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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.
| 6401. |
How is totally utility derived from 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> :`<a href="https://interviewquestions.tuteehub.com/tag/tu-1428586" style="font-weight:bold;" target="_blank" title="Click to know more about TU">TU</a> = <a href="https://interviewquestions.tuteehub.com/tag/sum-1234400" style="font-weight:bold;" target="_blank" title="Click to know more about SUM">SUM</a> <a href="https://interviewquestions.tuteehub.com/tag/mu-566056" style="font-weight:bold;" target="_blank" title="Click to know more about MU">MU</a>`</body></html> | |
| 6402. |
if the proportionate change in the price of a commodity is more than the proportionate change in its quantity demand per unit of time , its pirce elastictiy demand is greater than unity. |
| 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> :Price <a href="https://interviewquestions.tuteehub.com/tag/elasticity-14238" style="font-weight:bold;" target="_blank" title="Click to know more about ELASTICITY">ELASTICITY</a> of demand will be less than unity `( <a href="https://interviewquestions.tuteehub.com/tag/ed-445147" style="font-weight:bold;" target="_blank" title="Click to know more about ED">ED</a> <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>)` as proportionate change in demand is less than proportionate change in price.</body></html> | |
| 6403. |
Explain the chain effects, if the prevailing market price is below the equilibrium price. |
| Answer» <html><body><p></p>Solution :The equilibrium <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 the price at which the quantity demanded is equal to quantity supplied. If the market price is less than the equilibrium price then there will be <a href="https://interviewquestions.tuteehub.com/tag/excess-978535" style="font-weight:bold;" target="_blank" title="Click to know more about EXCESS">EXCESS</a> demand in the economy. As a result of this excess demand, there will be competition between the buyers leading to an increase in price. This increase in price will lead to a fall in demand <a href="https://interviewquestions.tuteehub.com/tag/according-366619" style="font-weight:bold;" target="_blank" title="Click to know more about ACCORDING">ACCORDING</a> to law of demand and increase in supply according to law of supply. All these changes will <a href="https://interviewquestions.tuteehub.com/tag/continue-409821" style="font-weight:bold;" target="_blank" title="Click to know more about CONTINUE">CONTINUE</a> to take place until quantity demanded <a href="https://interviewquestions.tuteehub.com/tag/equals-974070" style="font-weight:bold;" target="_blank" title="Click to know more about EQUALS">EQUALS</a> quantity supplied.</body></html> | |
| 6404. |
Define marginal utility. State the law of DMU |
| Answer» <html><body><p></p>Solution :Marginal <a href="https://interviewquestions.tuteehub.com/tag/utility-1441817" style="font-weight:bold;" target="_blank" title="Click to know more about UTILITY">UTILITY</a> quantifies the added satisfaction that a consumer garners from consuming additional units of goods or services. The concept of marginal utility is used by economists to determine how much of an item consumers are willing to purchase. <br/>The Law Of Diminishing Marginal Utility states that all else equal as consumption <a href="https://interviewquestions.tuteehub.com/tag/increases-1040626" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASES">INCREASES</a> the marginal utility derived from each 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> declines. Utility is an <a href="https://interviewquestions.tuteehub.com/tag/economic-448435" style="font-weight:bold;" target="_blank" title="Click to know more about ECONOMIC">ECONOMIC</a> term used to <a href="https://interviewquestions.tuteehub.com/tag/represent-613876" style="font-weight:bold;" target="_blank" title="Click to know more about REPRESENT">REPRESENT</a> satisfaction or happiness.</body></html> | |
| 6405. |
Why does TU increase at a diminishing rate due to continous increase in consumption ? |
| Answer» <html><body><p></p>Solution :It happens because <a href="https://interviewquestions.tuteehub.com/tag/mu-566056" style="font-weight:bold;" target="_blank" title="Click to know more about MU">MU</a> derived from each <a href="https://interviewquestions.tuteehub.com/tag/successivebrbr-2284089" style="font-weight:bold;" target="_blank" title="Click to know more about SUCCESSIVE">SUCCESSIVE</a> <a href="https://interviewquestions.tuteehub.com/tag/unit-1438166" style="font-weight:bold;" target="_blank" title="Click to know more about UNIT">UNIT</a> tends to <a href="https://interviewquestions.tuteehub.com/tag/diminish-431962" style="font-weight:bold;" target="_blank" title="Click to know more about DIMINISH">DIMINISH</a>.</body></html> | |
| 6406. |
Distinguish between an inferior good and a normal good. Is a good which is inferior for one consumer also inferior for all the consumers? Explain Or Give meaning of normal goods and inferior good. Give example in each case. Or Distinguish between a normal good and an inferior good. Give example in each case. |
