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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.
| 6751. |
Why is the number of firms small of an oligopoly market? Explain |
| Answer» <html><body><p></p>Solution :The main reason for small number of <a href="https://interviewquestions.tuteehub.com/tag/firms-989820" style="font-weight:bold;" target="_blank" title="Click to know more about FIRMS">FIRMS</a> under oligapoly is the 'Barriers to Entry', which prevent entry of new firms to the industry Patents, requirement of large capital, control over cruclal raw materials epic are some of the other reasons, which prevent new firms from entening into industry As a <a href="https://interviewquestions.tuteehub.com/tag/result-1187343" style="font-weight:bold;" target="_blank" title="Click to know more about RESULT">RESULT</a>, there <a href="https://interviewquestions.tuteehub.com/tag/anp-1962492" style="font-weight:bold;" target="_blank" title="Click to know more about ANP">ANP</a> fow firms in an <a href="https://interviewquestions.tuteehub.com/tag/oligopoly-585440" style="font-weight:bold;" target="_blank" title="Click to know more about OLIGOPOLY">OLIGOPOLY</a> market.</body></html> | |
| 6752. |
which features of monopolistic competition are monopolistic in nature? |
| 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> : (i) <a href="https://interviewquestions.tuteehub.com/tag/product-25523" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCT">PRODUCT</a> diffierentiation (<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/downward-2061463" style="font-weight:bold;" target="_blank" title="Click to know more about DOWNWARD">DOWNWARD</a> sloping AR and <a href="https://interviewquestions.tuteehub.com/tag/mr-549185" style="font-weight:bold;" target="_blank" title="Click to know more about MR">MR</a> curves..</body></html> | |
| 6753. |
Market period is a timeperiodduringwhich : |
| Answer» <html><body><p>Rigtward shift in supplu curves <br/>Leftward shift in supply curve<br/>Expansion in supply <br/>Contraction insupply </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 market period is a very short period in which the supply of a commodity is <a href="https://interviewquestions.tuteehub.com/tag/fixed-457597" style="font-weight:bold;" target="_blank" title="Click to know more about FIXED">FIXED</a>. It is the variations in demand that determine the price in such a market period. The <a href="https://interviewquestions.tuteehub.com/tag/time-19467" style="font-weight:bold;" target="_blank" title="Click to know more about TIME">TIME</a> period is so short that supply is not responsive to demand. Thus , there is a leftward shift in supply of a commodity and the correct <a href="https://interviewquestions.tuteehub.com/tag/option-25810" style="font-weight:bold;" target="_blank" title="Click to know more about OPTION">OPTION</a> is (B).</body></html> | |
| 6754. |
How is price = demaned = MR, under perfect competition ? |
| Answer» | |
| 6755. |
What is revenue in microeconomics ? State the relation between marginal revenue and average revenue under perfect competition using usitable diagram or schedule OR Dfine supply. Distinguish between ''increase in supply'' and ''extension in supply'' |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/revenue-1188040" style="font-weight:bold;" target="_blank" title="Click to know more about REVENUE">REVENUE</a> refers to the <a href="https://interviewquestions.tuteehub.com/tag/amount-374803" style="font-weight:bold;" target="_blank" title="Click to know more about AMOUNT">AMOUNT</a> <a href="https://interviewquestions.tuteehub.com/tag/received-1179289" style="font-weight:bold;" target="_blank" title="Click to know more about RECEIVED">RECEIVED</a> by a firm from the sale of a given <a href="https://interviewquestions.tuteehub.com/tag/quantity-1174212" style="font-weight:bold;" target="_blank" title="Click to know more about QUANTITY">QUANTITY</a> of a commodity in the market. <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/SG_MIC_ECO_PW_E01_020_S01.png" width="80%"/> <br/> OR <br/> Supply refers to quantity of a commodity that a firm is willing and able to offer for sale at a given price during a given <a href="https://interviewquestions.tuteehub.com/tag/period-1151023" style="font-weight:bold;" target="_blank" title="Click to know more about PERIOD">PERIOD</a> of time. <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/SG_MIC_ECO_PW_E01_020_S02.png" width="80%"/></body></html> | |
| 6756. |
When a consumer has got equality between marginal utility and price for a good, what is this condition known as ? |
| 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/consumer-25599" style="font-weight:bold;" target="_blank" title="Click to know more about CONSUMER">CONSUMER</a> <a href="https://interviewquestions.tuteehub.com/tag/equilibrium-974342" style="font-weight:bold;" target="_blank" title="Click to know more about EQUILIBRIUM">EQUILIBRIUM</a>.</body></html> | |
