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6351.

Under which market form a firm's MR is always equal to price.

Answer»

SOLUTION :Under Perefect COMPETITION.
Discussion
6352.

Distinguish between expansion in demand and increase in demand OR Distinguish between 'decrease in demand' and increase in quantity demanded of a commodity.

Answer»

SOLUTION :(i) When the quantity demanded rises due to a decrease in own price of the commodity, keeping other factors constant, it is known as expansion of demand whereas when the quantity demanded rises due to a change in other facotrs other than own price of the commodity it is known as INCREASE in Demand.
(ii) In expansion of demand, there is a downward MOVEMENT along the same demand curve whereas the demand curve shifts rightwards in case of Increase in Demand.
(iii) Expansion in demand is caused by a change in price of the commodity where as Increase in Demand is caused by a change in other factors such as increase in price of substitues, increase in income in case of normal goods etc.
Discussion
6353.

Give one reason for "decrease" in supply of a commodity.

Answer»

SOLUTION : INCREASE in price of inputs is ONE of the reasons which will DECREASE the supply of the commodity because of the reduced profit margin on that GOOD.
Discussion
6354.

Explain the concept of 'selling cost' under monopolistic competition.

Answer»

SOLUTION :In MONOPOLISTIC competition, each firm tries to promote its sales through advertisement. Such a sales promotion EXPENDITURE is known as selling costs. It INVOLVES all the advertising techniques like publicity through newspapers, magazine, television and othe media. Such costs create more demand, by persuading a buyer to buy the product.
Discussion
6355.

When TR is maximum :

Answer»

AR is MAXIMUM
MR is maximum
AR is ZERO
MR is zero

ANSWER :D
Discussion
6356.

……………………. Data are collected from the published or unpublished reports. (Primary/Secondary)

Answer»


SOLUTION :SECONDARY
Discussion
6357.

A rational producer always aims to operate in _______ of Law of Variable Proportions:

Answer»

`1^(st)` Phase (INCREASING returns to a factor)
`2^(ND)` Phase (DIMINISHING returns to a factor)
`3^(rd)` Phase (Negative returns to a factor)
Either `1^(st)` Phase or `2^(nd)` Phase

Answer :B
Discussion
6358.

What will be the effect on equilibrium price and equilibrium quantity of telephone instruments, ifChina exports a large number of telephone Instruments to India.

Answer»

Solution :Equilibrium price will FALL and equilibrium quantity WIII RISE (DUE to INCREASE In supply).
Discussion
6359.

Define correlation .

Answer»

Solution :CORRELATION is a statistical method or a statistical technique that measures quantitative RELATIONSHIP between different VARIABLES, like between price and demand.
Discussion
6360.

Which of these is the merit of standard deviation?

Answer»

STANDARD deviation is based on all values of the series
Standard deviation shows little effect of changes in the sample
In the ESTIMATION of standard deviation, more IMPORTANCE is given to difficult and extreme value
Both (a) and (b)

Solution :D
Discussion
6361.

A consumer consumers only two goods X and Y both priced at Rs 3 per unit. If the consumer choose a combination of these two goods with Marginal Rate of Substitution equal to 3, is the consumer in equilibrium ? Give reasons. What will a reational consumer do in this situation? Explain.

Answer»

Solution :Given `P_(x) = 3, P_(y) = 3 " and " MRS = 3`. A CONSUMER is said to be in EQUILIBRIUM when `MRS = (P_(x))/(P_(y))` Substituting values we find that:
`3 gt (3)/(3)`
i.e., `MRS gt (P_(x))/(P_(y))`
Therefore, consumer is not in equilibrium.
`MRS gt (P_(x))/(P_(y))` means that consumer is willing to pay more for one more unit of `x` as compared to what market demands.
`-` The consumer will BUY more units of `x`.
`-` As a RESULT, MRS will fall due to the Law of Diminishing MARGINAL Utility.
`-` This will continue till `MRS = (P_(x))/(P_(y))` and consumer is in equilibrium.
Discussion
6362.

Wheel APP rises, what is the relation between MPP and APP ?

Answer»


ANSWER :MPP is GREATER than APP
Discussion
6363.

Macroeconomics focuses on all of the following except:

Answer»

Unemployment Problem
Inflation in the Economy
Aggregate DEMAND
Jute Industry

Solution :Macroeconomics is the branch of economics that deals with the structure, performance, behavior, and decision-making of the WHOLE, or aggregate, economy, instead of focusing on individual markets. The two main AREAS of macroeconomic study are long term economic growth and shorter term business cycles.
Discussion
6364.

