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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.
| 7451. |
What are the two principal parts of a table? |
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Answer» (ii) Title: A table must have a title. Title must be WRITTEN in bold LETTERS. It should attract the attention of the readers. The title must be simple, clear and short. |
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| 7452. |
Increase in total product always indicates that there are increasing returns to a factor. |
| Answer» SOLUTION :FALSE. Increase in total product also INDICATES diminishing RETURNS to a factor. | |
| 7453. |
Thefollowing table shows marks in economics of the students of a class. Calculate arithmetic mean. {:("Marks",,"Number of Students"),("More than 0",,""30),("More than 2",,""28),("More than 4",,""24),("More than 6",,""18),("More than 8",,""10):} |
Answer» Solution :Converting Cumulative Frequency Distribution into a Simple Frequency Distribution, we get the following:  ARITHMETIC mean of this CONTINUOUS series is ESTIMATED below, USING DIRECT Method.  `barX=(sumfm)/(sumf)=(190)/(30)=6.33` Arithmetic Mean = 6.33 marks. |
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| 7455. |
What is the relation betweenmarginal cost and average cost when average cost is rising ? |
| Answer» SOLUTION :MARGINAL COST is more than AVERAGE Cost. | |
| 7456. |
What is the shape of 'less than ogive'? |
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Answer» RISING upward |
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| 7457. |
What is cartel |
| Answer» Solution :Cartel is a group of FIRMS which jointly set their output and PRICE so as to exercise MONOPOLY power. | |
| 7458. |
What is the meant by break-even point ? |
| Answer» Solution :The break-even point (BEP) or break-even level represents the SALES amount—in either unit (quantity) or revenue (sales) terms—that is required to cover total costs, CONSISTING of both fixed and VARIABLE costs to the COMPANY. | |
| 7459. |
The market supply of a commodity is affected by: |
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Answer» STATE of Technclogy |
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| 7460. |
What would happen to be Market Equilibrium of a good if decrease in demand is equal to increase in supply. |
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Answer» EQUILIBRIUM QUANTITY rises |
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| 7461. |
Name the law expressing the relationship between the quantities of a variable factor and the quantities of output. |
| Answer» SOLUTION :LAW of VARIABLE PROPORTIONS. | |
| 7462. |
Suppose the price of a connodity 'x' is given as Rs 8 and the MU (in terms of money) for 4 units is given as : {:("Units",1,2,3,4,),(MU_(x) (Rs),12,10,8,6,):} How many units should a consumer purchase so that his satisfaction is maximum ? |
Answer» Solution : Consumer will purchase 3 units because at `3^(RD)` unit, MU = Price `**` The consumer will not purchase less than 3 units as `MU gt` Price and these is scope for INCREASING the total satisfaction by purchasing more units. `**` SIMILARLY, consumer will not buy more than 3 units as `MU lt` Price and total satisfaction can be increased bypurchasing less quantity. |
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| 7463. |
Total revenue can be obtained by adding up revenue generated from every additional unit. |
| Answer» SOLUTION :TRUE : `TR=MR_(1)+MR_(2)+...+MR_(N)=sumMR` | |
| 7464. |
Microeconomics is concerned with study of problems of the economy like inflation or unemployment. |
| Answer» Solution :Macroeconomics in concerned with study of AGGREGATES LKE inflation or UNEMPLOYMENT. | |
| 7466. |
State the behaviour of Total Variable Cost. Draw Total Variable Cost, Total Cast and Total Fixed Cost Curvesin a single diagram. |
| Answer» SOLUTION :The TOTAL variable cost is the cost that VARIES with the change in the LEVEL of output and hence it increases as output increases and decreases as output decreases. | |
| 7467. |
Explain why the demand curve facing a firm under monopolistic competition is negatively sloped. |
| Answer» Solution :DISCUSS "DEMAND CURVE Monopolistic Competition". | |
| 7468. |
How is law of demand derived from utility analysis? |
