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This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your knowledge and support exam preparation. Choose a topic below to get started.
| 6801. |
What happens to equilibrium price of a commodity If there is 'decrease' in its demand and 'Increase' in its supply? |
| Answer» SOLUTION :EQUILIBRIUM PRICE will FALL. | |
| 6802. |
Mention one factor that causes a rightward shift in the supply curve. OR Give one reason for an increase in supply of a commodity. |
| Answer» Solution : DECREASE in the price of inputs is ONE of the factors which willincrease the supply of the COMMODITY. | |
| 6803. |
"To achieve producer's equilibrium when MC curve should cut the MR curve from below" Defend or refute. |
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Answer» |
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| 6804. |
There are only a few sellers under : |
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Answer» PERFECT COMPETITION |
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| 6805. |
Wage rate of 19 workers is given below: {:("Wages(Rs.)",10,20,30,40,50),("Number of Workers",4,5,3,2,5):} Calculate arithmetic mean, using 'Step-deviationMethod. |
Answer» Solution : `barX=A+(sumfd')/(sumf)XXC` `A=30,C=10 and (sumfd')/(sumf)=(-1)/19=-0.053` Putting these VALUES in the formula: `barX=30+(-1)/19xx10=30-0.053xx10` `=30-0.053=29.47` ARITHMETIC MEAN = Rs. 29.47. |
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| 6806. |
In case of _______ in supply, supply of the good rises at the same price : |
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Answer» decrease |
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| 6807. |
What is Marginal rate of substitution (MRS)? |
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Answer» |
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| 6808. |
Perfectly elasticy demand is represented by a curve which is |
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Answer» PRALLEL to Y-AXIS |
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| 6809. |
Which term is used when less quantity is supplied with a fall in the price of a commodity? |
| Answer» Solution :when the PRICE of commodity DECREASES, the quantity SUPPLIED of it ALSO decreases it is called the contraction of supply. It LEADS to the law of supply. | |
| 6810. |
What is meant by increase in demand ? |
| Answer» SOLUTION :INCREASE in DEMAND refers to a rise in the demand of commodity caused due to any FACTOR other than the own PRICE of the commodity. | |
| 6811. |
What is meant by the problem of "How to produce"? |
| Answer» SOLUTION :This PROBLEM deals with the selection of TECHNIQUE i.e. whether to USE LABOUR intersive or capital intensive technique in production of goods and services. | |
| 6812. |
What is meant by sample method ? Under what circumstances this method is more suitable ? |
| Answer» Solution :SAMPLING methods are the ways to choose people from the population to be considered in a SAMPLE SURVEY. SAMPLES can be divided based on following criteria. Probability samples - In such samples, each population element has a known probability or chance of being CHOSEN for the sample. | |
| 6813. |
Which of the following situation does not lead to an increase in equilibrium price ? |
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Answer» An increase in DEMAND WITHOUT a CHANGE in supply |
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| 6814. |
Define weighted index numbers. |
| Answer» SOLUTION :Weighted index NUMBERS are the index numbers is which different itemsof the series are accorded different weightage, depending UPON their relative importance. | |
| 6815. |
Elaborate the implication of the conditions of equilibrium of a firm. |
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Answer» Conditions of Firm's Equilibrium: (i) Marginal Revenue must b equaltoMarginal Cost. (ii) Marginal Cost mustbe rising. The conditions IMPLIES that the slope of rising Marginal Cost Curve is EQUAL to the slope of Marginal Revenue curve.  Implication of the conditions lies in the fact that beyond the equilibrium point E, MC WOULD become greater than MR i.e., for each additional unit sold beyond output OQ, the cost of producing that unit will be more than the revenue generated by the unit. |
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| 6816. |
Give equation of the budget line. |
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Answer» |
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| 6817. |
Explain the concept of Marginal Rate of Substitution (MRS) by giving an example. Explain its behaving along an indifference curve. |