| 6757. |
Discuss the importance of the following factors in determing the nature of the market you have studied: (a) Number of firms, Selling costs, (c ) Price Discrimination, (d) Interdependence of firms. |
| Answer» <html><body><p></p>Solution :(a) When the number of firms is very large, 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 perfect <a href="https://interviewquestions.tuteehub.com/tag/competition-423521" style="font-weight:bold;" target="_blank" title="Click to know more about COMPETITION">COMPETITION</a>. When the number of firms is no as large as under perfect competition, the situation is that of monopolistic competition. When there are only a few firms in <a href="https://interviewquestions.tuteehub.com/tag/themarket-1408348" style="font-weight:bold;" target="_blank" title="Click to know more about THEMARKET">THEMARKET</a>, it is a case of oligopoly. When there is only one firm in the market,it is a case of monopoly <br/> (b) Heavy selling cost arise under oligopoly and monopolistic competion. Under monopoly low selling costs are incuried for <a href="https://interviewquestions.tuteehub.com/tag/informative-499229" style="font-weight:bold;" target="_blank" title="Click to know more about INFORMATIVE">INFORMATIVE</a> purposes only and there is no selling cost are incurred for information purpose only by and there is no selling cost under perfect competition,<br/> (c )Price discrimination is possible only under monopoly <br/> (d) The interdependence of firms is a characteristic which beiangs to oligopoly</body></html> | |
| 6758. |
Draw a production possibility curve and show the following situtions: (i) Fuller utillsation of resources, (ii) Economic growth, (iii) Decrease in resources, (iv) Under utilisation of resources |
| Answer» | |
| 6759. |
In case of _____ the points are joined using a foot-rule. (frequency polygon/ frequency curve) |
| 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/frequency-465761" style="font-weight:bold;" target="_blank" title="Click to know more about FREQUENCY">FREQUENCY</a> <a href="https://interviewquestions.tuteehub.com/tag/polygon-602436" style="font-weight:bold;" target="_blank" title="Click to know more about POLYGON">POLYGON</a></body></html> | |
| 6760. |
Why does the government of India fix 'support price' for some crops? Explain. |
| 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 some <a href="https://interviewquestions.tuteehub.com/tag/crops-939365" style="font-weight:bold;" target="_blank" title="Click to know more about CROPS">CROPS</a>, fall 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> below a certain level is not <a href="https://interviewquestions.tuteehub.com/tag/good-1009017" style="font-weight:bold;" target="_blank" title="Click to know more about GOOD">GOOD</a> for the farmers. Hence, the government fixes minimum price for these crops.</body></html> | |
| 6761. |
Total fixed cost curve is a vertical straight line, parallel to Y-axis. |
| Answer» <html><body><p></p>Solution :<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 href="https://interviewquestions.tuteehub.com/tag/tfc-659819" style="font-weight:bold;" target="_blank" title="Click to know more about TFC">TFC</a> curve is a horizontal <a href="https://interviewquestions.tuteehub.com/tag/straight-633156" style="font-weight:bold;" target="_blank" title="Click to know more about STRAIGHT">STRAIGHT</a> <a href="https://interviewquestions.tuteehub.com/tag/line-1074199" style="font-weight:bold;" target="_blank" title="Click to know more about LINE">LINE</a> parallel to the X-axis</body></html> | |
| 6762. |
What are the reasons for shift in supply curve? |
| Answer» <html><body><p></p>Solution :The reasons for shift in supply curve are as follows : <br/> (i) Change in price of related goods. ltbr. (<a href="https://interviewquestions.tuteehub.com/tag/ii-1036832" style="font-weight:bold;" target="_blank" title="Click to know more about II">II</a>) Change in price of factors of <a href="https://interviewquestions.tuteehub.com/tag/productions-1168296" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCTIONS">PRODUCTIONS</a>. <br/> (iii) Change in state of technology. <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>) Change in excise tax rate. <br/> (v) Change in the number of <a href="https://interviewquestions.tuteehub.com/tag/firms-989820" style="font-weight:bold;" target="_blank" title="Click to know more about FIRMS">FIRMS</a>.</body></html> | |
| 6763. |
Market for a good is in equilibrium. There is simultaneous ''decrease'' both in demand and supply but there is no change in market price. Explain with help of a schedule how it is possible. |
