight:bold;" target="_blank" title="Click to know more about AVERAGE">AVERAGE</a> <a href="https://interviewquestions.tuteehub.com/tag/marks-1088184" style="font-weight:bold;" target="_blank" title="Click to know more about MARKS">MARKS</a> = 23.2</body></html>
6018.

Utility :

Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/differs-953222" style="font-weight:bold;" target="_blank" title="Click to know more about DIFFERS">DIFFERS</a> from <a href="https://interviewquestions.tuteehub.com/tag/person-25481" style="font-weight:bold;" target="_blank" title="Click to know more about PERSON">PERSON</a> to person<br/>Differs from <a href="https://interviewquestions.tuteehub.com/tag/time-19467" style="font-weight:bold;" target="_blank" title="Click to know more about TIME">TIME</a> to time<br/>Differs from <a href="https://interviewquestions.tuteehub.com/tag/product-25523" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCT">PRODUCT</a> to product<br/>All the these</p>Answer :D</body></html>
6019.

If (MU_(X))/(P_(X)) gt (MU_(Y))/(P_(Y)), then to reach the equilbrium position, consumer should

Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/stop-1228105" style="font-weight:bold;" target="_blank" title="Click to know more about STOP">STOP</a> <a href="https://interviewquestions.tuteehub.com/tag/buying-906461" style="font-weight:bold;" target="_blank" title="Click to know more about BUYING">BUYING</a> any commodity<br/>Buy both the commodities in equal quantity<br/>Buy more of <a href="https://interviewquestions.tuteehub.com/tag/x-746616" style="font-weight:bold;" target="_blank" title="Click to know more about X">X</a> and less of Y<br/>Buy more of Y and less of X</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>
6020.

Give consumers optimum condition in case of one good/two goods using utility approach

Answer» <html><body><p></p>Solution :In case of one commodity, <a href="https://interviewquestions.tuteehub.com/tag/consumer-25599" style="font-weight:bold;" target="_blank" title="Click to know more about CONSUMER">CONSUMER</a> equilibrium occurs when<br/>MU(x)= Price of good x<br/><br/>In case of 2 commodity,consumer equilibrium occurs when,MU(x)= MU(y) <br/>Law of diminishing marginal utility operates <br/>Exp, on commodity (x) + Exp. on commodity (y) = Money Income ( <a href="https://interviewquestions.tuteehub.com/tag/implied-1037940" style="font-weight:bold;" target="_blank" title="Click to know more about IMPLIED">IMPLIED</a> <a href="https://interviewquestions.tuteehub.com/tag/condition-409743" style="font-weight:bold;" target="_blank" title="Click to know more about CONDITION">CONDITION</a>)</body></html>
6021.

AVC can fall even when MC is rising, provided :

Answer» <html><body><p>`<a href="https://interviewquestions.tuteehub.com/tag/mc-1091384" style="font-weight:bold;" target="_blank" title="Click to know more about MC">MC</a> <a href="https://interviewquestions.tuteehub.com/tag/lt-537906" style="font-weight:bold;" target="_blank" title="Click to know more about LT">LT</a> <a href="https://interviewquestions.tuteehub.com/tag/avc-364692" style="font-weight:bold;" target="_blank" title="Click to know more about AVC">AVC</a>`<br/>`MC <a href="https://interviewquestions.tuteehub.com/tag/gt-1013864" style="font-weight:bold;" target="_blank" title="Click to know more about GT">GT</a> AVC`<br/>`MC = AVC`<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>Solution :N//A</body></html>
6022.

The coefficient of price elasticity of demand is generally negative. However, minus sign is ignored for the sake of convenience.

Answer» <html><body><p></p>Solution :The coefficient of price <a href="https://interviewquestions.tuteehub.com/tag/elasticity-14238" style="font-weight:bold;" target="_blank" title="Click to know more about ELASTICITY">ELASTICITY</a> of demand is generally negative due to <a href="https://interviewquestions.tuteehub.com/tag/inverse-1050621" style="font-weight:bold;" target="_blank" title="Click to know more about INVERSE">INVERSE</a> relationship between price and quantity <a href="https://interviewquestions.tuteehub.com/tag/demanded-7675308" style="font-weight:bold;" target="_blank" title="Click to know more about DEMANDED">DEMANDED</a>, so , it is often ignored igored as it 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> demand.</body></html>
6023.