| Answer» <html><body><p></p>Solution :(a) <a href="https://interviewquestions.tuteehub.com/tag/normal-1123860" style="font-weight:bold;" target="_blank" title="Click to know more about NORMAL">NORMAL</a> goods are the ones which have <a href="https://interviewquestions.tuteehub.com/tag/income-25499" style="font-weight:bold;" target="_blank" title="Click to know more about INCOME">INCOME</a> effect posititve whereas inferior goods are the ones which have income effect negative.<br/>(b) A rise in income of the consumer <a href="https://interviewquestions.tuteehub.com/tag/leads-540453" style="font-weight:bold;" target="_blank" title="Click to know more about LEADS">LEADS</a> to an increase in demand for 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> and vice-versa in case of normal goods whereas a rise in income of the consumer leads to a fall in demand for the commodity and vice-versa in case of inferior goods. <br/>Example :- Toned milk when compared to full cream milk.. <br/>Whether a good is inferior or not <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 the income status of the consumer, hence a good which is inferior for a consumer may not be inferior for other consumer.</body></html> | |
| 6407. |
A 5% fall in the price of X leads to a 10% rise in its demand. In case of GoodY , a2% rise in price leads to a 6% fall in its demand. In the given case, _______ is more elastic. |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/x-746616" style="font-weight:bold;" target="_blank" title="Click to know more about X">X</a><br/>Y<br/>Both X and Y are <a href="https://interviewquestions.tuteehub.com/tag/equally-2065515" style="font-weight:bold;" target="_blank" title="Click to know more about EQUALLY">EQUALLY</a> elastic<br/>Both X and Y are inelastic</p>Solution :N/a</body></html> | |
| 6408. |
State/Explain the features of: (i) Perfect Competition, (ii) Monopoly, (iii) Monopolistic Competition, (iv) Oligopoly. |
| Answer» | |
| 6409. |
Explain how the following factors effect the supply of the commodity. (Any two) (a) Price of factor imputs (b) State of technology (c) Government taxation Policy |
| Answer» <html><body><p></p>Solution :Supply of a commodity is affected by following factors: (Any two) <br/> (a) Price of factor Inputs: When price of factor inputs increases, the cost of production also increases. This decreases the profitability. As a result, seller reduces the supply of the commodity. On the other hand, decrease in prices of factor inputs, increases the supply due to fall in cost of production and subsequent rise in <a href="https://interviewquestions.tuteehub.com/tag/profit-1168589" style="font-weight:bold;" target="_blank" title="Click to know more about PROFIT">PROFIT</a> <a href="https://interviewquestions.tuteehub.com/tag/margin-546769" style="font-weight:bold;" target="_blank" title="Click to know more about MARGIN">MARGIN</a>. <br/> (b) State of Technolgy: Advanced and improved technology reduces the cost of production, which raises the profit margin. It induces the seller to increase the supply. However, technological degradation or complex and outdated technology will increase the cost of production and it will lead to decrease in supply. <br/> (c) <a href="https://interviewquestions.tuteehub.com/tag/government-1010037" style="font-weight:bold;" target="_blank" title="Click to know more about GOVERNMENT">GOVERNMENT</a> Taxation Policy: If government increases taxes, it will affect the cost of production adversely and <a href="https://interviewquestions.tuteehub.com/tag/hence-484344" style="font-weight:bold;" target="_blank" title="Click to know more about HENCE">HENCE</a> supply decreases. But if Government decreases the tax, the cost of production will fall and the <a href="https://interviewquestions.tuteehub.com/tag/producer-1167788" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCER">PRODUCER</a> will be induced to increase the supply of the commodity.</body></html> | |
| 6410. |
If due to fall in the price of good X, demand for good Y rises, the two goods are: |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/substitutes-1231649" style="font-weight:bold;" target="_blank" title="Click to know more about SUBSTITUTES">SUBSTITUTES</a> <br/>complements<br/>not related<br/>competitive</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> | |
| 6411. |
Which term is used when more quantily is supplied with a rise in the price 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> :We <a href="https://interviewquestions.tuteehub.com/tag/say-1195451" style="font-weight:bold;" target="_blank" title="Click to know more about SAY">SAY</a> it is a <a href="https://interviewquestions.tuteehub.com/tag/case-910082" style="font-weight:bold;" target="_blank" title="Click to know more about CASE">CASE</a> of <a href="https://interviewquestions.tuteehub.com/tag/expansion-980011" style="font-weight:bold;" target="_blank" title="Click to know more about EXPANSION">EXPANSION</a> of <a href="https://interviewquestions.tuteehub.com/tag/supply-1235254" style="font-weight:bold;" target="_blank" title="Click to know more about SUPPLY">SUPPLY</a> .</body></html> | |
| 6412. |
A consumer consumes only one good. The marginal utility from the good is 60 utils and its price is Rs 7 per unit. Indicate whether the consumer is at equilibrium or not if marginal utility of money for the consumer is 6 utils. What should he do to attain equilibrium ? |