| Answer» <html><body><p></p>Solution :A simultaneous decrease in both demand and supply may not 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>. This can be illustrated with the help of following <a href="https://interviewquestions.tuteehub.com/tag/schedule-637564" style="font-weight:bold;" target="_blank" title="Click to know more about SCHEDULE">SCHEDULE</a>: <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/SG_MIC_ECO_C11_S01_010_S01.png" width="80%"/> <br/> As seen in the <a href="https://interviewquestions.tuteehub.com/tag/given-473447" style="font-weight:bold;" target="_blank" title="Click to know more about GIVEN">GIVEN</a> table, <a href="https://interviewquestions.tuteehub.com/tag/initially-516121" style="font-weight:bold;" target="_blank" title="Click to know more about INITIALLY">INITIALLY</a>, the equilibrium (market) price is <a href="https://interviewquestions.tuteehub.com/tag/rupee-1192322" style="font-weight:bold;" target="_blank" title="Click to know more about RUPEE">RUPEE</a> 6 per unit and the equilibrium demand and supply is rupee 60 units. <br/> When both demand and supply decrease by 10%, then both demand and supply fall from 60 units to 54 units. It means, at market price of rupee 6, both demand and supply are equal. So, a simultaneous decrease in both demand and supply may not change the market price.</body></html> | |
| 6764. |
Average fixed costs: |
| Answer» <html><body><p>Remainsame at all <a href="https://interviewquestions.tuteehub.com/tag/levels-1072811" style="font-weight:bold;" target="_blank" title="Click to know more about LEVELS">LEVELS</a> ofoutput<br/>Increase as <a href="https://interviewquestions.tuteehub.com/tag/output-1142821" style="font-weight:bold;" target="_blank" title="Click to know more about OUTPUT">OUTPUT</a> <a href="https://interviewquestions.tuteehub.com/tag/increases-1040626" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASES">INCREASES</a><br/>Decreases as output increases<br/>Initially increases and thendecreases</p>Solution :N//A</body></html> | |
| 6765. |
What is mean by price being rigid ? How can oligopoly behaviour lead to such an autcome ? |
| 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> :Rigid prices means that even if cost or demand changes there will be no 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> of the commodity. Oligopoly behaviour <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 such rigid prices because firms try to avoid price competition, <a href="https://interviewquestions.tuteehub.com/tag/otherwise-2208214" style="font-weight:bold;" target="_blank" title="Click to know more about OTHERWISE">OTHERWISE</a> there will be price wars.</body></html> | |
| 6766. |
Which of the following diagram correctly depicts the relation between AR and MR when price falls with rise in output ? |
| Answer» <html><body><p><img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/SG_MIC_ECO_C07_S01_081_O01.png" width="30%"/><br/><img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/SG_MIC_ECO_C07_S01_081_O02.png" width="30%"/><br/><img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/SG_MIC_ECO_C07_S01_081_O03.png" width="30%"/><br/><img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/SG_MIC_ECO_C07_S01_081_O04.png" width="30%"/></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> | |
| 6767. |
Whichone ofthe followingis nota determinat of Individulasupply ? |
| Answer» <html><body><p>Price of the commodity<br/>taxation policy <br/><a href="https://interviewquestions.tuteehub.com/tag/state-21805" style="font-weight:bold;" target="_blank" title="Click to know more about STATE">STATE</a> oftechnology<br/>No. of <a href="https://interviewquestions.tuteehub.com/tag/firms-989820" style="font-weight:bold;" target="_blank" title="Click to know more about FIRMS">FIRMS</a></p>Solution :As there is only one firm supplying the good, the number of firms is not a <a href="https://interviewquestions.tuteehub.com/tag/determinant-949880" style="font-weight:bold;" target="_blank" title="Click to know more about DETERMINANT">DETERMINANT</a> of individual <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> | |
| 6768. |
Withdrawl of subsidy on LPG has increased its price. The production of LPG cannot be increased due to scarcity of resources. Suggest how in two ways the probles of scarcity of LPG can be solved? |
