InterviewSolution
Saved Bookmarks
InterviewSolution
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.
| 6851. |
A curve based on a series where there are two classes with highest frequencies is called _______ curve. (Bi-modal / mixed) |
| 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> :Bi-modal</body></html> | |
| 6852. |
Explain the chain of effects of 'increase' in demand of a good. |
| Answer» <html><body><p></p>Solution :Increase in demand for the good <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 a rightward shift in the demand curve. The increase in demand 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 buyers causing a push in the market price. The <a href="https://interviewquestions.tuteehub.com/tag/increased-1040402" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASED">INCREASED</a> price leads to an increase in 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> and a fall in demand leading to a new equilibrium where both the price and 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> are higher.</body></html> | |
| 6853. |
If there are two supply curves which intersect each other, which supply curve has greater elasticity of supply. Explain. |
| Answer» <html><body><p></p>Solution :If <a href="https://interviewquestions.tuteehub.com/tag/two-714195" style="font-weight:bold;" target="_blank" title="Click to know more about TWO">TWO</a> supply curves are intersecting each other, then the flatter supply curve will have more elasticity than the steeper supply curve. <br/> It is clear from the diagram that the effect of change in <a href="https://interviewquestions.tuteehub.com/tag/price-1165141" style="font-weight:bold;" target="_blank" title="Click to know more about PRICE">PRICE</a> form OP to `OP_(1)` is more of flatter supply curve SS as `OQ_(<a href="https://interviewquestions.tuteehub.com/tag/2-283658" style="font-weight:bold;" target="_blank" title="Click to know more about 2">2</a>)gtOQ_(1)`. <br/> Hence, it is proved that at the point of <a href="https://interviewquestions.tuteehub.com/tag/intersection-1049849" style="font-weight:bold;" target="_blank" title="Click to know more about INTERSECTION">INTERSECTION</a> of supply curves, flatter the curve, more elastic it is. <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/MIC_ECO_XI_U03_C09_E01_036_S01.png" width="80%"/></body></html> | |
| 6854. |
Explain the 'free entry and exit of firms' feature of monopolistic competition. |
| Answer» | |
| 6855. |
Distinguish between Positive Economics and Normative Economics |
| Answer» | |
| 6856. |
If due to fall in the price of goofd X, demand for good Y rises, the two goods are : (Choose the correctalternative) |
| Answer» <html><body><p>Subsitutes<br/>Complements<br/>Not related<br/>Competitive</p>Answer :<a href="https://interviewquestions.tuteehub.com/tag/b-387190" style="font-weight:bold;" target="_blank" title="Click to know more about B">B</a></body></html> | |
| 6857. |
Draw a PPC to represent the following on it : (i) Underemployment of resources (ii) Fuller utilisation of resources (iii) Grwoth of resources |
| Answer» <html><body><p></p>Solution :(i) <a href="https://interviewquestions.tuteehub.com/tag/points-1157347" style="font-weight:bold;" target="_blank" title="Click to know more about POINTS">POINTS</a> L, M, M <a href="https://interviewquestions.tuteehub.com/tag/represent-613876" style="font-weight:bold;" target="_blank" title="Click to know more about REPRESENT">REPRESENT</a> under-employment of <a href="https://interviewquestions.tuteehub.com/tag/resources-11387" style="font-weight:bold;" target="_blank" title="Click to know more about RESOURCES">RESOURCES</a>. <br/> (ii) Points A, H, D, I, E represent fuller utilisation of resources. <br/> (iii) Points S, T, U, represent growth of resources. <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/MIC_ECO_XI_U01_C01_E01_070_S01.png" width="80%"/></body></html> | |
| 6858. |
Why does an economic problem arise ? |
