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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.
| 6501. |
State the conditions of consumer's equilibrium in cases of indifference curve approach ? |
| 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> :The conditions of <a href="https://interviewquestions.tuteehub.com/tag/consumer-25599" style="font-weight:bold;" target="_blank" title="Click to know more about CONSUMER">CONSUMER</a>'s Equilibrium by Indifference Curve Approach are <br/> (i) `MRS_(XY) =` Ration of price or `(P_(X))/(P_(Y))`, and (<a href="https://interviewquestions.tuteehub.com/tag/ii-1036832" style="font-weight:bold;" target="_blank" title="Click to know more about II">II</a>) <a href="https://interviewquestions.tuteehub.com/tag/mrs-549296" style="font-weight:bold;" target="_blank" title="Click to know more about MRS">MRS</a> continuously <a href="https://interviewquestions.tuteehub.com/tag/falls-983294" style="font-weight:bold;" target="_blank" title="Click to know more about FALLS">FALLS</a>.</body></html> | |
| 6502. |
How is equilibrium reached if there is excess demand at a price lower than equilibrium price? |
| Answer» <html><body><p></p>Solution :At any price lower than the equilibrium price, 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 a commodity exceeds its quantity supplied. It is <a href="https://interviewquestions.tuteehub.com/tag/called-907796" style="font-weight:bold;" target="_blank" title="Click to know more about CALLED">CALLED</a> a situation of excess demand. <br/> It is not an equilibrium price because Quantity demanded is equal to quantity supplied at equilibrium price only. <br/> Whenever there is excess demand, eqquilibrium will be achieved as explained under. <br/> At `OP_(1)`, there is excess demand equal to `M_(1)M_(2)`. <br/> Excess demand <a href="https://interviewquestions.tuteehub.com/tag/would-3285927" style="font-weight:bold;" target="_blank" title="Click to know more about WOULD">WOULD</a> create competition among buyers which will push price up from `OP_(1)` to <a href="https://interviewquestions.tuteehub.com/tag/op-1136171" style="font-weight:bold;" target="_blank" title="Click to know more about OP">OP</a>. <br/> As price rises there would be : <br/> extension in supply from B to E <br/> <a href="https://interviewquestions.tuteehub.com/tag/contraction-932454" style="font-weight:bold;" target="_blank" title="Click to know more about CONTRACTION">CONTRACTION</a> in demand from C to E <br/> Hence, equilibrium will be achieved at point E when quantity demanded is equal to quantity supplied. <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/MIC_ECO_XI_U04_C11_E01_025_S01.png" width="80%"/></body></html> | |
| 6503. |
Differentiate between law of demand and price elasticity of demand. |
| Answer» <html><body><p></p>Solution :(i) <a href="https://interviewquestions.tuteehub.com/tag/law-184" style="font-weight:bold;" target="_blank" title="Click to know more about LAW">LAW</a> of demand states the inverse relation between price of a commodity and its <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,assuming no change in other factors. Onthe other hand , price elasticity of demand <a href="https://interviewquestions.tuteehub.com/tag/indicates-1041501" style="font-weight:bold;" target="_blank" title="Click to know more about INDICATES">INDICATES</a> the <a href="https://interviewquestions.tuteehub.com/tag/rate-1177476" style="font-weight:bold;" target="_blank" title="Click to know more about RATE">RATE</a> of change in quantity demanded of the commodity due ot change in its price.<br/> (ii)Law of Demand reflects the direction of change in demand , whereas, price elasticity of demand measures the magnitude of change in demand.</body></html> | |
| 6504. |
Explain the meaning of budget set and budget line |
| Answer» <html><body><p></p>Solution : Budget set refers to the attainable combinations of a set of <a href="https://interviewquestions.tuteehub.com/tag/two-714195" style="font-weight:bold;" target="_blank" title="Click to know more about TWO">TWO</a> <a href="https://interviewquestions.tuteehub.com/tag/goods-1009877" style="font-weight:bold;" target="_blank" title="Click to know more about GOODS">GOODS</a>, given prices of the goods and <a href="https://interviewquestions.tuteehub.com/tag/income-25499" style="font-weight:bold;" target="_blank" title="Click to know more about INCOME">INCOME</a> of the consumer. Similarly, if income of the consumer remains <a href="https://interviewquestions.tuteehub.com/tag/unchanged-2316761" style="font-weight:bold;" target="_blank" title="Click to know more about UNCHANGED">UNCHANGED</a>, the budget line will shift to the right when there is a proportionate fall in the prices of both goods <a href="https://interviewquestions.tuteehub.com/tag/x-746616" style="font-weight:bold;" target="_blank" title="Click to know more about X">X</a> and Y.</body></html> | |