Relation between price and demand is :

Answer» <html><body><p>positive<br/>negative<br/>one to one<br/>no relationship</p>Solution :<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>
6024.

A firm is a price take under:

Answer» <html><body><p>PerfectCompetition<br/>Oligopoly<br/>Monopolistic Competition<br/>Monopoly </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</body></html>
6025.

What is the basic reason for economic problem in all economies?

Answer» <html><body><p></p>Solution :The <a href="https://interviewquestions.tuteehub.com/tag/basic-15343" style="font-weight:bold;" target="_blank" title="Click to know more about BASIC">BASIC</a> <a href="https://interviewquestions.tuteehub.com/tag/reason-620214" style="font-weight:bold;" target="_blank" title="Click to know more about REASON">REASON</a> for <a href="https://interviewquestions.tuteehub.com/tag/economic-448435" style="font-weight:bold;" target="_blank" title="Click to know more about ECONOMIC">ECONOMIC</a> <a href="https://interviewquestions.tuteehub.com/tag/problem-25530" style="font-weight:bold;" target="_blank" title="Click to know more about PROBLEM">PROBLEM</a> in all <a href="https://interviewquestions.tuteehub.com/tag/economies-965541" style="font-weight:bold;" target="_blank" title="Click to know more about ECONOMIES">ECONOMIES</a> in scarcity of resources.</body></html>
6026.

The index numbers are not the __________ statements."" (qualitative /quantitative )

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/qualitative-611024" style="font-weight:bold;" target="_blank" title="Click to know more about QUALITATIVE">QUALITATIVE</a></body></html>
6027.

A consumer buys 100 units of a good at₹5 per unit. The P.e_(D) is (-) 2 . At what price will he buy 180 units of the commodity ?

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/3-301577" style="font-weight:bold;" target="_blank" title="Click to know more about 3">3</a>`</body></html>
6028.

Sampling method is suitable when the area of investigation is _________(small /large)

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> :<a href="https://interviewquestions.tuteehub.com/tag/large-1066424" style="font-weight:bold;" target="_blank" title="Click to know more about LARGE">LARGE</a></body></html>
6029.

If price elasticity of demand for a product is equal to one , what will be the nature of its demand curve ?

Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :Demand curve of a <a href="https://interviewquestions.tuteehub.com/tag/product-25523" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCT">PRODUCT</a> with <a href="https://interviewquestions.tuteehub.com/tag/unitary-3246772" style="font-weight:bold;" target="_blank" title="Click to know more about UNITARY">UNITARY</a> elastic demand is a <a href="https://interviewquestions.tuteehub.com/tag/rectangular-1180623" style="font-weight:bold;" target="_blank" title="Click to know more about RECTANGULAR">RECTANGULAR</a> <a href="https://interviewquestions.tuteehub.com/tag/hyperbola-1034512" style="font-weight:bold;" target="_blank" title="Click to know more about HYPERBOLA">HYPERBOLA</a>.</body></html>
6030.

Deifine percentage bar diagram.

Answer» <html><body><p><br/></p>Solution :Percentage <a href="https://interviewquestions.tuteehub.com/tag/bar-892478" style="font-weight:bold;" target="_blank" title="Click to know more about BAR">BAR</a> diagrams are those diagrams which <a href="https://interviewquestions.tuteehub.com/tag/show-642916" style="font-weight:bold;" target="_blank" title="Click to know more about SHOW">SHOW</a> simultaneously, different <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 values of a set of <a href="https://interviewquestions.tuteehub.com/tag/data-25577" style="font-weight:bold;" target="_blank" title="Click to know more about DATA">DATA</a> in terms of percentages.</body></html>
6031.

Monopolistic competition consitutes:

Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/single-644669" style="font-weight:bold;" target="_blank" title="Click to know more about SINGLE">SINGLE</a> firm <a href="https://interviewquestions.tuteehub.com/tag/producing-2229964" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCING">PRODUCING</a> <a href="https://interviewquestions.tuteehub.com/tag/close-408965" style="font-weight:bold;" target="_blank" title="Click to know more about CLOSE">CLOSE</a> subsitues <br/>Many firms producing close substitiutes<br/>Many firm producing differentiated substitutes<br/>Few firms producing differentiated substitutes</p>Solution :N/a</body></html>
6032.

Distinguish between an inferior good and a normal good. Explain the effect of change in income on each, giving suitable examples.

Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/normal-1123860" style="font-weight:bold;" target="_blank" title="Click to know more about NORMAL">NORMAL</a> goods are those which have income effect positive i.e. when income of the consumer increases, the <a href="https://interviewquestions.tuteehub.com/tag/demand-436956" style="font-weight:bold;" target="_blank" title="Click to know more about DEMAND">DEMAND</a> for the commodity increases and vice-versa.<br/>Inferior goods are those which have income effect negative i.e as income of the consumer increases, the demand for the commodity falls and vice-versa.For example, <a href="https://interviewquestions.tuteehub.com/tag/toned-710798" style="font-weight:bold;" target="_blank" title="Click to know more about TONED">TONED</a> <a href="https://interviewquestions.tuteehub.com/tag/milk-1096640" style="font-weight:bold;" target="_blank" title="Click to know more about MILK">MILK</a> and full cream milk. For a consumer toned milk is an inferior <a href="https://interviewquestions.tuteehub.com/tag/good-1009017" style="font-weight:bold;" target="_blank" title="Click to know more about GOOD">GOOD</a> and full cream milk is a normal good. An increase in income of the consumer will induce the consumer to shift to full cream milk from toned milk. Similarly a fall in income will induce the consumer to consume less of full cream milk and shift to toned milk.</body></html>
6033.

For a developmental project, logs of wood and other building material have to ve carried to the upper floor of building under renovation by the labour. Alternatively elevators and lifts can do the job which one will you choose and why ?

Answer» <html><body><p></p>Solution :I will <a href="https://interviewquestions.tuteehub.com/tag/choose-419254" style="font-weight:bold;" target="_blank" title="Click to know more about CHOOSE">CHOOSE</a> the second alternative as it will save <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 time. It will be an <a href="https://interviewquestions.tuteehub.com/tag/efficient-966565" style="font-weight:bold;" target="_blank" title="Click to know more about EFFICIENT">EFFICIENT</a> technique to undertake this <a href="https://interviewquestions.tuteehub.com/tag/task-1239437" style="font-weight:bold;" target="_blank" title="Click to know more about TASK">TASK</a>. Labour may be <a href="https://interviewquestions.tuteehub.com/tag/utilised-7379677" style="font-weight:bold;" target="_blank" title="Click to know more about UTILISED">UTILISED</a> for some other labour specific tasks.</body></html>
6034.

Sampling erros are related to the size of nature of the sample selected. (True/False)

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/true-713260" style="font-weight:bold;" target="_blank" title="Click to know more about TRUE">TRUE</a></body></html>
6035.

give equation of Budget Set

Answer» <html><body><p>&lt;<a href="https://interviewquestions.tuteehub.com/tag/p-588962" style="font-weight:bold;" target="_blank" title="Click to know more about P">P</a>&gt;</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> :`p_(<a href="https://interviewquestions.tuteehub.com/tag/1-256655" style="font-weight:bold;" target="_blank" title="Click to know more about 1">1</a>) x_(1) + p_(2) x_(2) le m`</body></html>
6036.

What causes an upward-movement along-the supply eurve of a commedity?

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> :An <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 <a href="https://interviewquestions.tuteehub.com/tag/price-1165141" style="font-weight:bold;" target="_blank" title="Click to know more about PRICE">PRICE</a> causes an upward movementalong the supply curve as the <a href="https://interviewquestions.tuteehub.com/tag/quantity-1174212" style="font-weight:bold;" target="_blank" title="Click to know more about QUANTITY">QUANTITY</a> <a href="https://interviewquestions.tuteehub.com/tag/supplied-3090548" style="font-weight:bold;" target="_blank" title="Click to know more about SUPPLIED">SUPPLIED</a> tends to increase.</body></html>
6037.

Price ceiling is imposed to protect the interest of _______

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> :N/a</body></html>
6038.

How will MP react, when TP rises at a diminishing rate ?

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/mp-565167" style="font-weight:bold;" target="_blank" title="Click to know more about MP">MP</a> <a href="https://interviewquestions.tuteehub.com/tag/falls-983294" style="font-weight:bold;" target="_blank" title="Click to know more about FALLS">FALLS</a>, but <a href="https://interviewquestions.tuteehub.com/tag/remains-621920" style="font-weight:bold;" target="_blank" title="Click to know more about REMAINS">REMAINS</a> <a href="https://interviewquestions.tuteehub.com/tag/positive-1159908" style="font-weight:bold;" target="_blank" title="Click to know more about POSITIVE">POSITIVE</a>.</body></html>
6039.

