7498 + Interview Questions in Economics in Class 11 Page 147 InterviewSolution

7301.	Which of the following is a source of secondary data ?
Answer» Government publication PRIVATE publication REPORT PUBLISHED by the STATE Bank of INDIA All of these Solution :A

Discussion

7302.	If the price elasticity of demand for a commodity is less than unity, a decrease in price would result in
Answer» PROPORTIONATELY LESS in the quantity demanded. Prooportionately more INCEASES in the quantity demanded. Increases in total EXPENDITURE on the product. none of these. Solution :N/a

Discussion

7303.	State one notable property of arithmetic mean.
Answer» SOLUTION :A NOTABLE property of arithmetic mean is that the sum of DEVIATIONS of different ITEMS of a series, when deviations are taken from arithmetic mean, is always zero.

Discussion

7304.	What do you mean by the budget set of a consumer ?
Answer» Solution :A budget set or OPPORTUNITY set includes all possible CONSUMPTION bundles that SOMEONE can afford GIVEN the prices of goods and the person's income level. The budget set is bounded above by the budget line.

Discussion

7305.	Define arithmetic mean.
Answer» Solution :ARITHMETIC MEAN is the number which is obtained by ADDING the values of all the items of a SERIES and dividing the total by the number of items.

Discussion

7306.	What are the 2 broaddivisions of short run costs ?
Answer» SOLUTION :(i) Total VARIABLE Cost (TVC), (II) Total FIXED Cost (TFC).

Discussion

7307.	Which of the following is a merit of a good questionnaire ?
Answer» DIFFICULTY Less NUMBER of questions Not in PROPER order INVALID questions Solution :B

Discussion

7308.	The bundles of budget set lie either on or below the budget line.
Answer» Solution :Budget set INCLUDE all the POSSIBLE bundles which cost less than or equal to consumer's money income. Bundles COSTING less than income LIE below the budget LINE and bundles costing equal to income lie on the budget line.

Discussion

7309.	Explain the imlication of the following. (i) Large Number of buyers under Perfect Competition. (ii) Freedom of Entry and Exit to firms under Perfect Competition (iii) "Inter-dependence between Firms" under Oligopoly (iv) 'Non-price Competition' under Oligopoly (v) Large number of Sellers' under Perfect Competition (vi) "Homogeneous Products" under Perfect Competition (vii) Barriers to Entry of New Firms' under Oligopoly (vii) 'Few Big Sellers" under Oligopoly (ix) 'Product Differentiation" under Monopolistic Competition (x) 'Perfect Knowledge' under Perfect Competition
Answer» Solution :(i) Implication is that no individuals BUYERS is in a position to influence the market price on its own by changing his individual demand. (ii) Implication is that when existing firms are making profits , new firm to earn just only normal profit in the profit in the long run. The opposite happens if the exisitng if the existing firms are facing losses. (ii) Implication is that an individual firm takes into consideration the likely reaction of its RIVAL firms before making a move to CHANGE price or output. It is possible because it is assumed that rival firms may REACT (iv) Non-price competition means competition between firms by means other than changing price, like free gilt, home service, customer care etc. Implication is that firms in oligopoly prefer non-price competition to avoid price-war because the firm who starts the price-war may be the ultimate loser. (v) Implication is that no single firm is in a position to influence the market price on its own by changing its own output. Thus, price remains unchanged. (iv) Implication is that no firm can charge a higher price because no buyer is willing to pay the same. Thus, market price remains the same for all the firms. (vii) Implication is that such barriers allow only a limited number of firms into oligopoly industries. Such barriers may be in the form of huge capital requirements, patent rights, availability of crucial raw materials etc. (vii) Implication is that each big seller contributes a fairly large share of total output. This gives an individual seller the power of influencing the market price by changing its own output. (ix) Implication is that buyers differentiate products of firms various as different. So, they are willing to pay different prices for the products of different firms. This product differentiation gives the power to an individual firm to influence the market price on their own. (X) Knowledge by buyers further implies that no buyer is willing to pay a higher price for the product of any firm. Knowledge by sellers implies that cost of production is same for all producers.Implication is that buyers are fully aware of price in market and sellers of technique of production.

