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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.
| 6101. |
Define short run costs |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :It is the cost <a href="https://interviewquestions.tuteehub.com/tag/spent-1222060" style="font-weight:bold;" target="_blank" title="Click to know more about SPENT">SPENT</a> on <a href="https://interviewquestions.tuteehub.com/tag/fixed-457597" style="font-weight:bold;" target="_blank" title="Click to know more about FIXED">FIXED</a> <a href="https://interviewquestions.tuteehub.com/tag/factors-458933" style="font-weight:bold;" target="_blank" title="Click to know more about FACTORS">FACTORS</a> and variable factors.</body></html> | |
| 6102. |
Explain how do the following influece demand for a good : (i) Rise in income of the consumer , (ii) Fall in prices of the related goods. |
| Answer» <html><body><p></p>Solution :(i) In case the good is a normal good, a rise in <a href="https://interviewquestions.tuteehub.com/tag/income-25499" style="font-weight:bold;" target="_blank" title="Click to know more about INCOME">INCOME</a> of the consumer leads to 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 demand for the good. <br/>If the good is an <a href="https://interviewquestions.tuteehub.com/tag/inferior-515744" style="font-weight:bold;" target="_blank" title="Click to know more about INFERIOR">INFERIOR</a> good, a rise in income of the consumer leads to a decrease in demand of the commodity. <br/>(ii) If the <a href="https://interviewquestions.tuteehub.com/tag/two-714195" style="font-weight:bold;" target="_blank" title="Click to know more about TWO">TWO</a> goods are substitues, then a fall in price of <a href="https://interviewquestions.tuteehub.com/tag/one-585732" style="font-weight:bold;" target="_blank" title="Click to know more about ONE">ONE</a> good leads to fall in demand of the other good. On the other hand, if the two goods are complementary goods, a fall in price of one good leads to an increase in demand of the other good.</body></html> | |
| 6103. |
What do you mean by substitudes ? Give examples of two goods which are substitutes of each other. |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/substitutes-1231649" style="font-weight:bold;" target="_blank" title="Click to know more about SUBSTITUTES">SUBSTITUTES</a> <a href="https://interviewquestions.tuteehub.com/tag/refer-621103" style="font-weight:bold;" target="_blank" title="Click to know more about REFER">REFER</a> to those goods which can be used in place of one <a href="https://interviewquestions.tuteehub.com/tag/another-876628" style="font-weight:bold;" target="_blank" title="Click to know more about ANOTHER">ANOTHER</a> for satisfaction of a particular want. For example : Tea and Coffee , <a href="https://interviewquestions.tuteehub.com/tag/coke-421881" style="font-weight:bold;" target="_blank" title="Click to know more about COKE">COKE</a> and Pepsi.</body></html> | |
| 6104. |
Explain implications of Perfect competition. |
| Answer» <html><body><p></p>Solution :1. Large number of sellers and buyers. Note that 'large numbe' is not a specially difined number. However, it has a specific implication. Let us talk about the large numberof sellers first. The words 'largenumber' imply that the numbr of sellers is large enough to render a single seller's share in total market supply of the product insignificant. It has a further implication. Insignificant share means that is only one individual firm reduces or raises its own supply, the prevailing market price remains unaffected. The prevaliing market price is the one which was set through the interaction of 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> and market supply <a href="https://interviewquestions.tuteehub.com/tag/forces-16875" style="font-weight:bold;" target="_blank" title="Click to know more about FORCES">FORCES</a>, for which all the sellers and all the buyers together are responsible. One single seller has no option but to see what it produces at this market determined price. This position of an individual firm in the total market is referred to as price taker. This is a unique feature of a perfectly competitive market. <br/> Similarly, the large' number' of buyer also has the sme implication. A single buyer's share in total market demand is so indinigicant that the buyer cannot influence the market price on his own by changing his demand. his demand. This makes a single buyer also price takes. <br/> To sum up, the feature 'large number' indicates ineffectiveness of a single seller or a single buyer in influencing the prevailing market price on its own, rendering him simply a price taker. <br/> 2. The products of all the firms in hte industry are homogeneous. It means that the buyers treat the products of all the frims in the industry as homogenous. The buyers prodiced by the firms are identical, or treated as identical, or perfectly standardized. The buyers do no distinguish the putput of one firm from that of the other. <br/> The impication of this feature is that since the buyers treat the products as identicle they are not ready to pay a different price for the product of any one firm. They will pay the same price for the products of all the firms in the industry. On the other hand, any attempt by a firm to sell its product at a higher price will