What is the meant by total cost ?

Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<a href="https://interviewquestions.tuteehub.com/tag/total-711110" style="font-weight:bold;" target="_blank" title="Click to know more about TOTAL">TOTAL</a> Cost is the total expenditure <a href="https://interviewquestions.tuteehub.com/tag/incurred-2733406" style="font-weight:bold;" target="_blank" title="Click to know more about INCURRED">INCURRED</a> by a firm on the factors of production <a href="https://interviewquestions.tuteehub.com/tag/required-1185621" style="font-weight:bold;" target="_blank" title="Click to know more about REQUIRED">REQUIRED</a> for the production of a <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>
6040.

As output increase the difference between average cost and average variable cost decreases.

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> :True. The difference between <a href="https://interviewquestions.tuteehub.com/tag/average-13416" style="font-weight:bold;" target="_blank" title="Click to know more about AVERAGE">AVERAGE</a> cost and average variable cost is due to average fixed cost. As output <a href="https://interviewquestions.tuteehub.com/tag/increases-1040626" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASES">INCREASES</a>, average fixed cost <a href="https://interviewquestions.tuteehub.com/tag/decrease-946104" style="font-weight:bold;" target="_blank" title="Click to know more about DECREASE">DECREASE</a>. So, the difference between average cost and average variable cost <a href="https://interviewquestions.tuteehub.com/tag/decreases-946143" style="font-weight:bold;" target="_blank" title="Click to know more about DECREASES">DECREASES</a>.</body></html>
6041.

When does 'change in quantity demanded' take place?

Answer» <html><body><p></p>Solution :A <a href="https://interviewquestions.tuteehub.com/tag/change-913808" style="font-weight:bold;" target="_blank" title="Click to know more about CHANGE">CHANGE</a> in <a href="https://interviewquestions.tuteehub.com/tag/quantity-1174212" style="font-weight:bold;" target="_blank" title="Click to know more about QUANTITY">QUANTITY</a> demanded take place when the own <a href="https://interviewquestions.tuteehub.com/tag/price-1165141" style="font-weight:bold;" target="_blank" title="Click to know more about PRICE">PRICE</a> of the commodity changes.</body></html>
6042.

What is meant by consumer's equilibrium ?

Answer» <html><body><p></p>Solution :Consumer's <a href="https://interviewquestions.tuteehub.com/tag/equilibrium-974342" style="font-weight:bold;" target="_blank" title="Click to know more about EQUILIBRIUM">EQUILIBRIUM</a> <a href="https://interviewquestions.tuteehub.com/tag/refers-1181652" style="font-weight:bold;" target="_blank" title="Click to know more about REFERS">REFERS</a> to a <a href="https://interviewquestions.tuteehub.com/tag/situation-1210683" style="font-weight:bold;" target="_blank" title="Click to know more about SITUATION">SITUATION</a> when a consumer is having maximum satisfaction with his <a href="https://interviewquestions.tuteehub.com/tag/limited-1074043" style="font-weight:bold;" target="_blank" title="Click to know more about LIMITED">LIMITED</a> income and has no tendency to change his existing <a href="https://interviewquestions.tuteehub.com/tag/way-1450548" style="font-weight:bold;" target="_blank" title="Click to know more about WAY">WAY</a> of expenditure.</body></html>
6043.

Explain the significance of 'barriers to entry' feature of monopoly

Answer» <html><body><p></p>Solution :There exist <a href="https://interviewquestions.tuteehub.com/tag/strong-653928" style="font-weight:bold;" target="_blank" title="Click to know more about STRONG">STRONG</a> barriers to <a href="https://interviewquestions.tuteehub.com/tag/entry-972873" style="font-weight:bold;" target="_blank" title="Click to know more about ENTRY">ENTRY</a> of new <a href="https://interviewquestions.tuteehub.com/tag/firms-989820" style="font-weight:bold;" target="_blank" title="Click to know more about FIRMS">FIRMS</a> and exit of existing firms. As a result, monopoly firm can earn <a href="https://interviewquestions.tuteehub.com/tag/abnormal-845150" style="font-weight:bold;" target="_blank" title="Click to know more about ABNORMAL">ABNORMAL</a> profits and losses in the long run. These barriers may be due to legal restrictions <a href="https://interviewquestions.tuteehub.com/tag/like-1073845" style="font-weight:bold;" target="_blank" title="Click to know more about LIKE">LIKE</a> licensing or patent rights or due to restrictions created by firms in the form of cartel.</body></html>
6044.