| Answer» <html><body><p></p>Solution :An <a href="https://interviewquestions.tuteehub.com/tag/economic-448435" style="font-weight:bold;" target="_blank" title="Click to know more about ECONOMIC">ECONOMIC</a> problem <a href="https://interviewquestions.tuteehub.com/tag/arises-884113" style="font-weight:bold;" target="_blank" title="Click to know more about ARISES">ARISES</a> because we have to <a href="https://interviewquestions.tuteehub.com/tag/satisfy-1195236" style="font-weight:bold;" target="_blank" title="Click to know more about SATISFY">SATISFY</a> <a href="https://interviewquestions.tuteehub.com/tag/unlimited-1438880" style="font-weight:bold;" target="_blank" title="Click to know more about UNLIMITED">UNLIMITED</a> wants out of limited <a href="https://interviewquestions.tuteehub.com/tag/resources-11387" style="font-weight:bold;" target="_blank" title="Click to know more about RESOURCES">RESOURCES</a> having alternative uses.</body></html> | |
| 6859. |
Demand curve of a firm under monopoly is: |
| Answer» <html><body><p>Dowward sloping<br/>Intermediate<br/>Upward sloping<br/>Perfectly Elastic</p>Solution :A</body></html> | |
| 6860. |
What are the main nethods of random sampling. |
| 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> :In this <a href="https://interviewquestions.tuteehub.com/tag/case-910082" style="font-weight:bold;" target="_blank" title="Click to know more about CASE">CASE</a> each individual is <a href="https://interviewquestions.tuteehub.com/tag/chosen-2515513" style="font-weight:bold;" target="_blank" title="Click to know more about CHOSEN">CHOSEN</a> <a href="https://interviewquestions.tuteehub.com/tag/entirely-2614676" style="font-weight:bold;" target="_blank" title="Click to know more about ENTIRELY">ENTIRELY</a> by <a href="https://interviewquestions.tuteehub.com/tag/chance-913792" style="font-weight:bold;" target="_blank" title="Click to know more about CHANCE">CHANCE</a> and each member of the population has an equal chance, or probability, of being selected. ...</body></html> | |
| 6861. |
Explain the concept of non-viable industry with the help of an example. |
| Answer» <html><body><p></p>Solution :Non-viable industry refers to an industry for which supply and demand curves never intersect each other in the <a href="https://interviewquestions.tuteehub.com/tag/positive-1159908" style="font-weight:bold;" target="_blank" title="Click to know more about POSITIVE">POSITIVE</a> <a href="https://interviewquestions.tuteehub.com/tag/axis-889931" style="font-weight:bold;" target="_blank" title="Click to know more about AXIS">AXIS</a>.<br/>For example, the cement industry will become non-viable if the government <a href="https://interviewquestions.tuteehub.com/tag/puts-1173388" style="font-weight:bold;" target="_blank" title="Click to know more about PUTS">PUTS</a> an entry tax for the firms because the <a href="https://interviewquestions.tuteehub.com/tag/cost-25707" style="font-weight:bold;" target="_blank" title="Click to know more about COST">COST</a> of production will increase i.e the demad and supply curve will not intersect in the positive axis.</body></html> | |
| 6862. |
Define marginal product, state the behaviour of marginal product when only one input is increased and other inputs are held constant. |
| Answer» <html><body><p></p>Solution :Marginal <a href="https://interviewquestions.tuteehub.com/tag/product-25523" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCT">PRODUCT</a> is the addition to <a href="https://interviewquestions.tuteehub.com/tag/total-711110" style="font-weight:bold;" target="_blank" title="Click to know more about TOTAL">TOTAL</a> product when one more 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> is employed, keeping other factors constant.<br/>The law of diminishing returns to a factor states that Marginal Product of a factor initially rises with its employment level, but after a certain level of employment it <a href="https://interviewquestions.tuteehub.com/tag/starts-1224822" style="font-weight:bold;" target="_blank" title="Click to know more about STARTS">STARTS</a> falling and ultimately becomes <a href="https://interviewquestions.tuteehub.com/tag/negative-570381" style="font-weight:bold;" target="_blank" title="Click to know more about NEGATIVE">NEGATIVE</a>.<br/></body></html> | |
| 6863. |
What is relationship between AC and MC? |
| Answer» <html><body><p></p>Solution :(i) when MC lt <a href="https://interviewquestions.tuteehub.com/tag/ac-361271" style="font-weight:bold;" target="_blank" title="Click to know more about AC">AC</a>, AC falls. <br/> (<a href="https://interviewquestions.tuteehub.com/tag/ii-1036832" style="font-weight:bold;" target="_blank" title="Click to know more about II">II</a>) When MC = AC, AC is constant and at its minimum point. <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>) When MC <a href="https://interviewquestions.tuteehub.com/tag/gt-1013864" style="font-weight:bold;" target="_blank" title="Click to know more about GT">GT</a> AC, AC rises</body></html> | |
