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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.
| 7201. |
If two demand curves intersect, then the flatter curve is more elastic. |
| Answer» SOLUTION :When two DEMAND curves INTERSECT, then the flatter CURVE is more ELASTIC. | |
| 7202. |
Data originally collected in the process of investigation is known as ………………….. Data. (primary/Secondary) |
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Answer» |
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| 7203. |
State 3 factors which affect price elasticity of demand. |
| Answer» Solution :(i) Nature of commodity, (II) Availability of substitutes , (III) INCOME level. | |
| 7204. |
Is the study of geneal proce level a macro economic study? |
| Answer» Solution :YES it is a MACRO ECONOMIC study as general price level is an AGGREGATE of the economy. | |
| 7205. |
Differentiated Products is a characteristic of: |
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Answer» MONOPOLISTIC Comepetition only |
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| 7206. |
state the three causes each for a rightward shift and a leftward shift of a demand curve. or Explin any three causes of a leftward shift of demand curve of a commodity. or State the causes of an increase in demand. Explain any two of them |
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Answer» Solution :Factors leading to a LEFTWARD shift in the demand curve :- 1. Fall in the income of the consumer in case of a NORMAL good. 2. An unfavourable CHANGE in tastes and prefernces of the consumer. 3. Expectation of fall in price of the commodity in the NEAR future. Factors leading to a rightward shift in the demand curve:- 1. Increase in the income of the consumer in case of a normal good. 2. A favourable change in tastes and prefernces of the consumer. 3. Expectation of RISE in price of the commodity in the near future. |
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| 7207. |
….......... Are the conditions under which any law holds goods. |
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| 7208. |
In temporal classification, data are classified on the basis of: |
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Answer» location |
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| 7209. |
Give any three point of difference between monopoly and monopolistic competition. |
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| 7210. |
The slope of indifference curve is different at different points of the cruve |
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| 7211. |
Following table offers an illustration of a frequency distribution. The table shows different class intervals (each showing a rangeof marks in Statistics) and the corresponding frequencies (each showing the number of students). |
| Answer» SOLUTION : It is clear from above table that frequency of class interval 10-15 is 4. It means that there are 4 students who have SECURED marks between 10-15. LIKEWISE, frequency of class interval 20-25 is 8 which means that there are 8 students who have secured marks between 20-25. But, it is not clear that how MANY students have secured 10 marks in the class interval 10-15 and how many have secured 11 and 14 marks in the same class interval. | |
| 7212. |
What does the following diagram represents ? |
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Answer» CHANGE in Demand |
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| 7213. |
What is the nature of demand curve in cause fo monopolistic competition? |
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Answer» PERFECT Elastic |
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| 7214. |
…………………….. Is the measure of the variation of the items. (Dispersion/Range) |
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| 7215. |
Calculate coefficient of correlation between demand for a good and its price. |
Answer» Solution : `gamma=(NSigmaXY-(SigmaX)(SigmaY))/(SQRT(NSigmaX^(2)-(SigmaX)^(2))sqrt(NSigmaY^(2)-(SigmaY)^(2)))` `=((5xx575)-(140xx16))/(sqrt((5xx5050)-(140)^(2))sqrt((5xx66)-(16)^(2)))` `=(2875-2240)/(sqrt((25250-19600))sqrt((330-256)))` `=(635)/(sqrt(5650)xxsqrt(74))=(635)/(sqrt(5650xx74))=(635)/(sqrt(418100))=(635)/(646.6)=+0.98` |
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| 7216. |
A train runs 25 miles at a speed of 30 mph, another 50 miles at a speed of 40 mph, then due to repairs of the track travels for 6 minutes at a speed of 10 mph and finally covers the remaining distance of 24 miles at a speed of 24 mph. What is the average speed in miles per hour? |
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Answer» Solution :Time taken in covering 25 miles at a SPEED of 30 mph `"=50 minutes" (.:' "Time"="Distance"/"Speed")"` Time taken in covering 50 miles at a speed of 40 mph = 75 minutes Distance COVERED in 6 minutes at a speed of 10 mph = 1 mile Time taken in covering 24 miles at speed of 24 mph = 60 minutes. Therefore, TAKING the time taken as weights we have the weighted mean as:  Weighted Mean, `barX_(W)=(sumWX)/(sumW)=(6,000)/(191)=31.41` Average Speed = 31.41 mph. |
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| 7217. |
What is the relation between good x and good y in each case, if with a fall in price of x demand for good y (i) rises and (ii) falls ? Give reason. |
| Answer» SOLUTION :(i) GOODS X and y are complementary goods as with fall in PRICE of x, demand for good y rises , (II) Goods x and y are substitude goods as with fall in price of x, demand for good y also falls. | |
| 7218. |
How does a firm under monopolistic competition exercise partial control over price? |
| Answer» Solution :A monpolistic competitive firm enjoys partial control over PRICE. It happens because by incurring heavy the firm is able to create a diferentiated IMAGE of its product in the minds of consumers. PRODUCTS are difierentiated orn the basis of brand, size, colour, shape, ETC BUYERS are attracted to buy a Parloulan produat even at a relatively higher price | |
| 7219. |
Define oligopoly. Explain its features. |
