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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.
| 6251. |
Define convenience sampling. |
| Answer» <html><body><p></p>Solution :In convenience <a href="https://interviewquestions.tuteehub.com/tag/sampling-15674" style="font-weight:bold;" target="_blank" title="Click to know more about SAMPLING">SAMPLING</a>, sampling is <a href="https://interviewquestions.tuteehub.com/tag/done-2591742" style="font-weight:bold;" target="_blank" title="Click to know more about DONE">DONE</a> by the investigator in such a <a href="https://interviewquestions.tuteehub.com/tag/manner-1086162" style="font-weight:bold;" target="_blank" title="Click to know more about MANNER">MANNER</a> that suits his convenience.</body></html> | |
| 6252. |
The rotation of budget line in the following diagram is due to: |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/decrease-946104" style="font-weight:bold;" target="_blank" title="Click to know more about DECREASE">DECREASE</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 Apples<br/>Increase in price of Apples<br/>Increase in price of Bananas<br/>Decrease in price of Bananas</p>Answer :A</body></html> | |
| 6253. |
Which one of the following statements is incorrect: |
| Answer» <html><body><p>Higher numerical value of elasticity <a href="https://interviewquestions.tuteehub.com/tag/indicates-1041501" style="font-weight:bold;" target="_blank" title="Click to know more about INDICATES">INDICATES</a> larger effect of a <a href="https://interviewquestions.tuteehub.com/tag/price-1165141" style="font-weight:bold;" target="_blank" title="Click to know more about PRICE">PRICE</a> change on the quantity demanded.<br/>Elasticirty of <a href="https://interviewquestions.tuteehub.com/tag/demand-436956" style="font-weight:bold;" target="_blank" title="Click to know more about DEMAND">DEMAND</a> can vary only between -<a href="https://interviewquestions.tuteehub.com/tag/1-256655" style="font-weight:bold;" target="_blank" title="Click to know more about 1">1</a> and +1. <br/>The demand curves for all commodities which have unitary elastic demand will be rectangular hyperbola. <br/>Elasticity of demand establishes a <a href="https://interviewquestions.tuteehub.com/tag/quantitative-22411" style="font-weight:bold;" target="_blank" title="Click to know more about QUANTITATIVE">QUANTITATIVE</a> relationship between quantity demanded of a commodity and its price. While other factors remain constant. </p>Solution :N/a</body></html> | |
| 6254. |
What are the shapes of AR and MR curves, when each unit is sold at the same price. ? |
| Answer» <html><body><p></p>Solution :When <a href="https://interviewquestions.tuteehub.com/tag/price-1165141" style="font-weight:bold;" target="_blank" title="Click to know more about PRICE">PRICE</a> is same at all the <a href="https://interviewquestions.tuteehub.com/tag/output-1142821" style="font-weight:bold;" target="_blank" title="Click to know more about OUTPUT">OUTPUT</a> levels, the price/AR 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 the MR curve. The curve will be a horizontal <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 <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.</body></html> | |
| 6255. |
What is meant by averge variable cost (AVC) ? Why is AVC curve U-shaped ? |
| Answer» <html><body><p></p>Solution :The average <a href="https://interviewquestions.tuteehub.com/tag/variable-1442996" style="font-weight:bold;" target="_blank" title="Click to know more about VARIABLE">VARIABLE</a> cost (AVC) is the <a href="https://interviewquestions.tuteehub.com/tag/total-711110" style="font-weight:bold;" target="_blank" title="Click to know more about TOTAL">TOTAL</a> variable cost per unit of output. This is found by dividing total variable cost (TVC) by total output (Q). Total variable cost (TVC) is all the costs that vary with output, such as materials and labor.The average cost is U-shaped because an increase in output increases the <a href="https://interviewquestions.tuteehub.com/tag/returns-1187977" style="font-weight:bold;" target="_blank" title="Click to know more about RETURNS">RETURNS</a> and reduces the total cost. As the curve continues to <a href="https://interviewquestions.tuteehub.com/tag/slope-15649" style="font-weight:bold;" target="_blank" title="Click to know more about SLOPE">SLOPE</a> downwards, it <a href="https://interviewquestions.tuteehub.com/tag/enters-972302" style="font-weight:bold;" target="_blank" title="Click to know more about ENTERS">ENTERS</a> a phase of constant returns where the returns and output are at their optimum level. .</body></html> | |
| 6256. |
Find the mode from the following series : What is special in this question? Can you solve this question orally? If yes, how ? (Hint: See 8.8) |
| 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/30-304807" style="font-weight:bold;" target="_blank" title="Click to know more about 30">30</a></body></html> | |
| 6257. |
Demand curve under monopolistic competition is |