| 6864. |
When is supply of a good said to be price inelastic? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :When the <a href="https://interviewquestions.tuteehub.com/tag/percentage-13406" style="font-weight:bold;" target="_blank" title="Click to know more about PERCENTAGE">PERCENTAGE</a> change in its supply is less than the percentage change in its <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> | |
| 6865. |
In a typical demand schedule, quantity demanded : |
| Answer» <html><body><p>Varies directly with price<br/>Varies <a href="https://interviewquestions.tuteehub.com/tag/proportionately-7705336" style="font-weight:bold;" target="_blank" title="Click to know more about PROPORTIONATELY">PROPORTIONATELY</a> with price<br/>Varies <a href="https://interviewquestions.tuteehub.com/tag/inversely-7688775" style="font-weight:bold;" target="_blank" title="Click to know more about INVERSELY">INVERSELY</a> with price<br/>Is <a href="https://interviewquestions.tuteehub.com/tag/independent-505826" style="font-weight:bold;" target="_blank" title="Click to know more about INDEPENDENT">INDEPENDENT</a> of price</p>Answer :C</body></html> | |
| 6866. |
Can AP rise when MP starts declining ? |
| 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> :Yes, AP can rise when MP <a href="https://interviewquestions.tuteehub.com/tag/starts-1224822" style="font-weight:bold;" target="_blank" title="Click to know more about STARTS">STARTS</a> <a href="https://interviewquestions.tuteehub.com/tag/declining-945971" style="font-weight:bold;" target="_blank" title="Click to know more about DECLINING">DECLINING</a>. It can happen as long as falling MP is more than AP. <a href="https://interviewquestions.tuteehub.com/tag/however-1032379" style="font-weight:bold;" target="_blank" title="Click to know more about HOWEVER">HOWEVER</a>, when MP <a href="https://interviewquestions.tuteehub.com/tag/becomes-1994370" style="font-weight:bold;" target="_blank" title="Click to know more about BECOMES">BECOMES</a> equal to AP, then further decline in MP will also reduce the AP.</body></html> | |
| 6867. |
In which of the following market structure, advertising expenses are the least? |
| Answer» <html><body><p>Monopoly<br/>Duopoly<br/>Monopolistic Competition<br/>Oligopoly</p>Solution :N/a</body></html> | |
| 6868. |
Homogenous Product's is a characteristic of: |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/perfect-1150611" style="font-weight:bold;" target="_blank" title="Click to know more about PERFECT">PERFECT</a> competition<br/>Perfect <a href="https://interviewquestions.tuteehub.com/tag/oligopoly-585440" style="font-weight:bold;" target="_blank" title="Click to know more about OLIGOPOLY">OLIGOPOLY</a> only<br/>Both a and b<br/>None of these</p>Solution :N/a</body></html> | |
| 6869. |
Explain the implications of the following in an oligopoly market: (i) Interdependence between firms (ii) Barriers to the entry of new firms |
| Answer» <html><body><p></p>Solution :(i) when there are only a few firms in a market, it islikely that each has some <a href="https://interviewquestions.tuteehub.com/tag/knowledge-25694" style="font-weight:bold;" target="_blank" title="Click to know more about KNOWLEDGE">KNOWLEDGE</a> as to how its rivals <a href="https://interviewquestions.tuteehub.com/tag/operate-586874" style="font-weight:bold;" target="_blank" title="Click to know more about OPERATE">OPERATE</a>. Each firms expect reaction from its rival firms. Therefore each firms, in deciding price and output, takes into account the expected reactions by its rivals.In this way firms are interdependent on each other.<br/> (ii) The main reason why the <a href="https://interviewquestions.tuteehub.com/tag/number-582134" style="font-weight:bold;" target="_blank" title="Click to know more about NUMBER">NUMBER</a> of firms is small is that there are barriers which prevent <a href="https://interviewquestions.tuteehub.com/tag/entry-972873" style="font-weight:bold;" target="_blank" title="Click to know more about ENTRY">ENTRY</a> of firms into industry. Patents,large capital requirement, control over crucial raw materials, <a href="https://interviewquestions.tuteehub.com/tag/etc-975753" style="font-weight:bold;" target="_blank" title="Click to know more about ETC">ETC</a> prevent new firms from entering into industry. Such barriers make an industry oligopoly.</body></html> | |