| Answer» <html><body><p><<a href="https://interviewquestions.tuteehub.com/tag/p-588962" style="font-weight:bold;" target="_blank" title="Click to know more about P">P</a>></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 consumer in consumption of single commodity is at equilibrium when: <br/> `("Marginal Utility of Commodity " (MU_(X)))/("Marginal Utility of Money " (MU_(M)))` <br/> Given: `MU_(X) = 60 " utils, P_(X) = RS 7` per util, `MU_(M) = 6` utils. <br/> <a href="https://interviewquestions.tuteehub.com/tag/substituting-1231652" style="font-weight:bold;" target="_blank" title="Click to know more about SUBSTITUTING">SUBSTITUTING</a> values, we find that: `(60)/(6) gt 7` <br/> Therefore, consumer is not at equilibrium. As marginal utility 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 the price, consumer should <a href="https://interviewquestions.tuteehub.com/tag/increase-1040383" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASE">INCREASE</a> the level of consumption.</body></html> | |
| 6413. |
Define price elasticity of supply. |
| Answer» <html><body><p></p>Solution :If refers to the <a href="https://interviewquestions.tuteehub.com/tag/degree-47" style="font-weight:bold;" target="_blank" title="Click to know more about DEGREE">DEGREE</a> of <a href="https://interviewquestions.tuteehub.com/tag/responsiveness-1187167" style="font-weight:bold;" target="_blank" title="Click to know more about RESPONSIVENESS">RESPONSIVENESS</a> of supply of 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 change 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 such commodity. It is always positive due to direct <a href="https://interviewquestions.tuteehub.com/tag/relationship-1183331" style="font-weight:bold;" target="_blank" title="Click to know more about RELATIONSHIP">RELATIONSHIP</a> between price and quantity supplied.</body></html> | |
| 6414. |
Which of these economic problem deals with technique of production? |
| Answer» <html><body><p>What Produce <br/>How to Produce <br/>For whom to Produce <br/>None of these.</p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/b-387190" style="font-weight:bold;" target="_blank" title="Click to know more about B">B</a>. This problem refers to selection of technique to be used for <a href="https://interviewquestions.tuteehub.com/tag/production-14556" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCTION">PRODUCTION</a> of <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 services. A good can be produced <a href="https://interviewquestions.tuteehub.com/tag/using-7379753" style="font-weight:bold;" target="_blank" title="Click to know more about USING">USING</a> different <a href="https://interviewquestions.tuteehub.com/tag/techniques-1240432" style="font-weight:bold;" target="_blank" title="Click to know more about TECHNIQUES">TECHNIQUES</a> of production. By ‘technique’, we mean which particular combination of inputs to be used. Generally, techniques are classified as: Labour intensive techniques (LIT) and Capital intensive techniques (CIT).i. In Labour intensive technique, more labour and less capital (in the form of machines, etc.) is used.ii. In Capital intensive technique, there is more capital and less labour utilization.</body></html> | |
| 6415. |
What are monotonic preferences ? Explain why is an indifference curve: (i) Downward sloping from left to right and , (ii) Convex. |
| Answer» <html><body><p></p>Solution :An agent's preferences are said to be strongly monotonic if, given a <a href="https://interviewquestions.tuteehub.com/tag/consumption-931383" style="font-weight:bold;" target="_blank" title="Click to know more about CONSUMPTION">CONSUMPTION</a> bundle , the agent <a href="https://interviewquestions.tuteehub.com/tag/prefers-2227814" style="font-weight:bold;" target="_blank" title="Click to know more about PREFERS">PREFERS</a> all consumption bundles that have more of at least one good, and not less in any other good.i) Indifference Curves are Downward Sloping:Virtually 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 <a href="https://interviewquestions.tuteehub.com/tag/keep-527902" style="font-weight:bold;" target="_blank" title="Click to know more about KEEP">KEEP</a> 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.ii) Indifference Curves are convex (i.e. <a href="https://interviewquestions.tuteehub.com/tag/bowed-7374319" style="font-weight:bold;" target="_blank" title="Click to know more about BOWED">BOWED</a> 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 in order to get <a href="https://interviewquestions.tuteehub.com/tag/another-876628" style="font-weight:bold;" target="_blank" title="Click to know more about ANOTHER">ANOTHER</a> good of which they have little.</body></html> | |
| 6416. |
Define change in quantity demanded. |
| 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 <a href="https://interviewquestions.tuteehub.com/tag/quantity-1174212" style="font-weight:bold;" target="_blank" title="Click to know more about QUANTITY">QUANTITY</a> changes due to a change in price, keeping other factors constant, it is known as change in quantity demanded.</body></html> | |
| 6417. |
Prapare a frequency distribution by inclusive method taking class interval of 7 from the following data : |