| Answer» <html><body><p>more <a href="https://interviewquestions.tuteehub.com/tag/elastic-967540" style="font-weight:bold;" target="_blank" title="Click to know more about ELASTIC">ELASTIC</a> as <a href="https://interviewquestions.tuteehub.com/tag/compared-7256615" style="font-weight:bold;" target="_blank" title="Click to know more about COMPARED">COMPARED</a> to monopoly<br/>unitary elastic <br/><a href="https://interviewquestions.tuteehub.com/tag/perfectly-7309466" style="font-weight:bold;" target="_blank" title="Click to know more about PERFECTLY">PERFECTLY</a> elastic <br/>perfectly inelastic.</p>Answer :A</body></html> | |
| 6258. |
what is price elasticity of demand on the following demand curves: (i)Straight line parallel to X-axis (ii) straight line parallel to Y-axis. |
| 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> : <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/MIC_ECO_U02_C04_E01_025_S01.png" width="80%"/></body></html> | |
| 6259. |
Price Floor can also be described as: |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/minimum-561095" style="font-weight:bold;" target="_blank" title="Click to know more about MINIMUM">MINIMUM</a> <a href="https://interviewquestions.tuteehub.com/tag/support-1235361" style="font-weight:bold;" target="_blank" title="Click to know more about SUPPORT">SUPPORT</a> <a href="https://interviewquestions.tuteehub.com/tag/price-1165141" style="font-weight:bold;" target="_blank" title="Click to know more about PRICE">PRICE</a><br/>Minimum price above the equilibrium price<br/>Price at which quantity <a href="https://interviewquestions.tuteehub.com/tag/supplied-3090548" style="font-weight:bold;" target="_blank" title="Click to know more about SUPPLIED">SUPPLIED</a> <a href="https://interviewquestions.tuteehub.com/tag/exceeds-978356" style="font-weight:bold;" target="_blank" title="Click to know more about EXCEEDS">EXCEEDS</a> the quantity demanded <br/>All of these</p>Answer :(d)</body></html> | |
| 6260. |
Which of the following is a cause of economic problem? |
| Answer» <html><body><p>Scarcity of Resources <br/>Unlimited <a href="https://interviewquestions.tuteehub.com/tag/wants-1448762" style="font-weight:bold;" target="_blank" title="Click to know more about WANTS">WANTS</a> <br/>Alternative Uses <br/>All of these </p>Solution :D. Central problems of an economy arise due to the following reasons :(a) Limited or Scarce Resources: Resources are scarce in relation to our wants and economy cannot produce all what people want. It is the principal reason for existence of economic problems 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>.(<a href="https://interviewquestions.tuteehub.com/tag/b-387190" style="font-weight:bold;" target="_blank" title="Click to know more about B">B</a>) Alternative uses: Resources can be put to alternative uses. For example, land is used not only for the production of crops but also for construction buildings and factories. As a result, the economy has to make a choice between the alternative uses of the given resources.(c) Unlimited wants: Human wants are unlimited in number. They are never-ending and they can never be <a href="https://interviewquestions.tuteehub.com/tag/fully-2663010" style="font-weight:bold;" target="_blank" title="Click to know more about FULLY">FULLY</a> satisfied.</body></html> | |
| 6261. |
What is minimum price ceiling. Explain its implications. |
| 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> | |
| 6262. |
Under monopoly price elasticity of demand is: |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/less-1071906" style="font-weight:bold;" target="_blank" title="Click to know more about LESS">LESS</a> than one<br/>Equal to one<br/>Greater than one<br/>Inifinity</p>Solution :N/a</body></html> | |
| 6263. |
Name any four determinants of individual demand |
| Answer» <html><body><p></p>Solution :(i) Price of the <a href="https://interviewquestions.tuteehub.com/tag/commodity-923558" style="font-weight:bold;" target="_blank" title="Click to know more about COMMODITY">COMMODITY</a> <br/> (ii) Price of related goods <br/> (iii) <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 an individual <br/> (iv) <a href="https://interviewquestions.tuteehub.com/tag/tastes-663779" style="font-weight:bold;" target="_blank" title="Click to know more about TASTES">TASTES</a> and <a href="https://interviewquestions.tuteehub.com/tag/preferences-1163219" style="font-weight:bold;" target="_blank" title="Click to know more about PREFERENCES">PREFERENCES</a> of an individual</body></html> | |
| 6264. |
What is the relation between market price and marginal revenue of a price-taking firm ? |