| 6870. |
If increases in demand is greater than the increases in supply, then the equilibrium price: |
| Answer» <html><body><p>Decreases<br/>Increases<br/>Does not <a href="https://interviewquestions.tuteehub.com/tag/change-913808" style="font-weight:bold;" target="_blank" title="Click to know more about CHANGE">CHANGE</a> at all<br/>Cannot be determined</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> | |
| 6871. |
When average cost falls, marginal cost: (Choose the correct alternative) |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/falls-983294" style="font-weight:bold;" target="_blank" title="Click to know more about FALLS">FALLS</a> <br/>Rises<br/><a href="https://interviewquestions.tuteehub.com/tag/may-557248" style="font-weight:bold;" target="_blank" title="Click to know more about MAY">MAY</a> <a href="https://interviewquestions.tuteehub.com/tag/fall-983217" style="font-weight:bold;" target="_blank" title="Click to know more about FALL">FALL</a> or may <a href="https://interviewquestions.tuteehub.com/tag/rise-1189674" style="font-weight:bold;" target="_blank" title="Click to know more about RISE">RISE</a> <br/><a href="https://interviewquestions.tuteehub.com/tag/neither-1113494" style="font-weight:bold;" target="_blank" title="Click to know more about NEITHER">NEITHER</a> falls nor rises<br/></p>Solution :May fall or may rise</body></html> | |
| 6872. |
Why is the number of firms small in oligopoly ? Explain |
| Answer» | |
| 6873. |
When a firm sells more at the uniform price, TR : |
| Answer» <html><body><p>increases at <a href="https://interviewquestions.tuteehub.com/tag/falling-983241" style="font-weight:bold;" target="_blank" title="Click to know more about FALLING">FALLING</a> <a href="https://interviewquestions.tuteehub.com/tag/rate-1177476" style="font-weight:bold;" target="_blank" title="Click to know more about RATE">RATE</a><br/>incraeses at <a href="https://interviewquestions.tuteehub.com/tag/rising-1189698" style="font-weight:bold;" target="_blank" title="Click to know more about RISING">RISING</a> rate<br/>increases at constant rate <br/>none of these</p>Answer :<a href="https://interviewquestions.tuteehub.com/tag/c-7168" style="font-weight:bold;" target="_blank" title="Click to know more about C">C</a></body></html> | |
| 6874. |
All per unit cost curves (i.e., AVC and AFCcurves) are U-shaped. |
| 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>. AC and AVC curves are U-shaped, but AFC is a rectangular hyperbola.The AFC is <a href="https://interviewquestions.tuteehub.com/tag/defined-947013" style="font-weight:bold;" target="_blank" title="Click to know more about DEFINED">DEFINED</a> as the <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, which is a <a href="https://interviewquestions.tuteehub.com/tag/constant-930172" style="font-weight:bold;" target="_blank" title="Click to know more about CONSTANT">CONSTANT</a>, divided by <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 output produced. If you were to plot that, you would get a hyperbola. It's called a rectangular hyperbola because the asymptotes (Which are the X- and y-axes) are at right angles.</body></html> | |
| 6875. |
What happends if: (i) (MU_(X))/(P_(X)) gt (MU_(Y))/(P_(Y)), (ii) (MU_(X))/(P_(X)) lt (MU_(Y))/(P_(Y)), (iii) MRS_(XY) gt (P_(X))/(P_(Y)), (iv) MRS_(XY) lt (P_(X))/(P_(Y)) |
| Answer» | |
| 6876. |
What will be P.e_(D) on any two points of a demand curve which is parllel to X axis ? |
| Answer» <html><body><p>zero<br/>unequal <br/>equal<br/>higher on the <a href="https://interviewquestions.tuteehub.com/tag/point-1157106" style="font-weight:bold;" target="_blank" title="Click to know more about POINT">POINT</a> to the right.</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> | |
| 6877. |
What is meant by price elasticity of demand ? Discuss the factors that affect it. |
| Answer» | |
| 6878. |
What is the relation between good X and good Y in each case, if with fall in the price of X demand for good Y (i) rises and (ii) falls ? Give reason. |