| Answer» <html><body><p><br/></p>Answer :The lowest value is 1 and highest value is <a href="https://interviewquestions.tuteehub.com/tag/37-309797" style="font-weight:bold;" target="_blank" title="Click to know more about 37">37</a> . We have to <a href="https://interviewquestions.tuteehub.com/tag/take-662846" style="font-weight:bold;" target="_blank" title="Click to know more about TAKE">TAKE</a> a <a href="https://interviewquestions.tuteehub.com/tag/class-18125" style="font-weight:bold;" target="_blank" title="Click to know more about CLASS">CLASS</a> interval of 7. The <a href="https://interviewquestions.tuteehub.com/tag/various-1443317" style="font-weight:bold;" target="_blank" title="Click to know more about VARIOUS">VARIOUS</a> classes may be 1-7,8-14,15-21,22-28 and 29-35 and 36-42 <br/> `(##TRJ_ECO_XI_C04_E01_081_A01##)`</body></html> | |
| 6418. |
Macroeconomics deals with economic functions of: |
| Answer» <html><body><p>(a) <a href="https://interviewquestions.tuteehub.com/tag/central-407816" style="font-weight:bold;" target="_blank" title="Click to know more about CENTRAL">CENTRAL</a> bank<br/>(b) <a href="https://interviewquestions.tuteehub.com/tag/government-1010037" style="font-weight:bold;" target="_blank" title="Click to know more about GOVERNMENT">GOVERNMENT</a><br/>(<a href="https://interviewquestions.tuteehub.com/tag/c-7168" style="font-weight:bold;" target="_blank" title="Click to know more about C">C</a>) NITI <a href="https://interviewquestions.tuteehub.com/tag/ayog-386684" style="font-weight:bold;" target="_blank" title="Click to know more about AYOG">AYOG</a><br/>(d) all the above</p>Answer :d</body></html> | |
| 6419. |
A __________ is one who produces and/or sells goods and services for the generation of income. (producer/consumer) |
| 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/producer-1167788" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCER">PRODUCER</a></body></html> | |
| 6420. |
What are the features of monopolistic competition ? |
| Answer» <html><body><p></p>Solution :The features of monopolistic <a href="https://interviewquestions.tuteehub.com/tag/competition-423521" style="font-weight:bold;" target="_blank" title="Click to know more about COMPETITION">COMPETITION</a> are as follows: <br/> Large number of sellers and buyers <br/> Product <a href="https://interviewquestions.tuteehub.com/tag/differentiation-18656" style="font-weight:bold;" target="_blank" title="Click to know more about DIFFERENTIATION">DIFFERENTIATION</a>. <br/> <a href="https://interviewquestions.tuteehub.com/tag/huge-1032540" style="font-weight:bold;" target="_blank" title="Click to know more about HUGE">HUGE</a> selling costs <br/> No absolute freedom of entry and <a href="https://interviewquestions.tuteehub.com/tag/exit-979843" style="font-weight:bold;" target="_blank" title="Click to know more about EXIT">EXIT</a> of firms <br/> Lack of perfect <a href="https://interviewquestions.tuteehub.com/tag/knowledge-25694" style="font-weight:bold;" target="_blank" title="Click to know more about KNOWLEDGE">KNOWLEDGE</a> <br/> Partial control over price <br/> Non price competition <br/> Downward sloping and more elastic demand curve (AR).</body></html> | |
| 6421. |
What is the behaviour of average fixed cost as output is decreased? |
| Answer» | |
| 6422. |
An index number does the following to the variables : |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/measures-1091959" style="font-weight:bold;" target="_blank" title="Click to know more about MEASURES">MEASURES</a> changes<br/>Averages out changes<br/>Uses 'base' to <a href="https://interviewquestions.tuteehub.com/tag/measure-1091857" style="font-weight:bold;" target="_blank" title="Click to know more about MEASURE">MEASURE</a> changes<br/>All the above</p>Solution :D</body></html> | |
| 6423. |
Explain the implication of non-price competition under oligopoly. |
| Answer» <html><body><p></p>Solution :Non- <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/competition-423521" style="font-weight:bold;" target="_blank" title="Click to know more about COMPETITION">COMPETITION</a> means competition between firms by means other than <a href="https://interviewquestions.tuteehub.com/tag/changing-2508325" style="font-weight:bold;" target="_blank" title="Click to know more about CHANGING">CHANGING</a> price, <a href="https://interviewquestions.tuteehub.com/tag/like-1073845" style="font-weight:bold;" target="_blank" title="Click to know more about LIKE">LIKE</a> free gift, home service, customer care etc. The firms in oligopoly do so to avoidprice-war because the frim who starts the price-war may be the <a href="https://interviewquestions.tuteehub.com/tag/ultimate-1435655" style="font-weight:bold;" target="_blank" title="Click to know more about ULTIMATE">ULTIMATE</a> looser.</body></html> | |
| 6424. |
Identify the central problem which deals with deciding the quantity of goods to be produced: |
| Answer» <html><body><p>What of Produce <br/>How to Produce <br/>For whom to Produce <br/>None of these.</p>Solution :A. The <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 ‘What to produce’ has two aspects:(i) What possible <a href="https://interviewquestions.tuteehub.com/tag/commodities-923550" style="font-weight:bold;" target="_blank" title="Click to know more about COMMODITIES">COMMODITIES</a> to produce: An economy has to decide, which consumer goods (rice, wheat, clothes, etc.) and which of the capital goods (machinery, equipment’s, etc.) are to be produced. In the same way, economy has to make a <a href="https://interviewquestions.tuteehub.com/tag/choice-915996" style="font-weight:bold;" target="_blank" title="Click to know more about CHOICE">CHOICE</a> between civil goods (bread, butter, etc.) and war goods (guns, tanks, etc.).(ii) How much to produce: After deciding the goods to be produced, economy has to decide the quantity of each commodity that is selected. It means, if involves a decision <a href="https://interviewquestions.tuteehub.com/tag/regarding-7661537" style="font-weight:bold;" target="_blank" title="Click to know more about REGARDING">REGARDING</a> the quantity to be produced, of consumer and capital goods, civil and war goods and so on.</body></html> | |
