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This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your knowledge and support exam preparation. Choose a topic below to get started.
| 6301. |
A comsumer buys a combination of two goods: X and Y with marginal utilities equal to 30 utils and 35 utils respectively. Price of X is Rs 6 per unit. The consumer will be in equilibrium only when price of Y is 7 per unit. |
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Answer» <P> `(MU_(X))/(P_(X)) = (MU_(Y))/(P_(Y)) " or " (30)/(6) = (35)/(7)` |
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| 6302. |
Demand for a good increases with the increase in the income of its buyer. True or false? Give reason. |
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| 6304. |
Maximumprice ceiling means the maximum price : |
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Answer» PRODUCERS of a GOOD or a SERVICE are allowed to charge |
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| 6305. |
Inferential Statistics refers to those methods by which conclusions are drawn relating to the population on the basis of a given sample. (True/False) |
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| 6306. |
Why is price elasticity of demand generally negative ? |
| Answer» SOLUTION :PRICE elasticity of DEMAND isgenerally negative because of the INVERSE relationship between priceand quantity demanded. | |
| 6307. |
Defien market demand of a commodity |
| Answer» SOLUTION :MARKET DEMAND is the SUM of demand by all the INDIVIDUALS in the market. | |
| 6308. |
Giving examples, explain the meaning of cost of cost in economics. |
| Answer» Solution :Economic cost is the combination losses of any goods that have a value attached to them by any one individual. Economic cost is used mainly by economists as means to compare the prudence of one course of ACTION with that of another.. Economic cost INCLUDES explicit costs, implicit costs and normal profits. EXAMPLE, WAGES to labourer, rent to land lord, profit to entrepreneur, interest to capital etc. | |
| 6309. |
Price elasticity of supply of a good is 2. It shows that : |
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Answer» When price falls by `1%` supply RISES by `2%`. |
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| 6310. |
When demand for a good falls due to rise in its own price, what is the change in demand called? |
| Answer» SOLUTION :EXTENSION of DEMAND | |
| 6311. |
The frequency distribution of two variables is known as |
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Answer» UNIVARIATE distribution |
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| 6312. |
What does the downward slope of PPC indicate ? |
| Answer» SOLUTION :It indicates that increases in PRODUCTION of one good will BRING FALL in the production of the other good as quantity of available resources is fixed. | |
| 6313. |
Explain the problem of 'what to produce’. |
| Answer» Solution :As there is the problem of choice, the ECONOMY has to decide which GOODS and services are to be produced. For example, which of the consumer goods such as wheat, rice, cloth are to be produced and which of the capital goods such as MACHINES and tools are to be produced.When an economy has taken a decision as to what goods or services to be produced, then it has to be about its QUANTITY. How MUCH of consumer goods and capital goods are to be produced.For example, if an economy decides to produce rice and wheat within a given period with limited resources then it will have to use less of machineries. | |
| 6314. |
What is meant by Census method. ? |
| Answer» Solution :CENSUS METHOD is that method in which data iscollected about the SAMPLE on a GROUP of ITEMS of the universe relating to the problem under investigation. | |
| 6315. |
If each item of a series is increased by some constant, then the mean also _________ by same constant.(increases/decreases) |
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| 6316. |
What is Long run ? |
| Answer» Solution :Long run refers to period in which OUTPUT can be CHANGED by CHANGING all the FACTORS of PRODUCTION. | |
| 6317. |
Median of these numbers: 3,5,7,9,12 is |
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Answer» 3 |
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| 6318. |
You want to conduct a survey on the popularity of noodles among the students of |
| Answer» Solution :In order to select a sample for the survey to be conducted for assessing the popularity of noodles, quota sampling method can be USED. Under this method, the entire population would be divided into different groups ACCORDING to VARIOUS characteristics such as the school to which the student belongs, age GROUP, ETC. The required sample would then be selected from different groups. For example, suppose the sample is to collected from 100 children from 10 schools. The investigator can further decide that out of these 100 children 40% would be in the age group 5-10 and 60% in age group 10-15. The selection of the required sample for the interview within the quota would then be at the discretion of the investigator. | |
| 6319. |
Which of the following equations is correct? |