fail. <br/> To sum up, the 'homogenous products' featur ensuresh a uniform price for the products of all the fiems in the industry. <br/> 3. Perfect knowledge about markets for outputs and input . The firms have all teh knowledge about the product market and the input markets. Buyers also have perfect knowledge about the product market. <br/> Let us take product market first. The implication of perfect knowledge about the product market is that any attempt by any firm to charge a price higher than the prevailing uniform price will fail. The buyers will not pay because they have perfect knowledge. The is no ignorance factor operating in the market. <br/> As regardds the knowledge about the input markets, the implicit assumption is that each firm has an equal access to the technology and the imputs used in the technology. No firm has any cost advantage. Cost structure of each firm is the same. All the firms have a uniform cost structure. <br/> Since there is uniform price and uniform cost in all firms, and since profits equals cost less price, all the firms earn uniform profits. <br/> 4. Freedom to firms to enter or to leave the industry in the long run. Freedom of entry means that there are no artificital barriers and anatural barries the way of a new firm wishing to enter into industry. The artificial barriers may take the form of patent rights, legal restrictions etc. The natural barrier may take the form of huge capital expenditure required to start a new firm, which the firm wishing to enter is not able to arrange. <br/> Freedom of exit means no barriers in the way of a firm deciding to leave the industry. Government rules,labour laws, loss of huge fixed capital etc. do not come in the way. <br/> The freedom of entry and exit of firms has an important. This ensures that no firm can earn above <a href="https://interviewquestions.tuteehub.com/tag/normal-1123860" style="font-weight:bold;" target="_blank" title="Click to know more about NORMAL">NORMAL</a> profits in the long run. Each firm earns just the normal profits, i.e., minimum necessary to carry on business. In Microeconomics, normal profits is treated an opportunity cost, and <a href="https://interviewquestions.tuteehub.com/tag/therefore-706901" style="font-weight:bold;" target="_blank" title="Click to know more about THEREFORE">THEREFORE</a>, counted in calculation of total cost. Since profit equals total <a href="https://interviewquestions.tuteehub.com/tag/revenue-1188040" style="font-weight:bold;" target="_blank" title="Click to know more about REVENUE">REVENUE</a> minus total cost, normal profit means zero economic profit. Why? Let us explain. <br/> Now suppose the existing firms are incurring losses. The fiems start leaving. The indusltry's output starts falling, price starts going up, and all this continues till losses are wiped out. The remaining firms in the industry then once again earn just the normal profits.<br/>Only zwro economic profit in the long run is the basic outcome of a perfectly competitive market.</body></html> | |
| 6105. |
What is the general profit maximising condition for a producer (MR and MCapproach) ? |
| 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> :(i) <a href="https://interviewquestions.tuteehub.com/tag/mc-1091384" style="font-weight:bold;" target="_blank" title="Click to know more about MC">MC</a> = MR and <br/> (<a href="https://interviewquestions.tuteehub.com/tag/ii-1036832" style="font-weight:bold;" target="_blank" title="Click to know more about II">II</a>) MC <a href="https://interviewquestions.tuteehub.com/tag/curve-941741" style="font-weight:bold;" target="_blank" title="Click to know more about CURVE">CURVE</a> cuts the MR curve from below (i.e., MC is rising after equilibrium).</body></html> | |
| 6106. |
What is the formula to find out arithmetic mean through Short-cut Method in individual series? |
| Answer» <html><body><p>`<a href="https://interviewquestions.tuteehub.com/tag/barx-2461082" style="font-weight:bold;" target="_blank" title="Click to know more about BARX">BARX</a>=(sumX)/<a href="https://interviewquestions.tuteehub.com/tag/n-568463" style="font-weight:bold;" target="_blank" title="Click to know more about N">N</a>`<br/>`barX =A+(<a href="https://interviewquestions.tuteehub.com/tag/sumd-3089020" style="font-weight:bold;" target="_blank" title="Click to know more about SUMD">SUMD</a>)/N`<br/>`barX=(sumX)/N+A`<br/>`barX = (sumfX)/(sumf)`</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> :B</body></html> | |
| 6107. |
Explain the meaning and need for ''Price Floor'' with the help of diagram. Explain Buffer Stock as a tool of price floor. |
| Answer» | |
| 6108. |
Explain the meaning and need for 'Maximum Price Ceiling'. |
| Answer» <html><body><p></p>Solution :When government imposes an upper limit on the <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 a <a href="https://interviewquestions.tuteehub.com/tag/good-1009017" style="font-weight:bold;" target="_blank" title="Click to know more about GOOD">GOOD</a>, it is <a href="https://interviewquestions.tuteehub.com/tag/called-907796" style="font-weight:bold;" target="_blank" title="Click to know more about CALLED">CALLED</a> Price <a href="https://interviewquestions.tuteehub.com/tag/ceiling-911116" style="font-weight:bold;" target="_blank" title="Click to know more about CEILING">CEILING</a>. It is generally imposed on essential items and is fixed below the market determined price. The reason being the equilibrium price is too high for the common people to <a href="https://interviewquestions.tuteehub.com/tag/afford-368588" style="font-weight:bold;" target="_blank" title="Click to know more about AFFORD">AFFORD</a>.</body></html> | |