| Answer» <html><body><p></p>Solution :(i) We should make judicious use of this scarce <a href="https://interviewquestions.tuteehub.com/tag/resource-1186659" style="font-weight:bold;" target="_blank" title="Click to know more about RESOURCE">RESOURCE</a> by <a href="https://interviewquestions.tuteehub.com/tag/optimising-7702696" style="font-weight:bold;" target="_blank" title="Click to know more about OPTIMISING">OPTIMISING</a> its <a href="https://interviewquestions.tuteehub.com/tag/usage-25676" style="font-weight:bold;" target="_blank" title="Click to know more about USAGE">USAGE</a> and avoiding wastage. <br/> (ii) Establishing bio-gas plants to <a href="https://interviewquestions.tuteehub.com/tag/supply-1235254" style="font-weight:bold;" target="_blank" title="Click to know more about SUPPLY">SUPPLY</a> biogas (<a href="https://interviewquestions.tuteehub.com/tag/methane-1095077" style="font-weight:bold;" target="_blank" title="Click to know more about METHANE">METHANE</a>) for cooking purposes.</body></html> | |
| 6769. |
Define cost or What does cost mean in economics? |
| Answer» <html><body><p></p>Solution :An <a href="https://interviewquestions.tuteehub.com/tag/amount-374803" style="font-weight:bold;" target="_blank" title="Click to know more about AMOUNT">AMOUNT</a> that has to be paid or given up in order to <a href="https://interviewquestions.tuteehub.com/tag/get-11812" style="font-weight:bold;" target="_blank" title="Click to know more about GET">GET</a> something. In business, cost is usually a monetary valuation of (1) effort, (2) material, (3) <a href="https://interviewquestions.tuteehub.com/tag/resources-11387" style="font-weight:bold;" target="_blank" title="Click to know more about RESOURCES">RESOURCES</a>, (4) time and utilities consumed, (5) risks incurred, and (6) opportunity forgone in production and delivery of a good or service.Economic cost is the combination losses of any <a href="https://interviewquestions.tuteehub.com/tag/goods-1009877" style="font-weight:bold;" target="_blank" title="Click to know more about GOODS">GOODS</a> that have a value attached to them by any one individual. Economic cost is used mainly by economists as <a href="https://interviewquestions.tuteehub.com/tag/means-1091780" style="font-weight:bold;" target="_blank" title="Click to know more about MEANS">MEANS</a> to compare the prudence of one course of action with that of another.</body></html> | |
| 6770. |
What is meant by mean deviation? What are the methods to calculate it? Give its merits and demerits. |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/mean-1091459" style="font-weight:bold;" target="_blank" title="Click to know more about MEAN">MEAN</a> deviation is the arithmetic average of the deviations of all the values taken from some average value (mean, <a href="https://interviewquestions.tuteehub.com/tag/median-1092401" style="font-weight:bold;" target="_blank" title="Click to know more about MEDIAN">MEDIAN</a>, mode) of the series, ignoring signs ( + or - ) of deviations.<br/>Merits :- <br/>1. SImple.<br/>2. <a href="https://interviewquestions.tuteehub.com/tag/based-389387" style="font-weight:bold;" target="_blank" title="Click to know more about BASED">BASED</a> on all values.<br/>3. <a href="https://interviewquestions.tuteehub.com/tag/less-1071906" style="font-weight:bold;" target="_blank" title="Click to know more about LESS">LESS</a> effect on <a href="https://interviewquestions.tuteehub.com/tag/extreme-981946" style="font-weight:bold;" target="_blank" title="Click to know more about EXTREME">EXTREME</a> Values.<br/>Demerits :- <br/>1. Inaccuracy.<br/>2. Not capable of Algebraic Treatment.<br/>3. Unreliable.</body></html> | |
| 6771. |
Price Elasticity of Demand of a good is (-) 3 it shows that: |
| Answer» <html><body><p>When <a href="https://interviewquestions.tuteehub.com/tag/price-1165141" style="font-weight:bold;" target="_blank" title="Click to know more about PRICE">PRICE</a> falls by <a href="https://interviewquestions.tuteehub.com/tag/1-256655" style="font-weight:bold;" target="_blank" title="Click to know more about 1">1</a>% demand rises by <a href="https://interviewquestions.tuteehub.com/tag/3-301577" style="font-weight:bold;" target="_blank" title="Click to know more about 3">3</a>%<br/>when price rises by 1% demand its falls by 3%<br/><a href="https://interviewquestions.tuteehub.com/tag/either-7265046" style="font-weight:bold;" target="_blank" title="Click to know more about EITHER">EITHER</a> a or b<br/>Neither a nor b </p>Solution :N/a</body></html> | |
| 6772. |
Give meaning of "Returns to a Factor". |
| Answer» <html><body><p></p>Solution :Returns to factor <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 resultant <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 the total product when only <a href="https://interviewquestions.tuteehub.com/tag/one-585732" style="font-weight:bold;" target="_blank" title="Click to know more about ONE">ONE</a> factor is increased, <a href="https://interviewquestions.tuteehub.com/tag/keeping-1063392" style="font-weight:bold;" target="_blank" title="Click to know more about KEEPING">KEEPING</a> all other factors fixed.</body></html> | |
| 6773. |
How will a consumer react when he finds that MRS_(XY) lt (P_(X))/(P_(Y))? |