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Answer» Variance=`SIGMA` |
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| 6320. |
Find out the maximum possible output for a firm with zero unit of L and 10 units of K when its production function is : Q=5L+2K. |
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Answer» Solution :Given : `Q=5L+2K`. And `L=0` UNITS, `K=10` units Putting the values of L and K in the f=given production, we GET: `Q=5(0)+2(10)` Q or MAXIMUM output `= 20` units. |
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| 6321. |
Which of the following can be referred to as 'point of satiety' ? |
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Answer» MARGINAL UTILITY is negative |
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| 6322. |
Identify positive or normative statements from the following : Accommodation of Refugees is posing a big problem for the Europe |
| Answer» SOLUTION :POSITIVE STATEMENTS because it is FACT | |
| 6323. |
Mean marks obtained by 100 students are estimated to be 40. Later on its is found that one value was read as 83 instead of 53. Find out the ''corrected'' mean. |
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Answer» Solution :`barX=(sumX)/N` Or, `sumX=barXN` GIVEN: `barX=40,N=100` `40=(sumX)/100` `:.sumX"(wrong)"=40xx100=4,000` CORRECT value = 53 Incorrect value=83 Correct `barX=(sumX"(Wrong)+(Correct value)-(Incorrect value)")/N` `=(4,000+53-83)/100` `=(3,970)/100=39.70` Thus, CORRECTED Mean = 39.70. |
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| 6324. |
What is meant by returns to a factor ? |
| Answer» Solution :When only ONE FACTOR is increased keeping other FACTORS constant (fixed), the resultant increase in OUTPUT is CALLED returns to a factor. | |
| 6325. |
state any two causes of an economic problem? |
| Answer» Solution :(i) Unlimited WANTS:(ii) LIMITED RESOURCES: In economics, scarcity means that commodities and resources to produce goods and services are less in relation to their demand. ...(iii) Alternative Uses of Resources: Means are not only limited but ALSO have alternative uses. | |
| 6326. |
Explain the meaning of budget line. What can cause a change in it |
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Answer» Solution :Budget line is a graphical representation of all POSSIBLE combinations of two goods which can be purchased with given income and prices, such that the cost of each of these combinations is equal to the money income of the consumer. An increase in income CAUSES the budget line to shift outward, parallel to the original line (HOLDING prices constant). A decrease in income causes the budget line to shift inward, parallel to the original line (holding prices constant) so a consumer can buy LESS of both goods with less income. |
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| 6327. |
Marginal Utility (MU) of n^(th) unit is calculated as: |
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Answer» `MU_(N) = TU_(n) - TU_(N + 1)` |
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| 6328. |
Mention four main demerits of census method. |
| Answer» Solution :Costs – Since the STATISTICIAN closely observes each and every item of the population before collecting the data, it makes a CENSUS INVESTIGATION a very costly method of investigation. Usually, government organizations adopt this method to collect detailed data like the population census or agricultural census or the census of industrial protection, etc.Time-consuming – A census investigation is time-consuming and also requires manpower to collect original data.Possibilities of Errors – There are many possibilities of errors in the census investigation method due to non-response, measurement, lack of preciseness of the definition of statistical units or EVEN the personal bias of the investigators. | |
| 6329. |
If a resourcecan be put only toparticular use, then opportunity cost is : |
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Answer» APPLICABLE and quantifiable |
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| 6330. |
Distinguish between variable factors and fixes factors |
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| 6331. |
In case of decreasing MRT, the shape of PPC will be depicted by the following diagram: |
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Answer»
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| 6332. |
The collection and classification of data leads to the problem of analysis of data. |
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| 6333. |
Percentilies divide the series into ____________ equal parts. |
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| 6334. |
How does an increasein thepriceof thean input ofaffectthe supply curve offirm ? |
| Answer» Solution : It willlead to a leftward shift in supply CURVE as producin that good is EXPENSIVE now DUE to INCREASE in its cost. | |
| 6335. |
What is meant by change in supply and charge in supply and change in quantity supplied? |