Discussion

7310.	Explain the consumer's equilibrium through Indifferencce Curve Analysis or Hicksian Analysis
Answer»

Discussion

7311.	A consumer in conumption of two commoditiesA and B is at equilibrium. The prices of A and B are Rs 10 and Rs 20 respectively and the marginal utility of product B is 50. What will be the marginal utility of product A ?
Answer» 100 25 250 4 Answer :B

Discussion

7312.	On the basis og given diagram, answer the following questions: (i) On the production possiblility curve AE, if the economy decides to produce 50 million tonnes of wheat then how many tanks it can produce ? (ii) If there is growth in resources, what will appen to the production possibility curve (iii) Which point in the diagram represents underutillisation of resources? (iv) Which of the points n diagram is an unattainable combination? (v) Identify the point at whihc the economy will operate if resources are fully and efficiently utilised.
Answer» SOLUTION :(i) ZERO Tanks. (ii) The production possibility curve will shift TOWARDS right. (iii) Point F. (iv) Point G. (V) If resources are fully and EFFICIENTLY utilized, economy can operate at any point (like points A, B,C, or E) on the production possibility curve.

Discussion

7313.	Consider the following demand and supply function of the commodity : Q^(D)=160=2P" ,"Q^(S)=-40+2P (i) Find equilibrium price. (ii) Find equilibrium quantity. (iii) Which situation arises when market price is Rs.30 ? (iv) Which situation arises when market price is Rs.60 ?
Answer» Solution :Equilibrium PRICE is determined at that point where market demand is equal to market supply i.e., `Q^(D)=Q^(S)` `160-2P=-40+2P` `-4P=-40-160` `P=(-120)/(-4)` P = 50 `therefore` Equilibrium price is Rs.50. (II) The equilibrium QUANTITY is calculated by substituting the equilibrium price into either demand or supply function since at equilibrium, quantity demandedand quantity supplied are equal. `Q^(D)=160-2P=160-2(50)=160-100=60" units"` `Q^(S)=-40+2P=-40+2(50)=-40+100=60" units"` (iii) When market price is Rs.30, then `Q^(D)=160-2P=160-2(30)=100"units"` `Q^(S)=-40+2P=-40+2(30)=20"units"` `Q^(D)gtQ^(S)` `100gt20` This is a situation of excess demand or shortage of supplyy, because `Q^(S)gtQ^(S)`. (iv) When market price is Rs.60, then `Q^(D)=160-2P=160-2(60)="40 units"` `Q^(S)=-40+2P=-40+2(60)="80 units"` `Q^(D)ltQ^(S)` `40lt80` This is a situation ofsupply or surplus because `Q^(D)ltQ^(S)`.

Discussion

7314.	What is the relation between (i) Market price and AR of a price taking firm ? (ii) Market price and MR of a price taking firm ?
Answer» SOLUTION :(i) AR EQUALS the market PRICE, as `AR=(TR)/Q` Hence `AR=(Pxx Q)/Q "" ( :. TR=PxxQ)` AR=Price (ii) As price remains constant, TR increases at the same rate. Hence price/AR=MR

Discussion

7315.	Distinguish between a change in quantity demanded and a change in demand of a commodity.
Answer» Solution :(i) Change in QUANTITY demanded is the change in DEMAND caused by a change in own price of the commodity whereas change in demand REFERS to change in demand of the commodity caused by a change in other factors affecting the demand for that commodity other than the own price of the commodity. (II) Change in quantity demanded leads to a movement along the demand curve whereas change in demand leads to a shift in the demand curve.

Discussion

7316.	Total utility is :
Answer» The sum of MARGINAL utilities. Utility from the FIRST unit `XX` Number of units consumed. Always increasing. Utility from LAST unit `xx` Nuimber of unit consumed. Answer :A

Discussion

7317.	Four units of labour produce 100 unit of output and 5 units of labour produce 120 units of output. Calculate MP of the labour.
Answer» SOLUTION :20 UNITS.