| 6109. |
In which market from are the prodicts homogeneous ? |
| Answer» | |
| 6110. |
In a monopoly market there are: |
| Answer» <html><body><p>No subsititutes<br/>No <a href="https://interviewquestions.tuteehub.com/tag/close-408965" style="font-weight:bold;" target="_blank" title="Click to know more about CLOSE">CLOSE</a> substitutes<br/>No <a href="https://interviewquestions.tuteehub.com/tag/distant-432060" style="font-weight:bold;" target="_blank" title="Click to know more about DISTANT">DISTANT</a> substitutes<br/>All the above</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> | |
| 6111. |
In case of __________ distribution , frequency curve will be bell - shaped. |
| 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/symmetrical-3093462" style="font-weight:bold;" target="_blank" title="Click to know more about SYMMETRICAL">SYMMETRICAL</a></body></html> | |
| 6112. |
Comment on the shape of the MR curve in case the TR curve is a (i) positively sloped straight line, (ii) horizontal straight line. |
| Answer» <html><body><p></p>Solution :(i) <a href="https://interviewquestions.tuteehub.com/tag/mr-549185" style="font-weight:bold;" target="_blank" title="Click to know more about MR">MR</a> curve will be a horizontal straight line parallel to X-axis because positively sloped straight line TR curve indicates that revenue from every additional <a href="https://interviewquestions.tuteehub.com/tag/unit-1438166" style="font-weight:bold;" target="_blank" title="Click to know more about UNIT">UNIT</a> sold (i.e. MR) remains same for every level of output. <br/> (ii) When TR curve is a horizontal striaght line, MR will be <a href="https://interviewquestions.tuteehub.com/tag/zero-751093" style="font-weight:bold;" target="_blank" title="Click to know more about ZERO">ZERO</a>. It happens because horizontal TR indicates that TR remains same at levels of output. It is possible only when revenue from additional unit sold (i.e. MR) is zero. MR curve <a href="https://interviewquestions.tuteehub.com/tag/coincides-921338" style="font-weight:bold;" target="_blank" title="Click to know more about COINCIDES">COINCIDES</a> with X-axis.</body></html> | |
| 6113. |
____ is a graphical presentation of a frequency distribution of a continuous series .(Histogram / Polygon) |
| 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/histogram-1027827" style="font-weight:bold;" target="_blank" title="Click to know more about HISTOGRAM">HISTOGRAM</a></body></html> | |
| 6114. |
Identify the correct MR curve from the following options when price remains same with ris in output : |
| Answer» <html><body><p><img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/SG_MIC_ECO_C07_S01_063_O01.png" width="30%"/><br/><img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/SG_MIC_ECO_C07_S01_063_O02.png" width="30%"/><br/><img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/SG_MIC_ECO_C07_S01_063_O03.png" width="30%"/><br/><img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/SG_MIC_ECO_C07_S01_063_O04.png" width="30%"/></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :N/A</body></html> | |
| 6115. |
Name the consumer groups for which consumer price index number is computed. |
| Answer» <html><body><p></p>Solution :The consumer groups for which consumer <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/index-505893" style="font-weight:bold;" target="_blank" title="Click to know more about INDEX">INDEX</a>, in india, is computed are: <br/> (i) IndustrialWorkers (IW), <br/> (<a href="https://interviewquestions.tuteehub.com/tag/ii-1036832" style="font-weight:bold;" target="_blank" title="Click to know more about II">II</a>) Urban-Non Manual <a href="https://interviewquestions.tuteehub.com/tag/employees-25487" style="font-weight:bold;" target="_blank" title="Click to know more about EMPLOYEES">EMPLOYEES</a> (UNME), and<br/> (iii) AgriculturalLabourers (AL).</body></html> | |
| 6116. |
When is a firm called price take? |
| Answer» <html><body><p></p>Solution :The <a href="https://interviewquestions.tuteehub.com/tag/firms-989820" style="font-weight:bold;" target="_blank" title="Click to know more about FIRMS">FIRMS</a> is called price taker when it has to <a href="https://interviewquestions.tuteehub.com/tag/adopt-368142" style="font-weight:bold;" target="_blank" title="Click to know more about ADOPT">ADOPT</a> the price determined by <a href="https://interviewquestions.tuteehub.com/tag/market-25464" style="font-weight:bold;" target="_blank" title="Click to know more about MARKET">MARKET</a> <a href="https://interviewquestions.tuteehub.com/tag/demand-436956" style="font-weight:bold;" target="_blank" title="Click to know more about DEMAND">DEMAND</a> nad market supply.</body></html> | |
| 6117. |
If the price of a substitute (Y) of good X increases, what impact does it have on the equilibrium price and quantity of good X? |