| Answer» Solution :(i) Change in quantity SUPPLIED menas when more is supplied at a higher price (extension) and when less is supplied at a lower price (contraction), other things being equal. Here supply responds to change in the price of the commodity only as other FACTORS affecting supply are assumed to be CONSTANT. It is represented by upward or DOWNWARD movement along the supply curve. LAW of supply is applicable here. | |
| 6336. |
At which rate TU increases when MU is decreasing ? |
| Answer» SOLUTION :When MU is decreasing, TU increases at a DIMINISHING rate. | |
| 6337. |
Explain the influence of following on price elasticity of demand of a good: (i) Substitute goods, (ii) Own price of the good. |
| Answer» Solution :1.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, since tea, a close substitute for coffee, is available in the market, a RISE in the price of coffee would result in a considerable fall 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 demanded of the good changes, OWING to the law of demand. Also, at different prices of the product, i.e., at different POINTS on the demand curve for a good, the coefficient of price-elasticity of demand for the good would be different | |
| 6338. |
…........... Demand represents relationship between the demand of a commodity and the price of related commodities, other things being equal. |
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| 6339. |
Normalprofits earned by a firm are included will be : |
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Answer» IMPLICIT cost |
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| 6340. |
Define average Revenues. Show that Average Revenue and price are same. |
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Answer» SOLUTION :AVERAGE Revenue is the revenue obtained per unit of the commodity. Average Revenue(AR) = Total Revenue(TR) / Quantity(Q). Total Revenue = Price(P) X Quantity(Q). AR = (P x Q) / Q = P |
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| 6341. |
A television making industry is making super normal profits. Many firms have entered the industry as free entry is permitted n this form of market. A new firm sees potential in this industry and decices to invest in it. Would this be a rational decision ? What would you guide to the firm ? |
| Answer» SOLUTION :When the industry starts making super NORMAL profits, it attracts more firms to join the incustry as price charged is greater than the average cost incurred. The new firm should closely nonitor (follow) the relation between price and average cost at the time when it is making its decision to enter the industry . It is because as many firms have already entered the industry, price MUST have fallen due to competition among the sellers. If the difference between price and average cost is not very significant, the firm MAY end up earning only the normal profits i.e., when price becomes EQUAL to the average cost. | |
| 6342. |
What is relationship between TR and MR when price falls with rise in output ? |
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Answer» Solution :(i) As LONG as MR is positive, TR increases (ii) When MR is zero , TR is at its maximum POINT and is constant (iii) When MR becomes negatives, TR starts FALLING. |
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| 6343. |
Distinguish between 'change in demand' and change in quantity demanded. |
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Answer» Solution :(i) Change in QUANTITY demanded is the change in demand caused by a change in own PRICE of the commodity WHEREAS change in demand refers to change in demand of the commodity caused by a change in other factors affecting the demand for that commodity other than the own price of the commodity. (ii) Change in quantity demanded LEADS to a movement along the demand curve whereas change in demand leads to a SHIFT in the demand curve. |
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| 6344. |
(ii) Non -sampling errors can be minimised by taking large samples (True/false) |
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| 6345. |
When MR rises, TR rises at _______rate. |
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Answer» FALLING |
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| 6346. |
What is the total product of an input ? |
| Answer» Solution :Total product refers to total QUANTITY of goods PRODUCED by a FIRM during a GIVEN period of time with given number of INPUTS. | |
| 6349. |
Deagrams which are used to compara the net deviation of related varibles with respect to time and location are : |
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Answer» DEVIATION BAR DIAGRAMS |
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| 6350. |
How do the following economic changes affect production possibility curve of a economy ? |
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Answer» Solution :Impact of GIVEN ECONOMIC CHANGES on PPC should be understood keeping in consideration the CHANGE in availability of RESOURCES (increase or decrease) and then its impact on production potential of the economy (Rightward or Leftward shift). If resources are not changing i.e., remain unaffected then PPC will show no effect. Some important economic changes and their impact on PPC is discussed as given under: 
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