| 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> :Market price is equal to <a href="https://interviewquestions.tuteehub.com/tag/marginal-555038" style="font-weight:bold;" target="_blank" title="Click to know more about MARGINAL">MARGINAL</a> revenue (MR). It happens because the price-taking firm can <a href="https://interviewquestions.tuteehub.com/tag/sell-1200244" style="font-weight:bold;" target="_blank" title="Click to know more about SELL">SELL</a> more <a href="https://interviewquestions.tuteehub.com/tag/quantity-1174212" style="font-weight:bold;" target="_blank" title="Click to know more about QUANTITY">QUANTITY</a> of <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 the same price. It means, revenue from every additional unit (MR) is equal to price or average revenue (AR) as Price = AR.</body></html> | |
| 6265. |
Which of the following is an economic activity ? |
| Answer» <html><body><p>Production<br/>Consumption<br/>Distribution<br/>All of these</p>Solution :D</body></html> | |
| 6266. |
Price floor is fixed to protect the interest of |
| Answer» <html><body><p>consumers<br/>government<br/>producers <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> | |
| 6267. |
The total expenditure to be incurred by a family on a good is bound to increase when price of such good rises. Comment. |
| Answer» <html><body><p></p>Solution :The given statement is not correct. As the price rises, the total <a href="https://interviewquestions.tuteehub.com/tag/expenditure-980222" style="font-weight:bold;" target="_blank" title="Click to know more about EXPENDITURE">EXPENDITURE</a> by the family may either increase, decrease or remain same depending upon elastically of <a href="https://interviewquestions.tuteehub.com/tag/demand-436956" style="font-weight:bold;" target="_blank" title="Click to know more about DEMAND">DEMAND</a>: <br/> (i) In case of less elastic demand, spending will increase if the price rises (like in case of necessity goods such as salt, medicines, etc.). <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>) In case of highly elastic demand, spending will decrease if the price rises (like in case of luxury goods such as AC, Curved LED <a href="https://interviewquestions.tuteehub.com/tag/tv-662255" style="font-weight:bold;" target="_blank" title="Click to know more about TV">TV</a>. etc.). <br/> (iii) In case of unitary elastic demand, spending will not change with rise in price like in case of normal goods such as <a href="https://interviewquestions.tuteehub.com/tag/scooter-1196494" style="font-weight:bold;" target="_blank" title="Click to know more about SCOOTER">SCOOTER</a>, refrigerator, etc.).</body></html> | |
| 6268. |
Utility is directly linked with the usefulness of a commodity. |
| 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 commodity may not be useful, yet it may have utility for a <a href="https://interviewquestions.tuteehub.com/tag/particular-1147539" style="font-weight:bold;" target="_blank" title="Click to know more about PARTICULAR">PARTICULAR</a> <a href="https://interviewquestions.tuteehub.com/tag/person-25481" style="font-weight:bold;" target="_blank" title="Click to know more about PERSON">PERSON</a>. For example, chewing tobacco is harmful for health, yet many people derive <a href="https://interviewquestions.tuteehub.com/tag/high-479925" style="font-weight:bold;" target="_blank" title="Click to know more about HIGH">HIGH</a> degree of utility from it.</body></html> | |
| 6269. |
In the order of sequence, the points of 'Underutilisation' and 'Unattainable' are: |
| Answer» <html><body><p>A and <a href="https://interviewquestions.tuteehub.com/tag/f-455800" style="font-weight:bold;" target="_blank" title="Click to know more about F">F</a><br/>F and <a href="https://interviewquestions.tuteehub.com/tag/e-444102" style="font-weight:bold;" target="_blank" title="Click to know more about E">E</a> <br/>D and E <br/>E and F </p>Solution :D.<a href="https://interviewquestions.tuteehub.com/tag/point-1157106" style="font-weight:bold;" target="_blank" title="Click to know more about POINT">POINT</a> E is being underutilized and Point F is <a href="https://interviewquestions.tuteehub.com/tag/unattainable-2316711" style="font-weight:bold;" target="_blank" title="Click to know more about UNATTAINABLE">UNATTAINABLE</a>.</body></html> | |
| 6270. |
has no control over price of his product. |
| Answer» <html><body><p></p>Solution :An individual <a href="https://interviewquestions.tuteehub.com/tag/firm-989667" style="font-weight:bold;" target="_blank" title="Click to know more about FIRM">FIRM</a> under perfect competition is a <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/taker-1238573" style="font-weight:bold;" target="_blank" title="Click to know more about TAKER">TAKER</a> and has to accept the price fixed by the market forces of <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 supply</body></html> | |
| 6271. |
Demand of a commodity by a consumer falls by 10% as its price rises from₹ 10 per unit to₹12 per unit. What is price elasticity of demand? |
| 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> :0.5</body></html> | |
| 6272. |
The Indian Government imposed heavy taxes on commodity to reduce its consumption by the pubic such heavy taxes will decrease the deamand of the commodity only when: |
