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7151.

Mean deviation can be calculation by using:

Answer»

mean
mode
median
all of these

SOLUTION :D
Discussion
7152.

List the different ways in which oligopoly firms may behave.

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Solution :OLIGOPOLY FIRM MAY be ,(i) COLLUSIVE(II) Non-collusive
Discussion
7153.

"Marginal Product cuts the Average Product from its top". Do you agree with the given statement?

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Solution :YES, I agree with the GIVEN statement. It happens because when Average Product (AP) rises, Marginal Product (MP) is more than AP. When AP FALLS, MP is less than AP. So, MP CUTS AP from its top.
Discussion
7154.

Explainthe relationbetween marginal cost and average cost.

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Solution :Average cost is obtained by dividing TOTAL cost by the number of units PRODUCED. Marginal cost is the cost of producing one additional unit of output. The total cost, in this reference, is the SUM total of the total FIXED cost plus total variable cost at a GIVEN level of output.
Discussion
7155.

What is meant by a histogram?

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SOLUTION :A HISTOGRAM is a GRAPHICAL PRESENTATION of a frequency distribution of a CONTINUOUS series.
Discussion
7156.

Expansion and contraction in demand are caused by :

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CHANGE in price of the given good
Change in income
Change in PRICES of RELATED goods
Change in POPULATION

Answer :A
Discussion
7157.

What is the nature of government inervention which leads to excess demand ?

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Solution :The nature of government INTERVENTION which leads to excess demand is called price ceiling. In which, the government INTERVENES in the market if it feels that the price is too HIGH for the consumers. Government fixes the maximum price which is less than the equilibrium price on which the producers are allowed to sell their goods and services. Since, this price is less than the equilibrium price it creates excess demand on that very level.
Discussion
7158.

State the problems relating to 'allocation of resources' in an economy.

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SOLUTION :The three problems of ALLOCATION of RESOURCES are:
1. What GOODS to produce and in what quantities?
2. How, i.e. by which technology, to produce?
3. For whom to produce?
Discussion
7159.

Explain the conditions of producer's equilibrium under perfect completition.

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SOLUTION :According to `MR - MC` APPROACH, producer's equilibrium refers to stage of that output level at which :
1. `MC = MR`, As LONG as MC is less than `MR`, it is profitable for the producer to go on producing more because it adds to its PROFITS. He stops producing more only when MC becomes equal to MR.
2. MC is greater than MR ater `MC = MR` output level: When MC is greater than MR after equilibrium it means producing more will lead to decline in profits.
Discussion
7160.

Which Indifference Curve represents the highest level of satisfaction ?

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`IC_(1)`
`IC_(2)`
`IC_(3)`
NONE of these

Answer :C
Discussion
7161.

Spot the inferior good:

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Wheat
Bajra
Rice
NONE of the above.

Answer :D
Discussion
7162.

What is law of diminishing marginal product ?

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Solution :It states that initially as inputs are employed MP INCREASES. After a point of time, MP remains positive but starts FALLING. Then there COMES a phase where MP becomes negative as more inputs are employed.
Discussion
7163.

Total Revenue increases with every increase in output.

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SOLUTION :False : When a firm SELL more only by lowring the price, it is possible that total revenue FALLS after a level of output.
Discussion
7164.

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 :In case of PRICE-taking firm (perfectly COMPETITIVE firm), TR increases in the same proportion as price is constant. So, TR curve is an upward sloping STRAIGHT line. It PASSES from the origin because TR is zero at zero LEVEL of output.
Discussion
7165.

Explain the concepts of Opportunity Cost and Marginal Rate of Transformation using a production possibility schedule based on the assumption that no resource in equally efficientn prodduction of all goods.

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Solution :Suppose the only two goods produced are X and Y

Opportunity COST refers to the QUANTITY of one good foregone to obtain more quantity of the other good. For example when we move from combination A to B the economy foregoes 2 UNITS of Y to obtain one more units of X, So, opportunity cost of obtaining 1X is 2Y.
MRT means quantity of one good sacrified to produce an additional UNIT of the other good. For example, when we move from combination B to C the MRT is4Y : 1X. MRT increases as to produce more of good X, we need to transfer less and less efficient resources from good Y.
Discussion
7166.

In a city 45 families were surveyed for the number of domestic appliances they used. Prepare a frequency array based on their replies as recorded below .

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ANSWER :`(##TRJ_ECO_XI_C04_E01_077_A01##)`
Discussion
7167.

Define Marginal rate of substitution

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Solution :MARGINAL RATE of substitution REFERS to the rate at which commodities can be substituted with each other, so that the TOTAL SATISFACTION of consumer remains the same.
Discussion
7168.

What is the basic method of finding first quartile in grouped data?

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Discussion
7169.