What is the Law of Variable Proportions ?

Answer»

SOLUTION :Law of Variable Proportions states that as we increase quantity of only one input, KEEPING other INPUTS fixed, TOTAL product initially increases at an INCREASING rate, then at a decreasing rate and finally at a negative rate.
Discussion
6365.

Explain the three properties of the indifference curves.

Answer»

SOLUTION :1. Indifference Curves are Downward SlopingVirtually all indifference curves have a negative slope. That is, they slope downward from left to right. The slope of an indifference curve shows the rate of substitution between two goods, i.e. the rate at which an individual is willing to give up some quantity of good A to get more of good B. If we assume that the individual likes both goods, the quantity of good B has to increase as the quantity of good A decreases, to keep the overall LEVEL of satisfaction the same. Because both axes each represent one of the two goods, this relationship results in a downward sloping curve. This becomes pretty obvious if we look at the illustration below.
2. Higher Indifference Curves Are Preferred to Lower OnesConsumers will always prefer a higher indifference curve to a lower one. This is due to the basic economic assumption that “more is always better“. Think about it if someone were to ask you if you wanted a FREE slice of pizza or an entire pizza for free, what would you SAY? Who says no to free pizza, right? Now, of course, it’s not always that simple, but in basic economic theory, we can assume that CONSUMERS have a preference for larger quantities. This is reflected in the indifference curves. The higher the indifference curves are, the larger the quantities of both goods. And thus, the more preferable the indifference curve becomes.
4. Indifference Curves are convex (i.e., bowed inward)In most cases, indifference curves are bowed inward. This has to do with the marginal rate of substitution (MRS). We know that the marginal utility of consuming a good decreases as its supply increases (see also diminishing marginal utility). Therefore consumers are willing to give up more of this good to get another good of which they have little.
Discussion
6366.

Differentiated product is a characteristic of {:((a)"Monopolistic competition only",(b)"Oligopoly only"),((c)"Both monopolistic competition and iligopoly",(d)"Monopoly"):}

Answer»


ANSWER :C
Discussion
6367.

Calculate the correlation cofficient between the heights of Fathers in inches (X) and their sons (Y).

Answer»

Solution :
`R=(sumdxdy-((sumdx)xx(sumdy))/(N))/(SQRT(sumdx^(2)-((sumdx)^(2))/(N)xxsqrt(sumdy^(2)-((sumdy)^(2))/(N))`
`=(118-(-10)xx(-36)/(8))/(sqrt(156-(-10)^(2))/(8))xxsqrt((36)^(2))/(8))`
`=(118-45)/(sqrt(156-12.5)xxsqrt(356-162))`
`=(73)/(sqrt(143.5)xxsqrt(194))`
`=(73)/(11.98xx13.93)`
`=(73)/(166.88)=0.44`
Correlation coefficient (r)=0.44
Discussion
6368.

Price elasticity of demand is best defined as :

Answer»

CHANGE in the tastes of cpmsi,ers at doffermet prices.
Change in DEMAND when income of the CONSUMER increases.
The RATE of response of demand toa change in pirce.
The rate of response of demand to change in pirce of related goods.

Solution :N/a
Discussion
6369.

Explain the implicaiton of large number of buyers in a perfectly competitive market.

Answer»

SOLUTION : The no. of sellers is so large that the share of each seller is INSIGNIFICANT in the TOTAL supply. Hence, an individual seller cannot influence the market PRICE. Similarly, a single buyer's share in total purchase is so insignificant because of their large no. that an individual buyer cannot influence the market price. Under such conditions, price of a commodity is determined by the market forces of demand and supply and each buyer and seller has to accept the same price. As a result, uniform price PREVAILS in the market.
Discussion
6370.

Explainthe behaviourof Average Fixed Cost. Usediagram.

Answer»

SOLUTION :In economics, AVERAGE fixed cost (AFC) is the fixed COSTS of PRODUCTION (FC) divided by the quantity (Q) of output produced.As the total number of UNITS of the good produced increases, the average fixed cost decreases because the same amount of fixed costs is being spread over a larger number of units of output.
Discussion
6371.

MU_(X) " of " X " is " 40 " and " MU_(Y) of Y is 30. It the price of Y is Rs 9, then price of X at equilibrium will be ______

Answer»

RS 9
Rs 30
Rs 15
Rs 12

Answer :D
Discussion
6372.

"MC should be rising at the point of producer's equilibrium". Comment.