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Answer» Solution :MRS refers to the rate at which the commodities can be substituted with each other, so that total satisfaction of the consumer remains the same. EXAMPLE. Let the TWO goods be X and Y. Given a certain consumption of X and Y, suppose consumer wants one more unit of X. With increase in one more unit of X, marginal utility of X will reduce. As a RESULT, consumer will be willing to sacrifice less units of Y. As he goes on obtaining more and more of X, marginal utility of X goes on falling and thus, consumer is willing to sacrifice less and less of Y. Marginal Rate of SUBSTITUTION diminishes as the consumer moves downward along the same indifference curve. it shows that consumer is willing to sacrifice lesser units of a Good Y, in order to gain one additional unit of Good X. This happens due to the operation of law of diminishing marginal utility. |
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| 6818. |
________ is the average value of the upper and lower limits. (Cumulative frequency / Mid-value ) |
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Answer» |
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| 6820. |
Explain the effect of the change in prices of related goods on the demand for a given good. |
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| 6821. |
The mean monthly salary paid to all employees in a certain company was Rs. 600. The mean monthly salaries paid to male and female employees were Rs. 620 and Rs. 520 respectively. Find the percentage of male to female employees in the company. |
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Answer» Solution :Given: `barX_(12)=600,barX_(1)=620,barX_(2)=520` `"Let "N_(1)` =Male Employees and `N_(2)` = Female Employees Using the FORMULA of combined arithmetic mean, we have `barX_(12)=(barX_(1)N_(1)+barX_(2)N_(2))/(N_(1)+N_(2))` `600=((620)N_(1)+(520)N_(2))/(N_(1)+N_(2))` Or, `600(N_(1)+N_(2))=620N_(1)+520N_(2)` Or, `600N_(1)+600N_(2)=620N_(1)+520N_(2)` Or, `600N_(2)-520 N_(2)=620N_(1)-600N_(1)` `""80N_(2)=20N_(1)` Or,` ""N_(1)/N_(2)=80/20=4/1` Or, `""N_(1):N_(2)= 4:1` Hence, the percentage of male employees = ` 4/(4+1) xx 100 = 80%` and the percentage of female employees= `1/(4+1) xx 100 = 20%`. |
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| 6822. |
Explain the relationship between: (a) Prices of other goods and demand for the given good. (b) Income of the buyers and demand for a good. |
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Answer» Solution :(a) There are two TYPES of related goods :- (i) Substitute goods, (II) COMPLEMENTARY goods. In case of substitute goods there is a positive relationship between price of one good and the demand for another i.e as price of one good rises the demand for its substitute rises. On the other hand, in case of complementary goods there is a negative relationship between price of one good and the demand for its complement i.e as price of one good rises the demand for its complement falls. (b)There is a positive relationship between income of a consumer and demand for a commodity if the good is a NORMAL good whereas there is a negative relationship between income of the consumer and demand of a commodity if the good is an inferior good. So, with an increase in income of the consumer the demand of a normal good rises and vice-versa and with increase in income of the consumer the demand for an inferior good falls and vice-versa. |
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| 6823. |
Marginal revenue refers to : |
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Answer» ADDITION to total REVENUE when one more unit of output is produced. |
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| 6824. |
What is Law of demand ? |
| Answer» SOLUTION :Law of DEMAND states the inverse relationship between price and quantity demanded, keeping other FACTORS constant. | |
| 6825. |
Explain the distinction between the equations of buget line and budget constraint. |
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Answer» Solution :Let the two goods CONSUMED by the CONSUMER be X and Y. Let `m` be INCOME. The equation of budget line is: `P_(X)X + P_(Y) Y = m`. It shows that the whole collection of the combinations of the two goods on the budget line costs the consumer exactly his income. The equation of budget constraint (or budget SET) is: `P_(X) X + P_(Y)Y le m`. It shows that the money spent on the two goods must be equal to or less than the income. |
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| 6826. |
Demand curve in case of Monopolistic competition is more elestic as compared to demand curve under Monopoly due to |
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Answer» Huge SELLING costs |
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| 6828. |
What does increasing marginal opportunity cost along of PPF mean? |
| Answer» Solution :INCREASING marginal OPPORTUNITY cost ALONG a PPF mena that for each ADDITIONAL increase in the units of a GIVEN commodity, more and more of units of another commodity are sacrificed. | |
| 6829. |
When average cost falls, marginalcost: (Choose the correct alternative) |
| Answer» Solution :N//A | |
| 6830. |
Explain characteristics of range . |
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| 6831. |