| 6425. |
what is the relationship between mode , mean and median |
| Answer» <html><body><p>`Z=3M+<a href="https://interviewquestions.tuteehub.com/tag/overline-2905644" style="font-weight:bold;" target="_blank" title="Click to know more about OVERLINE">OVERLINE</a>(<a href="https://interviewquestions.tuteehub.com/tag/2x-301182" style="font-weight:bold;" target="_blank" title="Click to know more about 2X">2X</a>)`<br/>`Z=3M-overline(2X)`<br/>`overline(X)=(3M-Z)/(<a href="https://interviewquestions.tuteehub.com/tag/2-283658" style="font-weight:bold;" target="_blank" title="Click to know more about 2">2</a>)`<br/>Both (<a href="https://interviewquestions.tuteehub.com/tag/b-387190" style="font-weight:bold;" target="_blank" title="Click to know more about B">B</a>) and ( c)</p>Solution :Z=3M-overline(2X)` or`overline(X)=(3M-Z)/(2)`</body></html> | |
| 6426. |
If Tea and Coffee are substitutes, a fall in the prices of Tea leads to : (i) Rise in the demand for Tea (ii) Fall in the demand of Tea (iii) Fall in the demand for Coffee (iv) Rise in the demand of coffee. |
| Answer» <html><body><p>Both (<a href="https://interviewquestions.tuteehub.com/tag/ii-1036832" style="font-weight:bold;" target="_blank" title="Click to know more about II">II</a>) and (<a href="https://interviewquestions.tuteehub.com/tag/iv-501699" style="font-weight:bold;" target="_blank" title="Click to know more about IV">IV</a>)<br/>Both (i) and (<a href="https://interviewquestions.tuteehub.com/tag/iii-497983" style="font-weight:bold;" target="_blank" title="Click to know more about III">III</a>)<br/>Both (ii) and (iii)<br/>Both (iii) and (iv)</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/b-387190" style="font-weight:bold;" target="_blank" title="Click to know more about B">B</a></body></html> | |
| 6427. |
Giving reasons, state whether the following statement are true or false: (i) A monopolist canfix both, the price of his product and the quantity to be sold at that price. (ii) Under monopolistic competition, a firm faces a perfectly elastic demand curve. (iii) A monopolist can sell any quantity he likes at a price? |
| Answer» <html><body><p></p>Solution :(i) <a href="https://interviewquestions.tuteehub.com/tag/false-459184" style="font-weight:bold;" target="_blank" title="Click to know more about FALSE">FALSE</a>, A monopolist can fix either the price or can fix <a href="https://interviewquestions.tuteehub.com/tag/quantity-1174212" style="font-weight:bold;" target="_blank" title="Click to know more about QUANTITY">QUANTITY</a> to be sold.<br/> (ii) False. The firm faces downward sloping demand curve because the firm can sell more only by <a href="https://interviewquestions.tuteehub.com/tag/lowering-1081107" style="font-weight:bold;" target="_blank" title="Click to know more about LOWERING">LOWERING</a> the price.<br/> (<a href="https://interviewquestions.tuteehub.com/tag/iii-497983" style="font-weight:bold;" target="_blank" title="Click to know more about III">III</a>) False because if a monopolist wants to sell more he can do so only by lowering the price.</body></html> | |
| 6428. |
Elasticity of supply is saidto be perfectly inelastic whn. |
| Answer» <html><body><p>Es= 0<br/>Es=1<br/>Es>1<br/>Es<1</p>Solution :when there is no <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 quantity supplied <a href="https://interviewquestions.tuteehub.com/tag/due-433472" style="font-weight:bold;" target="_blank" title="Click to know more about DUE">DUE</a> to the change 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> , thenEs=0 i.e., <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 perfectly inelastic.our <a href="https://interviewquestions.tuteehub.com/tag/correct-409949" style="font-weight:bold;" target="_blank" title="Click to know more about CORRECT">CORRECT</a> answer is (A)</body></html> | |
| 6429. |
Example of fixed cost |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/cost-25707" style="font-weight:bold;" target="_blank" title="Click to know more about COST">COST</a> of <a href="https://interviewquestions.tuteehub.com/tag/raw-613057" style="font-weight:bold;" target="_blank" title="Click to know more about RAW">RAW</a> material<br/>cost of fuel<br/>depreciation of machinery<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> | |
| 6430. |
refers to the minimum price, fixed by the government, which is above the equilibrium price. |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/price-1165141" style="font-weight:bold;" target="_blank" title="Click to know more about PRICE">PRICE</a> Floor<br/>Minimum <a href="https://interviewquestions.tuteehub.com/tag/support-1235361" style="font-weight:bold;" target="_blank" title="Click to know more about SUPPORT">SUPPORT</a> price<br/>Both (a) and (b)<br/><a href="https://interviewquestions.tuteehub.com/tag/neither-1113494" style="font-weight:bold;" target="_blank" title="Click to know more about NEITHER">NEITHER</a> (a) nor (b)</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> | |