Discussion

7318.	Discuss the relationship between AR and MR when a firm is able to sell more quanity of output (i) At the same price (ii) Only by lowering the price
Answer»

Discussion

7319.	Out of the following , by which method mode can be calculated?
Answer» INSPECTION METHOD Grouping method Both (a) and (B) NONE of these Solution :Inspection method andGrouping method

Discussion

7320.	What eflect does an increase in input price has on the supply of the commodity?
Answer» Solution :SUPPLY will decrease. because it will be EXPENSIVE to produce that COMMODITY.

Discussion

7321.	Harish earn Rs. 10 lakhs per year from his business. He gets an offer from a company to work at a salary of Rs.8,40,000 per year. Determine opportunity cost of Harish.
Answer» SOLUTION :The oportunity cost of Harish is Rs. 8,40,000, that he can EARN in the next BEST alternative.

Discussion

7322.	Such series may be converted into simple frequency series using the following method: (i) First, mutual difference between mid-values (i), is determined, and (ii) Second, the difference so obtained is reduced to half (1/2i) which when deducted from the mid-value gives lower limit of the class interval and when added to the mid-value gives the corresponding upper limit.
Answer» Solution :Thus,Lower limit: `l_1 = m-1/2i` Upper limit: `l_2=m+1/2i` where, m=mid-value, i=difference between mid-values, `l_1`=lower limit and `l_2` = upper limit. In the above frequency series with mid values, the MUTUAL difference between mid-values (i) 15 - 5=10. HALF of it is 5. Deducting 5 from each mid-value we GET lower limits and adding 5 to each mid-value we get the corresponding upper limits. Following table shows the process of this conversion.

Discussion

7323.	What conditions must hold if a profit-maximising firm produces positive in a competitive market?
Answer» Solution :Discuss MR-MC Approach in case of "Producer's EQUILIBRIUM (When PRICE remains Constant)" given of PAGE No. 8.3-8.4.

Discussion

7324.	What is the relation of AP, when : (i) MP is more than AP (ii) MP is less than AP (iii)MP is equal to AP ?
Answer» Answer :The REACTION of AP in different cases will be (i)AP will rise. (II) AP will fall but it will remain positive. (III) AP will be constant and at its MAXIMUM POINT.

Discussion

7325.	On the basis of following schodule, answer the following questions : \|{:("Units of Labour","Total Product (TP)","Marginal Product (MP)"),(1,10,10),(2,?,12),(3,36,?):}\| The given schedule indicates the phase of :
Answer» DIMINISHING RETURNS to a Factor Increasing Returns to a factor Negative Returns to a Factor None of these Answer :B

Discussion

7326.	On the basis of following schodule, answer the following questions : \|{:("Units of Labour","Total Product (TP)","Marginal Product (MP)"),(1,10,10),(2,?,12),(3,36,?):}\| (ii) What is MP at 3rd unit of labour ?
Answer» 22 12 36 14 Answer :D

Discussion

7327.	On the basis of following schodule, answer the following questions : \|{:("Units of Labour","Total Product (TP)","Marginal Product (MP)"),(1,10,10),(2,?,12),(3,36,?):}\| (i) What TP at 2 units of labour ?
Answer» 10 12 22 20 Answer :C

Discussion

7328.	Example of goods produced in a monopolistic form of market
Answer» SAMSUNG T.V. AATA TEA L.G. REFRIGERATOR all of these. Answer :D

Discussion

7329.	Sum of deviations of different values from arithmetic mean is always equal to:
Answer» zero ONE less than one more then one ANSWER :A

Discussion

7330.	Define 'change in demand'.
Answer» SOLUTION :When the demand CHANGES due to a change in the other factors, at the same PRICE, it is termed as change in demand.

Discussion

7331.	Define demand schedule or individual demand schedule.
Answer» SOLUTION :Demand schedule (individual demand schedule) refer to a table which shows various quantities of a COMMODITY, that a CONSUMER is willing to purchase at different prices during a GIVEN PERIOD of time.