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| 7220. |
When does a demand curve shift? |
| Answer» SOLUTION :A demand curve shifts when there is a change in other FACTORS affecting the demand for the COMMODITY other than the own PRICE of the commodity. | |
| 7221. |
Define profits. |
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Answer» Solution :The PROFITS of a producer is defined as the DIFFERENCE between TOTAL revenue and total costs, i.e., ` "" ` Profit = TR - TC. Profit is the same thing as abnormal profits or super normal profits. |
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| 7222. |
Define real cost |
| Answer» Solution :It refers to the PAIN, sacrifice, DISCOMFORT and disutility involved in providing factor services required to produce a commodity.Real costs refers to the COST of producing a good or service, including the cost of all resources used and the cost of not employing those resources in alternative USES | |
| 7223. |
If price of good 'X' rises and it leads to a fall in demand for good 'Y', then the two goods are : |
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Answer» SUBSTITUTE goods |
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| 7224. |
A firm is able to sell more quantity of a good only by lowering the price. The firm's marginal revenue, as he goes on selling, would be : |
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Answer» Greater than AVERAGE Revenue |
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| 7225. |
What is meant by price elasticity of demand ? Explain any 2 factors that affect it. |
| Answer» Solution :Price Elasticity of Demand is defined as the responsiveness of quantity demanded to a change in price.FACTORS AFFECTING ELASTICITY OF DEMAND1. Nature of the Good:The elasticity of demand for a good depends upon the nature of the good, i.e., whether the good is a necessary or a luxury good. The elasticity of demand for a necessary good is relatively small. For example, if the price of such a good rises, its buyers generally are not able to reduce its demand.2. Availability of Substitute GOODS:If close substitutes for a particular good are available in the market, then the demand for the good WOULD be relatively more elastic. For example, since tea, a close substitute for coffee, is available in the market, a rise in the price of coffee would result in a CONSIDERABLE fall in its demand and a consequent rise in the demand for tea. | |
| 7226. |
What is increase in supply? |
| Answer» SOLUTION :It refers to a RISE in the SUPPLY of a commodity due to favourable CHANGES in other factors, at the same price, e.g., when price of inputs FALLS. | |
| 7227. |
When income of the consumer falls, the impact on price-demand curve of an inferior good is : (choose the correct alternative) |
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Answer» Shifts to the right |
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| 7228. |
Difine patent rights. |
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| 7229. |
In order to know the likings and dislikings of the listeners of the listeners of the programmes broadcast by the Himachal Akashvani, the letter is keen to collect data. Which method of collecting data will be suitable for it ? |
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Answer» Direct PERSONAL investigation |
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| 7230. |
Cross demand is positive in case of substitude goods. |
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| 7231. |
State one feature of oligopoly. |
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| 7232. |
What is meant by highly elastic demand ? |
| Answer» Solution :When PERCENTAGE change in the quantity demanded is more than the percentage change in PRICE, then demand for such a COMMODITY is said to be highly elastic . | |
| 7233. |
Which of the following is a kind of partition value ? |
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Answer» Arithmetic mean |
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| 7234. |
After reaching the point of equilibrium, consumer would not like to change his allocation of expenditure on Goods X and Y ever if price of Good X changes. Do you agree ? Comment |
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Answer» Solution :No, I do not agree with the GIVEN statement. A consumer achieves equilibrium when `(MU_(X))/(P_(X)) = (MU_(Y))/(P_(Y))` Now, if price of Good `X (P_(x))` charges, then the equilibrium condition will be disturbed. In case `P_(x)` increase, `(MU_(X))/(P_(X)) lt (MU_(Y))/(P_(Y))`. This WOULD INDUCE the consumer to buy more of Y in PLACE of X. In case `P_(x)` decrease, `(MU_(X))/(P_(X)) GT (MU_(Y))/(P_(Y))`. This would induce the consumer to buy more of X in place of Y. |
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| 7235. |
Define average revenue. |
| Answer» SOLUTION :AVERAGE revenue is defined as the revenue per unit of OUTPUT SOLD. | |
| 7236. |
How do changes in marginal revenue affect total revenue ? |
| Answer» Solution :MR is the change in total REVENUE when one more unit of output is sold. In other words, MR is the rate of change of TR.So, when (i) MR is POSITIVE and is increasing, TR increases at an increasing rate. (II) MR is positive but is DECREASING, TR increases at a diminishing rate. (iii) MR is zero, TR is constant. (iv) MR becomes negative, TR STARTS falling. | |
| 7237. |
Discuss the primary reason for'indeterminateness of demand curve' under the oligopoly form of market |
| Answer» Solution :Under oligopoly, the exact BEHAVIOR pattern of a producer cannot be determined with CERTAINTY. So, demand curve faced by oligopolist is indeterminate(UNCERTAIN). As firms are interdependent, a firm cannot ignore the reaction of the rival firms. Any change in price by one firm MAY lead to change in prices by the competing firms. So, demand curve keeps on shifting and it is not definite, rather it is indeterminate. | |
| 7238. |
AR and price are one and the same thing. |
| Answer» SOLUTION :True : AR = `(TR)/("Quantity")=("Quantity"xx"PRICE")/("Quantity")`=Price. | |