| 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>Solution :The <a href="https://interviewquestions.tuteehub.com/tag/consumer-25599" style="font-weight:bold;" target="_blank" title="Click to know more about CONSUMER">CONSUMER</a> will start buying more of Y and <a href="https://interviewquestions.tuteehub.com/tag/less-1071906" style="font-weight:bold;" target="_blank" title="Click to know more about LESS">LESS</a> of X till `MRS_(<a href="https://interviewquestions.tuteehub.com/tag/xy-747762" style="font-weight:bold;" target="_blank" title="Click to know more about XY">XY</a>) = (P_(X))/(P_(Y))`</body></html> | |
| 6774. |
In the long run, equilibrium price is equal to |
| Answer» <html><body><p>AR<br/>AC<br/>MR<br/>none of these.</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> | |
| 6775. |
Mention the situation in which an increase in demand will lead to rise in equilibrium quantity, but no change in equilibrium price. |
| Answer» <html><body><p></p>Solution :When the <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 <a href="https://interviewquestions.tuteehub.com/tag/elastic-967540" style="font-weight:bold;" target="_blank" title="Click to know more about ELASTIC">ELASTIC</a>, an <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> will just lead to an increase in equilibrium qunatity demanded but there will bo no change in 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>.</body></html> | |
| 6776. |
the demand for meals at a medium- priced restaurant is elastic. If the management of the restaurant is considering raising prices, it can expect a relatively: |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/proportionately-7705336" style="font-weight:bold;" target="_blank" title="Click to know more about PROPORTIONATELY">PROPORTIONATELY</a> <a href="https://interviewquestions.tuteehub.com/tag/large-1066424" style="font-weight:bold;" target="_blank" title="Click to know more about LARGE">LARGE</a> fallin quantity demanded<br/>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 demanded <br/>Proportionately small <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 quantity demanded<br/>infinite change in quantity demanded</p>Solution :N/a</body></html> | |
| 6777. |
When MP is zero, what can you say about TP? |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/tp-1424360" style="font-weight:bold;" target="_blank" title="Click to know more about TP">TP</a> is increasing<br/>TP is <a href="https://interviewquestions.tuteehub.com/tag/maximum-556915" style="font-weight:bold;" target="_blank" title="Click to know more about MAXIMUM">MAXIMUM</a><br/>TP is falling<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>. When <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/zero-751093" style="font-weight:bold;" target="_blank" title="Click to know more about ZERO">ZERO</a>, TP is maximum.</body></html> | |
| 6778. |
Multiple bar diagrams are those diagrams which show…………..sets of data simultancolusly. (one or more/two of more) |
| 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/two-714195" style="font-weight:bold;" target="_blank" title="Click to know more about TWO">TWO</a> or more</body></html> | |
| 6779. |
Energy like electricity is scarce and can be used for various purposes like cooking, heating, lighting etc. What would be the problem when chosen for one use_________. |
| Answer» <html><body><p></p>Solution :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> is that when chosen for one use, the other use of <a href="https://interviewquestions.tuteehub.com/tag/electricity-968393" style="font-weight:bold;" target="_blank" title="Click to know more about ELECTRICITY">ELECTRICITY</a> will have to be either rejected or <a href="https://interviewquestions.tuteehub.com/tag/postponed-7704242" style="font-weight:bold;" target="_blank" title="Click to know more about POSTPONED">POSTPONED</a> due to its <a href="https://interviewquestions.tuteehub.com/tag/scarcity-1195678" style="font-weight:bold;" target="_blank" title="Click to know more about SCARCITY">SCARCITY</a>.</body></html> | |
| 6780. |
if (DeltaP)/P =0.2 and price elasticity is (-) 2. calculate the percentage fall in demand. Also calculate the original expenditure if new expenditure is₹ 180 at price of₹ 6. |
| 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> | |
| 6781. |
"The demand curve of a commodity will not obey the law of demand, i.e., it will not slope downwards if there is a rise in the price of substitute goods". Comment. |
| Answer» <html><body><p></p>Solution :The given statement is correct. With rise 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 substitutes, the 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> of the commodity <a href="https://interviewquestions.tuteehub.com/tag/may-557248" style="font-weight:bold;" target="_blank" title="Click to know more about MAY">MAY</a> not <a href="https://interviewquestions.tuteehub.com/tag/obey-584473" style="font-weight:bold;" target="_blank" title="Click to know more about OBEY">OBEY</a> the law of demand because demand curve is drawn on an assumption that there is not change in other determinates of demand.</body></html> | |