| Answer» <html><body><p>`E_(d)=0`<br/>`E_(d) gt <a href="https://interviewquestions.tuteehub.com/tag/1-256655" style="font-weight:bold;" target="_blank" title="Click to know more about 1">1</a>`<br/>`E_(d) <a href="https://interviewquestions.tuteehub.com/tag/lt-537906" style="font-weight:bold;" target="_blank" title="Click to know more about LT">LT</a> 1`<br/>`E_(d)=1`</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> | |
| 6273. |
How is the equilibrium price of a good determined? Explain with the help of diagram a situation when both demand and supply curves shift to the right but equilibrium price remains the same. |
| Answer» | |
| 6274. |
Explain why an indifference curve is convex to the origin ? |
| Answer» <html><body><p></p>Solution :The indifference curves are convex to the origin because of the diminishing marginal rate of <a href="https://interviewquestions.tuteehub.com/tag/substitution-1231654" style="font-weight:bold;" target="_blank" title="Click to know more about SUBSTITUTION">SUBSTITUTION</a>. The MRS diminishes because of the decline in the marginal utility, which means with more and more <a href="https://interviewquestions.tuteehub.com/tag/consumption-931383" style="font-weight:bold;" target="_blank" title="Click to know more about CONSUMPTION">CONSUMPTION</a> of one commodity, the customer’s utility starts declining and he is not willing to consume it more at the cost of the other commodity.For <a href="https://interviewquestions.tuteehub.com/tag/example-978283" style="font-weight:bold;" target="_blank" title="Click to know more about EXAMPLE">EXAMPLE</a>, let’s say there are two chocolates, dairy milk, and <a href="https://interviewquestions.tuteehub.com/tag/nestle-1113788" style="font-weight:bold;" target="_blank" title="Click to know more about NESTLE">NESTLE</a>, with more and more consumption of dairy milk chocolates the utility continues to decline, and the customer will no more give up the Nestle chocolates to <a href="https://interviewquestions.tuteehub.com/tag/buy-391430" style="font-weight:bold;" target="_blank" title="Click to know more about BUY">BUY</a> the dairy milk. Here, MRS shows the slope of the indifference curve.</body></html> | |
| 6275. |
From the following data, compute Karl Pearson coefficient of correlation : Summation of product of deviation of X and Y series from their respective means is 46 |
| Answer» <html><body><p></p>Solution :We are given <br/> `N=7,bar(X)=4,bar(Y)=<a href="https://interviewquestions.tuteehub.com/tag/8-336412" style="font-weight:bold;" target="_blank" title="Click to know more about 8">8</a>,<a href="https://interviewquestions.tuteehub.com/tag/sumx-3819684" style="font-weight:bold;" target="_blank" title="Click to know more about SUMX">SUMX</a>^(2)=<a href="https://interviewquestions.tuteehub.com/tag/28-299271" style="font-weight:bold;" target="_blank" title="Click to know more about 28">28</a>,sumy^(2)=76,sumxy=<a href="https://interviewquestions.tuteehub.com/tag/46-317673" style="font-weight:bold;" target="_blank" title="Click to know more about 46">46</a>` <br/> `r=(sumxy)/(sqrt(sumx^(2)xxsumy^(2)))` <br/> Substituting the values, we get <br/> `r=(46)/(sqrt(28xx76))=(46)/(sqrt(2,128))=(46)/(sqrt(46.13))=0.997` <br/>Coefficient of Correlation (r)=0.997</body></html> | |
| 6276. |
Which of these is a normative economics: |
| Answer» <html><body><p>30% population of <a href="https://interviewquestions.tuteehub.com/tag/india-54" style="font-weight:bold;" target="_blank" title="Click to know more about INDIA">INDIA</a> is below poverty line.<br/>Increase in <a href="https://interviewquestions.tuteehub.com/tag/fdi-456774" style="font-weight:bold;" target="_blank" title="Click to know more about FDI">FDI</a> has increases <a href="https://interviewquestions.tuteehub.com/tag/gdp-467979" style="font-weight:bold;" target="_blank" title="Click to know more about GDP">GDP</a> of India<br/>Govt. increased <a href="https://interviewquestions.tuteehub.com/tag/repo-1185282" style="font-weight:bold;" target="_blank" title="Click to know more about REPO">REPO</a> rate of check inflation<br/>Equal distribution of income in India will <a href="https://interviewquestions.tuteehub.com/tag/solve-647535" style="font-weight:bold;" target="_blank" title="Click to know more about SOLVE">SOLVE</a> the problem of poverty.</p>Solution :Equal distribution of income in India will solve the problem of poverty.</body></html> | |
| 6277. |
When is the supply of a commodity called 'elastic'? |
| 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 the percentage change in its <a href="https://interviewquestions.tuteehub.com/tag/supply-1235254" style="font-weight:bold;" target="_blank" title="Click to know more about SUPPLY">SUPPLY</a> is more than the percentage change in its price, i.e. when <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 supply is <a href="https://interviewquestions.tuteehub.com/tag/greater-476627" style="font-weight:bold;" target="_blank" title="Click to know more about GREATER">GREATER</a> than <a href="https://interviewquestions.tuteehub.com/tag/one-585732" style="font-weight:bold;" target="_blank" title="Click to know more about ONE">ONE</a>.</body></html> | |
