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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.
| 7351. |
MC curve cuts .............. At minimum |
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Answer» AC curve |
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| 7352. |
Explain the procedure of selecting a random sample of 3 students out of 10 in your class, by using random number tables. |
| Answer» SOLUTION :Here LARGEST number is 10 and we have other 9 numbers i.e. one digit number. So we will consult one digit random numberand we will SKIP the random number greater than 10 because there is no student number greater than 10. Thus the 3 selected students out of 10 are with SERIAL number would be 5,9,2. | |
| 7353. |
In monopolistic competition, there are: |
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Answer» Few FIRMS SELLING differentiated products |
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| 7354. |
Which of thefollowingstatement is notvaildwith repect to 'Law of Supply' |
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Answer» indicate the magnitute of CHANGE in supply due to change in demand. |
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| 7356. |
Two ladies were asked to rank 10 different types of cell phone . The rank given by them are given below. Calculate Spearman's rank correlation coefficient |
Answer» Solution : `r_(k)=1-(sumD^(2))/(N^(3)-N)` Here, `N=10,sumD^(2)=100` Susbstituting the values, we get `r_(k)=1-(6xx100)/(10^(3)-10)` `=1-(600)/(1,000-10)` `=1-(600)/(900)` `=1-0.606` `= 0.394` Coefficient of RANK Correlation `(r_(k))=0.394` |
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| 7357. |
How does the following factors influence price elasticity of demand for a commodity: (i) Nature of the commodity, and (ii) Availability of substitutes ? |
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| 7358. |
At a certain level of output , the marginal cost ofa firm is above its marginal revenue. Can this be its equilibrium output ? |
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Answer» |
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| 7359. |
Census of India: |
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Answer» Publishes only primary DATA |
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| 7360. |
Degradationo technology will havethefollowingeffect on thesupplycurves: |
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Answer»
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| 7361. |
_____________sampling is adopted when population consists of different groups with different characterstics. (Stratified / Systematic) |
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| 7362. |
What is a discrete series? |
| Answer» Solution :A discrete SERIES is that series in which DATA are PRESENTED in a way that exact measurements of items are clearly shown in such series, there are no CLASS intervals and a particular item in the series is NUMBERED rather than measured with some range. | |
| 7363. |
Give the meaning of production function Or Define production function |
| Answer» Solution :Production FUNCTION EXPLAINS the FUNCTIONAL RELATIONSHIP between inputs and OUTPUT. | |
| 7364. |
There is increase in demand for electricity. What causes it ? Explain diagrammatically. If its supply cannot increase due to lack of resources, explain briefly how in two ways demand for electricity can be decreased? |
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Answer» Solution :Increase in DEMAND for electricity is DUE to change in other factors than its price. It may be due to: (i) Increase in size of population (ii) Increase in income of the consumers. (iii) Increasing URBANISATION. Increase in demand will be represented by rightward shift of the demand curve from DD to `D_(1)D_(1)`.  If its supply cannot increase due to lack of resources, consumers can (i) Use ENERGY saving electrical appliances LIKE CFL. (ii) Use alternate sources of energy like solar energy. |
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| 7365. |
In which period, some factors of production are fixed and other variable ? |
| Answer» SOLUTION :SHORT PERIOD or Short RUN. | |
| 7366. |
What isthesupplycurveof a firmin theshortrun ? |
| Answer» SOLUTION :Supplycurveis LESS elastic in THESHORT runas supplyis lessresponsiveto CHANGE in price. | |
| 7368. |
When there are diminishing returns to a factor, marginal and total product both always fall. |
| Answer» Solution :FALSE. In CASE of diminishing returns to a FACTOR, only marginal PRODUCT falls and not TOTAL product. | |
| 7369. |
Calculate weighted mean of the following data: {:("Marks(X)",81,76,74,58,70,73),("Weight(W)",2,3,6,7,3,7):} |
Answer» SOLUTION : WEIGHTED MEAN, `barX_(W)=(sumWX)/(sumW)=(1,961)/28=70.04` Weighted Mean = 70.04 markds. |
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| 7370. |
