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6901.

Spot the wrong statement about median and quartiles.

Answer»

Both are POSITIONAL average
Both have the same METHOD of CALCULATION
Both have the same method of calculation
Both divide the SERIES into a number of equal parts

Answer :C
Discussion
6902.

If r=0.997,sumxy=46,bar(X)=4,bar(Y)=8,sumx^(2)=28, what will be the value of sumy^(2)?

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Solution :`r=(sumxy)/(sqrt(sumx^(2)xxsumy^(2)))`
Given : `r=0.997, sum xyl =46 , bar (X)=4,bar (Y)=8, sum x^(2)=28`
Substituting the VALUES,we get
`0.997=(46)/(sqrt(28xx SUMY^(2)))`
Squaring both SIDE , we get
`0.994=(2,116)/(28xxsumy^(2))`
`implies 27.832xx sumy^(2)=2,116`
`sumy^(2)=76.03`
Value of `sumy^(2)=76.03`
Discussion
6903.

As outputis increased, the difference between average total cost and average fixedcost, which never becomes zero as total fixed cost is never zero.

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Solution :FALSE. The difference between average TOTAL cost and average variable cost is average FIXED cost , which never becomes ZERO as total fixed cost is never zero.Total fixed cost is CONSTANT at all level of output.
Discussion
6904.

Explain the conditions of consumer ' s equilibrium under Idifference Curve analysis.

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Solution :There are two CONDITIONS :
(i) MRS = Ratio of prices
(ii) MRS CONTINUOUSLY falls
Explanation :
(i) LET the two goods be X and Y.Thefirst condition for consumer's EQUILIBRIUM is that MRS`=P_(X)//P_(Y)`. Now suppose MRS is greater than`Px//Py`.It means that the consumer is willing to pay more for Xthan the price PREVAILING in the market . As a result , the consumer buysmore of X.This leads to fall in MRS . MRS continues to fall till it becomes equal to the ratio of prices and the equilibrium is established.(Or , alternatively in trems of when `MRSltPx//Py)`
(ii)Unless MRS continuously falls , the equilibrium cannot be established.
Discussion
6905.

Discuss the behaviour of Marginal Product and Total Product when only one input is increased and other inputs are held constant

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Discussion
6906.

When P_(x) != P_(y), then consumer is at equilibrium when MU_(x) = MU_(y)

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Solution :Equilibrium CONDITIONS of the consumer can be STATED as `MU_(x) = MU_(y) " only when " P_(x) = P_(y)`.
Discussion
6907.

State three features of oligopoly.

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Solution : The main features of oligopoly are as follows: 1) Few firms: Under oligopoly, there are few large firms. The exact no. of firms is not defined. Each firm produces a significant portion of the total output. There exists severe COMPETITION among different firms and each firm TRY to manipulate both PRICES and volume of production to outsmart each other. 2) Interdependence: Firms under oligopoly are interdependent. Interdependence means that actions of one firm affect the actions of other firms. A firm considers the action and reaction of the rival firms while determining its price and output levels. A change in output or price by one firm evokes reaction from other firms operating in the market. 3) Non- Price Competition: Under oligopoly, firms are in a position to influence the prices. However, they try to avoid price competition for the fear of price war. They follow the policy of price RIGIDITY. Price rigidity refers to a situation in which price tends to stay fixed irrespective of changes in demand and supply conditions. Firms use other methods like advertising, better services to customers, ETC. to compete with each other.
Discussion
6908.

What is the shape of TR curve in a monopoly or monopolistic competition ?

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SOLUTION :It is INVERSE U-shape.
Discussion
6909.

Tea when price of coffee increases.

Answer»


ANSWER :SHIFTS to LEFT.
Discussion
6910.

State the behaviour of MPP, under Returns to a factor.

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Answer : In SHORT run, when one factor input is variable and other factors are fixed `q=f(x_1barx_2)`marginal PHYSICAL product changes in the following ways :
(i) MPP INITIALLY increases and becomes maximum (Phase I)
(ii) MPP then decreases positively and becomes zero (Phase II)
(III) MPP becomes negative (Phase III).
Discussion
6911.