| 6431. |
The market in which the number of sellers is small and there is interdependence in decision making by the firms is known as |
| Answer» <html><body><p><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<br/>Oligopoly<br/>Monopoly<br/>Monopolistic Competition</p>Solution :N/a</body></html> | |
| 6432. |
Explain any 2 factors that affect price elasticity of demand. Give suitable examples. |
| 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/1-256655" style="font-weight:bold;" target="_blank" title="Click to know more about 1">1</a>. <a href="https://interviewquestions.tuteehub.com/tag/nature-1112013" style="font-weight:bold;" target="_blank" title="Click to know more about NATURE">NATURE</a> of the commodity.<br/>2. Number/Availability of <a href="https://interviewquestions.tuteehub.com/tag/substitutes-1231649" style="font-weight:bold;" target="_blank" title="Click to know more about SUBSTITUTES">SUBSTITUTES</a>.</body></html> | |
| 6433. |
Name the economic value achievable when attempts are made to increase resoruces in the country. |
| 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/economic-448435" style="font-weight:bold;" target="_blank" title="Click to know more about ECONOMIC">ECONOMIC</a> <a href="https://interviewquestions.tuteehub.com/tag/growth-1013761" style="font-weight:bold;" target="_blank" title="Click to know more about GROWTH">GROWTH</a>.</body></html> | |
| 6434. |
Axis divides the plain of a paper into : |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/two-714195" style="font-weight:bold;" target="_blank" title="Click to know more about TWO">TWO</a> quadrants<br/>three qaudrants<br/>four quadrants<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> | |
| 6435. |
Show inequality in wages in two different firms using Lorenz Curve approach, given the following data: |
| Answer» <html><body><p></p>Solution :Estimation of Cumulative Sum and <a href="https://interviewquestions.tuteehub.com/tag/precentage-604690" style="font-weight:bold;" target="_blank" title="Click to know more about PRECENTAGE">PRECENTAGE</a> <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TRJ_ECO_XI_C11_S01_030_S01.png" width="80%"/> <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TRJ_ECO_XI_C11_S01_030_S02.png" width="80%"/> <br/> Observations: Both in firm A and firm B distribution of wages is far firm <a href="https://interviewquestions.tuteehub.com/tag/equal-446400" style="font-weight:bold;" target="_blank" title="Click to know more about EQUAL">EQUAL</a>. However, <a href="https://interviewquestions.tuteehub.com/tag/inequality-1043148" style="font-weight:bold;" target="_blank" title="Click to know more about INEQUALITY">INEQUALITY</a> is more pronounced in case of firm B than firm A as the <a href="https://interviewquestions.tuteehub.com/tag/lorenz-544702" style="font-weight:bold;" target="_blank" title="Click to know more about LORENZ">LORENZ</a> curve for firm B is <a href="https://interviewquestions.tuteehub.com/tag/farther-456438" style="font-weight:bold;" target="_blank" title="Click to know more about FARTHER">FARTHER</a> away from the line of equal distribulation.</body></html> | |
| 6436. |
The availability of fresh water may become the most crucial problem over the coming decades. Enumerate some of the steps which need to be taken to savewater? |
| Answer» <html><body><p></p>Solution :The following steps can help to save water : <br/> (i) Turn off the tap while brushingor <a href="https://interviewquestions.tuteehub.com/tag/shaving-1205044" style="font-weight:bold;" target="_blank" title="Click to know more about SHAVING">SHAVING</a>. When washing dishes, turn off the tap whenever possible. Do not letwater run purposelessly while soaping or cleaning. <br/> (ii) <a href="https://interviewquestions.tuteehub.com/tag/install-2121155" style="font-weight:bold;" target="_blank" title="Click to know more about INSTALL">INSTALL</a> rainwater harvesting <a href="https://interviewquestions.tuteehub.com/tag/system-1237255" style="font-weight:bold;" target="_blank" title="Click to know more about SYSTEM">SYSTEM</a>: It is economical and effective way of saving water. <br/> (iii) Avoid using a shower for bathing. Try using a bucket instead. <br/> (iv) Ensure that your home has no <a href="https://interviewquestions.tuteehub.com/tag/leakages-1070442" style="font-weight:bold;" target="_blank" title="Click to know more about LEAKAGES">LEAKAGES</a>. Any type of leakage should be taken care of immediately. <br/> Spread awareness regarding waterconservation. <br/> Do not wash just couple of your clothes daily. Plan a day and wash the complete <a href="https://interviewquestions.tuteehub.com/tag/load-11593" style="font-weight:bold;" target="_blank" title="Click to know more about LOAD">LOAD</a> of clothes together.</body></html> | |
| 6437. |
Total cost can be obtained as summation of marginal 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> :<a href="https://interviewquestions.tuteehub.com/tag/false-459184" style="font-weight:bold;" target="_blank" title="Click to know more about FALSE">FALSE</a>. Marginal cost does not include total <a href="https://interviewquestions.tuteehub.com/tag/fixed-457597" style="font-weight:bold;" target="_blank" title="Click to know more about FIXED">FIXED</a> cost. So, summation of marginal cost indicates totalvariable cost and not total cost.</body></html> | |
| 6438. |