Explain the central problem of "for whom to produce" OR Explain the central problem of distribution in an economy.

Answer» <html><body><p></p>Solution :The problem for whom to produce refers to selection of the category of <a href="https://interviewquestions.tuteehub.com/tag/people-1150079" style="font-weight:bold;" target="_blank" title="Click to know more about PEOPLE">PEOPLE</a> who will ultimately consume the goods. Since <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 scarce in every economy, no <a href="https://interviewquestions.tuteehub.com/tag/society-1215299" style="font-weight:bold;" target="_blank" title="Click to know more about SOCIETY">SOCIETY</a> can satisfy all the wants of its people. Thus, a problem of <a href="https://interviewquestions.tuteehub.com/tag/choice-915996" style="font-weight:bold;" target="_blank" title="Click to know more about CHOICE">CHOICE</a> arises.</body></html>
6045.

When equilibrium price is greater than market price, there will be excess supply in the market.

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> :When market price is lower than the equilibrium price, market <a href="https://interviewquestions.tuteehub.com/tag/demand-436956" style="font-weight:bold;" target="_blank" title="Click to know more about DEMAND">DEMAND</a> will be higher than market <a href="https://interviewquestions.tuteehub.com/tag/supply-1235254" style="font-weight:bold;" target="_blank" title="Click to know more about SUPPLY">SUPPLY</a> <a href="https://interviewquestions.tuteehub.com/tag/leading-1070220" style="font-weight:bold;" target="_blank" title="Click to know more about LEADING">LEADING</a> to excess demand.</body></html>
6046.

Both AP and MP curves are generally :

Answer» <html><body><p>U-shaped<br/>Inversely U-shaped<br/>Rising <br/>Falling</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>
6047.

What is a simple table?

Answer» <html><body><p><br/></p>Solution :A simple table is that which <a href="https://interviewquestions.tuteehub.com/tag/shows-1206590" style="font-weight:bold;" target="_blank" title="Click to know more about SHOWS">SHOWS</a> only <a href="https://interviewquestions.tuteehub.com/tag/one-585732" style="font-weight:bold;" target="_blank" title="Click to know more about ONE">ONE</a> <a href="https://interviewquestions.tuteehub.com/tag/characteristic-914243" style="font-weight:bold;" target="_blank" title="Click to know more about CHARACTERISTIC">CHARACTERISTIC</a> of the <a href="https://interviewquestions.tuteehub.com/tag/data-25577" style="font-weight:bold;" target="_blank" title="Click to know more about DATA">DATA</a>.</body></html>
6048.

False base line is used when there is big difference between the smallest value and _________.(highest value/zero)

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> :<a href="https://interviewquestions.tuteehub.com/tag/zero-751093" style="font-weight:bold;" target="_blank" title="Click to know more about ZERO">ZERO</a></body></html>
6049.

Explain the concept of production function

Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/production-14556" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCTION">PRODUCTION</a> function refers to the <a href="https://interviewquestions.tuteehub.com/tag/functional-466801" style="font-weight:bold;" target="_blank" title="Click to know more about FUNCTIONAL">FUNCTIONAL</a> relationship between <a href="https://interviewquestions.tuteehub.com/tag/inputs-1045695" style="font-weight:bold;" target="_blank" title="Click to know more about INPUTS">INPUTS</a> and outputs.</body></html>
6050.

Price Elasticity of Demand of two goods A and B is (-) 3 and (-) 4 respectively. Good A has higer elasticity.

Answer» <html><body><p></p>Solution :B is more elastic because <a href="https://interviewquestions.tuteehub.com/tag/1-256655" style="font-weight:bold;" target="_blank" title="Click to know more about 1">1</a>% fall (rise) in price will <a href="https://interviewquestions.tuteehub.com/tag/lead-540361" style="font-weight:bold;" target="_blank" title="Click to know more about LEAD">LEAD</a> to higher <a href="https://interviewquestions.tuteehub.com/tag/percent-1150333" style="font-weight:bold;" target="_blank" title="Click to know more about PERCENT">PERCENT</a> rise (fall) in <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>