| 6505. |
Explain the effect on equilibrium price when price of inputs increases. OR The market for cars is in equilibrium. Suppose the price of almunium parts (used in cars) increases. Explain the effect of rise the price of aluminimum parts on the equilibrium price and quantity of cars. (Use diagram) |
| Answer» <html><body><p></p>Solution :When price of inputs increase, <a href="https://interviewquestions.tuteehub.com/tag/assuming-1986865" style="font-weight:bold;" target="_blank" title="Click to know more about ASSUMING">ASSUMING</a> no change in other <a href="https://interviewquestions.tuteehub.com/tag/factors-458933" style="font-weight:bold;" target="_blank" title="Click to know more about FACTORS">FACTORS</a>, then the cost of production rises. As a result, supply decreases due to fall in the <a href="https://interviewquestions.tuteehub.com/tag/profitability-1168698" style="font-weight:bold;" target="_blank" title="Click to know more about PROFITABILITY">PROFITABILITY</a> level. It will lead to <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. This leads to competition among buyers, which raises the price. Increase in price leads to rise in supply and fall in demand. These changes continue till supply and demand become equal at a new equilibrium price. As there is a decrease in supply only, equilibrium <a href="https://interviewquestions.tuteehub.com/tag/quantity-1174212" style="font-weight:bold;" target="_blank" title="Click to know more about QUANTITY">QUANTITY</a> will fall, but equilibrium price will rise.</body></html> | |
| 6506. |
What is MU when TU is maximum ? |
| Answer» <html><body><p></p>Solution :When MU is <a href="https://interviewquestions.tuteehub.com/tag/zero-751093" style="font-weight:bold;" target="_blank" title="Click to know more about ZERO">ZERO</a>, TU is the <a href="https://interviewquestions.tuteehub.com/tag/maximum-556915" style="font-weight:bold;" target="_blank" title="Click to know more about MAXIMUM">MAXIMUM</a> and it is the point of maximum <a href="https://interviewquestions.tuteehub.com/tag/satisfaction-1195186" style="font-weight:bold;" target="_blank" title="Click to know more about SATISFACTION">SATISFACTION</a>. i.e., point of satiety. When Mu becomes negative, <a href="https://interviewquestions.tuteehub.com/tag/total-711110" style="font-weight:bold;" target="_blank" title="Click to know more about TOTAL">TOTAL</a> utility starts diminishing. This is the <a href="https://interviewquestions.tuteehub.com/tag/area-13372" style="font-weight:bold;" target="_blank" title="Click to know more about AREA">AREA</a> of dissatisfaction.</body></html> | |
| 6507. |
When the price of a commodity falls from Rs. 10 per unit to Rs. 9 per unit , its quantity supplied falls by 20 percent . Calculate its price elesticity of supply. |
| Answer» <html><body><p></p>Solution :Percent change in price `=(-<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/10-261113" style="font-weight:bold;" target="_blank" title="Click to know more about 10">10</a>)xx100=-10%` <br/>Percent change in supply =-<a href="https://interviewquestions.tuteehub.com/tag/20-287209" style="font-weight:bold;" target="_blank" title="Click to know more about 20">20</a>% <br/> `E_(s) =("Percentage change in supply")/("Percentage change in price")=(-20)/(-10)=2`</body></html> | |
| 6508. |
Which changes can cause a leftward shift in the demand curve ? Also state the change, which causes downward movement along the demand curve ? |
| Answer» <html><body><p></p>Solution :(i) Fall in price of substitue goods.<br/>(ii) <a href="https://interviewquestions.tuteehub.com/tag/increase-1040383" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASE">INCREASE</a> in price of complementary goods.<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>) Fall in <a href="https://interviewquestions.tuteehub.com/tag/income-25499" style="font-weight:bold;" target="_blank" title="Click to know more about INCOME">INCOME</a> of the consumer in <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 normal good.<br/>(iv) Unfavourable changes in tastes and prefernces of the consumer.<br/>(v) Expectation of fall in 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> in the future.<br/></body></html> | |
| 6509. |
Distinguish between fixed and variable 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> :Variable costs vary with the amount produced. <a href="https://interviewquestions.tuteehub.com/tag/fixed-457597" style="font-weight:bold;" target="_blank" title="Click to know more about FIXED">FIXED</a> costs <a href="https://interviewquestions.tuteehub.com/tag/remain-1184279" style="font-weight:bold;" target="_blank" title="Click to know more about REMAIN">REMAIN</a> the same, no matter how much output a company produces. A variable <a href="https://interviewquestions.tuteehub.com/tag/cost-25707" style="font-weight:bold;" target="_blank" title="Click to know more about COST">COST</a> is a company's cost that is associated with the amount 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> or services it produces. A company's variable cost increases and decreases with the production volume.</body></html> | |