| Answer» <html><body><p></p>Solution :(i) The two goods are complementary goods <a href="https://interviewquestions.tuteehub.com/tag/since-644476" style="font-weight:bold;" target="_blank" title="Click to know more about SINCE">SINCE</a> 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> of X <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 a rise in demand of Y or there is negative <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 of one good and the demand for another.<br/>(ii) The two goods are substitute goods as a fall in price of X leads to a fall in demand for Y or there is a positive relationship between price of X and demand for Y, which is the <a href="https://interviewquestions.tuteehub.com/tag/property-1170155" style="font-weight:bold;" target="_blank" title="Click to know more about PROPERTY">PROPERTY</a> of substitute goods.</body></html> | |
| 6879. |
______ classification is according to attributes of the data. (Qualitative/Quantitative) |
| 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/qualitative-611024" style="font-weight:bold;" target="_blank" title="Click to know more about QUALITATIVE">QUALITATIVE</a></body></html> | |
| 6880. |
MR________when TR increases at a diminishing rate. |
| 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/decreases-946143" style="font-weight:bold;" target="_blank" title="Click to know more about DECREASES">DECREASES</a> <a href="https://interviewquestions.tuteehub.com/tag/positively-7259849" style="font-weight:bold;" target="_blank" title="Click to know more about POSITIVELY">POSITIVELY</a></body></html> | |
| 6881. |
Diagrams which show total of a set of data simultaneously are know as : |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/percentage-13406" style="font-weight:bold;" target="_blank" title="Click to know more about PERCENTAGE">PERCENTAGE</a> bar diagrams <br/><a href="https://interviewquestions.tuteehub.com/tag/differential-953008" style="font-weight:bold;" target="_blank" title="Click to know more about DIFFERENTIAL">DIFFERENTIAL</a> bar diagrams<br/>deviation bar diagrams <br/>multiple bar diagrams </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/b-387190" style="font-weight:bold;" target="_blank" title="Click to know more about B">B</a>.</body></html> | |
| 6882. |
Define price elasticity of supply. Discuss the percentage method for calculating price elasticity of supply. |
| Answer» | |
| 6883. |
The following factor will cause increase in supply of a good |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/rise-1189674" style="font-weight:bold;" target="_blank" title="Click to know more about RISE">RISE</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> of good<br/>increase in <a href="https://interviewquestions.tuteehub.com/tag/excise-978933" style="font-weight:bold;" target="_blank" title="Click to know more about EXCISE">EXCISE</a> <a href="https://interviewquestions.tuteehub.com/tag/tax-1239527" style="font-weight:bold;" target="_blank" title="Click to know more about TAX">TAX</a> rate<br/>improvement in technology<br/>all of these.</p>Answer :<a href="https://interviewquestions.tuteehub.com/tag/c-7168" style="font-weight:bold;" target="_blank" title="Click to know more about C">C</a></body></html> | |
| 6884. |
If TP of employing one unit of variable factor is 12 units and that of 2 units of variable factor is 16 units, the marginal product of 2 units of variable factor is : |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/3-301577" style="font-weight:bold;" target="_blank" title="Click to know more about 3">3</a> units<br/>4 units<br/>8 units<br/>16 units</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> | |
| 6885. |
Identify break-even point from the following diagram : |
| Answer» <html><body><p></p>Solution :Break-even point <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 <a href="https://interviewquestions.tuteehub.com/tag/situation-1210683" style="font-weight:bold;" target="_blank" title="Click to know more about SITUATION">SITUATION</a> in which a firm is able to <a href="https://interviewquestions.tuteehub.com/tag/recover-613729" style="font-weight:bold;" target="_blank" title="Click to know more about RECOVER">RECOVER</a> all its costs. In other words it is a situation of normal profits ( A situation of No Profit - No Loss ). In the above figure point 'E' refers to Break-even point. If a firm operates to the left of point 'E' it is enjoying super-normal profits (TR gt TC). <br/> (Also break-even point can be determined from equality between AR and AC. Refer to section 8.3 <a href="https://interviewquestions.tuteehub.com/tag/specific-1220917" style="font-weight:bold;" target="_blank" title="Click to know more about SPECIFIC">SPECIFIC</a> analysis : (1) Normal profits)</body></html> | |