Equilibrium price remains the same when |
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Answer» increase in DEMAND = increase in SUPPLY |
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| 7371. |
Which of the following formulae is used to find out median ? |
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Answer» `M=l_(1)+(N/(4)-c.f.)/(f)XXI` |
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| 7372. |
When does 'change in demand' take place? |
| Answer» Solution :A CHANGE in DEMAND OCCURS when there is a change in other factors affecting the demand for the COMMODITY other than the own price of the commodity. | |
| 7373. |
How does minimum wage legislation help labour ? |
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| 7374. |
Define the following terms: (i) Total product (ii) Average product (iii) Marginal product |
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Answer» Solution :Total PRODUCT REFERS to total output of a commodity at a PARTICULAR level of a variable FACTOR combined with fixed facotrs. Average product is the output per unit of variable factor employed. Marginal Product is the addition to total product when one more unit of variable factor is employed while keeping other FACTORS fixed. |
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| 7375. |
When is a good called an inferior good? or What is meant by inferior good in economics? |
| Answer» Solution :Inferior goods are the goods with income EFFECT NEGATIVE i.e as the income of the CONSUMER INCREASES the DEMAND for the good falls and vice-versa. | |
| 7376. |
The demand for a good increases with the increase in the income of its buyer. |
| Answer» SOLUTION :The demand for only normal GOODS increases with the INCREASE in INCOME. The demand of inferior goods will decline with the increase in income. | |
| 7377. |
Market for a good is in equilibrium. Explain the chain of reactionsin the market if the price is (i) higher than equilibrium price and (ii)lower than equilibrium price. |
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Answer» SOLUTION :(i) When price is HIGHER than equilibrium price: `cdot` There is excess supply and producers are not in aposition to SELL all they want to sell at the given price. `cdot` This leads to competition between producers. `cdot` Competition between producers leads to lowering of price. `cdot` Lowering of price raises demand while reduces supply. Thiscontinues TILL demand is equal to supply again at the original equilibrium. (ii) When price is lower than the equilibrium price: `cdot` There is excess demand and consumers AR not in a position to buy all they want to buy at the given price. This leads to competition between consumers. `cdot` Competition leads to rise in price. `cdot` Rise in price reduces demand while raises supply. This continues till demand is equal to supply again at the original equilibrium. |
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| 7378. |
Which of the following statements is correct in case of non-viable industry ? |
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Answer» Supply CURVE LIES above the demand curve |
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| 7379. |
Let the production function of a firm be : Q=5L^(½)K^(½). Find out the maximum possible output that the firm can produce with 100 units of L and 100 units of L and 100 units of K. |
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Answer» Solution :Given: `Q=5L^(½)K^(½), L=100` UNITS, `K=100` units Putting the values of L and K in the given PRODUCTION function, we GET : `Q=5(100)^(½)(100)^(½)` i.e., `Q=5 SQRT(100). sqrt(100)` Q or Maximum output `= 500` units |
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| 7380. |
If astatistical series is divided into four equal parts , the end value of each part is called a _________. |
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| 7381. |
Suppose that an ice-cream is sold for Rs 30. Laxmi, who loves ice-cream, has already eaten 3. Her marginal utility from eating the 3^(rd) ice-cream is 90 utils. If MU of Rs 1 is 3 utils, should she eat more ice-creams or should she stop ? |
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Answer» SOLUTION :GIVEN: Price `(P_(IC)) = Rs 30`, Marginal UTILITY from eating `3^(rd)`ice-cream = 90 utils. Value of 3 utils = Rs i.e., `MU_(M) = 3`. MU in terms of Money `(MU_(IC)) = (MU " in Utils")/(MU_(M)) = (90)/(3) = 30` Laxmi should not consume any more ice -creasn as the condition for consumer equilibrium `''MU_(IC) = P_(IC)''`is SATISFIED at `3^(rd)` ice-cream. |
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| 7382. |
Identify fixed costs and variable costs: {:("Salary of permanent staff","Interest payment"),("Wages to daily wage workers","Expenditure on raw materials"),("Depreciation","License fee"),("Excise duty","Sales tax"):} |