Discussion

7332.	At any given level of a firm's output, marginal revenue is the revenue earned by selling :
Answer» ENTIRE output ADDITIONAL unit of output Both (a) and (b) NEITHER (a) nor (b) Solution :N/A

Discussion

7333.	Draw the demand curve of a firm under monopoly.
Answer»

Discussion

7334.	Standard deviation is calculated from
Answer» MEAN MEDIAN Both mean and median NEITHER mean nor median SOLUTION :A

Discussion

7335.	In the Law of Variable Proportions, when Total Product rises at decreasing rate, Average Product
Answer» RISES throughout FALLS throughout INITIALLY rises and then falls Initially FALL and then rises Answer :C

Discussion

7336.	Average age of the people of a counry is shown in the following table: {:("Age (Years)",10-20,20-30,30-40,40-50,50-60),("People ('000)"," "30," "32," "15," "12," "9):} Find out mean age by Direct Method.
Answer» ANSWER :MEAN AGE = 28.7 YEARS

Discussion

7337.	When is supply of a good said to be perfectly price inelastic?
Answer» Solution : When the supply of a GOOD does not CHANGE despite of a change in its PRICE.

Discussion

7338.	Mention one determinant of demand for a commodity other than price.
Answer» SOLUTION :INCOME of the CONSUMER.

Discussion

7339.	In a village of 200 farms , a study was conducted to find the find the cropping pattern. Out of the 50 farms surveyed , 50% grew only wheat. Identify the population and the sample here.
Answer» ANSWER :POPULATION =200,SAMPLE =50

Discussion

7340.	Suppose that goof A is a substitude of good B. How will an increase in the price of good B affect the demand curve of good A ?
Answer» SOLUTION :DEMAND curve of GOOD A will shift to the RIGHT.

Discussion

7341.	An increase in number of firms leads to 'Expansion in Supply'.
Answer» SOLUTION :False. It leads to 'Increase in SUPPLY' as supply will rise at the same PRICE.

Discussion

7342.	Define price elasticity of demand.
Answer» SOLUTION :PRICE ELASTICITY of demand is a measure of degree of RESPONSIVENESS of demand as a RESULT of change in price of the commodity.

Discussion

7343.	What is the relationship between price curve and MR curve, when price remains same at all output levels ?
Answer» Solution :When price is same at all the OUTPUT levels, the price/AR CURVE coincides with the MR curve. The curve will be a HORIZONTAL straight LINE PARALLEL to the X-axis.

Discussion

7344.	Which table is smaller in size?
Answer» TEXT table REFERENCE table GENERAL table NONE of the above. SOLUTION :A

Discussion

7345.	Price elasticity of supply of a good is 2. A producer sells 60 units of a good at a price of Rs.6 per unit .At what price will he sell 40 units ?
Answer» Solution :Given, `""E_(s)=(P)/(Q)XX(DeltaQ)/(DeltaP)` `2=(6)/(60)xx(-20)/(DeltaP)` `120 DeltaP=-120` `DeltaP=-1` Now `P=P+DeltaP=6+(-1)=RS. 5`

Discussion

7346.	How does TR react when MR is zero ?
Answer» SOLUTION :TR is MAXIMUM.

Discussion

7347.	State wheter true of false (give reason). A monopolist can sell any quantity he likes at a price.
Answer»

Discussion

7348.	A consumer consumes only two goods. Explain consumer's equilibrium with the help of utility analysis. Or A consumer consumes only two goods A/X and B/Y and is in equilibrium. Show that when price of good B/X falls, demand for B/X rises. Answer this question with the help of utility analysis.
Answer»

Discussion

7349.	Decrease in the price of the complementary goods leads to :
Answer» Upward movement ALONG the same MARKET demand curve Downward movement along the same demand curve Rightward SHIFT in the demand curve Leftward shift in the demand curve Answer :C

Discussion

7350.	Frequency curve is a simple form of ________ which is drawn by freehand smoothed curves. (frequency polygon / histogram )
Answer» SOLUTION :FREQUENCY POLYGON

Discussion

Explore topic-wise InterviewSolutions in .

Which of the following is a source of secondary data ?

If the price elasticity of demand for a commodity is less than unity, a decrease in price would result in

State one notable property of arithmetic mean.

What do you mean by the budget set of a consumer ?

Define arithmetic mean.

What are the 2 broaddivisions of short run costs ?