| Answer» <html><body><p></p>Solution :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> of a substitute(Y) of <a href="https://interviewquestions.tuteehub.com/tag/good-1009017" style="font-weight:bold;" target="_blank" title="Click to know more about GOOD">GOOD</a> <a href="https://interviewquestions.tuteehub.com/tag/x-746616" style="font-weight:bold;" target="_blank" title="Click to know more about X">X</a> will directly affect the equilibrium price and quantity of good X. Rise in price of Y will make X relatively cheaper and <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 X will rise. It will lead to excess demand. It will lead to increase in both equilibrium price and equilibrium quantity.</body></html> | |
| 6118. |
Explain the 'interdependence between firms' characteristic of oligopoly market. OR What difference does it make to the market when we say that firms are interdependent in oligopoly? Explain |
| Answer» <html><body><p></p>Solution :Firms under oligopoly are interdependent. Interdependence means that actions of one firm <a href="https://interviewquestions.tuteehub.com/tag/affect-851195" style="font-weight:bold;" target="_blank" title="Click to know more about AFFECT">AFFECT</a> the actions of other firms. A firm considers the action and <a href="https://interviewquestions.tuteehub.com/tag/reaction-22747" style="font-weight:bold;" target="_blank" title="Click to know more about REACTION">REACTION</a> of the <a href="https://interviewquestions.tuteehub.com/tag/rival-614395" style="font-weight:bold;" target="_blank" title="Click to know more about RIVAL">RIVAL</a> firms while determining its price and output <a href="https://interviewquestions.tuteehub.com/tag/levels-1072811" style="font-weight:bold;" target="_blank" title="Click to know more about LEVELS">LEVELS</a>. 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 output or price by one firm evokes reaction from other firms operating in the market.</body></html> | |
| 6119. |
What do you mean by the problem of scarcity ? |
| 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/problem-25530" style="font-weight:bold;" target="_blank" title="Click to know more about PROBLEM">PROBLEM</a> of scarcity <a href="https://interviewquestions.tuteehub.com/tag/means-1091780" style="font-weight:bold;" target="_blank" title="Click to know more about MEANS">MEANS</a> <a href="https://interviewquestions.tuteehub.com/tag/insufficient-2131438" style="font-weight:bold;" target="_blank" title="Click to know more about INSUFFICIENT">INSUFFICIENT</a> availability of resources in relation to <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 resources.</body></html> | |
| 6120. |
What is the problem of what to produce ? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :It is a problem of selection of <a href="https://interviewquestions.tuteehub.com/tag/different-951434" style="font-weight:bold;" target="_blank" title="Click to know more about DIFFERENT">DIFFERENT</a> <a href="https://interviewquestions.tuteehub.com/tag/goods-1009877" style="font-weight:bold;" target="_blank" title="Click to know more about GOODS">GOODS</a> and their quantities with the <a href="https://interviewquestions.tuteehub.com/tag/available-888895" style="font-weight:bold;" target="_blank" title="Click to know more about AVAILABLE">AVAILABLE</a> resources.</body></html> | |
| 6121. |
Give two examples of variable costs. |
| Answer» <html><body><p></p>Solution :(i) Expenditure on <a href="https://interviewquestions.tuteehub.com/tag/raw-613057" style="font-weight:bold;" target="_blank" title="Click to know more about RAW">RAW</a> <a href="https://interviewquestions.tuteehub.com/tag/materials-1089380" style="font-weight:bold;" target="_blank" title="Click to know more about MATERIALS">MATERIALS</a>, (<a href="https://interviewquestions.tuteehub.com/tag/ii-1036832" style="font-weight:bold;" target="_blank" title="Click to know more about II">II</a>)Wages of <a href="https://interviewquestions.tuteehub.com/tag/casual-414067" style="font-weight:bold;" target="_blank" title="Click to know more about CASUAL">CASUAL</a> labour.</body></html> | |
| 6122. |
Production function is an expression of : |
| Answer» <html><body><p>Output<br/>Inputs<br/>Technology<br/>Cost</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> | |
| 6123. |
The followingdiagramshowsthe suppluycurveofthreecommodities : A , B and C . Ranktheir price elasticityof supply |
| Answer» <html><body><p></p>Solution : Commodity A: Highly <a href="https://interviewquestions.tuteehub.com/tag/elastic-967540" style="font-weight:bold;" target="_blank" title="Click to know more about ELASTIC">ELASTIC</a> Supply `(E_(s) <a href="https://interviewquestions.tuteehub.com/tag/gt-1013864" style="font-weight:bold;" target="_blank" title="Click to know more about GT">GT</a> <a href="https://interviewquestions.tuteehub.com/tag/1-256655" style="font-weight:bold;" target="_blank" title="Click to know more about 1">1</a>)`, Commodity B: Unitary Elastic Supply `(E_(s) =1)`, Commodity C: Less Elastic Supply `(E_(s) lt 1)`.</body></html> | |
| 6124. |
When we add up utility derived from each successive unit, we get total utility. |