| 6886. |
When price remains same with rise in output, AR curve is : |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/vertical-726181" style="font-weight:bold;" target="_blank" title="Click to know more about VERTICAL">VERTICAL</a> <a href="https://interviewquestions.tuteehub.com/tag/straight-633156" style="font-weight:bold;" target="_blank" title="Click to know more about STRAIGHT">STRAIGHT</a> line parallel to Y-axis <br/>Horizontal straight line parallel to X-axis <br/><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 <br/>Positively <a href="https://interviewquestions.tuteehub.com/tag/sloped-7330990" style="font-weight:bold;" target="_blank" title="Click to know more about SLOPED">SLOPED</a> </p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :N/A</body></html> | |
| 6887. |
Which of the following is not a reason for operation of increasing returns to a factor ? |
| Answer» <html><body><p>Better <a href="https://interviewquestions.tuteehub.com/tag/utilization-722296" style="font-weight:bold;" target="_blank" title="Click to know more about UTILIZATION">UTILIZATION</a> of <a href="https://interviewquestions.tuteehub.com/tag/fixed-457597" style="font-weight:bold;" target="_blank" title="Click to know more about FIXED">FIXED</a> factor<br/><a href="https://interviewquestions.tuteehub.com/tag/limitation-1074036" style="font-weight:bold;" target="_blank" title="Click to know more about LIMITATION">LIMITATION</a> of fixed factor<br/>Increase in efficiency if <a href="https://interviewquestions.tuteehub.com/tag/variable-1442996" style="font-weight:bold;" target="_blank" title="Click to know more about VARIABLE">VARIABLE</a> factor<br/>Indivisibility of fixed factor</p>Solution :B. Limitation of fixed factor is not a reason for operation of <a href="https://interviewquestions.tuteehub.com/tag/increasing-1040633" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASING">INCREASING</a> returns to a factor.</body></html> | |
| 6888. |
How will an increase in the price of petrol affect the demand curve of scooter ? |
| 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 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 scooter will <a href="https://interviewquestions.tuteehub.com/tag/shift-1205367" style="font-weight:bold;" target="_blank" title="Click to know more about SHIFT">SHIFT</a> to the <a href="https://interviewquestions.tuteehub.com/tag/left-1070879" style="font-weight:bold;" target="_blank" title="Click to know more about LEFT">LEFT</a>.</body></html> | |
| 6889. |
Explain why are there only a few firms in an oligopoly market. |
| Answer» <html><body><p></p>Solution :The main reason why the numbers of firms is few is that there are barriers which prevent entry of firms into <a href="https://interviewquestions.tuteehub.com/tag/industry-1043031" style="font-weight:bold;" target="_blank" title="Click to know more about INDUSTRY">INDUSTRY</a>. <a href="https://interviewquestions.tuteehub.com/tag/patent-1148829" style="font-weight:bold;" target="_blank" title="Click to know more about PATENT">PATENT</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> <a href="https://interviewquestions.tuteehub.com/tag/capital-908677" style="font-weight:bold;" target="_blank" title="Click to know more about CAPITAL">CAPITAL</a> requirement, control over crucial raw materials etc. Prevent new firms from entering into industry. Only those who can <a href="https://interviewquestions.tuteehub.com/tag/cross-939411" style="font-weight:bold;" target="_blank" title="Click to know more about CROSS">CROSS</a> these barriers are able to enter.</body></html> | |
| 6890. |
Define Maximum Price ceiling. |
| Answer» <html><body><p><br/></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 <a href="https://interviewquestions.tuteehub.com/tag/means-1091780" style="font-weight:bold;" target="_blank" title="Click to know more about MEANS">MEANS</a> the maximum price the <a href="https://interviewquestions.tuteehub.com/tag/producers-17149" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCERS">PRODUCERS</a> are allowed to charge. In other words, price ceiling is fixing the price of a <a href="https://interviewquestions.tuteehub.com/tag/commodity-923558" style="font-weight:bold;" target="_blank" title="Click to know more about COMMODITY">COMMODITY</a> at a lower <a href="https://interviewquestions.tuteehub.com/tag/level-1072714" style="font-weight:bold;" target="_blank" title="Click to know more about LEVEL">LEVEL</a> than the equilibrium price.</body></html> | |