Which of the following is a merit of a good questionnaire ?

The bundles of budget set lie either on or below the budget line.

Explain the consumer's equilibrium through Indifferencce Curve Analysis or Hicksian Analysis

A consumer in conumption of two commoditiesA and B is at equilibrium. The prices of A and B are Rs 10 and Rs 20 respectively and the marginal utility of product B is 50. What will be the marginal utility of product A ?

Consider the following demand and supply function of the commodity : Q^(D)=160=2P" ,"Q^(S)=-40+2P (i) Find equilibrium price. (ii) Find equilibrium quantity. (iii) Which situation arises when market price is Rs.30 ? (iv) Which situation arises when market price is Rs.60 ?

What is the relation between (i) Market price and AR of a price taking firm ? (ii) Market price and MR of a price taking firm ?

Distinguish between a change in quantity demanded and a change in demand of a commodity.

Total utility is :

Four units of labour produce 100 unit of output and 5 units of labour produce 120 units of output. Calculate MP of the labour.

Discuss the relationship between AR and MR when a firm is able to sell more quanity of output (i) At the same price (ii) Only by lowering the price

Out of the following , by which method mode can be calculated?

What eflect does an increase in input price has on the supply of the commodity?

Harish earn Rs. 10 lakhs per year from his business. He gets an offer from a company to work at a salary of Rs.8,40,000 per year. Determine opportunity cost of Harish.

What conditions must hold if a profit-maximising firm produces positive in a competitive market?

What is the relation of AP, when : (i) MP is more than AP (ii) MP is less than AP (iii)MP is equal to AP ?

On the basis of following schodule, answer the following questions : |{:("Units of Labour","Total Product (TP)","Marginal Product (MP)"),(1,10,10),(2,?,12),(3,36,?):}| The given schedule indicates the phase of :

On the basis of following schodule, answer the following questions : |{:("Units of Labour","Total Product (TP)","Marginal Product (MP)"),(1,10,10),(2,?,12),(3,36,?):}| (ii) What is MP at 3rd unit of labour ?

On the basis of following schodule, answer the following questions : |{:("Units of Labour","Total Product (TP)","Marginal Product (MP)"),(1,10,10),(2,?,12),(3,36,?):}| (i) What TP at 2 units of labour ?

Example of goods produced in a monopolistic form of market

Sum of deviations of different values from arithmetic mean is always equal to:

Define 'change in demand'.

Define demand schedule or individual demand schedule.

At any given level of a firm's output, marginal revenue is the revenue earned by selling :

Draw the demand curve of a firm under monopoly.

Standard deviation is calculated from

In the Law of Variable Proportions, when Total Product rises at decreasing rate, Average Product

Average age of the people of a counry is shown in the following table: {:("Age (Years)",10-20,20-30,30-40,40-50,50-60),("People ('000)"," "30," "32," "15," "12," "9):} Find out mean age by Direct Method.

When is supply of a good said to be perfectly price inelastic?

Mention one determinant of demand for a commodity other than price.

In a village of 200 farms , a study was conducted to find the find the cropping pattern. Out of the 50 farms surveyed , 50% grew only wheat. Identify the population and the sample here.

Suppose that goof A is a substitude of good B. How will an increase in the price of good B affect the demand curve of good A ?

An increase in number of firms leads to 'Expansion in Supply'.

Define price elasticity of demand.

What is the relationship between price curve and MR curve, when price remains same at all output levels ?

Which table is smaller in size?

Price elasticity of supply of a good is 2. A producer sells 60 units of a good at a price of Rs.6 per unit .At what price will he sell 40 units ?

How does TR react when MR is zero ?

State wheter true of false (give reason). A monopolist can sell any quantity he likes at a price.

A consumer consumes only two goods. Explain consumer's equilibrium with the help of utility analysis. Or A consumer consumes only two goods A/X and B/Y and is in equilibrium. Show that when price of good B/X falls, demand for B/X rises. Answer this question with the help of utility analysis.

Decrease in the price of the complementary goods leads to :

Frequency curve is a simple form of ________ which is drawn by freehand smoothed curves. (frequency polygon / histogram )