| 6510. |
An increase in the price of Coffee will have the following effect on the demand curve of Tea : |
| Answer» <html><body><p><img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/SG_MIC_ECO_C03_E01_043_O01.png" width="30%"/><br/><img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/SG_MIC_ECO_C03_E01_043_O02.png" width="30%"/><br/><img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/SG_MIC_ECO_C03_E01_043_O03.png" width="30%"/><br/><img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/SG_MIC_ECO_C03_E01_043_O04.png" width="30%"/></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> | |
| 6511. |
In what manner does AR of a monopoly firm change as output increases ? |
| Answer» | |
| 6512. |
Explain in 'interedpendence of firms' feature of oligopoly. Or Explain 'homogeneous products' feature of perfect cometition. |
| Answer» | |
| 6513. |
A monopolist firm has full control over price and demand for his product. |
| Answer» <html><body><p></p>Solution :A <a href="https://interviewquestions.tuteehub.com/tag/monopolist-1101062" style="font-weight:bold;" target="_blank" title="Click to know more about MONOPOLIST">MONOPOLIST</a> firm has <a href="https://interviewquestions.tuteehub.com/tag/full-1001178" style="font-weight:bold;" target="_blank" title="Click to know more about FULL">FULL</a> control over <a href="https://interviewquestions.tuteehub.com/tag/price-1165141" style="font-weight:bold;" target="_blank" title="Click to know more about PRICE">PRICE</a>, but demand of the product is not in his control. The monopolist faces a downward sloping demand <a href="https://interviewquestions.tuteehub.com/tag/curve-941741" style="font-weight:bold;" target="_blank" title="Click to know more about CURVE">CURVE</a>, which indicates that demand varies inversely with price.</body></html> | |
| 6514. |
Average cost and average variable cost curve coincides when average fixed cost is zero. |
| Answer» <html><body><p></p>Solution :False. <a href="https://interviewquestions.tuteehub.com/tag/average-13416" style="font-weight:bold;" target="_blank" title="Click to know more about AVERAGE">AVERAGE</a> <a href="https://interviewquestions.tuteehub.com/tag/cost-25707" style="font-weight:bold;" target="_blank" title="Click to know more about COST">COST</a> and average variable cost cannot coincide as <a href="https://interviewquestions.tuteehub.com/tag/difference-951394" style="font-weight:bold;" target="_blank" title="Click to know more about DIFFERENCE">DIFFERENCE</a> between them is average fixed cost, which can never be <a href="https://interviewquestions.tuteehub.com/tag/zero-751093" style="font-weight:bold;" target="_blank" title="Click to know more about ZERO">ZERO</a>.</body></html> | |
| 6515. |
State any three characteristics of a perfectly competitive market. |
| Answer» <html><body><p></p>Solution :The features of Perfect competition are: 1) Very large no. of buyers and sellers: 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 <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/similarly-1208242" style="font-weight:bold;" target="_blank" title="Click to know more about SIMILARLY">SIMILARLY</a>, 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. 2) Homogeneous product: The products offered for sale in the market are homogeneous, i.e., the product sold is identical in all respects like size, shape, quality,etc. Since each firm produces 100% identical products, their products can be readily substituted for each other. So, the buyer has no specific preference to buy from a particular seller only. 3) <a href="https://interviewquestions.tuteehub.com/tag/freedom-999700" style="font-weight:bold;" target="_blank" title="Click to know more about FREEDOM">FREEDOM</a> of entry and exit: 'Freedom of entry' signifies that there are no barriers to the entry of new firms into industry. When the existing firms are <a href="https://interviewquestions.tuteehub.com/tag/earning-964156" style="font-weight:bold;" target="_blank" title="Click to know more about EARNING">EARNING</a> abnormal profits, the new firms, attracted by the <a href="https://interviewquestions.tuteehub.com/tag/prospects-1170612" style="font-weight:bold;" target="_blank" title="Click to know more about PROSPECTS">PROSPECTS</a> of profit, enter the industry. This raises market supply, which in turn, leads to fall in market price and consequently profits. Te entry continues till each firm is earning just the normal profits. 'Freedom to exit' signifies that there are no barriers which restrict the existing firms from leaving the industry. The firms try to leave when they are facing losses. As the firms start leaving, market supply falls, leading to rise in market price and consequently reduction in losses. The firms continue to leave till the losses are wiped out and each existing firm is earning just the normal profits.</body></html> | |