| 6782. |
Define perfect competition. |
| Answer» <html><body><p></p>Solution :It refers to a <a href="https://interviewquestions.tuteehub.com/tag/market-25464" style="font-weight:bold;" target="_blank" title="Click to know more about MARKET">MARKET</a> situation where there are very large number of buyers and selles dealing in a <a href="https://interviewquestions.tuteehub.com/tag/homogeneous-1028736" style="font-weight:bold;" target="_blank" title="Click to know more about HOMOGENEOUS">HOMOGENEOUS</a> product at a <a href="https://interviewquestions.tuteehub.com/tag/price-1165141" style="font-weight:bold;" target="_blank" title="Click to know more about PRICE">PRICE</a> <a href="https://interviewquestions.tuteehub.com/tag/fixed-457597" style="font-weight:bold;" target="_blank" title="Click to know more about FIXED">FIXED</a> by the industry. The firm is a price <a href="https://interviewquestions.tuteehub.com/tag/taker-1238573" style="font-weight:bold;" target="_blank" title="Click to know more about TAKER">TAKER</a>.</body></html> | |
| 6783. |
Why does the budget line slope downward ? |
| 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/budget-25496" style="font-weight:bold;" target="_blank" title="Click to know more about BUDGET">BUDGET</a> line <a href="https://interviewquestions.tuteehub.com/tag/slopes-1212080" style="font-weight:bold;" target="_blank" title="Click to know more about SLOPES">SLOPES</a> downward because with the <a href="https://interviewquestions.tuteehub.com/tag/given-473447" style="font-weight:bold;" target="_blank" title="Click to know more about GIVEN">GIVEN</a> money income, more of 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> can be bought only by decreasing some units of the other good.</body></html> | |
| 6784. |
Arrange the following coefficients of price elasticity of demand in ascending order: -0.7, -0.3, -1-1, -0.8. |
| Answer» <html><body><p></p>Solution :Ascending Order : -0.3,-0.7,-0.8,-1.1 ( minus <a href="https://interviewquestions.tuteehub.com/tag/sign-1207134" style="font-weight:bold;" target="_blank" title="Click to know more about SIGN">SIGN</a> only repersents the <a href="https://interviewquestions.tuteehub.com/tag/inverse-1050621" style="font-weight:bold;" target="_blank" title="Click to know more about INVERSE">INVERSE</a> <a href="https://interviewquestions.tuteehub.com/tag/relation-1183220" style="font-weight:bold;" target="_blank" title="Click to know more about RELATION">RELATION</a> between price and quantity demanded)</body></html> | |
| 6785. |
Cut of 1st,2nd and 3rd phases, which phase of production will the producer stop at ? Or Till which point should a producer keep increasing the variable factor to get maximum profit ? |
| Answer» <html><body><p><br/></p>Answer :The producer will not stop in phase I, as by employing an additional unit of variable <a href="https://interviewquestions.tuteehub.com/tag/factor-458892" style="font-weight:bold;" target="_blank" title="Click to know more about FACTOR">FACTOR</a> marginal product increases, so he will continue to produce as there is <a href="https://interviewquestions.tuteehub.com/tag/scope-11419" style="font-weight:bold;" target="_blank" title="Click to know more about SCOPE">SCOPE</a> for additional profits. <br/>The producer will not enter phase III of production as by employing an additional unit of variable factor, TP decreases and MP is negative implying <a href="https://interviewquestions.tuteehub.com/tag/losses-544756" style="font-weight:bold;" target="_blank" title="Click to know more about LOSSES">LOSSES</a>. <br/> <a href="https://interviewquestions.tuteehub.com/tag/thus-2307358" style="font-weight:bold;" target="_blank" title="Click to know more about THUS">THUS</a>, the producer will stop in phase II as producer will find his equilibrium when TP is maximum and constant and MP becomes zero. Though MP falls but still positive addition is made to TP and the producer is <a href="https://interviewquestions.tuteehub.com/tag/able-361137" style="font-weight:bold;" target="_blank" title="Click to know more about ABLE">ABLE</a> to obtain a bigger TP compared to TP in the first phase.</body></html> | |
| 6786. |
Define unitary elastic demand and draw a demand curve for it. What is the significance of a unitary elastic demand 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> :N/a</body></html> | |
| 6787. |
Data represented through arithmetic line graph help in understanding: (i) long term trend(ii) cyclicity in data (iii) seasonality in data(iv) all of the above |