| 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/utility-1441817" style="font-weight:bold;" target="_blank" title="Click to know more about UTILITY">UTILITY</a> derived from each successive <a href="https://interviewquestions.tuteehub.com/tag/unit-1438166" style="font-weight:bold;" target="_blank" title="Click to know more about UNIT">UNIT</a> (i.e., <a href="https://interviewquestions.tuteehub.com/tag/marginal-555038" style="font-weight:bold;" target="_blank" title="Click to know more about MARGINAL">MARGINAL</a> utility) adds up to <a href="https://interviewquestions.tuteehub.com/tag/total-711110" style="font-weight:bold;" target="_blank" title="Click to know more about TOTAL">TOTAL</a> utility.</body></html> | |
| 6125. |
Consumer equilibrium through indifference curve analysis is based on |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/cardinal-406847" style="font-weight:bold;" target="_blank" title="Click to know more about CARDINAL">CARDINAL</a> utility<br/>marginal utility<br/>ordinal utility<br/>none of these</p>Solution :<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> | |
| 6126. |
Index numbers measure relative changes in the variables over time. "" (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/1-256655" style="font-weight:bold;" target="_blank" title="Click to know more about 1">1</a></body></html> | |
| 6127. |
What is meant by mean deviation? What are its main characteristics? |
| Answer» <html><body><p></p>Solution :Mean deviation is the arithmetic average of the <a href="https://interviewquestions.tuteehub.com/tag/deviations-950387" style="font-weight:bold;" target="_blank" title="Click to know more about DEVIATIONS">DEVIATIONS</a> of all the values taken from some average value (mean, median, mode) of the series, <a href="https://interviewquestions.tuteehub.com/tag/ignoringstrong-2726700" style="font-weight:bold;" target="_blank" title="Click to know more about IGNORING">IGNORING</a> signs ( + or - ) of deviations.<br/>Characterstics :- <br/>1. SImple.<br/>2. <a href="https://interviewquestions.tuteehub.com/tag/based-389387" style="font-weight:bold;" target="_blank" title="Click to know more about BASED">BASED</a> on all values.<br/>3. Less effect on <a href="https://interviewquestions.tuteehub.com/tag/extreme-981946" style="font-weight:bold;" target="_blank" title="Click to know more about EXTREME">EXTREME</a> Values.</body></html> | |
| 6128. |
Show that there is inverse relation between price of a commodity and its quantity demanded . UseUtility Analysis. |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/assuming-1986865" style="font-weight:bold;" target="_blank" title="Click to know more about ASSUMING">ASSUMING</a> that the <a href="https://interviewquestions.tuteehub.com/tag/consumer-25599" style="font-weight:bold;" target="_blank" title="Click to know more about CONSUMER">CONSUMER</a> <a href="https://interviewquestions.tuteehub.com/tag/consumes-931374" style="font-weight:bold;" target="_blank" title="Click to know more about CONSUMES">CONSUMES</a> only two goods X andY and is in equilibrium. Then,`(MU_(x))/(P_(x))=(MU_(y))/(P_(y))`<br/>Now suppose Px <a href="https://interviewquestions.tuteehub.com/tag/falls-983294" style="font-weight:bold;" target="_blank" title="Click to know more about FALLS">FALLS</a> ,then`(MU_(x))/(P_(x))gt(MU_(y))/(P_(y))`<br/>Since per rupee marginal utility of Xisgreater than per rupee marfinal utility of Y , the consumer will buymoreofX . Itshows inverse relation between price of X and <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 X.</body></html> | |
| 6129. |
A cosumer consumes only two good . Explain consumer's equilibrium with the help of utilityanalysis. |
| Answer» <html><body><p></p>Solution :Assuming that only two goods the consumer consumes are X and Y , the conditions of equilibrium are :<br/>(i)`(MU_(x))/(P_(x))=(MU_(y))/(P_(y))`<br/>(<a href="https://interviewquestions.tuteehub.com/tag/ii-1036832" style="font-weight:bold;" target="_blank" title="Click to know more about II">II</a>)MUof a goodfalls as more of it is consumed<br/>Explaination:<br/>(i)Suppose`(MU_(X))/(P_(X))<a href="https://interviewquestions.tuteehub.com/tag/gt-1013864" style="font-weight:bold;" target="_blank" title="Click to know more about GT">GT</a>(MU_(y))/(P_(Y))` .Theconsumer will not be in equilibrium because per rupee MUof X isgreater than per rupee MU ofY. This will induce the consumer to <a href="https://interviewquestions.tuteehub.com/tag/buy-391430" style="font-weight:bold;" target="_blank" title="Click to know more about BUY">BUY</a> more of X by reducing expenditure on Y. It will lead to <a href="https://interviewquestions.tuteehub.com/tag/fall-983217" style="font-weight:bold;" target="_blank" title="Click to know more about FALL">FALL</a> in MUxand rise in MUy . This will continuetill`(MU_(x))/(P_(x))=(MU_(y))/(P_(y))`.<br/>(ii)Unless MUfalls ae more of a good isconsumed the consumer will not reach equilibrium.<br/>`("Explanation based on "(MU_(x))/(P_(x))lt(MU_(y))/(P_(y))" is <a href="https://interviewquestions.tuteehub.com/tag/also-373387" style="font-weight:bold;" target="_blank" title="Click to know more about ALSO">ALSO</a> correct".)`</body></html> | |
| 6130. |
Explain in brief, the following kinds of price elasticities of demand: (i) Highly elastic demand, (ii) Less Elastic Demand, (iii) Unitary elastic demand. |