| 6516. |
Explain the 'Law of Variable factors and fixed factors |
| Answer» | |
| 6517. |
What is the relation between market price and average 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> :For 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>-taking <a href="https://interviewquestions.tuteehub.com/tag/firm-989667" style="font-weight:bold;" target="_blank" title="Click to know more about FIRM">FIRM</a>, market price is equal to average <a href="https://interviewquestions.tuteehub.com/tag/revenue-1188040" style="font-weight:bold;" target="_blank" title="Click to know more about REVENUE">REVENUE</a>.</body></html> | |
| 6518. |
What will happen to MP, when TP increases at diminishing rate ? |
| 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/mp-565167" style="font-weight:bold;" target="_blank" title="Click to know more about MP">MP</a> is <a href="https://interviewquestions.tuteehub.com/tag/positive-1159908" style="font-weight:bold;" target="_blank" title="Click to know more about POSITIVE">POSITIVE</a> and <a href="https://interviewquestions.tuteehub.com/tag/decreasing-946148" style="font-weight:bold;" target="_blank" title="Click to know more about DECREASING">DECREASING</a>.</body></html> | |
| 6519. |
Why averagecost falls upto a greater output level as compared to average variable cost ? |
| 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/average-13416" style="font-weight:bold;" target="_blank" title="Click to know more about AVERAGE">AVERAGE</a> Cost falls <a href="https://interviewquestions.tuteehub.com/tag/upto-1440527" style="font-weight:bold;" target="_blank" title="Click to know more about UPTO">UPTO</a> a greater <a href="https://interviewquestions.tuteehub.com/tag/output-1142821" style="font-weight:bold;" target="_blank" title="Click to know more about OUTPUT">OUTPUT</a> level because of <a href="https://interviewquestions.tuteehub.com/tag/falling-983241" style="font-weight:bold;" target="_blank" title="Click to know more about FALLING">FALLING</a> average fixedcost.</body></html> | |
| 6520. |
Explain the feature "few firms" and its implications in an oligopoly market |
| Answer» <html><body><p></p>Solution : Few firms: Under oligopoly, there are few large firms. The exact no. of firms is not defined. Each firm produces a significant portion of the total output. There exists severe competition among different firms and each firm try to <a href="https://interviewquestions.tuteehub.com/tag/manipulate-1086088" style="font-weight:bold;" target="_blank" title="Click to know more about MANIPULATE">MANIPULATE</a> both prices and volume of production to <a href="https://interviewquestions.tuteehub.com/tag/outsmart-7703000" style="font-weight:bold;" target="_blank" title="Click to know more about OUTSMART">OUTSMART</a> each other.Implication is that the no. of firmsis so small that an action by any one firm is likely to affect the rival firms. So, <a href="https://interviewquestions.tuteehub.com/tag/every-976721" style="font-weight:bold;" target="_blank" title="Click to know more about EVERY">EVERY</a> firm <a href="https://interviewquestions.tuteehub.com/tag/keeps-1063393" style="font-weight:bold;" target="_blank" title="Click to know more about KEEPS">KEEPS</a> a close watch on the activities of rival firms.</body></html> | |
| 6521. |
When TPP maximum, what an you say about MPP ? |
| 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/mpp-549071" style="font-weight:bold;" target="_blank" title="Click to know more about MPP">MPP</a> is <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> | |
| 6522. |
Explain the conditions of equilibrium of a firm based onmarginal cost and marginal revenue . |
| 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> | |
| 6523. |
Discuss the primary reason for 'indeterminateness of demand curve' under the oligopoly from of market. |
| Answer» | |
| 6524. |
In case of unitary elastic supply, the supply curve starts from |
| Answer» <html><body><p>the <a href="https://interviewquestions.tuteehub.com/tag/origin-1139399" style="font-weight:bold;" target="_blank" title="Click to know more about ORIGIN">ORIGIN</a><br/>`+` <a href="https://interviewquestions.tuteehub.com/tag/x-746616" style="font-weight:bold;" target="_blank" title="Click to know more about X">X</a>`-` <a href="https://interviewquestions.tuteehub.com/tag/axis-889931" style="font-weight:bold;" target="_blank" title="Click to know more about AXIS">AXIS</a><br/>`-`X`-`axis<br/>none of these.</p>Answer :A</body></html> | |
| 6525. |