| 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> :i) <a href="https://interviewquestions.tuteehub.com/tag/long-537592" style="font-weight:bold;" target="_blank" title="Click to know more about LONG">LONG</a> <a href="https://interviewquestions.tuteehub.com/tag/term-1241851" style="font-weight:bold;" target="_blank" title="Click to know more about TERM">TERM</a> <a href="https://interviewquestions.tuteehub.com/tag/trend-661829" style="font-weight:bold;" target="_blank" title="Click to know more about TREND">TREND</a></body></html> | |
| 6788. |
When is a firm called 'price-taker' ? |
| Answer» | |
| 6789. |
Children are the future policy makers of our country. However, many of the poor children are ill-trearted and are forced to work at a tender age. Discuss the steps that need to be taken to reduce child labour? |
| Answer» <html><body><p></p>Solution :The following steps can be taken to reduce child labour: <br/> (i) <a href="https://interviewquestions.tuteehub.com/tag/government-1010037" style="font-weight:bold;" target="_blank" title="Click to know more about GOVERNMENT">GOVERNMENT</a> should take <a href="https://interviewquestions.tuteehub.com/tag/serious-7274293" style="font-weight:bold;" target="_blank" title="Click to know more about SERIOUS">SERIOUS</a> steps against employers who hire child labour. <br/> (ii) Government should be <a href="https://interviewquestions.tuteehub.com/tag/make-546668" style="font-weight:bold;" target="_blank" title="Click to know more about MAKE">MAKE</a> education compulsory and accessible to the poorest of the poor.</body></html> | |
| 6790. |
Draw the AR curve of a firm under (i) Monopoly and (ii) Perfect competition. Explain the difference in these curves, if any. |
| Answer» <html><body><p></p>Solution :<img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/MIC_ECO_XI_U04_C10_E01_029_S01.png" width="80%"/> <br/> <a href="https://interviewquestions.tuteehub.com/tag/defference-2048558" style="font-weight:bold;" target="_blank" title="Click to know more about DEFFERENCE">DEFFERENCE</a>. <a href="https://interviewquestions.tuteehub.com/tag/ar-380980" style="font-weight:bold;" target="_blank" title="Click to know more about AR">AR</a> curve in perfect <a href="https://interviewquestions.tuteehub.com/tag/competition-423521" style="font-weight:bold;" target="_blank" title="Click to know more about COMPETITION">COMPETITION</a> is perfectly elastic due to uniformity in price <a href="https://interviewquestions.tuteehub.com/tag/whereas-2326610" style="font-weight:bold;" target="_blank" title="Click to know more about WHEREAS">WHEREAS</a> in monopoly, it is less elastic and downward sloping due to reduction in price.</body></html> | |
| 6791. |
When does government intervene to fix minimum price of a commodity (Price floor) ? |
| Answer» <html><body><p><br/></p>Solution :Government resorts to price floor when the market equilibrium price is considered to be unremunerative for the producers which doesnot <a href="https://interviewquestions.tuteehub.com/tag/provide-607804" style="font-weight:bold;" target="_blank" title="Click to know more about PROVIDE">PROVIDE</a> incentives to the producers to expand their <a href="https://interviewquestions.tuteehub.com/tag/production-14556" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCTION">PRODUCTION</a>. Government in order to <a href="https://interviewquestions.tuteehub.com/tag/protect-1170661" style="font-weight:bold;" target="_blank" title="Click to know more about PROTECT">PROTECT</a> the interest of producers announces the minimum price of the commodity to provide reasonable prices to the producers or farmers for certain agricultural goods and increase their income. Unsold surplus of goods is bought by the government. In India food corporation of India on behalf of the government producers surplus of wheat and rice production <a href="https://interviewquestions.tuteehub.com/tag/created-7257327" style="font-weight:bold;" target="_blank" title="Click to know more about CREATED">CREATED</a> as a result of fixation of 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> prices of wheat and rice.</body></html> | |
| 6792. |
On what type of goods, Maximum Price Ceiling is normally imposed by the government? |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/maximum-556915" style="font-weight:bold;" target="_blank" title="Click to know more about MAXIMUM">MAXIMUM</a> Price Ceiling is normally imposed by the <a href="https://interviewquestions.tuteehub.com/tag/government-1010037" style="font-weight:bold;" target="_blank" title="Click to know more about GOVERNMENT">GOVERNMENT</a> on <a href="https://interviewquestions.tuteehub.com/tag/goods-1009877" style="font-weight:bold;" target="_blank" title="Click to know more about GOODS">GOODS</a> needed by masses, like wheat, <a href="https://interviewquestions.tuteehub.com/tag/rice-1188681" style="font-weight:bold;" target="_blank" title="Click to know more about RICE">RICE</a>, sugar etc.</body></html> | |