| 6891. |
Giving examples, explainthe meaning of costin economics. |
| Answer» <html><body><p></p>Solution :Cost is the <a href="https://interviewquestions.tuteehub.com/tag/total-711110" style="font-weight:bold;" target="_blank" title="Click to know more about TOTAL">TOTAL</a> expenditure incurred in producing a commodity. In economics, cost is the sum total of : <a href="https://interviewquestions.tuteehub.com/tag/explicit-455193" style="font-weight:bold;" target="_blank" title="Click to know more about EXPLICIT">EXPLICIT</a> cost and implicit cost. for <a href="https://interviewquestions.tuteehub.com/tag/example-978283" style="font-weight:bold;" target="_blank" title="Click to know more about EXAMPLE">EXAMPLE</a>,wages <a href="https://interviewquestions.tuteehub.com/tag/paid-1145567" style="font-weight:bold;" target="_blank" title="Click to know more about PAID">PAID</a> to employees.</body></html> | |
| 6892. |
Economic problem is basically the problem of choice making : |
| Answer» <html><body><p>(a) between inputs<br/>(b) Between <a href="https://interviewquestions.tuteehub.com/tag/outputs-1143051" style="font-weight:bold;" target="_blank" title="Click to know more about OUTPUTS">OUTPUTS</a><br/>(<a href="https://interviewquestions.tuteehub.com/tag/c-7168" style="font-weight:bold;" target="_blank" title="Click to know more about C">C</a>) About <a href="https://interviewquestions.tuteehub.com/tag/distribution-440862" style="font-weight:bold;" target="_blank" title="Click to know more about DISTRIBUTION">DISTRIBUTION</a> of <a href="https://interviewquestions.tuteehub.com/tag/output-1142821" style="font-weight:bold;" target="_blank" title="Click to know more about OUTPUT">OUTPUT</a><br/>(d) All the above</p>Answer :D</body></html> | |
| 6893. |
Rightward shift of PPC indicates: |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/growth-1013761" style="font-weight:bold;" target="_blank" title="Click to know more about GROWTH">GROWTH</a> of resources<br/>underutilisation of resources<br/>decrease in availability of resources<br/>none of these</p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/rightward-1189400" style="font-weight:bold;" target="_blank" title="Click to know more about RIGHTWARD">RIGHTWARD</a> <a href="https://interviewquestions.tuteehub.com/tag/shift-1205367" style="font-weight:bold;" target="_blank" title="Click to know more about SHIFT">SHIFT</a> of PPC <a href="https://interviewquestions.tuteehub.com/tag/indicates-1041501" style="font-weight:bold;" target="_blank" title="Click to know more about INDICATES">INDICATES</a>:growth of resources</body></html> | |
| 6894. |
Define individual supply. |
| Answer» <html><body><p></p>Solution :It refers to quantity of a commodity that an <a href="https://interviewquestions.tuteehub.com/tag/individual-1041871" style="font-weight:bold;" target="_blank" title="Click to know more about INDIVIDUAL">INDIVIDUAL</a> firm is willing and <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 sell at 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> price during a given <a href="https://interviewquestions.tuteehub.com/tag/time-19467" style="font-weight:bold;" target="_blank" title="Click to know more about TIME">TIME</a> <a href="https://interviewquestions.tuteehub.com/tag/period-1151023" style="font-weight:bold;" target="_blank" title="Click to know more about PERIOD">PERIOD</a>.</body></html> | |
| 6895. |
A farmer can produce 1000 quintals of sugar on a plot of land. With same resources, he can also produce 800 quintals of rice. What is the opportunity cost of producing sugar? |
| Answer» <html><body><p></p>Solution :A farmer produces 1000 quintals sugar on a plot of land. With same <a href="https://interviewquestions.tuteehub.com/tag/resources-11387" style="font-weight:bold;" target="_blank" title="Click to know more about RESOURCES">RESOURCES</a>, the next best alternatives use of plot of land is to grow rice, which produces 800 quintals of rice. <br/> <a href="https://interviewquestions.tuteehub.com/tag/hence-484344" style="font-weight:bold;" target="_blank" title="Click to know more about HENCE">HENCE</a>, <a href="https://interviewquestions.tuteehub.com/tag/opportunity-1137192" style="font-weight:bold;" target="_blank" title="Click to know more about OPPORTUNITY">OPPORTUNITY</a> cost of <a href="https://interviewquestions.tuteehub.com/tag/producing-2229964" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCING">PRODUCING</a> sugar is 800 quintals of rice.</body></html> | |