Answer»

Solution :The GIVEN statement is defended.If MC is falling at the POINT of EQUILIBRIUM, then it means that it is possible to earn profits (WCE) by producing more. So, MC should be rising at the point of producer's equilibrium. (see FIGURE below)
Discussion
6373.

Define median.

Answer»

Solution :Median is a CENTRALLY LOCATED value of a SERIES such that half of THEVALUES (or ITEMS) of the series are above it and the other half below it
Discussion
6374.

Consider the following demand and supply function of the commodity : Q^(D)=200-P" ,Q"^(D)=120+P (i) Calculate equilibrium price. (ii) Calculate equilibrium quantity (iii) Which situation arises when market price is Rs.25 ? (iv) Which situation arises when market price is Rs.45 ?

Answer»

Solution :Equilibrium price is DETERMINED at that POINT where market demand is equal to market supply i.e.,
`Q^(D)=Q^(S)`
`200-P=120+P`
`2P=80""rArr"P"=(80)/(2)=40`
`therefore` Equilibrium price is Rs.40.
(ii) The equilibrium quantity is calculated by substituting the equilibrium price info either demand or supply function, since at equilibrium, quantity demanded and quantity supplied are equal.
`Q^(D)=200-P=200-40=160"units"`
`Q^(S)=120+P=120+40=160"units"`
(iii) When market price is Rs.25 then
`Q^(D)=200-P=200-25=175"units"`
`Q^(S)=120+P=120+25=145"units"`
`Q^(D)gtQ^(S)`
`175gt145`
This is a situation of excess demand or shortage of supply because `Q^(D)gtQ^(S)`
(IV) When market price is Rs.45, then
`Q^(D)=200-P=200-45=155"units"`
`Q^(S)=120+P=120+45=165"units"`
`Q^(D)ltQ^(S)`
`155lt165`
This is a situation of excess supply or surplus becuase `Q^(D)ltQ^(S)`.
Discussion
6375.

How does the procedure of drawing a histogram differ when class intervals are unequal in comparison to equal class intervals in a frequency table ?

Answer»
Discussion
6376.

(i) TR= sumMR, and (ii) TC = sumMC. Tick the correct option

Answer»

Both (i) and (II) are CORRECT
Only (ii) is INCORRECT
Only (i) is correct
Both are incorrect

SOLUTION :N/A
Discussion
6377.

Production possibility frontier shifts towares right when an economy moves from a situation of underutilization to fuler ulilization of resources.

Answer»

SOLUTION :PRODUCTION possibility FRONTIER (PPF) will REMAIN at its original position. RATHER, economy will now operate on the PPF.
Discussion
6378.

What do you mean by demand curve, what are its types?

Answer»

Solution :Demand curve is a GRAPHIC presentation of negative RELATION between price and quantity demanded of a commodity other things being equal. It is of two types.
(a) Individual demand curve
(b) Market demand curve
Discussion
6379.

Price of a commodity is

Answer»

TR
MR
AR
NONE of these

Answer :C
Discussion
6380.

If Q_(1) = 10 and Q_(3) = 30 , the value of the Coefficient of Quartile Deviation is :

Answer»

`0.25`
`0.50`
`0.33`
`0.75`

SOLUTION :B
Discussion
6381.

Oligopoly is the market structure in which there are:

Answer»

MANY SELLERS and many buyers
One SELLER and many buyers
Few sellers and many buyers
None of these

Solution :N/a
Discussion
6382.

The following diagram represents the situation of:

Answer»

PRICE Floor
Price Ceiling
Either (a) or (B)
NEITHER (a) nor (b)

ANSWER :(b)
Discussion
6383.

What is the basic difference between change in quantity demanded and change in demand?

Answer»

SOLUTION :Change in QUANTITY DEMANDED is caused by change in own price of the commodity, other things being equal whereas change in DEMAND is caused by change in other FACTORS affecting demand other than the price of the commodity.
Discussion
6384.

An 'inferior good

Answer»

which is a POOR quality good
which is a LOW PRICED good
which has positive income effect
which is below income STATUS of the consumer

Answer :D
Discussion
6385.

Is the study of cotton textile industry a macroeconomic study or a microeconomic study

Answer»

SOLUTION :It is a MICROECONOMIC STUDY as it is only a UNIT of industies.
Discussion
6386.

Opportunity cost:

Answer»

is ALWAYS lower than the given value of a FACTOR
is always higher than the given value of a factor
is EQUAL to the given value of a factor
can be less than, more than or equal to the given value of a factor.

Solution :Opportunity COST:can be less than, more than or equal to the given value of a factor.
Discussion
6387.

