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This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your Class 11 knowledge and support exam preparation. Choose a topic below to get started.
| 4201. |
Gross domestic product |
| Answer» Gross Domestic Product refers to the total monetary value of total goods and services produced in an economy in one year.<br>It is the sum of total values of all goods and services which produce in one or particular year. | |
| 4202. |
How to calculate Cumulative Sum in lorenz curve ? |
| Answer» | |
| 4203. |
What is mean deviation ? |
| Answer» | |
| 4204. |
What is meaning of statistics? |
| Answer» It is the form of | |
| 4205. |
Credit sale |
| Answer» | |
| 4206. |
Central problems of an economy1)what to produce?2)how to produce?3)for whom to produce? |
| Answer» 1) What to produce - this problem involves selection of goods and services to be produce and the quantity to be produce of each selection commodity. Every economy has limited resources and it can not produce all the good.Example - production of more sugar is possible only by reducing the production of other good.so an economy has to decide which good should be produce and in what quantity 2) How to produce - this problem refers to technique to be used for production of good and services.Techniques are classified as-labour intensive techniques (LIT) and capital intensive techniques (CIT)3.For whom to be produce - this problem relates to the distribution of produced goods and services among the individuals within the economy that is selection of category of people who will ultimately consume the goods. Whether these distribution of good for more poor and less rich or more rich and less poor<br>1. What to produce?Ans. It refers to selection of goods and services and quantity to be produced of each selected commodity. | |
| 4207. |
Fisher's method of calculatingindex numbers is based on: |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/arithmeticmean-2442487" style="font-weight:bold;" target="_blank" title="Click to know more about ARITHMETICMEAN">ARITHMETICMEAN</a> <br/><a href="https://interviewquestions.tuteehub.com/tag/harmonic-1015999" style="font-weight:bold;" target="_blank" title="Click to know more about HARMONIC">HARMONIC</a> mean<br/>geometric mean<br/>none of these</p>Answer :<a href="https://interviewquestions.tuteehub.com/tag/c-7168" style="font-weight:bold;" target="_blank" title="Click to know more about C">C</a></body></html> | |
| 4208. |
Indentify the following as Microeconomic study and Marcoeconomic study, (i) Productio of a sugar mill, (ii) Inflation rate, (iii) Car industry, (iv) Supply of money,(v) Wage determination in a company, (vi) Allocation of resources, (vii) Househole expenditure, (viii) Aggragate demand, (ix) Foreign exchange rate, (x) Market demand for apples. |
| Answer» <html><body><p></p>Solution :Microeconomic study: (i),(iii),(v),(vi),(vii),(x). Microecocomic study: (<a href="https://interviewquestions.tuteehub.com/tag/ii-1036832" style="font-weight:bold;" target="_blank" title="Click to know more about II">II</a>),(iv),(<a href="https://interviewquestions.tuteehub.com/tag/viii-723647" style="font-weight:bold;" target="_blank" title="Click to know more about VIII">VIII</a>),(<a href="https://interviewquestions.tuteehub.com/tag/ix-520761" style="font-weight:bold;" target="_blank" title="Click to know more about IX">IX</a>).</body></html> | |
| 4209. |
No Scarcity' means no economic problem. |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :If there is no scarcity, then there would be no <a href="https://interviewquestions.tuteehub.com/tag/economic-448435" style="font-weight:bold;" target="_blank" title="Click to know more about ECONOMIC">ECONOMIC</a> <a href="https://interviewquestions.tuteehub.com/tag/problem-25530" style="font-weight:bold;" target="_blank" title="Click to know more about PROBLEM">PROBLEM</a> as scarcity is the <a href="https://interviewquestions.tuteehub.com/tag/basic-15343" style="font-weight:bold;" target="_blank" title="Click to know more about BASIC">BASIC</a> <a href="https://interviewquestions.tuteehub.com/tag/reason-620214" style="font-weight:bold;" target="_blank" title="Click to know more about REASON">REASON</a> for economic problem.</body></html> | |
| 4210. |
In Monopoly entry of a new firms |