| 6793. |
Explain producer's equilibrium in terms of total cost and total revenue. |
| 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 <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 at which the total revenue <a href="https://interviewquestions.tuteehub.com/tag/minus-1098111" style="font-weight:bold;" target="_blank" title="Click to know more about MINUS">MINUS</a> the total cost is <a href="https://interviewquestions.tuteehub.com/tag/maximum-556915" style="font-weight:bold;" target="_blank" title="Click to know more about MAXIMUM">MAXIMUM</a> is the equilibrium level of the output.Producer will be in equilibirium when the difference between TR and TC is maximum.</body></html> | |
| 6794. |
State two characteristics of the economic resources which give rise to economic problem. |
| 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> :(i) Economic <a href="https://interviewquestions.tuteehub.com/tag/resources-11387" style="font-weight:bold;" target="_blank" title="Click to know more about RESOURCES">RESOURCES</a> are scarce, (ii) Economic resources have <a href="https://interviewquestions.tuteehub.com/tag/alternative-858623" style="font-weight:bold;" target="_blank" title="Click to know more about ALTERNATIVE">ALTERNATIVE</a> uses.</body></html> | |
| 6795. |
What is tabulation? Describe functionsal parts of a statistical table. Draw the specimen of a tabel. |
| 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> | |
| 6796. |
At a particular level of output, a producer finds that MC gt MR. What will a producer do to maximise his profit ? |
| Answer» <html><body><p></p>Solution :All profit-maximizing <a href="https://interviewquestions.tuteehub.com/tag/firms-989820" style="font-weight:bold;" target="_blank" title="Click to know more about FIRMS">FIRMS</a> produce where their <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 (MC) (the cost of producing <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) is equal to their marginal revenue (MR) (the revenue received from selling 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). This MR=MC rule is the same for <a href="https://interviewquestions.tuteehub.com/tag/monopolists-563450" style="font-weight:bold;" target="_blank" title="Click to know more about MONOPOLISTS">MONOPOLISTS</a> as is it is for perfectly competitive firms</body></html> | |
| 6797. |
What is mean by 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> :Average 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> <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 per unit variable cost of production.</body></html> | |
| 6798. |
Marginal revenue is zero when every additional unit is sold at the same price. |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :False : In such <a href="https://interviewquestions.tuteehub.com/tag/case-910082" style="font-weight:bold;" target="_blank" title="Click to know more about CASE">CASE</a>, marginal revenue = <a href="https://interviewquestions.tuteehub.com/tag/average-13416" style="font-weight:bold;" target="_blank" title="Click to know more about AVERAGE">AVERAGE</a> revenue (or <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> | |
| 6799. |
It is expected that replacement of all existing taxes on good X by the proposed single Goods and Services Tax (GST) will bring down overall tax on good X substantially. Explain its likely chain of effects on price and quantity of good X. Use diagram. |
| Answer» <html><body><p></p>Solution :With <a href="https://interviewquestions.tuteehub.com/tag/decrease-946104" style="font-weight:bold;" target="_blank" title="Click to know more about DECREASE">DECREASE</a> in overall taxes, keeping other factors constant, <a href="https://interviewquestions.tuteehub.com/tag/total-711110" style="font-weight:bold;" target="_blank" title="Click to know more about TOTAL">TOTAL</a> supply in the market willl increase due to reduction in the cost of production. It 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 <a href="https://interviewquestions.tuteehub.com/tag/excess-978535" style="font-weight:bold;" target="_blank" title="Click to know more about EXCESS">EXCESS</a> supply. This leads to <a href="https://interviewquestions.tuteehub.com/tag/competition-423521" style="font-weight:bold;" target="_blank" title="Click to know more about COMPETITION">COMPETITION</a> among sellers, which reduces the price. Fall in price leads to decrease in supply and rise in demand. These changes continue till supply and demand become equal at a new equilibrium price. As there is an increase in supply only, equilibrium quantity will rise, but equilibrium price will fall.</body></html> | |
| 6800. |
What is perfect oligopoly ? |
| Answer» | |