Marginal utility refers toutility : |
| Answer» <html><body><p>From the <a href="https://interviewquestions.tuteehub.com/tag/last-3704365" style="font-weight:bold;" target="_blank" title="Click to know more about LAST">LAST</a> <a href="https://interviewquestions.tuteehub.com/tag/unit-1438166" style="font-weight:bold;" target="_blank" title="Click to know more about UNIT">UNIT</a> consumed <br/>From <a href="https://interviewquestions.tuteehub.com/tag/one-585732" style="font-weight:bold;" target="_blank" title="Click to know more about ONE">ONE</a> more unit consumed <br/>From one less unit consumed <br/>All the above </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> | |
| 6439. |
The price of a commodity is Rs. 5 per unit and its quantity suppled is 600 units. If its price rises to Rs. 6 per unit , its quantity supplied rises by 25 percent. Calculate its price elasticity of supply. |
| Answer» <html><body><p></p>Solution :`E_(s) =(%"Change in <a href="https://interviewquestions.tuteehub.com/tag/supply-1235254" style="font-weight:bold;" target="_blank" title="Click to know more about SUPPLY">SUPPLY</a>")/(%"change in price")=(<a href="https://interviewquestions.tuteehub.com/tag/25-296426" style="font-weight:bold;" target="_blank" title="Click to know more about 25">25</a>)/((1)/(<a href="https://interviewquestions.tuteehub.com/tag/5-319454" style="font-weight:bold;" target="_blank" title="Click to know more about 5">5</a>)xx100)=(25)/(20)=1.25` <br/> Supply is <a href="https://interviewquestions.tuteehub.com/tag/elastic-967540" style="font-weight:bold;" target="_blank" title="Click to know more about ELASTIC">ELASTIC</a> because `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> 1`.</body></html> | |
| 6440. |
What does the slope of PPF indicate? |
| Answer» <html><body><p></p>Solution :PPF is a downward sloping <a href="https://interviewquestions.tuteehub.com/tag/concave-927978" style="font-weight:bold;" target="_blank" title="Click to know more about CONCAVE">CONCAVE</a> shaped curve. <br/> (i) Its downward slope <a href="https://interviewquestions.tuteehub.com/tag/indicates-1041501" style="font-weight:bold;" target="_blank" title="Click to know more about INDICATES">INDICATES</a> that more of one good can be <a href="https://interviewquestions.tuteehub.com/tag/produced-592947" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCED">PRODUCED</a> only by taking resources away from the production of another good. <br/> (ii) Its concave shape indicates that more and more units of one commodity have to be <a href="https://interviewquestions.tuteehub.com/tag/sacrifice-1193053" style="font-weight:bold;" target="_blank" title="Click to know more about SACRIFICE">SACRIFICE</a> to gain an <a href="https://interviewquestions.tuteehub.com/tag/additional-367648" style="font-weight:bold;" target="_blank" title="Click to know more about ADDITIONAL">ADDITIONAL</a> unit of another commodity.</body></html> | |
| 6441. |
an "inferior" good is one which is: |
| Answer» <html><body><p>A <a href="https://interviewquestions.tuteehub.com/tag/low-537644" style="font-weight:bold;" target="_blank" title="Click to know more about LOW">LOW</a> quality good <br/>A low <a href="https://interviewquestions.tuteehub.com/tag/priced-2951544" style="font-weight:bold;" target="_blank" title="Click to know more about PRICED">PRICED</a> good<br/>Below the income <a href="https://interviewquestions.tuteehub.com/tag/status-11923" style="font-weight:bold;" target="_blank" title="Click to know more about STATUS">STATUS</a> <br/>All the above </p>Answer :C</body></html> | |
| 6442. |
Define indifference curve. |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :An indifference curve is a graph showing combination of two goods that give the consumer equal <a href="https://interviewquestions.tuteehub.com/tag/satisfaction-1195186" style="font-weight:bold;" target="_blank" title="Click to know more about SATISFACTION">SATISFACTION</a> and utility. Each point on an indifference curve <a href="https://interviewquestions.tuteehub.com/tag/indicates-1041501" style="font-weight:bold;" target="_blank" title="Click to know more about INDICATES">INDICATES</a> that a consumer is <a href="https://interviewquestions.tuteehub.com/tag/indifferent-2129617" style="font-weight:bold;" target="_blank" title="Click to know more about INDIFFERENT">INDIFFERENT</a> between the two and all points give him the same utility.</body></html> | |
| 6443. |
In case of two commodities,MU of a commodity must fall to attain consumer's equilibrium |
| Answer» <html><body><p><br/></p>Solution :If MU does not fall as consumption <a href="https://interviewquestions.tuteehub.com/tag/increases-1040626" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASES">INCREASES</a>, the consumer will end up buying only one <a href="https://interviewquestions.tuteehub.com/tag/good-1009017" style="font-weight:bold;" target="_blank" title="Click to know more about GOOD">GOOD</a> which is <a href="https://interviewquestions.tuteehub.com/tag/unrealistic-717934" style="font-weight:bold;" target="_blank" title="Click to know more about UNREALISTIC">UNREALISTIC</a> and consumer will <a href="https://interviewquestions.tuteehub.com/tag/never-570518" style="font-weight:bold;" target="_blank" title="Click to know more about NEVER">NEVER</a> reach the <a href="https://interviewquestions.tuteehub.com/tag/equilibrium-974342" style="font-weight:bold;" target="_blank" title="Click to know more about EQUILIBRIUM">EQUILIBRIUM</a> position.</body></html> | |