| 7239. |
When does government intervene to fix maximum price of commodity (Price ceiling) ? |
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| 7240. |
Fisher's index number is consideredideal because: |
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Answer» it is BASED on variableweights |
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| 7241. |
Form the given demand schedule, determine the effect on demand curve {:("Price (Rs.)",20,20),("Demand (Units)",100,70):} |
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Answer» Rightward shift in DEMAND curve |
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| 7242. |
_______ is the extension of "Law of Diminishing Returns". |
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Answer» Law of Variable Proportions |
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| 7243. |
Identify positive or normative statements from the following : Inflow of foreign capital shifts PPC to its right. |
| Answer» SOLUTION :POSITIVE STATEMENTS because it is FACT | |
| 7244. |
Define monopolist competition,Briefly discuss the various feactures of monopolist competition. |
| Answer» Solution :Monopolistic Competition refers to a market situation in which there are large no. of firms which sell closely related but differentiated products.The features of Monopolistic Competition are as follows:1) Large no. of Sellers: There are large no. of firms selling closely related, but not homogeneous products. Each firm acts independently and has a limited share of the market. So, an individual firm has limited control over the market price. Large no. of firms leads to competition in the market.2) Product differentiation: Each firm is in a position to exercise some degree of monopoly through product differentiation. Product differentiation refers to differentiating the products on the basis of brand, SIZE, color, shape, etc. The product of a firm is close, but not substitute of other firm.3) Selling Costs: Under Monopolistic Competition, products are differentiated and these differences are made known to thebuyers through selling costs. Selling costs refer to the expenses incurred on marketing, sales promotion and advertisement of the product. Such costs are incurred to persuade the buyers to buy a particular brand of the product in preference to competitor's brand. Due to this reason, selling costs constitute a substantial part of the total cost under Monopolistic Competition.4) Freedom of ENTRY and exit: Under Monopolistic Competition, firms are free to enter into or exit from the industry at any time they wish. Free entry and exit of firms means that there are no barriers before the firm for entering into the industry and leaving the industry. New firms can enter when they find that the existing firms are earning abnormal profits. With their entry, output of the industry increases, which leads to fall in the price of the product. This continues till each firm is earning only normal profit. The existing firm leave when they face losses. As they leave, output of the industry goes down,raises the price of the product till the losses are wiped out. It ensures that there are neither abnormal profits nor any abnormal losses to a firm in the long run.5) Lack of perfect knowledge: Buyers & Sellers do not have perfect knowledge about the market conditions. Selling costs create artificial superiority in the minds of the consumers and it becomes very difficult for a consumer to evaluate different products available in themarket. As a result, a particular product is preferred by the consumers even if other less priced products are of same quality.6) Pricing Decision: A firm under monopolistic competition is neither a price taker nor a price maker. However, by producing a unique product or establishing a particular REPUTATION each firm has partial control over the price. The extent of power to control price depends upon how strongly the buyers are attracted to his brand.7) Non-price Competition: In ADDITION to price competition, non- price competition also exists under Monopolistic Competition. Non-price competition refers to competing with other firms by offering free gifts, making favorable credit terms, etc, WITHOUT changing prices of their own products. | |
| 7245. |
State any three assumptions on which a 'Production Possibilities Curve' is bases. |
| Answer» Solution :The FOUR key assumptions underlying PRODUCTION possibilities analysis are: (1) resources are used to produce one or both of only two goods, (2) the quantities of the resources do not CHANGE, (3) technology and production techniques do not change. | |
| 7246. |
Explain the conditions of producer's equilibrium. |
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| 7247. |
What is 'market' demand ? State four factors causing 'increase' in market demand. |
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Answer» Solution :Market Demand refers to the quantity of a COMMODITY that all CONSUMERS are WILLING and able to buy, at each POSSIBLE price during a specific PERIOD of time. The factors causing an increase in market demand are :- (i) Increase in price of substitue goods. (ii) Fall in price of complementary goods. (iii) Increase in income of all the consumers. (iv) A favourable change in Tastes and Prefernces of the consumers. |
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| 7248. |
Under what market condition does average Revenues always equal to Marginal Revenues ? Explain. |
| Answer» SOLUTION :Under PERFECT competition the average REVENUE is equal to marginal revenue. This is because the firm can SELL an extra unit at the same price. Hence average revenue or price is equal to the marginal revenue. | |
| 7249. |
What is the maximum point of TP ? |
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Answer» When AP becomes zero |
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| 7250. |
Define monopoly. |
| Answer» Solution :It refers to a market situation where there is a SINGLE seller SELLING a PRODUCT which has no close SUBSTITUTES. The firm is a PRICE maker. | |