| 6278. |
Explain price elasticity of demand |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/price-1165141" style="font-weight:bold;" target="_blank" title="Click to know more about PRICE">PRICE</a> Elasticity of Demand <a href="https://interviewquestions.tuteehub.com/tag/means-1091780" style="font-weight:bold;" target="_blank" title="Click to know more about MEANS">MEANS</a> the degree of responsiveness of demand for a commodity with <a href="https://interviewquestions.tuteehub.com/tag/reference-1181544" style="font-weight:bold;" target="_blank" title="Click to know more about REFERENCE">REFERENCE</a> to <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 the price of such commodity. It is measured as: <br/> Price Elasticity of Demand `(E_(d))= ("percentatge change in 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>")/("percentage Change in price")`</body></html> | |
| 6279. |
When average product increases, the marginal product is : |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/less-1071906" style="font-weight:bold;" target="_blank" title="Click to know more about LESS">LESS</a> than <a href="https://interviewquestions.tuteehub.com/tag/average-13416" style="font-weight:bold;" target="_blank" title="Click to know more about AVERAGE">AVERAGE</a> product<br/>Equal to the average product<br/>More <a href="https://interviewquestions.tuteehub.com/tag/tha-1243454" style="font-weight:bold;" target="_blank" title="Click to know more about THA">THA</a> average product<br/>None of these</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> | |
| 6280. |
How is an economic problem, a choice-making activity ? |
| Answer» <html><body><p></p>Solution :An economic <a href="https://interviewquestions.tuteehub.com/tag/problem-25530" style="font-weight:bold;" target="_blank" title="Click to know more about PROBLEM">PROBLEM</a> is a choice-making activity because it requires a <a href="https://interviewquestions.tuteehub.com/tag/decision-945807" style="font-weight:bold;" target="_blank" title="Click to know more about DECISION">DECISION</a> to <a href="https://interviewquestions.tuteehub.com/tag/make-546668" style="font-weight:bold;" target="_blank" title="Click to know more about MAKE">MAKE</a> the best possible <a href="https://interviewquestions.tuteehub.com/tag/use-1441041" style="font-weight:bold;" target="_blank" title="Click to know more about USE">USE</a> of limited resources to satisfy unlimited <a href="https://interviewquestions.tuteehub.com/tag/human-1032714" style="font-weight:bold;" target="_blank" title="Click to know more about HUMAN">HUMAN</a> wants.</body></html> | |
| 6281. |
Define non-viable industry. |
| Answer» <html><body><p></p>Solution :It refers to an <a href="https://interviewquestions.tuteehub.com/tag/industry-1043031" style="font-weight:bold;" target="_blank" title="Click to know more about INDUSTRY">INDUSTRY</a> in which the demand curve and <a href="https://interviewquestions.tuteehub.com/tag/supply-1235254" style="font-weight:bold;" target="_blank" title="Click to know more about SUPPLY">SUPPLY</a> curve <a href="https://interviewquestions.tuteehub.com/tag/never-570518" style="font-weight:bold;" target="_blank" title="Click to know more about NEVER">NEVER</a> intersect each other in the <a href="https://interviewquestions.tuteehub.com/tag/positive-1159908" style="font-weight:bold;" target="_blank" title="Click to know more about POSITIVE">POSITIVE</a> axis for the positive <a href="https://interviewquestions.tuteehub.com/tag/quantity-1174212" style="font-weight:bold;" target="_blank" title="Click to know more about QUANTITY">QUANTITY</a>.</body></html> | |
| 6282. |
Consider the following table {:("Production Possibilities",A,B,C,D,E),("Guns (Units)",0,1,2,3,4),("Butter(Units)",10,9,7,4,0):} If the above points A to E are depicated on a graph, then such PPF would be: |
| Answer» <html><body><p>Convex to the origin <br/>Concave to the origin <br/><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 <br/>Rectangular hyperboal </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/b-387190" style="font-weight:bold;" target="_blank" title="Click to know more about B">B</a>.</body></html> | |
| 6283. |
Monopolistic Competition is competition with differentiated products? Explain |
| Answer» <html><body><p></p>Solution :An important <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 <a href="https://interviewquestions.tuteehub.com/tag/monopolistic-2180801" style="font-weight:bold;" target="_blank" title="Click to know more about MONOPOLISTIC">MONOPOLISTIC</a> competition is product differentiation. The competing firms produce products which are <a href="https://interviewquestions.tuteehub.com/tag/close-408965" style="font-weight:bold;" target="_blank" title="Click to know more about CLOSE">CLOSE</a> but not perfect substitutes of each other. The products are <a href="https://interviewquestions.tuteehub.com/tag/differentiated-431924" style="font-weight:bold;" target="_blank" title="Click to know more about DIFFERENTIATED">DIFFERENTIATED</a> on the <a href="https://interviewquestions.tuteehub.com/tag/basis-893664" style="font-weight:bold;" target="_blank" title="Click to know more about BASIS">BASIS</a> of brand, size, colour, shape, etc. It is on account of this product differentiation, firms have to impur huge selling costs to complete with other firms. So, it is rightly said that 'Monopolistic Competition is compettion with diferentiated products'</body></html> | |