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| 7383. |
Price Floor is the price fixed by the government, which is: |
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Answer» EQUAL to EQUILIBRIUM Price |
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| 7384. |
Out of 'Price Floor' and 'Price Ceiling', which concept is used by the government to control the prices of essential commodities? |
| Answer» SOLUTION :PRICE CEILING. | |
| 7385. |
The maximum quantity fixed by the government that can be purchased through fair price shops is : |
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Answer» rationing |
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| 7386. |
Quartile deviation is equal to: |
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Answer» `(Q_(1)-Q_(3))/(2)` |
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| 7387. |
Define fixed costs. OR What is meant by supplementary costs ? |
| Answer» Solution :Fixed costs (or supplementary costs) refer to those costs whichdo not VARY directly with the level of OUTPUT. For EXAMPLE, salary of permanent staff, payment of insurance PREMIUM. | |
| 7388. |
What is short run ? |
| Answer» Solution :Short RUN refers to a period in which output can be CHANGED by CHANGING only variable FACTOR. | |
| 7389. |
A ________ is a percentageratio between price of a commodity in the current year and that in the base year. "" (price relative/average relative) |
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| 7390. |
what is meant by price elasticity fo demand ? Explain any two factors that affect it. |
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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. 1. NATURE of the commodity. 2. Time period. |
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| 7391. |
ln measuring price elasticity, price is a dependent variable and quantity is an independent variable |
| Answer» SOLUTION :Price is an INDEPENDENT VARIABLE and quantity is a DEPENDENT variable. | |
| 7392. |
Suppose the price at which equilibrium Is attained Is above the minimum average cost of the firms constituting the market. Now If we allow for free entry and exit of firms, how will the market price adjust to it? |
| Answer» Solution :If the equilibrium price is above the minimum average COST of the firms, it INDICATES that the existing firms have an opportunity to eam abnormal profits. With freedom of entry and exit of firms, new firms will ENTER the INDUSTRY. whieh will increase the market supply and will shift the supply curve towards right. This rise in supply will lead to fall in equilibrium price till it becomes equal to the minimum average cost. | |
| 7393. |
Indifference curves are : |
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Answer» Concace to the origin. |
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| 7394. |
Mode of a frequency distribution can be known graphically with the help of histogram.(true/false) |
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| 7395. |
Median is an average . Median of the series with variable 9,1,5,3,7,11,20 is : |
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Answer» 8 |
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| 7396. |
What is the shape of AR and MR curves under monopoly and monopolistic competition ? |
| Answer» Solution :Both the CURVES are DOWNWARD sloping and MR curve remains below AR curve. | |
| 7397. |
Explain the relation between marginal revenue and average revenue when a firm is able to sell more quantity of output : (i) at the same price. (ii) only by lowering the price. |
| Answer» SOLUTION :(i)If the market price is unaffected by variations in the firm's output, then the firm's demand curve, its AR curve and MR curve will coincide in the same HORIZONTAL line.It means, the revenue from every additional unit (MR) is equal to AR. (ii) MR will be less than AR at all the output levels.When FIRMS can increase their volume of sales only by decreasing the price, then AR falls with increase in sale. It means, revenue from every additional unit (i.e. MR) will be less than AR. As a result, both AR and MR curves SLOPE downwards from left to RIGHT. | |
| 7398. |
Calculate the standard deviation and coefficient of variation of pocket money received by students . |
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| 7399. |
When matginal product is zero, total product is at its maximum point. |
| Answer» SOLUTION :True. Zero MARGINAL PRODUCT signifies that change in TOTAL product is zero, i.e. total product has stopped increasing and has ATTAINED its maximum point. | |
| 7400. |
Briefly discuss the relationship between AP and MP. |
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Answer» Solution :(i) When MP`gt`AP, AP RISES. (II) When MP = AP, AP is MAXIMUM and constant. (iii) When MP`lt`AP, AP FALLS. |
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