Define market to good. |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/market-25464" style="font-weight:bold;" target="_blank" title="Click to know more about MARKET">MARKET</a> <a href="https://interviewquestions.tuteehub.com/tag/refers-1181652" style="font-weight:bold;" target="_blank" title="Click to know more about REFERS">REFERS</a> where the <a href="https://interviewquestions.tuteehub.com/tag/buyers-906447" style="font-weight:bold;" target="_blank" title="Click to know more about BUYERS">BUYERS</a> and seller of a commodity <a href="https://interviewquestions.tuteehub.com/tag/come-409636" style="font-weight:bold;" target="_blank" title="Click to know more about COME">COME</a> in contact with each other to effect thetransactions of purchaseand <a href="https://interviewquestions.tuteehub.com/tag/sale-1193496" style="font-weight:bold;" target="_blank" title="Click to know more about SALE">SALE</a> of the commodity</body></html> | |
| 6526. |
Equilibrium price is the market determined price where demand is equal to supply. However, equilibrium price may not be the best price. Why does government interventation become necessary on a welfare state like India ? |
| Answer» <html><body><p><br/></p>Solution :Even though perfectly <a href="https://interviewquestions.tuteehub.com/tag/competitive-2033296" style="font-weight:bold;" target="_blank" title="Click to know more about COMPETITIVE">COMPETITIVE</a> price is equilibrium price, however it may be too high for a set of consumers or too low for a set of producers. Hence, government intereventation in form of fixation of <a href="https://interviewquestions.tuteehub.com/tag/prices-1165311" style="font-weight:bold;" target="_blank" title="Click to know more about PRICES">PRICES</a> assumes <a href="https://interviewquestions.tuteehub.com/tag/importance-1038031" style="font-weight:bold;" target="_blank" title="Click to know more about IMPORTANCE">IMPORTANCE</a> to ensure <a href="https://interviewquestions.tuteehub.com/tag/welfare-734378" style="font-weight:bold;" target="_blank" title="Click to know more about WELFARE">WELFARE</a> of all.</body></html> | |
| 6527. |
Which of these is a characteristic feature of Monopoly? |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/single-644669" style="font-weight:bold;" target="_blank" title="Click to know more about SINGLE">SINGLE</a> <a href="https://interviewquestions.tuteehub.com/tag/seller-1200249" style="font-weight:bold;" target="_blank" title="Click to know more about SELLER">SELLER</a> <br/><a href="https://interviewquestions.tuteehub.com/tag/price-1165141" style="font-weight:bold;" target="_blank" title="Click to know more about PRICE">PRICE</a> maker<br/>Barriers on <a href="https://interviewquestions.tuteehub.com/tag/entry-972873" style="font-weight:bold;" target="_blank" title="Click to know more about ENTRY">ENTRY</a> <a href="https://interviewquestions.tuteehub.com/tag/exist-979486" style="font-weight:bold;" target="_blank" title="Click to know more about EXIST">EXIST</a> of firms<br/>All of these</p>Solution :D</body></html> | |
| 6528. |
How does TR reactwhen MR is zero ? |
| 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 <a href="https://interviewquestions.tuteehub.com/tag/mr-549185" style="font-weight:bold;" target="_blank" title="Click to know more about MR">MR</a> is zero, TR is <a href="https://interviewquestions.tuteehub.com/tag/constant-930172" style="font-weight:bold;" target="_blank" title="Click to know more about CONSTANT">CONSTANT</a> and <a href="https://interviewquestions.tuteehub.com/tag/maximum-556915" style="font-weight:bold;" target="_blank" title="Click to know more about MAXIMUM">MAXIMUM</a>.</body></html> | |
| 6529. |
A consumer consumes only two goods X and Y both Priced at Rs 4 per unit. If the consumer choose a combination of these two goods with Marginal Rate of Substitution equal to 4, then the consumer will : |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/buy-391430" style="font-weight:bold;" target="_blank" title="Click to know more about BUY">BUY</a> more <a href="https://interviewquestions.tuteehub.com/tag/units-1438468" style="font-weight:bold;" target="_blank" title="Click to know more about UNITS">UNITS</a> of <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/>Buy more units of Y <br/>Buy more units of both, X and Y<br/>Buy <a href="https://interviewquestions.tuteehub.com/tag/less-1071906" style="font-weight:bold;" target="_blank" title="Click to know more about LESS">LESS</a> units of both, X and Y</p>Answer :A</body></html> | |
| 6530. |
Define an 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> :Indifference curve <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 graphical representation of various alternative <a href="https://interviewquestions.tuteehub.com/tag/combinations-922706" style="font-weight:bold;" target="_blank" title="Click to know more about COMBINATIONS">COMBINATIONS</a> of bundles of two goods among which the 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>.</body></html> | |