| 6284. |
Equilibrium for a firm is determined when it : |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/earns-964173" style="font-weight:bold;" target="_blank" title="Click to know more about EARNS">EARNS</a> <a href="https://interviewquestions.tuteehub.com/tag/maximum-556915" style="font-weight:bold;" target="_blank" title="Click to know more about MAXIMUM">MAXIMUM</a> revenue<br/>maximises the difference between <a href="https://interviewquestions.tuteehub.com/tag/tr-661737" style="font-weight:bold;" target="_blank" title="Click to know more about TR">TR</a> and <a href="https://interviewquestions.tuteehub.com/tag/tc-664136" style="font-weight:bold;" target="_blank" title="Click to know more about TC">TC</a> <br/>maximises its cost<br/>None of these.</p>Answer :B</body></html> | |
| 6285. |
Freedom of entry and exit takes place in |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/short-642706" style="font-weight:bold;" target="_blank" title="Click to know more about SHORT">SHORT</a> <a href="https://interviewquestions.tuteehub.com/tag/run-1192138" style="font-weight:bold;" target="_blank" title="Click to know more about RUN">RUN</a> <br/>very short run <br/><a href="https://interviewquestions.tuteehub.com/tag/long-537592" style="font-weight:bold;" target="_blank" title="Click to know more about LONG">LONG</a> run <br/>all of these.</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> | |
| 6286. |
The price of a good falls from Rs. 6 to Rs. 5. As a result, supply by a firm falls by 600 units. If Es = 2 , find out the quantity suupplied at Rs. 6. |
| 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/1800-279676" style="font-weight:bold;" target="_blank" title="Click to know more about 1800">1800</a> <a href="https://interviewquestions.tuteehub.com/tag/units-1438468" style="font-weight:bold;" target="_blank" title="Click to know more about UNITS">UNITS</a></body></html> | |
| 6287. |
Distinguish between a centrally planned economy and a market economy. |
| Answer» <html><body><p></p>Solution :A centrally planned economy is an economic system in which the state or government makes economic decisions. Under a centrally planned economy, <a href="https://interviewquestions.tuteehub.com/tag/governments-1010387" style="font-weight:bold;" target="_blank" title="Click to know more about GOVERNMENTS">GOVERNMENTS</a> own all of the factors of production such as land, capital, and resources, and government officials <a href="https://interviewquestions.tuteehub.com/tag/determine-437910" style="font-weight:bold;" target="_blank" title="Click to know more about DETERMINE">DETERMINE</a> when, where and how much is produced at any one time. This is also <a href="https://interviewquestions.tuteehub.com/tag/sometimes-648384" style="font-weight:bold;" target="_blank" title="Click to know more about SOMETIMES">SOMETIMES</a> referred to as a "command economy."In a planned economy, the decision-making is centralized so the government controls all of the supply and sets all of the demand. Prices are set by government officials.Socialism and communism need a command economy to create a central plan that guides economic decisions.The examples of centrally planned economy are – China, North Korea, etcA market economy is a system where the laws of supply and demand direct the production of goods and services. Prices are fixed in a market economy on basis of the equilibrium of supply and demand.Consumer preferences and resource scarcity determine which goods are produced and in what quantity; the prices in a market economy act as <a href="https://interviewquestions.tuteehub.com/tag/signals-13891" style="font-weight:bold;" target="_blank" title="Click to know more about SIGNALS">SIGNALS</a> to producers and consumers who use these price signals to help make decisions. Governments play a minor role in the direction of economic activity.A free market economy is an economy which the government plays a small role in.The two <a href="https://interviewquestions.tuteehub.com/tag/fundamental-466867" style="font-weight:bold;" target="_blank" title="Click to know more about FUNDAMENTAL">FUNDAMENTAL</a> features of market economics are:1. Private ownership of the means of production2. Voluntary exchanges / contractsThe perfect example for market economy is United States of America.</body></html> | |
| 6288. |
The distinction between short and long run is based on a fixed time period. |