| Answer» <html><body><p></p>Solution :1. High elastic demandDemand is said to be high elastic when even a small change in the <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 a commodity leads to a considerable extension/contraction of the amount <a href="https://interviewquestions.tuteehub.com/tag/demanded-7675308" style="font-weight:bold;" target="_blank" title="Click to know more about DEMANDED">DEMANDED</a> of it.2. Low elastic demandWhen even a substantial change in price <a href="https://interviewquestions.tuteehub.com/tag/brings-2488276" style="font-weight:bold;" target="_blank" title="Click to know more about BRINGS">BRINGS</a> only a small extension/contraction in demand, it is said to be less elastic.3.Unitary elastic demandWhen a small change in price of a product causes a major change in its demand, it is said to be perfectly elastic demand. In perfectly elastic demand, a small <a href="https://interviewquestions.tuteehub.com/tag/rise-1189674" style="font-weight:bold;" target="_blank" title="Click to know more about RISE">RISE</a> in price results in fall in demand to zero, while a small fall in price causes increase in demand to infinity. In such a case, the demand is perfectly elastic or ep = <a href="https://interviewquestions.tuteehub.com/tag/00-254995" style="font-weight:bold;" target="_blank" title="Click to know more about 00">00</a>.</body></html> | |
| 6131. |
When price of one or both the goods consumer consumes falls, the consumer's utility level at equilibrium in the IC analysis. |
| Answer» <html><body><p><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/>Increases<br/>Remain <a href="https://interviewquestions.tuteehub.com/tag/unchanged-2316761" style="font-weight:bold;" target="_blank" title="Click to know more about UNCHANGED">UNCHANGED</a><br/> Uncertain</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> | |
| 6132. |
Will a profit-maximising firm in a competitive market ever produce a positive level of output in the renge where the marginal cost is falling ? Give an explanation. |
| Answer» <html><body><p><br/></p>Solution :No, because the <a href="https://interviewquestions.tuteehub.com/tag/essential-975317" style="font-weight:bold;" target="_blank" title="Click to know more about ESSENTIAL">ESSENTIAL</a> condition of producer's equilibrium is that marginal <a href="https://interviewquestions.tuteehub.com/tag/cost-25707" style="font-weight:bold;" target="_blank" title="Click to know more about COST">COST</a> (MC) curve should be rising . So , aprofit -maximising firm will <a href="https://interviewquestions.tuteehub.com/tag/produce-1167752" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCE">PRODUCE</a> that quantityof <a href="https://interviewquestions.tuteehub.com/tag/output-1142821" style="font-weight:bold;" target="_blank" title="Click to know more about OUTPUT">OUTPUT</a> at which its MC is rising and not falling.</body></html> | |
| 6133. |
Define weighted arithmetic mean. |
| Answer» <html><body><p></p>Solution :Weighted arithmetic mean is the mean of weighted items of the series. <a href="https://interviewquestions.tuteehub.com/tag/different-951434" style="font-weight:bold;" target="_blank" title="Click to know more about DIFFERENT">DIFFERENT</a> items are accorded different <a href="https://interviewquestions.tuteehub.com/tag/weights-1451449" style="font-weight:bold;" target="_blank" title="Click to know more about WEIGHTS">WEIGHTS</a> <a href="https://interviewquestions.tuteehub.com/tag/depending-7263846" style="font-weight:bold;" target="_blank" title="Click to know more about DEPENDING">DEPENDING</a> on their relative importance. The weighted sum of the items is <a href="https://interviewquestions.tuteehub.com/tag/divided-441039" style="font-weight:bold;" target="_blank" title="Click to know more about DIVIDED">DIVIDED</a> by the sum of the weights.</body></html> | |
| 6134. |
Average variable cost curve is a U-shapedcurve. |
| Answer» <html><body><p></p>Solution :True. Average variable <a href="https://interviewquestions.tuteehub.com/tag/cost-25707" style="font-weight:bold;" target="_blank" title="Click to know more about COST">COST</a> is a U-shaped curve as it <a href="https://interviewquestions.tuteehub.com/tag/initially-516121" style="font-weight:bold;" target="_blank" title="Click to know more about INITIALLY">INITIALLY</a> falls, then remains constant for a while and <a href="https://interviewquestions.tuteehub.com/tag/finally-461212" style="font-weight:bold;" target="_blank" title="Click to know more about FINALLY">FINALLY</a> starts increasing. It happens due to three phases of Law of Variable <a href="https://interviewquestions.tuteehub.com/tag/proportion-1170266" style="font-weight:bold;" target="_blank" title="Click to know more about PROPORTION">PROPORTION</a>..</body></html> | |
| 6135. |
"When marginal revenue is positive and constant, both average and total revenue rate", whereas average revenue will be constant. |
| Answer» <html><body><p></p>Solution :No, I do not agree with the given <a href="https://interviewquestions.tuteehub.com/tag/statement-16478" style="font-weight:bold;" target="_blank" title="Click to know more about STATEMENT">STATEMENT</a>. Only <a href="https://interviewquestions.tuteehub.com/tag/total-711110" style="font-weight:bold;" target="_blank" title="Click to know more about TOTAL">TOTAL</a> revenue will <a href="https://interviewquestions.tuteehub.com/tag/increases-1040626" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASES">INCREASES</a> at constant <a href="https://interviewquestions.tuteehub.com/tag/rate-1177476" style="font-weight:bold;" target="_blank" title="Click to know more about RATE">RATE</a>, whereas, <a href="https://interviewquestions.tuteehub.com/tag/average-13416" style="font-weight:bold;" target="_blank" title="Click to know more about AVERAGE">AVERAGE</a> revenue will be constant.</body></html> | |