| 6531. |
What is meant by equilibrium quantity? |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/equilibrium-974342" style="font-weight:bold;" target="_blank" title="Click to know more about EQUILIBRIUM">EQUILIBRIUM</a> <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/refers-1181652" style="font-weight:bold;" target="_blank" title="Click to know more about REFERS">REFERS</a> to the quantity at which the 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 a commodity is equal to the quantity supplied.</body></html> | |
| 6532. |
Only one indifference curve will pass through a given point on an indifference map |
| 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> :It happens because <a href="https://interviewquestions.tuteehub.com/tag/indifference-1041534" style="font-weight:bold;" target="_blank" title="Click to know more about INDIFFERENCE">INDIFFERENCE</a> <a href="https://interviewquestions.tuteehub.com/tag/curves-941810" style="font-weight:bold;" target="_blank" title="Click to know more about CURVES">CURVES</a> can <a href="https://interviewquestions.tuteehub.com/tag/never-570518" style="font-weight:bold;" target="_blank" title="Click to know more about NEVER">NEVER</a> <a href="https://interviewquestions.tuteehub.com/tag/intersect-1049831" style="font-weight:bold;" target="_blank" title="Click to know more about INTERSECT">INTERSECT</a> each other.</body></html> | |
| 6533. |
Primary source of data is preferred to secondary source because |
| Answer» <html><body><p>It <a href="https://interviewquestions.tuteehub.com/tag/explains-2627999" style="font-weight:bold;" target="_blank" title="Click to know more about EXPLAINS">EXPLAINS</a> <a href="https://interviewquestions.tuteehub.com/tag/definitions-14853" style="font-weight:bold;" target="_blank" title="Click to know more about DEFINITIONS">DEFINITIONS</a> <br/>It explains methodology<br/>It <a href="https://interviewquestions.tuteehub.com/tag/gives-1007647" style="font-weight:bold;" target="_blank" title="Click to know more about GIVES">GIVES</a> more <a href="https://interviewquestions.tuteehub.com/tag/details-949819" style="font-weight:bold;" target="_blank" title="Click to know more about DETAILS">DETAILS</a> <br/>All of the above. </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> :D</body></html> | |
| 6534. |
Increase in price of substitude good leads to : |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/expansion-980011" style="font-weight:bold;" target="_blank" title="Click to know more about EXPANSION">EXPANSION</a> in Demand<br/>Increase in Demand<br/>Decrease in Demand<br/>Contraction in demand</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> | |
| 6535. |
If both demand and supply increase simultaneously, the equilibrium price will also change. |
| 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> : If <a href="https://interviewquestions.tuteehub.com/tag/increase-1040383" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASE">INCREASE</a> in <a href="https://interviewquestions.tuteehub.com/tag/demand-436956" style="font-weight:bold;" target="_blank" title="Click to know more about DEMAND">DEMAND</a> is proportionately equal to increase in supply, then <a href="https://interviewquestions.tuteehub.com/tag/equilibrium-974342" style="font-weight:bold;" target="_blank" title="Click to know more about EQUILIBRIUM">EQUILIBRIUM</a> price will remain same.</body></html> | |
| 6536. |
Equilibrium price of an essential medicine is too high. Explain what possible steps can be taken to bring down the equilibrium price but only through the market forces. Also explain the series of changes that will occur in the market. |
| Answer» <html><body><p></p>Solution :One possibles step can be <a href="https://interviewquestions.tuteehub.com/tag/reduce-1181332" style="font-weight:bold;" target="_blank" title="Click to know more about REDUCE">REDUCE</a> tax on <a href="https://interviewquestions.tuteehub.com/tag/medicine-110" style="font-weight:bold;" target="_blank" title="Click to know more about MEDICINE">MEDICINE</a> (or alternatively give subsidy). This will bring down cost and in turn 'increase' supply. <a href="https://interviewquestions.tuteehub.com/tag/demand-436956" style="font-weight:bold;" target="_blank" title="Click to know more about DEMAND">DEMAND</a> remaining unchanged, a situation of 'excess supply' will emerge which will <a href="https://interviewquestions.tuteehub.com/tag/lead-540361" style="font-weight:bold;" target="_blank" title="Click to know more about LEAD">LEAD</a> to competition between sellers. This will lead to fall in price of the medicine.</body></html> | |
| 6537. |