| 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. It <a href="https://interviewquestions.tuteehub.com/tag/depends-948548" style="font-weight:bold;" target="_blank" title="Click to know more about DEPENDS">DEPENDS</a> on production <a href="https://interviewquestions.tuteehub.com/tag/conditions-424384" style="font-weight:bold;" target="_blank" title="Click to know more about CONDITIONS">CONDITIONS</a> and is not <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 <a href="https://interviewquestions.tuteehub.com/tag/fixed-457597" style="font-weight:bold;" target="_blank" title="Click to know more about FIXED">FIXED</a> time period.</body></html> | |
| 6289. |
Defice monopolistic competition. |
| Answer» <html><body><p></p>Solution :It <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 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 large <a href="https://interviewquestions.tuteehub.com/tag/number-582134" style="font-weight:bold;" target="_blank" title="Click to know more about NUMBER">NUMBER</a> of firms which sell closely reated but <a href="https://interviewquestions.tuteehub.com/tag/differentiated-431924" style="font-weight:bold;" target="_blank" title="Click to know more about DIFFERENTIATED">DIFFERENTIATED</a> products. Firms have partial <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 price.</body></html> | |
| 6290. |
Discuss various factors that affect price elasticity of demand . |
| Answer» <html><body><p></p>Solution :Availability of Substitute Goods:If close substitutes for a particular good are available in the market, then the demand for the good would be relatively more elastic. For example, <a href="https://interviewquestions.tuteehub.com/tag/since-644476" style="font-weight:bold;" target="_blank" title="Click to know more about SINCE">SINCE</a> tea, a close substitute for coffee, is available in the market, a rise in the price of coffee would result in a considerable <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 its demand and a consequent rise in the demand for tea.2. Price of the Good:The elasticity of demand for a good also depends on its own price. As price changes, 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> of the good changes, owing to the law of demand. Also, at different <a href="https://interviewquestions.tuteehub.com/tag/prices-1165311" style="font-weight:bold;" target="_blank" title="Click to know more about PRICES">PRICES</a> of the product, i.e., at different points on the demand curve for a good, the <a href="https://interviewquestions.tuteehub.com/tag/coefficient-920926" style="font-weight:bold;" target="_blank" title="Click to know more about COEFFICIENT">COEFFICIENT</a> of price-elasticity of demand for the good would be different</body></html> | |
| 6291. |
Define a PPC. |
| Answer» <html><body><p></p>Solution :PPC is the locus of <a href="https://interviewquestions.tuteehub.com/tag/various-1443317" style="font-weight:bold;" target="_blank" title="Click to know more about VARIOUS">VARIOUS</a> combinations of maximum production of two <a href="https://interviewquestions.tuteehub.com/tag/goods-1009877" style="font-weight:bold;" target="_blank" title="Click to know more about GOODS">GOODS</a> that can be produced with available technological and with <a href="https://interviewquestions.tuteehub.com/tag/given-473447" style="font-weight:bold;" target="_blank" title="Click to know more about GIVEN">GIVEN</a> <a href="https://interviewquestions.tuteehub.com/tag/resources-11387" style="font-weight:bold;" target="_blank" title="Click to know more about RESOURCES">RESOURCES</a>, assuming all resources are <a href="https://interviewquestions.tuteehub.com/tag/fully-2663010" style="font-weight:bold;" target="_blank" title="Click to know more about FULLY">FULLY</a> and efficiently utilised.</body></html> | |
| 6292. |
When TR is constant MR is ________. |
| 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/zero-751093" style="font-weight:bold;" target="_blank" title="Click to know more about ZERO">ZERO</a></body></html> | |
| 6293. |
Marginal utlity can never be negative |
| 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 consumption is <a href="https://interviewquestions.tuteehub.com/tag/increased-1040402" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASED">INCREASED</a> <a href="https://interviewquestions.tuteehub.com/tag/beyond-390058" style="font-weight:bold;" target="_blank" title="Click to know more about BEYOND">BEYOND</a> the point of <a href="https://interviewquestions.tuteehub.com/tag/satiety-1195168" style="font-weight:bold;" target="_blank" title="Click to know more about SATIETY">SATIETY</a> (saturation point), the <a href="https://interviewquestions.tuteehub.com/tag/marginal-555038" style="font-weight:bold;" target="_blank" title="Click to know more about MARGINAL">MARGINAL</a> becomes negative</body></html> | |
| 6294. |
AR curves under perfect competitionis a downwards sloping curve. Defendor refute. Give reason |