Define investment.

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SOLUTION :Investment is expenditure by the producers on the PURCHASE of such assets which help to GENERATE INCOME.
Discussion
6912.

The measure of price elasticity of demand of a normal good carries minus sing while price elasticity of supply carries plus sing . Explainwhy ?

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Solution :The measure of PRICE ELASTICITY of demand has a minus sign because there is an INVERSE relation betweenprice anddemand of a normal GOOD , while measure of price elasticity of SUPPLY of a good.
Discussion
6913.

Wxplain 'product differentiation' feature of monopolistic competition.

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Discussion
6914.

Giving reason, comment of the shape of the production Possibilities curve based on the following schedule, {:("Good X (units)",0,1,2,3,4),("Good Y (units)",20,18,14,8,0):}

Answer»


Answer :As MRT is CONSTANT, PPC will be DOWNWARD sloping and CONCAVE to the origin)
Discussion
6915.

Explain the procedure of selecting a random sample of 3 student out of the 10 in your class, by using random number of tables.

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SOLUTION :1. Assign a particular number between 1 to 10 to all the students.2.Select a number randomly.3. Consult the 2 digit random number, 2 numbers successive to SELECTED random number EITHER horizontally or vertically are the remaining 2 students.
Discussion
6916.

"Use the chemical fertilisers, but becomes food shortage, give good dividends at one time in the form of increased production, but becomes a disaster later in the form of adverse effects on health". How can we overcome this problem?

Answer»

Solution :Increasing use of chemica fertilisers make country self dependent in food PRODUCTION but it deteriorate environment and cause harmful IMPACTS on living beings. This problem can be handled by promoting organic farming. Organic farming is the process of PRODUCING safe and healthy food. Moreover, organic agriculture restores, maintains and enhances the ECOLOGICAL balance. There is an increasing demand for organically grown food, to enhance food safety throughout the WORLD.
Discussion
6917.

When the rate of fall in MR is more than fall in AR :

Answer»

PRICE INCREASES with INCREASE in output
Price decreases with incereasein output
Price remains CONSTANT with increase in output
None of these

SOLUTION :N/A
Discussion
6918.

Revenue in microeconomics means :

Answer»

TAX collected by government
MARKET VALUE of output PRODUCED by a firm
Profits of a firm
None of the above

Answer :B
Discussion
6919.

Expansion in Supply is shown in :

Answer»




SOLUTION :Because expansion of supply OCCURS when increase in priceleads to increased QUANTITY SUPPLIED.
Discussion
6920.

Microeconomics is study of:

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(a) A producer
(b) PRODUCTION of a GOOD
(c) An industry
(d) All the above

Answer :d
Discussion
6921.

If MR curve is parallel to the X-axis, what does it tell about price and the demand ?

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Solution :It MEANS, the PRICE of the COMMODITY remains constant at all levels of OUTPUT and the demand is PERFECTLY elastic.
Discussion
6922.

What is budget line?

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Solution :BUDGET line is a graphical REPRESENTATION of all possible combinations of two goods which can be purchased with GIVEN income and PRICES, such that the COST of each of these combinations is equal to the money income of the consumer.
Discussion
6923.

When MR remains same, TR increases at a:

Answer»

CONSTANT rate
Decreasing rate
INCREASING rate
NONE of these

SOLUTION :N/A
Discussion
6924.

As we move along an indifferences curve, each point to the right shows

Answer»

HIGHER UTILITY
Lower utility
Same utility
INITIAL higher , then same and ULTIMATELY declines.

Answer :C
Discussion
6925.

Which of the following is a basis of classification of a table?

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Purpose
Construction
Originality
all of these

Solution :D
Discussion
6926.

A consumer consumes only two goods X and Y whose prices are Rs 6 and Rs 3 per unit respectively. What will be the MRS_(XY), when the conumer is in equilibrium ?