In an imperfectly competitive market, if the total revenue is maximum, marginal revenue will be_____. |
| Answer» SOLUTION :ZERO | |
| 6832. |
What is the meant by sample |
| Answer» Solution :Sample is group or COLLECTION of ITEMS from the UNIVERSE wherein the characteristics of the former are supposed to REPRESENT characteristics of the later. | |
| 6833. |
Can MR be zero or negative ? |
| Answer» Solution :Yes, MR can be zero or negative, MR can be zero when TR remains same with RISE in output. MR can be negative when TR FALLS with rise in output. | |
| 6834. |
What is likely to be the impact of "Make in India" appeal to the foreign investors by the Prime Minister of India, on the production possibilities frontier of India? Explain. |
| Answer» Solution :Make in India' appeal SIGNIFIES invitation to foreign producers to PRODUCE in India. This will lead to increase in resources thus RAISING production potential of the country. As a result PP curve will shift UPWARDS. | |
| 6835. |
AR curve is downward sloping when: |
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Answer» Price falls with RISE in OUTPUT |
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| 6836. |
If government reduces subsidy on LPG cylinders, how does it affect its market price ? What alternative energy sources can be used by the consumers? |
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Answer» SOLUTION :Withdrawal or raduction of SUBSIDY will INCREASE its market price. The households can use the following alternative sources of energy : Kerosene oil SOLAR energy Electric stoves BIO gas energy |
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| 6837. |
State one merit of graphic presentation of time series data. |
| Answer» Solution :Graphic PRESENTATION LEAVES a lasting impact on the READER's MIND. The INFORMATION is not easily forgotten. | |
| 6838. |
What happens to the difference between Average TotalCost and Average Variable Cost as productionis increased ? |
| Answer» Solution :The DIFFERENCE betweenAverage Total COST and Average VARIABLE Cost DECREASE. | |
| 6839. |
If income of the consumers rises then equilibrium price of the inferior commodity will also rise. |
| Answer» SOLUTION :An increases in income will decrease the DEMAND for intertor GOODS, which will reduce the EQUILIBRIUM price. | |
| 6840. |
Discuss the primary reason for 'indeterminateness of deamand curve' under the oligopoly from of market. |
| Answer» Solution :PRIMARY reason for indeterminateness of demand curve under oligopoly from of market si that firm under oligopoly are MUTUALLY interdependent i.e., actins regarding change in price and output policy of one firm depend one the ACTIONS, reactions of the other firms. Since the firm always considers the probable reaction it might get after any ACTION is taken by it, there is ncertain nature and position of deamand curve under this market form. Any change in price by one firm MAY or may not lead to change in prices by the rival firms. Therefore the demand curve is not definite. | |
| 6841. |
With increase inlevel to output, average fixed cost goes on failling till reaches zero. |
| Answer» SOLUTION :FALSE. `AFC = (TFC)/("OUTPUT"). TFC ` is constant and positive. So, with an increase in output AFC will fall but can NEVER be zero. | |
| 6843. |
When is the fuller utilisation of available resources said to have taken palce? |
| Answer» Solution :Fuller utiliaation of available resources is SAID to take place when an ECONOMY poerates on any point LAYING on the PPF. | |
| 6844. |
What does the value of third quartial indicate about a series ? |
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| 6845. |
Explain the implications of following features of perfect competition : (a) large number of buyers and sellers (b) freedom of entry and exit of firms. |
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| 6846. |
In case of perfect competition, AR curve is |
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Answer» DOWNWARD sloping |
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| 6847. |
What does price elasticity of supply mean ? How do we measure it ? |
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Answer» Solution :`P.e_(S)` measures the responsiveness of quantity SUPPLIED to CHANGES in the PRICE of the good. `P.e_(S)=(%"Change in Quanity Supplied")/(%"Change in Price")=(P)/(Q)xx(DELTAQ)/(DeltaP)` |
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| 6848. |
A firmis perfectly competitive market can influence market price :- |
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Answer» By lowering output |
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| 6849. |
If MR is more than MC at a particular level of output , then producer will: |
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Answer» REDUCE PRODUCTION |
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| 6850. |
Median is free from the effect of extreme values. |
| Answer» SOLUTION :TRUE because it is SELECTED from MIDDLE. | |