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Answer» Solution :The inverse relation between price and demand of a commodity can be explained with the help of two priciples used in utility ANALYSIS. (i) On the basis of principle `MU_(X) = "Price"_(X)` We know that a consumer is at equilibrium when `MU_(X)=P_(X)`. Assuming that the price of commodity X FALLS implying that now `MU_(X) gt P_(X)`, it will INDUCE him to buy more of X. He will continue to buy more until `MU_(X)` falls and reaches at equilibrium again. It shows that when price of commodity falls, its demand rises (inverse relation between price and demand). (ii) On the basis of principle `(MU_(X))/(P_(X))=(MU_(Y))/(P_(Y))` The EQUALITY between two determines condumer equilibrium. Assuming that the price of GOOD X falls implying that now `(MU_(X))/(P_(X)) gt (MU_(Y))/(P_(Y))`, it will induce the consumer to buy more of X as it given him more utility than Y. He will continue to buy more of X till he reaches equilibrium again. The above discussion shows that when price of a good falls its demand rises (inverse relation between price and demand). |
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| 7469. |
Is it enough to say that profit is maximised when MC = MR ? |
| Answer» SOLUTION :No, PROFIT is MAXIMISED where-1. MR=MC2. MC cuts MR from below. | |
| 7470. |
What is a production possibility frontier? |
| Answer» Solution :Production possibility frontier refers to a graphical REPRESENTATION of all the possible combinations of two GOODS that can be produced with the GIVEN RESOURCES and technology. | |
| 7471. |
60 students of Section A of Class XI, obtained 40 mean marks in Statistics, 40 students of Section B obtained 35 mean marks in Statistics. Find out mean marks in Statistics for Class XI as a whole. |
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Answer» SOLUTION :Given: `N_(1)=60,barX_(1)=40,N_(2)=40,barX_(2)=35` `"We know, "barX_(12)=(barX_(1)N_(1)+barX_(2)N_(2))/(N_(1)+N_(2))` `:.""barX_(12)=(40xx60+35xx40)/(60+40)` `:.""barX_(12)=(2,400+1,400)/100=(3,800)/100=38` THUS, Combinaed Arithmetic Mean = 38. |
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| 7473. |
If all the units are sold at the same rate, how will it affect AR and MR ? |
| Answer» Solution :AR will be EQUAL to MR and both the curves will be parallel to the X-axis COINCIDING with one ANOTHER. | |
| 7474. |
The total output generated by the first four units of variable input is 200 units, 350 units, 450 units and 500 units. The marginal product of the third unit of input is : |
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Answer» 50 units |
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| 7475. |
What is the shape of perfecitly inelastic demand curve ? |
| Answer» SOLUTION :A PERFECTLY inelastic demand curve is VERTICAL or it is parallel to Y-axis. | |
| 7476. |
An indifference schedule is based on the assumption that |
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Answer» The consumer consumes only TWO goods |
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| 7477. |
Which of the following formulae is used to find out P(77) in frequency distribution ? |
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Answer» <P>`l_(1)-(77(N/(10))-c.f.)/(f)XXI` |
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| 7478. |
Give two examples ofmicroeconomic. |
| Answer» SOLUTION :1. CONSUMER equilibirium2. PRODUCER EQUILIBIRIUM | |
| 7479. |
Equilibrium quantity and equilibrium price remain same even with increase or decrease in demand in case of perfectly inelastic supply. |
| Answer» SOLUTION :There will be no change in equilibrium quantity, but the equilibrium PRICE will rise with INCREASE in DEMAND and will fall with DECREASE in demand. | |
| 7480. |
when is the demand of a commondity said to be inelastic ? OR Give the meaning of 'inelastic demand'. |
| Answer» SOLUTION :When PERCENTAGE change in the quantity demanded is less than percentage change in price, then demand for such a COMMODITY is said to be less ELASTIC. | |
| 7481. |
Which fetures of monopolistic competition are competitive in nature? |
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Answer» Solution :(i) LARGE NUMBER of SELLERS (ii) Freedom of entry and EXIT |
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| 7482. |
Distinguish between : (a) individual demand and market demand , (b) Change in demand and change in quantity demanded. |
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Answer» Solution :(a) Individual demand refers to the quantity of a commodity that a CONSUMER is willing and able to BUY, at different possible prices during a specific period of time.On the other hand, 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. Market demand is horizontal summation of all the individual demands. Factors affecting demand for a good by an individual are :- (b) (i) When the quantity demanded changes due to a change in own price of the commodity, keeping other factors constant, it is known as change in quantity demanded whereas when the demand changes due to a change in other factors other than the price of the commodity, it is known as change in demand. (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. |
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| 7483. |