Answer»

Solution :A consumer in consumption of TWO commodities is at equilibrium when : `MRS_(XY) = (P_(X))/(P_(Y))`
Putting the given VALUES in the equilibrium CONDITION:
`MRS_(XY) = (6)/(3)`
`MRS_(XY) = 2`.
Discussion
6927.

Schedules are filled by the ,

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INVESTIGATOR
enumerator
informant
none of the these

SOLUTION :B
Discussion
6928.

Answer the following by filling in the blanks : (i) The sum total of both the substitution and the income effect is called the ______ (ii) If a fall in the price of one good raises the demand for another good, the two goods are called ______ (iii) If demand for a commodity rises even without any change in its price, then it is known as ______ (iv) In case of ______ goofd, demand rises with increase in income (v) ______shows the tabular presentation of various quantities of a commodity a consumer is willing the buy at different prices, during a given period of time.

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Solution :(i) Price effect , (ii) Complementary goods , (III) Increase in DEMAND , (iv) NORMAL goods , (v) Demand Schedule or INDIVIDUAL demand schedule.
Discussion
6929.

One of the following is not the characteristics of sample survey:

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LESS TIME
Less COST
Less INFORMATION
Less accuracy

Solution :C
Discussion
6930.

The other name of pie diagram is :

Answer»

CIRCULAR DIAGRAM
BAR diagram
HISTOGRAM
polygon

Solution :A
Discussion
6931.

TP, MP and AP are U-shaped curves.

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SOLUTION :FALSE. All the CURVES (TP, AP and MP) are inversely U-shaped curves.
Discussion
6932.

Write down a few parameters on which statistical information is published in Census of India.

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Solution :(i) SIZE, GROWTH rate and DISTRIBUTION of population in India.
(ii) Population PROJECTIONS.
(III) Density of population
(iv) Sex composition of population.
Discussion
6933.

Explain the central problem of ’for whom to produce’?

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Solution :This studies the problem of distribution of final goods and services or the problem of distribution of income.It has two ASPECTS. The first aspect relates to PERSONAL distribution and the second aspect relates to functional distribution.Personal distribution refers to output/income share of individuals or households in society.Functional distribution refers to income share of different FACTORS of production.Here, the problem is whether ALLOCATION of resources is promoting equality or not.Equality is a social virtue, and inequality may induce HIGH saving, investment and hence high rate of growth.
Discussion
6934.

Why is the total revenue curve of a price taking firm an upward sloping straight line ? Why does the curve pass through the origin ?

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Solution :TR CURVES passes through the ORIGIN,because when output sold is ZERO , the TR of the firm is also zero. TR rises as the firm increases the quantity sold by it. Thus TR is an upward sloping curve under perfect competition. It is a straight line as PRICE is constant.
Discussion
6935.

What is the relationship between TR , price and quantity sold ?

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SOLUTION :TR=Price X QUANTITY SOLD.
Discussion
6936.

A consumer consumes only two goods. Why is the consumer said to be in equilibrium when he buy only that combination of the two goods Which lies at that point on the Indifference curve where the budget line is tangent to the indifference curve? Explain. Use diagram.

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Solution :Let the two goods be X and Y as shown in the diagram. The TANGENT is at point E where: slope of indifference curve = Slope of budget line Or `MRS_(xy) = P_(x)//P_(y)`.
The equilibrium purchase is `Ox` of X and `Oy` of Y on the indifference curve `l_(2)`

The consumer cannot get satisfaction level higher than `l_(2)` because his income not permit him to move above the budget line AB. The consumer will not like to purchase any other BUNDLE on the budget line AB, for example the bundle at C and D, because they all lie on the lower indifference curve, and give him lower satisfaction. THEREFORE, the equilibrium CHOICE is only at the tangent point E.
Discussion
6937.

The marginal utility schedule for good X and Y are given below. Both the goods are proced at Rs 1 each and income of Rakesh (an individual) is assumed to be Rs 8. Determine, how many units of both the commodities should be purchased by Rakesh to maximize his total utility ?