As output is increased AVC: |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/goes-2676180" style="font-weight:bold;" target="_blank" title="Click to know more about GOES">GOES</a> farther away from ATC<br/>Comes <a href="https://interviewquestions.tuteehub.com/tag/nearer-570304" style="font-weight:bold;" target="_blank" title="Click to know more about NEARER">NEARER</a> to ATC<br/>Remains equidistant from ATC<br/>Initially a, then b. </p><a href="https://interviewquestions.tuteehub.com/tag/answer-15557" style="font-weight:bold;" target="_blank" title="Click to know more about ANSWER">ANSWER</a> :B</body></html> | |
| 6538. |
When AC gt MC, then MC can: |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/fall-983217" style="font-weight:bold;" target="_blank" title="Click to know more about FALL">FALL</a> <br/>Rise<br/>Both (a) and (<a href="https://interviewquestions.tuteehub.com/tag/b-387190" style="font-weight:bold;" target="_blank" title="Click to know more about B">B</a>)<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> | |
| 6539. |
In a class of 50 students 10 have failed and their average of marks is 2.5 . The total marks secured by the entire class were 281. Find the average marks those who have passed. |
| 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/given-473447" style="font-weight:bold;" target="_blank" title="Click to know more about GIVEN">GIVEN</a>: N = 50, Failed Students = 10 <br/> Mean <a href="https://interviewquestions.tuteehub.com/tag/marks-1088184" style="font-weight:bold;" target="_blank" title="Click to know more about MARKS">MARKS</a> ofthose who failed = `2.5` <br/> Total marks secured by the entire class = <a href="https://interviewquestions.tuteehub.com/tag/281-299633" style="font-weight:bold;" target="_blank" title="Click to know more about 281">281</a> <br/> Total marks obtained by those who have <a href="https://interviewquestions.tuteehub.com/tag/passed-2217431" style="font-weight:bold;" target="_blank" title="Click to know more about PASSED">PASSED</a> = 281 - 25 = 256 <br/> Average marks obtained by those who have passed = `(256)/40 = 6.4` <br/> Average marks obtained by those who have passed = `6.4`.</body></html> | |
| 6540. |
A country's resources are fully and efficiently employed. The problem of scarcity exists. What advice will be given to raise the efficiency level of the human resources of light scarcity? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<a href="https://interviewquestions.tuteehub.com/tag/spread-1222907" style="font-weight:bold;" target="_blank" title="Click to know more about SPREAD">SPREAD</a> of <a href="https://interviewquestions.tuteehub.com/tag/education-3167" style="font-weight:bold;" target="_blank" title="Click to know more about EDUCATION">EDUCATION</a> and <a href="https://interviewquestions.tuteehub.com/tag/training-1425328" style="font-weight:bold;" target="_blank" title="Click to know more about TRAINING">TRAINING</a>.</body></html> | |
| 6541. |
Define index number. |
| Answer» <html><body><p></p>Solution :In the <a href="https://interviewquestions.tuteehub.com/tag/words-25841" style="font-weight:bold;" target="_blank" title="Click to know more about WORDS">WORDS</a> of Spiegel, "An <a href="https://interviewquestions.tuteehub.com/tag/index-505893" style="font-weight:bold;" target="_blank" title="Click to know more about INDEX">INDEX</a> Number is a statistical measure designed to <a href="https://interviewquestions.tuteehub.com/tag/show-642916" style="font-weight:bold;" target="_blank" title="Click to know more about SHOW">SHOW</a> changes in a variable or group of related variables with respect to <a href="https://interviewquestions.tuteehub.com/tag/time-19467" style="font-weight:bold;" target="_blank" title="Click to know more about TIME">TIME</a>, geographiclocation or other characteristics."</body></html> | |
| 6542. |
A rational consumer is called 'rational' because he/she aims at : |
| Answer» <html><body><p>Maximizing purchases <br/><a href="https://interviewquestions.tuteehub.com/tag/minimizing-7304201" style="font-weight:bold;" target="_blank" title="Click to know more about MINIMIZING">MINIMIZING</a> <a href="https://interviewquestions.tuteehub.com/tag/expenditure-980222" style="font-weight:bold;" target="_blank" title="Click to know more about EXPENDITURE">EXPENDITURE</a> <br/>Maximizing <a href="https://interviewquestions.tuteehub.com/tag/utility-1441817" style="font-weight:bold;" target="_blank" title="Click to know more about UTILITY">UTILITY</a> <br/>Minimizing wastage </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> | |
| 6543. |
State the relation between totalcost and marginal cost. |
| Answer» <html><body><p></p>Solution :Total cost of production of any <a href="https://interviewquestions.tuteehub.com/tag/commodity-923558" style="font-weight:bold;" target="_blank" title="Click to know more about COMMODITY">COMMODITY</a> is the amount of cost incurred for production of that commodity.In other words it is the summation of 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 and total variable cost at any <a href="https://interviewquestions.tuteehub.com/tag/point-1157106" style="font-weight:bold;" target="_blank" title="Click to know more about POINT">POINT</a> of time for production .<a href="https://interviewquestions.tuteehub.com/tag/marginal-555038" style="font-weight:bold;" target="_blank" title="Click to know more about MARGINAL">MARGINAL</a> cost on the other hand is the extra amount of cost incurred for production of one extra</body></html> | |