In case of - an increase in demand will lead to rise in equilibrium quantity, but no change in equilibrium price.

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PERFECTLY ELASTIC supply
Perfectly INELASTIC suply
Highly elastic supply
Less elastic supply

Answer :(a)
Discussion
7170.

The aggregate of data is called:

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Statistics
editing of data
analysis of data
collection of data

Solution :A
Discussion
7171.

When the relation of three or more variables is studied simultaneously, it is called :

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siple correlation
partial correlation
multiple correlation
none of above

Solution :C
Discussion
7172.

Find out the maximum profit position of producer by comparing TC and TR on the basis of the following data. Also verify using MR and MC approach.

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Solution :
Hint. TR = Output `XX` AR and TC = Output `xx` AC.
Thus, PRODUCER will maximize PROFIT (Rs.6) when he PRODUCES 3 units of output. ALSO at 3 units of output, MR = MC (Rs.6) and MC gt MR after this level of output.
Discussion
7173.

"Only scarce goods attract price" Comment.

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Solution :The given statement is correct. All resources are not scarce in the economy. For EXAMPLE, the AIR we breathe is abundant in relation to wants. Such goods are available FREE of cost. These goods are known as Non-Economic Goods. On the other hand, some goods are scare in relation to their wants. For examplepetrol, electricity, etc. are scare in relation to wants. These goods command price and are know as Economic Goods. So it is rightly SIDE that only scarce goods ATTRACT price.
Discussion
7174.

Mention one factor that caruses a rightward shift of the demand curve

Answer»

SOLUTION :A rise in income of the consumer in CASE of a NORMAL GOOD.
Discussion
7175.

Given yield per hectare of food grains in India during 1995-96 and 2001-2002, calculate simple arithmetic mean.

Answer»


ANSWER :RS. 1625 KG
Discussion
7176.

Explain the inverse relationship between price and quantity demanded of a commodity

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SOLUTION :The inverse relation implies that as the price of a commodity INCREASES its QUANTITY DEMANDED falls and as the price of a commodity falls its quantity demanded increases.
Discussion
7177.

Distinguish between a normal good and inferior good. Give example in each case.

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Solution :(i) Normal good are those goods whose DEMAND increases with an increase in income of the consumer and vice-versa whereas INFERIOR goods are those whose demand falls with an increase in income of the consumer and vice-versa.
(ii) Income effect is POSITIVE in case of normal goods or there is a positive RELATIONSHIP between income and demand of the COMMODITY whereas income effect is negative in case of inferior goods or there is a negative relationship between income and demand of the commodity.
Discussion
7178.

Price Relatives=("Current Year Price")/(?)xx100

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Referenceyear PRICE
Periodic YEAR price
BASE year price
both (a) and (C)

ANSWER :D
Discussion
7179.

State two features of resources that give rise to an economic problem.

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Solution :The two FEATURES of RESOURCES that GIVE rise to an economic problem are :
(i) resources are limited
(II) resources have alternative uses.
Discussion
7180.

Suppose mean of a series of 5 items is 30. Four values are, 10,15,30 and 35 respectively. Find the missing (5th) value of the series.

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Solution :Assume 5th value as `X_(5)`.
`barX=(X_(1)+X_(2)+X_(3)+X_(4)+X_(5))/N`
`"GIVEN: "X_(1)=10,X_(2)=15,X_(3)=30,X_(4)=35,X_(5)=?`
`barX=30,N=5`
`30=(10+15+30+35+X_(5))/5=(90+X_(5))/5`
`:.""30xx5=90+X_(5)`
`Or,150=90+X_(5)`
`:.""X_(5)=150-90`
`=60`
THUS, Value of the5th item = 60.
Discussion
7181.

What is meant by exclusive series?

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SOLUTION :Exclusive series is that series in which EVERY CLASS INTERVAL excludes items corresponding to its upper limit.
Discussion
7182.

When do we say there is excess supply for a commodity in the market?

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Solution :There is EXCESS supply for a COMMODITY in the market when its QUANTITY supplied is more than quantity demanded at the prevailing market PRICE.
Discussion
7183.

Define 'Produce's equilibrium'. Explain the conditions of producer's equilibrium in terms of MR - MC approach.

Answer»
Discussion
7184.

In__________ sense, statistics refers to information in term of numerical data.(singular/plural)

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SOLUTION :PLURAL
Discussion
7185.

Using supply and demand curves, show how an increase in the price of shoes affects the price of a pair of socks and the number of pair of socks bought and sold.

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Solution :Shoes and socks are complementray goods. An INCREASE in the PRICE of shoes will cause a decrease in DEMAND for its complementary goods (socks). As a result, demand curve of socks will shift to the LEFT to `D_(1)D_(1)`. There will be a new equilibrium POINT at `E_(1)`. Both equilbrium price and equilibrium qunatity will decline. From `OP-OP_(1)` and `OM-OM_(1)` respectively.
Discussion
7186.