| 6136. |
Large number of technical training institutions have been started by the government. State its economic value in the context of production possibilities frontier. |
| Answer» <html><body><p></p>Solution :The <a href="https://interviewquestions.tuteehub.com/tag/economic-448435" style="font-weight:bold;" target="_blank" title="Click to know more about ECONOMIC">ECONOMIC</a> value of technical is that it raises the <a href="https://interviewquestions.tuteehub.com/tag/production-14556" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCTION">PRODUCTION</a> potential of the <a href="https://interviewquestions.tuteehub.com/tag/country-936956" style="font-weight:bold;" target="_blank" title="Click to know more about COUNTRY">COUNTRY</a> by raising the efficiency of the <a href="https://interviewquestions.tuteehub.com/tag/labour-1065391" style="font-weight:bold;" target="_blank" title="Click to know more about LABOUR">LABOUR</a>.</body></html> | |
| 6137. |
Identify positive or normative statements from the following : India government should design new polices to control inflation |
| 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/normative-1124476" style="font-weight:bold;" target="_blank" title="Click to know more about NORMATIVE">NORMATIVE</a> statementsbecause it is <a href="https://interviewquestions.tuteehub.com/tag/advice-850918" style="font-weight:bold;" target="_blank" title="Click to know more about ADVICE">ADVICE</a></body></html> | |
| 6138. |
A chemical fertiliser manufacturing company estimated its annual cost of production to be Rs. 20 lakh. The cost included expenditure incurred on factor and non factor inputs. However industrial waste is causing water pollution for which no provision is made by the company. comment. |
| Answer» <html><body><p></p>Solution :Cost of <a href="https://interviewquestions.tuteehub.com/tag/production-14556" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCTION">PRODUCTION</a> is not the money cost of production only. A <a href="https://interviewquestions.tuteehub.com/tag/producer-1167788" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCER">PRODUCER</a> who is only concerned with the money cost of production and not with social cost and environment loss in not doing justice to the society. This producer is ignoring loss of biodiversity and water pollution caused by his production activity. He should follow the emission standards regarding <a href="https://interviewquestions.tuteehub.com/tag/supply-1235254" style="font-weight:bold;" target="_blank" title="Click to know more about SUPPLY">SUPPLY</a> of toxic <a href="https://interviewquestions.tuteehub.com/tag/substances-654612" style="font-weight:bold;" target="_blank" title="Click to know more about SUBSTANCES">SUBSTANCES</a> into the water fixed by the government so that water pollution can be kept under check.</body></html> | |
| 6139. |
Give an example of a series which has no mode. |
| 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> :2,3,4,5,6,7</body></html> | |
| 6140. |
Sampling method is comparatively less expensive. (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> | |
| 6141. |
Mention two situations in which an increase in supply of a commodity will not affect its equilibrium price. |
| Answer» <html><body><p></p>Solution :(i) When demand also <a href="https://interviewquestions.tuteehub.com/tag/increases-1040626" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASES">INCREASES</a> in the same <a href="https://interviewquestions.tuteehub.com/tag/proportion-1170266" style="font-weight:bold;" target="_blank" title="Click to know more about PROPORTION">PROPORTION</a>, (ii) When demand is perfectly <a href="https://interviewquestions.tuteehub.com/tag/elastic-967540" style="font-weight:bold;" target="_blank" title="Click to know more about ELASTIC">ELASTIC</a>.</body></html> | |
| 6142. |
At the point of equilibrium MC should be |
| Answer» <html><body><p>rising<br/>falling<br/>constant<br/>all of these.</p>Answer :A</body></html> | |
| 6143. |
What is meant by variable factor and fixed factor ? Give Two examples of each. |
| Answer» <html><body><p></p>Solution :Variable factors are the factors of production which <a href="https://interviewquestions.tuteehub.com/tag/vary-1443941" style="font-weight:bold;" target="_blank" title="Click to know more about VARY">VARY</a> with the level of output. For example, <a href="https://interviewquestions.tuteehub.com/tag/labour-1065391" style="font-weight:bold;" target="_blank" title="Click to know more about LABOUR">LABOUR</a> and Raw material.<br/>Fixed factors are the factors which remain fixed <a href="https://interviewquestions.tuteehub.com/tag/throughout-7258007" style="font-weight:bold;" target="_blank" title="Click to know more about THROUGHOUT">THROUGHOUT</a> the production <a href="https://interviewquestions.tuteehub.com/tag/process-11618" style="font-weight:bold;" target="_blank" title="Click to know more about PROCESS">PROCESS</a>. For example, Land and Machinery.</body></html> | |
| 6144. |
Price elasticity of demand of a product of a firm under monopolistic competition as compared to monopoly is comparatively: |