Using the following data on Price structure of three market forms, Perfect competition, monopoly and monopolistic competition, draw the AR curves in the same diagram and compare their price elasticity of demand

Answer»


Answer :1. PERFECT competition : PERFECTLY elastic
2. Monopoly : LESS elastic
3. MONOPOLISTIC competition : More elastic
Discussion
6388.

The supply curve of a given commodity is given to be S_(0). On the basis of this diagram, answer thefollowing questions: Movement from S_(0) to S_(2) is caused by :

Answer»

INCREASE inpriceof givenproduct
Increase in thepriceof theinputs
TechnologicalUpgradation
DECREASE inpriceof given product

Solution :Movement from S0 to S1 SHOWS the rightward shift in SUPPLY curve, so there must have been increase in supply and that can happen when there is an tenchnological upgradation.
Discussion
6389.

An economic survey revealed that 30 families in a town incur following expenditure in a day (rupees) (i)Convert these data in the form of a frequency distribution, using the following class intervals. 10-14,15-19,20-24,25-29,30-34 and 35-39 . (ii)How many families spend more than 29 rupees a day ?

Answer»


ANSWER :6 or 20%
Discussion
6390.

The supply curve of a given commodity is given to be S_(0). On the basis of this diagram, answer thefollowing questions: Increasesin costof productionof thiscommoditywillleadto :

Answer»

Movement from `S_(0)` to `S_(1)`
Movementform `S_(0)` to `S_(2)`
Upward movementalong the `S_(0)`
No CHANGE at all

SOLUTION :Increase in the cost of production reduces the PROFIT marginof this PARTICULAR COMMODITY and hence supply fallsand there is a movement from So toS1.
Discussion
6391.

Explain how the demand for a good is affected by the prices of its related goods. Give examples.

Answer»

Solution :There are two types of RELATED goods :- (i) Substitute goods, (ii) Complementary goods.
In CASE of substitute goods there is a positive RELATIONSHIP between price of one good and the demand for another i.e as price of one good rises the demand for its substitute rises.
On the other HAND, in case of complementary goods there is a negative relationship between price of one good and the demand for its COMPLEMENT i.e as price of one good rises the demand for its complement falls
Discussion
6392.

Formula of D_(7) in individula series is :

Answer»

Size of `((N+1)/(100))`TH item
Size of `7((N+1)/(10))` th item
Size of `7((N)/(100))`
None of these

Solution :`D_(7)` =Size of `7((N+1)/(10))` th item
Discussion
6393.

The supply curve of a given commodity is given to be S_(0). On the basis of this diagram, answer thefollowing questions: Movementform S_(0) to S_(1) is termed as :

Answer»

Constractin in Supply
Expansionis Supply
DECREASE is supply
Increase in supply

Solution :So to S1 shws a LEFTWARD shift in the supply curve and that must have happened due to the decrease in supply.
Discussion
6394.

What is meant by sample method ? What are the uses ?

Answer»

Solution :Sampling METHODS are the ways to choose PEOPLE from the population to be considered in a sample survey. Samples can be DIVIDED based on FOLLOWING criteria. Probability samples - In such samples, each population element has a known probability or chance of being chosen for the sample.Uses of sample method-1.sampling are lower cost2. sampling are faster data collection than measuring the entire population.
Discussion
6395.

Which of the following equations is correct ?

Answer»

s=R+N
s=r-n
s= r X n
`s=r/n`

ANSWER :D
Discussion
6396.

Central problems are found only in the developing economies like India and Bangladesh and not in developed countries like USA.

Answer»

SOLUTION :Central problems are found in all economies (both DEVELOPED and developing economies) as every ECONOMY faces problem of scarcity of resources.
Discussion
6397.

Marginal product cuts average product from its top.

Answer»

SOLUTION :True. It happens because when average product (AP) rises, marginal product (MP) is more than AP. When AP FALLS, MP is LESS than AP. So, MP cuts AP from its TOP (Refer FIG. 5.5)
Discussion
6398.

Which of the following methods is used for the estimation of population in a country ?

Answer»

CENSUS METHOD
SAMPLING method
Both (a) and (B)
NONE of these

Solution :A
Discussion
6399.

Which of the following equationsis correct ?

Answer»

<P>`P_(01)=(sumRW)/(sumW)XX100`
`P_(01)=(sumRW)/(sumW)`
`P_(01)=(sumW)/(sumRW)xx100`
`P_(01)=(sumW)/(sumRW)`

ANSWER :B
Discussion
6400.

Name the two important branches of Economics.

Answer»

SOLUTION :MICROECONOMICS and MACROECONOMICS.
Discussion