| 6444. |
Discuss the relationship between (i) MP and TP (ii) AP and MP |
| Answer» <html><body><p></p>Solution :(i) <a href="https://interviewquestions.tuteehub.com/tag/relationship-1183331" style="font-weight:bold;" target="_blank" title="Click to know more about RELATIONSHIP">RELATIONSHIP</a> between MP and TP :-<br/>(i) As <a href="https://interviewquestions.tuteehub.com/tag/long-537592" style="font-weight:bold;" target="_blank" title="Click to know more about LONG">LONG</a> as MP is positive and <a href="https://interviewquestions.tuteehub.com/tag/increasing-1040633" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASING">INCREASING</a>, TP increases at an increasing rate.<br/>(ii) When MP is positive but decreasing, TP increases at a diminishing rate.<br/>(iii) When MP = 0, TP is maximum and constant.<br/>(<a href="https://interviewquestions.tuteehub.com/tag/iv-501699" style="font-weight:bold;" target="_blank" title="Click to know more about IV">IV</a>) When MP <a href="https://interviewquestions.tuteehub.com/tag/becomes-1994370" style="font-weight:bold;" target="_blank" title="Click to know more about BECOMES">BECOMES</a> negative, TP starts falling.(ii) Relationship between AP and MP :- <br/>(i) When MP`gt`AP, AP rises.<br/>(ii) When MP = AP, AP is maximum and constant.<br/>(iii) When MP`lt`AP, AP falls.</body></html> | |
| 6445. |
How does the budget line change if the price of good 2 decreased by a rupee but the price of good 1 and the consumer's income remain unchanged ? |
| Answer» <html><body><p></p>Solution :When price 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> 2 decreases, then the budget <a href="https://interviewquestions.tuteehub.com/tag/line-1074199" style="font-weight:bold;" target="_blank" title="Click to know more about LINE">LINE</a> will shift to the right from AB to `AB_(<a href="https://interviewquestions.tuteehub.com/tag/1-256655" style="font-weight:bold;" target="_blank" title="Click to know more about 1">1</a>)`. The new budget line meets the X-axis at the same <a href="https://interviewquestions.tuteehub.com/tag/point-1157106" style="font-weight:bold;" target="_blank" title="Click to know more about POINT">POINT</a> A because there is no change in the price of good 1. But it will touch the Y-axis to the right of B at point `B_(1)` because the consumer can purchase more of good 2 at the same income <a href="https://interviewquestions.tuteehub.com/tag/level-1072714" style="font-weight:bold;" target="_blank" title="Click to know more about LEVEL">LEVEL</a>. <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/SG_MIC_ECO_C02_S01_069_S01.png" width="80%"/></body></html> | |
| 6446. |
Variance is simply the square of …………………….(Mean deviation/standard deviation) |
| 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/standard-632909" style="font-weight:bold;" target="_blank" title="Click to know more about STANDARD">STANDARD</a> <a href="https://interviewquestions.tuteehub.com/tag/deviation-950382" style="font-weight:bold;" target="_blank" title="Click to know more about DEVIATION">DEVIATION</a></body></html> | |
| 6447. |
Point of Inflexion' is represented by : |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/point-1157106" style="font-weight:bold;" target="_blank" title="Click to know more about POINT">POINT</a> M<br/>Point Q<br/>Point R<br/>Point S</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> | |
| 6448. |
Identify positive or normative statements from the following : 5% population of India is below poverty line |
| 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/positive-1159908" style="font-weight:bold;" target="_blank" title="Click to know more about POSITIVE">POSITIVE</a> <a href="https://interviewquestions.tuteehub.com/tag/statements-17642" style="font-weight:bold;" target="_blank" title="Click to know more about STATEMENTS">STATEMENTS</a> because it is <a href="https://interviewquestions.tuteehub.com/tag/fact-982736" style="font-weight:bold;" target="_blank" title="Click to know more about FACT">FACT</a></body></html> | |
| 6449. |
Pulp and paper production is the third largest producer of air, water and land pollution. Suggest three ways toovercome this problem? |
| Answer» <html><body><p></p>Solution :We can overcome this problem through following ways: <br/> (i) Promote Digital Age: Promote use of e - bills, e-cards, e-book, e-newspaper instead of paper invoices cards, <a href="https://interviewquestions.tuteehub.com/tag/etc-975753" style="font-weight:bold;" target="_blank" title="Click to know more about ETC">ETC</a>. <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>) Use both <a href="https://interviewquestions.tuteehub.com/tag/sides-1207029" style="font-weight:bold;" target="_blank" title="Click to know more about SIDES">SIDES</a> of each paper. On a notebook, <a href="https://interviewquestions.tuteehub.com/tag/write-746491" style="font-weight:bold;" target="_blank" title="Click to know more about WRITE">WRITE</a> on both sides of the sheet. <br/> (iii) Promote use of <a href="https://interviewquestions.tuteehub.com/tag/recycled-2980573" style="font-weight:bold;" target="_blank" title="Click to know more about RECYCLED">RECYCLED</a> paper products whenever possible.</body></html> | |
| 6450. |
Explain diagrammatically greater/less than unitary elastic demand. |
| Answer» | |