| 6544. |
The following table gives the marginal product schedule of labour. It is also given that total product of labour is zero at zero level of employment. Calculate the total and average product schedules of labour. |{:("Labour",1,2,3,4,5,6),("MP of labour (units)",3,5,7,5,3,1):}| |
| 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/SG_MIC_ECO_C05_S01_060_S01.png" width="80%"/></body></html> | |
| 6545. |
When quaritle item is not a rraction. Let us find out the value of Q1 from the following data : |
| Answer» <html><body><p></p>Solution :<img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/ECO_XI_A_U03_C09_S01_001_S01.png" width="80%"/> <br/> `Q_(1)(N+1)/(4)<a href="https://interviewquestions.tuteehub.com/tag/th-665760" style="font-weight:bold;" target="_blank" title="Click to know more about TH">TH</a>"item"=(19+1)/(4)th` <br/> `=20/4th =5th` item.<br/> The <a href="https://interviewquestions.tuteehub.com/tag/value-1442530" style="font-weight:bold;" target="_blank" title="Click to know more about VALUE">VALUE</a> of 5th item is <a href="https://interviewquestions.tuteehub.com/tag/rs-625947" style="font-weight:bold;" target="_blank" title="Click to know more about RS">RS</a> <a href="https://interviewquestions.tuteehub.com/tag/56-325545" style="font-weight:bold;" target="_blank" title="Click to know more about 56">56</a>. <br/> `thereforeQ_(1)=Rs. 56.`</body></html> | |
| 6546. |
If (MU_(X))/(P_(X)) gt (MU_(Y))/(P_(Y)), then the consumer should buy more of commodity Y and less of commodity X to reach the equilibrium position |
| 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> :Consumer should buy more of commodity X as <a href="https://interviewquestions.tuteehub.com/tag/marginal-555038" style="font-weight:bold;" target="_blank" title="Click to know more about MARGINAL">MARGINAL</a> <a href="https://interviewquestions.tuteehub.com/tag/utility-1441817" style="font-weight:bold;" target="_blank" title="Click to know more about UTILITY">UTILITY</a> (<a href="https://interviewquestions.tuteehub.com/tag/mu-566056" style="font-weight:bold;" target="_blank" title="Click to know more about MU">MU</a>) from last rupee spent on commodity X is greater than MU from last rupee spent on commodity Y.</body></html> | |
| 6547. |
Primary data involve more time amd more expenses. (True/False) |
| 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/true-713260" style="font-weight:bold;" target="_blank" title="Click to know more about TRUE">TRUE</a></body></html> | |
| 6548. |
When does the movement along the supply curve occur? |
| Answer» <html><body><p></p>Solution :It occurs, when 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> change due to change in the <a href="https://interviewquestions.tuteehub.com/tag/price-1165141" style="font-weight:bold;" target="_blank" title="Click to know more about PRICE">PRICE</a>, keeping other <a href="https://interviewquestions.tuteehub.com/tag/factors-458933" style="font-weight:bold;" target="_blank" title="Click to know more about FACTORS">FACTORS</a> constant.</body></html> | |
| 6549. |
What is any combination of the amount of two goods consumed by a consumer called ? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :It is <a href="https://interviewquestions.tuteehub.com/tag/called-907796" style="font-weight:bold;" target="_blank" title="Click to know more about CALLED">CALLED</a> a 'consumption <a href="https://interviewquestions.tuteehub.com/tag/bundle-905567" style="font-weight:bold;" target="_blank" title="Click to know more about BUNDLE">BUNDLE</a>' or 'Bundle'.</body></html> | |
| 6550. |
Comment on the shape of the MR curve in case the TR curve is horizontal straight line. |
| Answer» <html><body><p></p>Solution :MR will be <a href="https://interviewquestions.tuteehub.com/tag/zero-751093" style="font-weight:bold;" target="_blank" title="Click to know more about ZERO">ZERO</a> as horizontal TR implies that <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 <a href="https://interviewquestions.tuteehub.com/tag/rises-1189694" style="font-weight:bold;" target="_blank" title="Click to know more about RISES">RISES</a> in the same proportion to <a href="https://interviewquestions.tuteehub.com/tag/fall-983217" style="font-weight:bold;" target="_blank" title="Click to know more about FALL">FALL</a> in <a href="https://interviewquestions.tuteehub.com/tag/price-1165141" style="font-weight:bold;" target="_blank" title="Click to know more about PRICE">PRICE</a>.</body></html> | |