| 6896. |
Agrecultural production if price of inputs rises. |
| 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/shifts-1205400" style="font-weight:bold;" target="_blank" title="Click to know more about SHIFTS">SHIFTS</a> to <a href="https://interviewquestions.tuteehub.com/tag/left-1070879" style="font-weight:bold;" target="_blank" title="Click to know more about LEFT">LEFT</a>.</body></html> | |
| 6897. |
Define marginal revenue (MR) |
| Answer» <html><body><p></p>Solution :<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 the <a href="https://interviewquestions.tuteehub.com/tag/addition-367641" style="font-weight:bold;" target="_blank" title="Click to know more about ADDITION">ADDITION</a> to TR by selling an additional <a href="https://interviewquestions.tuteehub.com/tag/unit-1438166" style="font-weight:bold;" target="_blank" title="Click to know more about UNIT">UNIT</a> of commodity</body></html> | |
| 6898. |
What is meant by short run (short period) ? |
| Answer» <html><body><p><br/></p>Answer :A short <a href="https://interviewquestions.tuteehub.com/tag/period-1151023" style="font-weight:bold;" target="_blank" title="Click to know more about PERIOD">PERIOD</a> is the period of time in which a firm can make changes in <a href="https://interviewquestions.tuteehub.com/tag/variable-1442996" style="font-weight:bold;" target="_blank" title="Click to know more about VARIABLE">VARIABLE</a> <a href="https://interviewquestions.tuteehub.com/tag/factor-458892" style="font-weight:bold;" target="_blank" title="Click to know more about FACTOR">FACTOR</a> (like labour, raw material) and not in fixed factor (like factory <a href="https://interviewquestions.tuteehub.com/tag/building-905221" style="font-weight:bold;" target="_blank" title="Click to know more about BUILDING">BUILDING</a>, machinery, <a href="https://interviewquestions.tuteehub.com/tag/etc-975753" style="font-weight:bold;" target="_blank" title="Click to know more about ETC">ETC</a>).</body></html> | |
| 6899. |
What is law of diminishing returns to a factor or diminishing marginal product ? |
| Answer» <html><body><p><br/></p>Answer :The law states, if we keep increasing the <a href="https://interviewquestions.tuteehub.com/tag/employment-25669" style="font-weight:bold;" target="_blank" title="Click to know more about EMPLOYMENT">EMPLOYMENT</a> of an <a href="https://interviewquestions.tuteehub.com/tag/input-11237" style="font-weight:bold;" target="_blank" title="Click to know more about INPUT">INPUT</a>, with other input <a href="https://interviewquestions.tuteehub.com/tag/fixed-457597" style="font-weight:bold;" target="_blank" title="Click to know more about FIXED">FIXED</a>, additionaloutput of that input will start falling. i.e., 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> falls (positively,zero and negative) after a <a href="https://interviewquestions.tuteehub.com/tag/certain-407894" style="font-weight:bold;" target="_blank" title="Click to know more about CERTAIN">CERTAIN</a> level.</body></html> | |
| 6900. |
The relationship between AR and MR depicted in the following diagram is possible when : |
| Answer» <html><body><p>Price <a href="https://interviewquestions.tuteehub.com/tag/remains-621920" style="font-weight:bold;" target="_blank" title="Click to know more about REMAINS">REMAINS</a> <a href="https://interviewquestions.tuteehub.com/tag/constant-930172" style="font-weight:bold;" target="_blank" title="Click to know more about CONSTANT">CONSTANT</a> with rise in <a href="https://interviewquestions.tuteehub.com/tag/output-1142821" style="font-weight:bold;" target="_blank" title="Click to know more about OUTPUT">OUTPUT</a> <br/>Price falls with rise in output <br/>Price <a href="https://interviewquestions.tuteehub.com/tag/initially-516121" style="font-weight:bold;" target="_blank" title="Click to know more about INITIALLY">INITIALLY</a> falls and then remains constant with rise in output <br/>None of these </p>Solution :N/A</body></html> | |