Answer»

Solution :To maximize the total utility, Raskesh should purchase that COMBINATION of both the goods, when:
(i) MU of last rupee spend on each commodity is same, i.e., `(MU_(X))/(P_(X)) = (MU_(Y))/(P_(Y))`, and
(ii) MU falls as consumption increases.
It happens when Raskesh purchases 6 units of Y and 2 units of X. At this combination
`**` MU from last rupee (i.e., `8^(th)` rupee) spent on commodity X given the same satisfaction of 10 utils as given by last rupee (i.e., `7^(th)` rupee) spent on commodity Y, and
`**` MU of each commodity falls as consumption increases.
The total satisfaction of 107 utils `(=19 + 17 + 15 + 13 + 12 + 11 + 10 + 10)` will be obtained.
Discussion
6938.

Which of the following is a statement of normative nature in economics ? (a) Economics is study of choices/alternatives (b) (c) According to an estimate, in spilt of severe shortage, more than 10% of houses in Indian cities are lying vacant (d) Accommodation of Refugees is posing a big problem for the Europe

Answer»

Economics is study of choices/alternatives
Government should be concerned with how to reduce unemployment
According to an estimate, in SPILT of SEVERE shortage, more than 10% of HOUSES in Indian cities are lying vacant
Accommodation of Refugees is posing a BIG problem for the EUROPE

Solution :Govemment should be concerned with how to reduce unemployment
Discussion
6939.

Briegly discuss the various reasons for economic problem

Answer»
Discussion
6940.

Define Marginal Rate of Substitution. Explain why is an indifference curve convex ?

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Solution :The MRS of X for Y represents the amount of Y which the consumer has to give up for the gain of one additional UNIT of X so that his or her level of his or her UTILITY (satisfaction) REMAINS the same. ... For example, if the consumer goes from D to E, then the marginal RATE of substitution becomes 1.Indifference curves are convex to the origin because as the consumer begins to increase his or her use of one good over another, the curve represents the marginal rate of substitution.
Discussion
6941.

In the context of index numbers, 1 stands for the ________ year. ""(base/ current)

Answer»


ANSWER :CURRENT
Discussion
6942.

Budget set inculdes:

Answer»

All those combinations of two goods which a CONSUMER ALREADY possesses
All those combinations of two goods which a consumer cannot afford
All those combinations two goods which a consumer is WILLING to buy
All those combinations of two goods which a consumer can afford

Answer :D
Discussion
6943.

Name the economic value achieved through the spread of education in the context of production potential.

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Solution :It will RESULT in increase in EFFICIENCY LEADING to ECONOMIC growth.
Discussion
6944.

………………… measure of dispersion is known as coefficient of dispersion. (Absolute/Relative)

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SOLUTION :RELATIVE
Discussion
6945.

How is price elastictity of demand affected by the nature of the commodity ?

Answer»

SOLUTION :Price ELASTICITY of demand fornecessily GOODS is inelastic wherase, LUXURY goods have elastic demand.
Discussion
6946.

Average cost will rise only when marginal cost rises.

Answer»

SOLUTION :False. Rise in AC TAKES place when MC is GREATER than AC and not necessarily when MC RISES.
Discussion
6947.

When price falls with rise in output , then Producer's Equilibrium is achieved at:

Answer»

POINT E
Point F
both (a) and (B)
NEITHER (a) nor (b)

SOLUTION :N/a
Discussion
6948.

Give an example of decrease in resources.

Answer»

SOLUTION :DESTRUCTION of RESOURCES DUE earthquake/cyclone.
Discussion
6949.

Calculate the weighted mean of the following data: {:("Items",96,102,104,124,148,164),("Weight",5,6,3,7,12,9):}

Answer»


ANSWER :WEIGHTED MEAN = 131.52
Discussion
6950.

There are large number of buyers and sellers in

Answer»

PERFECTLY COMPETITION only
Monopolistic Competition only
Both (a) and (B)
Oligopoly

Solution :N/a
Discussion