| Answer» <html><body><p></p>Solution :The statement is refuted. In <a href="https://interviewquestions.tuteehub.com/tag/perfect-1150611" style="font-weight:bold;" target="_blank" title="Click to know more about PERFECT">PERFECT</a> competition more <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 sold at uniform price. <a href="https://interviewquestions.tuteehub.com/tag/hence-484344" style="font-weight:bold;" target="_blank" title="Click to know more about HENCE">HENCE</a> AR curve is <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 curve parallel to x-axis.</body></html> | |
| 6295. |
Slope of demand curve will be infinity when degree of price elasticity of demand is infintiy. Defend or Refute. |
| Answer» <html><body><p></p>Solution :The statement is <a href="https://interviewquestions.tuteehub.com/tag/refuted-7708858" style="font-weight:bold;" target="_blank" title="Click to know more about REFUTED">REFUTED</a>. <br/> `P.e_(D) = P/Qxx(DeltaQ)/(DeltaP)` and slope of demand curve = `(DeltaP)/(DeltaQ)`<br/> `P.e_(D)= P/Qxx 1/("Slope of <a href="https://interviewquestions.tuteehub.com/tag/dd-431195" style="font-weight:bold;" target="_blank" title="Click to know more about DD">DD</a> curve")` <br/> or Slope of demand curve = ` P/Qxx1/(P.e_(D)` <br/> when `P.e_(D)=<a href="https://interviewquestions.tuteehub.com/tag/oo-583684" style="font-weight:bold;" target="_blank" title="Click to know more about OO">OO</a>` <br/> Then slope of demand curve = `P/Qxx 1/oo= ` Zero <br/> when `P.e_(D) is oo` , slope of demand curve will be zero.</body></html> | |
| 6296. |
Formula of standard deviation is: |
| Answer» <html><body><p>`sigma=(<a href="https://interviewquestions.tuteehub.com/tag/sum-1234400" style="font-weight:bold;" target="_blank" title="Click to know more about SUM">SUM</a>(X-X))/(N)`<br/>`sigma=sqrt((sum(X-X)^(2))/(N))`<br/>`sigma=sqrt((sum(X-X))/(N))`<br/>`sigma=sqrt((<a href="https://interviewquestions.tuteehub.com/tag/sumx-3819684" style="font-weight:bold;" target="_blank" title="Click to know more about SUMX">SUMX</a>)/(N))`</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/b-387190" style="font-weight:bold;" target="_blank" title="Click to know more about B">B</a></body></html> | |
| 6297. |
Define market equilibrium. |
| 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 <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 the <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 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> demanded of a commodity becomes equal to the quantity <a href="https://interviewquestions.tuteehub.com/tag/supplied-3090548" style="font-weight:bold;" target="_blank" title="Click to know more about SUPPLIED">SUPPLIED</a>.</body></html> | |
| 6298. |
Given total utility schedule of a good, how many units of tha good the consumer will buy if the price per unit is rupees 4 . |
| Answer» <html><body><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> unit <br/>2 units <br/><a href="https://interviewquestions.tuteehub.com/tag/3-301577" style="font-weight:bold;" target="_blank" title="Click to know more about 3">3</a> units <br/><a href="https://interviewquestions.tuteehub.com/tag/0-251616" style="font-weight:bold;" target="_blank" title="Click to know more about 0">0</a> unit </p>Answer :D</body></html> | |
| 6299. |
Suppose the price elasticity of demand for a good is -0.2 if there is a 5% increase in the price of the good, by what percentage will the demand for the good go dowm ? |
| Answer» <html><body><p></p>Solution :Given % Change (Rise)in price =5% Elasticity of Demand `(E_(d))= (-)0.2` <br/> Elasticirty of Demand `(E_(d))= ("<a href="https://interviewquestions.tuteehub.com/tag/percentage-13406" style="font-weight:bold;" target="_blank" title="Click to know more about PERCENTAGE">PERCENTAGE</a> Change 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> <a href="https://interviewquestions.tuteehub.com/tag/demanded-7675308" style="font-weight:bold;" target="_blank" title="Click to know more about DEMANDED">DEMANDED</a>")/("Percentage Change in price ")` <br/> `(-) 0.2 = ("Percentage Change in QunatityDemanded")/5` <br/> Percentage fall in demand =<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> | |
| 6300. |
Microeconomics is the study of: |
| Answer» <html><body><p>A consumer<br/>An industry<br/>A producer<br/>All of these</p>Solution :Microeconomics is the study of individuals, households and firms' behavior in decision making and allocation of <a href="https://interviewquestions.tuteehub.com/tag/resources-11387" style="font-weight:bold;" target="_blank" title="Click to know more about RESOURCES">RESOURCES</a>. It generally applies to markets of goods and services and deals with <a href="https://interviewquestions.tuteehub.com/tag/individual-1041871" style="font-weight:bold;" target="_blank" title="Click to know more about INDIVIDUAL">INDIVIDUAL</a> and <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/issues-520128" style="font-weight:bold;" target="_blank" title="Click to know more about ISSUES">ISSUES</a>.</body></html> | |