| Answer» <html><body><p>Higher<br/>Lower<br/>Same<br/>Can be any of the above</p>Answer :A</body></html> | |
| 6145. |
Define marginal utility. |
| 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> :In <a href="https://interviewquestions.tuteehub.com/tag/economics-260" style="font-weight:bold;" target="_blank" title="Click to know more about ECONOMICS">ECONOMICS</a>, <a href="https://interviewquestions.tuteehub.com/tag/utility-1441817" style="font-weight:bold;" target="_blank" title="Click to know more about UTILITY">UTILITY</a> is the satisfaction or benefit <a href="https://interviewquestions.tuteehub.com/tag/derived-437539" style="font-weight:bold;" target="_blank" title="Click to know more about DERIVED">DERIVED</a> by consuming a product; thus the marginal utility of a goods or <a href="https://interviewquestions.tuteehub.com/tag/service-1202537" style="font-weight:bold;" target="_blank" title="Click to know more about SERVICE">SERVICE</a> is the change in the utility from an increase in the consumption of that good or service</body></html> | |
| 6146. |
Explain the implications of the follwing in oligopoly market: (a) Barriers to entry of new firms (b) A few or a few big sellers |
| 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) The main implication of barriers to entry is that such barriers allow only a limited number of <a href="https://interviewquestions.tuteehub.com/tag/firms-989820" style="font-weight:bold;" target="_blank" title="Click to know more about FIRMS">FIRMS</a> into oligopoly <a href="https://interviewquestions.tuteehub.com/tag/industries-515587" style="font-weight:bold;" target="_blank" title="Click to know more about INDUSTRIES">INDUSTRIES</a>. Such barriers may be in the form of huge capital <a href="https://interviewquestions.tuteehub.com/tag/requirements-25692" style="font-weight:bold;" target="_blank" title="Click to know more about REQUIREMENTS">REQUIREMENTS</a>, patent <a href="https://interviewquestions.tuteehub.com/tag/rights-623807" style="font-weight:bold;" target="_blank" title="Click to know more about RIGHTS">RIGHTS</a>, availability of crucial raw material etc. <br/> (b)A few or few big sellers has the implications that each big seller contributes a fairly large share of total output. This gives an individual seller the power of influencing the market price by changing own output.</body></html> | |
| 6147. |
What is the marginal product of an input ? |
| 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> :Marginal <a href="https://interviewquestions.tuteehub.com/tag/product-25523" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCT">PRODUCT</a> refers to addition to total product, when one more <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 variable factor is <a href="https://interviewquestions.tuteehub.com/tag/employed-2611124" style="font-weight:bold;" target="_blank" title="Click to know more about EMPLOYED">EMPLOYED</a>.</body></html> | |
| 6148. |
What is oligopoly ? |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/oligopoly-585440" style="font-weight:bold;" target="_blank" title="Click to know more about OLIGOPOLY">OLIGOPOLY</a> refers to a market <a href="https://interviewquestions.tuteehub.com/tag/situation-1210683" style="font-weight:bold;" target="_blank" title="Click to know more about SITUATION">SITUATION</a> in which there are a few firms selling <a href="https://interviewquestions.tuteehub.com/tag/homogeneous-1028736" style="font-weight:bold;" target="_blank" title="Click to know more about HOMOGENEOUS">HOMOGENEOUS</a> or differentiated products. There is price <a href="https://interviewquestions.tuteehub.com/tag/rigidity-623827" style="font-weight:bold;" target="_blank" title="Click to know more about RIGIDITY">RIGIDITY</a>.</body></html> | |
| 6149. |
A consumer consumes only two goods X and Y . On planning to spend the whole of income on these two goods he finds MU_(x)=6 utils and MU_(y)=4 utils, P_(x) and P_(y)are rupees 4 and 6 per unit respectively. In this situation the consumer will : |
| Answer» <html><body><p>Stick to his plan <br/><a href="https://interviewquestions.tuteehub.com/tag/buy-391430" style="font-weight:bold;" target="_blank" title="Click to know more about BUY">BUY</a> <a href="https://interviewquestions.tuteehub.com/tag/less-1071906" style="font-weight:bold;" target="_blank" title="Click to know more about LESS">LESS</a> of X <br/>Buy more of Y <br/>Buy more of X and less of Y </p><a href="https://interviewquestions.tuteehub.com/tag/answer-15557" style="font-weight:bold;" target="_blank" title="Click to know more about ANSWER">ANSWER</a> :D</body></html> | |
| 6150. |
What induces new firms to enter an industry? |
| 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/abnormal-845150" style="font-weight:bold;" target="_blank" title="Click to know more about ABNORMAL">ABNORMAL</a> <a href="https://interviewquestions.tuteehub.com/tag/profits-1168748" style="font-weight:bold;" target="_blank" title="Click to know more about PROFITS">PROFITS</a>, i.e. above <a href="https://interviewquestions.tuteehub.com/tag/normal-1123860" style="font-weight:bold;" target="_blank" title="Click to know more about NORMAL">NORMAL</a> <a href="https://interviewquestions.tuteehub.com/tag/profit-1168589" style="font-weight:bold;" target="_blank" title="Click to know more about PROFIT">PROFIT</a></body></html> | |