Following table gives marks in Statistics of the students of a class. Find out mean marks. {:("Mid-value",5,10,15,20,25,30,35,40),("Number of Students",5,7,9,10,8,6,3,2):}

Answer»

Solution :In this series, mid-values are already given. The calculation of arithmetic MEAN involves thesameprocedure as in the case of exclusive series.

`barX= (sumfm)/(sumf)=995/50=19.9`
Mean MARKS = 19.
Discussion
7187.

What change in Tr will result in (i) a decreases in MR and (ii) an increase in MR ?

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Solution :(i) TR increases at a diminishing rate or TR DECREASES, then there will be a decreases in MR.
(ii) TR increases rate at an INCREASING rate, then there will be an INCREASE in MR.
Discussion
7188.

What are the shapes of AR and MR curves under monopoly?

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SOLUTION :Both AR and MR curves SLOPE DOWNWARDS.
Discussion
7189.

Ramesh is working at a salary of Rs. 35,000 per month. He receives two job offers: (i) To work as an accountant at a salary of Rs. 30,000 per month,(ii) To work as a sales manager at a salary of Rs.25,000 per month. In the given case, his opportunity cost will be:

Answer»

Rs. 25,000
Rs.30,000
Rs. 35,000
Rs. 65,000

Solution :B. A benefit, PROFIT, or value of something that must be given up to acquire or achieve something ELSE. Since every resource (land, money, time, etc.) can be PUT to alternative uses, every action, choice, or decision has an associated opportunity cost.So, the best alternative forgone by RAMESH is his salary as an accountant of Rs. 30,000.
Discussion
7190.

Definecost. State the relation betweenmarginal cost and average variable cost.

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Solution :(i) Both AVC and MC curves are of U-shape. It shows LAW of variable portion.
(II) Minimum point of AVC curve will ALWAYS right to minimum point of MC.
(iii) When AVC declines, then MC curve is below to AVC.
(iv) When AVC increases, then MC curve will be above to AVC. (v) When AVC is CONSTANT, then MC = AVC
Discussion
7191.

Indicate the most appropriate alternative from the multiple choices provided against each question. Which average is affected most by the presence of extreme items?

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median
Mode
arithmetic mean
geometric mean

Solution :C
Discussion
7192.

What isthesupplycurveof a firmin thelongrun ?

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Solution :Supplycurveis highlyelastic in THELONG RUN as quantity supplied is more RESPONSIVE to change in price of the GIVEN commodity.
Discussion
7193.

Define price elasticity of demand .

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SOLUTION :It is the MEASURE of RESPONSIVENESS of DEMAND for a commodity to change in its price.
Discussion
7194.

Why does the problem of 'how to produce' arise? Explain.

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SOLUTION :It arises due to availability of alternative TECHNIQUES of production. BROADLY, the choice is between capital INTENSIVE techniques and labor-intensive techniques. The problem is that which one to employ.
Discussion
7195.

The difference between average cost and average variable cost is always constant .

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Solution :False .The difference between AC and AVC is DUE to AFC. As output is INCREASED, AFC FALLS, so the difference between AC and AVC falls.
Discussion
7196.

Downward sloping demand curve shows that:

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As PRICE FALLS DEMAND falls
As demand falls price falls
As price RISES demand falls
As price rises demand rises

Answer :C
Discussion
7197.

Insurance permium on factory building paid to Oriental insurance is a fixed cost.

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Solution :True. Insurance premium is a fixed costas same amount of premium has to be PAID irrespective of level of OUTPUT. A fixed cost is a cost that does not CHANGE with an INCREASE or decrease in the amount of goods or services PRODUCED or sold.
Discussion
7198.

(i)Determine the quantity of apples a consumer would buy at a given price in the market. Use cardinal utility analysis (ii) What quantity of apples would he consume if apples are available free of cost?

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Solution :(i)CONSUMER equilibrium is DETERMINED at a point where marginal utility (Rs) of apples WOULD be equal to price paid for apples.
(ii)In case of apples are available FREE of cost, the consumer will stop consumption at the point of satiety i.e, when MU=0. It is because as per the CONDITION of consumer equilibrium
`MU_("apples")=Price_("apples")`=zero
Discussion
7199.

What is statistical table? Explain briefly the main characteristics of a good statistical table.

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SOLUTION :N/a
Discussion
7200.

Will a firm in a competitive in a market ever produce a positive level of output in the range where the marginal cost is falling?

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SOLUTION :No, because the ESSENTIAL condition of producer's EQUILIBRIUM is that marginal cost (MC) CURVE should be rising. So, a firm will PRODUCE that quantity of output at which its MC is rising and not falling.
Discussion