Define utility. Explain the relationship between TU and MU curves Or Define utility Explain the law of DMU Or Explain the law of DMU with the help of an example. Or Explain the law of diminishing marginal utility using TV schedule. |
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Answer» Solution :Utility is a term used by ECONOMISTS to describe the measurement of "useful-ness" that a CONSUMER obtains from any GOOD. Mu goes on diminishing as the consumer consumes more and more units of a commodity. There is an INVERSE relationship between MU and stock of the commodity i.e. as the stock of the commodity consumed increases, MU goes on diminishing. 3. When MU is Zero, TU is the maximum and it is the point of maximum satisfaction. |
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| 7484. |
Which Law states that. ''When a consumer consumes more and more units of a product, the utility derived from each additional unit decreases''? |
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Answer» LAW of Equi-MARGINAL Utility |
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| 7485. |
How wm a change in price of coffee affect the equilibrium price of tea? Explain the effect on equilibrium quantity aJso through a diagram. |
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Answer» Solution :A change in PRICE of coffee will directly influence the equilibrium price and QUANTITY of tea as coffee is a substitute of tea. An increase in price of coffee will make tea relatively CHEAPER and demand for tea will rise. It will LEAD to excess demand. On the other hand, a decrease in price of coffee will decrease the demand tor tea as tea will become relatively COSTLY. It will lead to excess supply. |
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| 7486. |
Find the missing information in the following table: {:(,,A,,B,,C,,"Combined"),("Number(N)",,10,,8,,-,,""24),("Mean"(barX),,20,,-,,6,,""15):} |
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Answer» Solution :Missing number for C = 24 - (10+8) = 6 Let MEAN for B = x We know that, `barX_(123)=(barX_(1)N_(1)+barX_(2)N_(2)+barX_(3)N_(3))/(N_(1)+N_(2)+N_(3))` `:. ""15=((20xx10)+(8xxx)+(6xx6))/24` `200+8x+36=15 xx 24` `RARR""236+8x=360` `rArr""8x=360-236` `rArr""8x=124` `rArr""x=(124)/8` `rArr""x = 15.5` Thus, Missing Number for C = 6. Mean of B = `15.5`. |
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| 7487. |
Define marginal revenue. |
| Answer» SOLUTION :Marginal REVENUE is the EXTRA revenue earned from the sale of one extra unit of OUTPUT. | |
| 7488. |
Ceteris paribus, if the government provides subsidies on electricity bills, what would be the likely change in the market demand of desert coolers? |
| Answer» SOLUTION :By GIVING subsides on electricity BILLS, Price (Tariff) for electricity goes down which will increase DEMAND of electricity resulting in increase in demand for desert coolers | |
| 7489. |
Explain the implicatin of 'freedom of entry and exit of the firms' under perfect competition. Or Explain the implication of 'perfect knowledge of a market' under perfect competition, |
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| 7490. |
Whichof thefollowing is nota essentialelement ofsupply ? |
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Answer» HIGHLY elastic |
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| 7491. |
"_________" refers to a situation when a firm has no intention expand or contract the output. |
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Answer» PRODUCER's EQUILIBRIUM |
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| 7492. |
Define utility |
| Answer» SOLUTION :UTILITY is an ECONOMIC term REFERRING to the satisfaction received from consuming a GOOD or service. | |
| 7493. |
Define Price Floor. What is the common purpose of fixation of floor price by the government? Explain any one likely consequence of this nature of intervention by the government. |
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Answer» Solution :PRICE floor is the minimum price FIXED for a COMMODITY by the government (above the equilibrium price), which must be paid to the producers for their produce. The need for price floor arises when the government finds that equilibrium price is too low for the producers.As a result of price floor, the market price is above the equilibrium price, leading to EXCESS supply. This often leads to illegal selling of their produce by the producers since they are not able to sell the commodity at the price SET by the government. |
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| 7494. |
When marginal revenue is positive and constant, average and total revenue will both increase at constant rate. |
| Answer» SOLUTION :False : Only total revenue will INCREASE at a COSTANT rate, whereas, average revenue will be CONSTANT. | |