| Answer» <html><body><p>is <a href="https://interviewquestions.tuteehub.com/tag/restricted-7308181" style="font-weight:bold;" target="_blank" title="Click to know more about RESTRICTED">RESTRICTED</a> at all times<br/>is <a href="https://interviewquestions.tuteehub.com/tag/possible-592355" style="font-weight:bold;" target="_blank" title="Click to know more about POSSIBLE">POSSIBLE</a> only in the <a href="https://interviewquestions.tuteehub.com/tag/short-642706" style="font-weight:bold;" target="_blank" title="Click to know more about SHORT">SHORT</a> runBoth <a href="https://interviewquestions.tuteehub.com/tag/b-387190" style="font-weight:bold;" target="_blank" title="Click to know more about B">B</a> and c</p>Solution :N/a</body></html> | |
| 4211. |
Following are thewages of 19 workers: {:("Wages(Rs.)",10,20,30,40,50),("Number of Workers",4,5,3,2,5):} Calculate arithmetic mean, using Short-cut Method. |
| Answer» <html><body><p></p>Solution :<img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TRJ_ECO_XI_C09_S01_004_S01.png" width="80%"/> <br/> `barX=A+(sumfd)/(sumf)=<a href="https://interviewquestions.tuteehub.com/tag/30-304807" style="font-weight:bold;" target="_blank" title="Click to know more about 30">30</a>+(-10)/(<a href="https://interviewquestions.tuteehub.com/tag/19-280618" style="font-weight:bold;" target="_blank" title="Click to know more about 19">19</a>) = 30 - 10/19` <br/> `=30-0.53 = 29.47` <br/> <a href="https://interviewquestions.tuteehub.com/tag/arithmetic-15417" style="font-weight:bold;" target="_blank" title="Click to know more about ARITHMETIC">ARITHMETIC</a> <a href="https://interviewquestions.tuteehub.com/tag/mean-1091459" style="font-weight:bold;" target="_blank" title="Click to know more about MEAN">MEAN</a> = <a href="https://interviewquestions.tuteehub.com/tag/rs-625947" style="font-weight:bold;" target="_blank" title="Click to know more about RS">RS</a>. 29.47.</body></html> | |
| 4212. |
Explain the central problem of 'how to produce' OR Explain in the central problem of the choice of products to be produced. |
| Answer» <html><body><p></p>Solution :As there is the problem of choice, the economy has to decide which goods and services are to be produced. For <a href="https://interviewquestions.tuteehub.com/tag/example-978283" style="font-weight:bold;" target="_blank" title="Click to know more about EXAMPLE">EXAMPLE</a>, which of the consumer goods such as wheat, rice, <a href="https://interviewquestions.tuteehub.com/tag/cloth-919758" style="font-weight:bold;" target="_blank" title="Click to know more about CLOTH">CLOTH</a> are to be produced and which of the capital goods such as machines and tools are to be produced.When an economy has <a href="https://interviewquestions.tuteehub.com/tag/taken-659096" style="font-weight:bold;" target="_blank" title="Click to know more about TAKEN">TAKEN</a> a decision as to what goods or services to be produced, then it has to be about its <a href="https://interviewquestions.tuteehub.com/tag/quantity-1174212" style="font-weight:bold;" target="_blank" title="Click to know more about QUANTITY">QUANTITY</a>. How much of consumer goods and capital goods are to be produced.For example, if an economy decides to produce rice and wheat within a given period with limited resources then it will have to use less of machineries.</body></html> | |
| 4213. |
Define mode. |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/mode-1099190" style="font-weight:bold;" target="_blank" title="Click to know more about MODE">MODE</a> is the <a href="https://interviewquestions.tuteehub.com/tag/value-1442530" style="font-weight:bold;" target="_blank" title="Click to know more about VALUE">VALUE</a> which <a href="https://interviewquestions.tuteehub.com/tag/occurs-1127848" style="font-weight:bold;" target="_blank" title="Click to know more about OCCURS">OCCURS</a> most frequently in the <a href="https://interviewquestions.tuteehub.com/tag/series-1201802" style="font-weight:bold;" target="_blank" title="Click to know more about SERIES">SERIES</a> , that is , modal value has the <a href="https://interviewquestions.tuteehub.com/tag/highest-1022683" style="font-weight:bold;" target="_blank" title="Click to know more about HIGHEST">HIGHEST</a> frequency in the series.</body></html> | |
| 4214. |
Demand curve of perfectively competitive market form is a horizontal straight line parallel to X-axis. It happens because: |
| Answer» <html><body><p>Selling <a href="https://interviewquestions.tuteehub.com/tag/costs-25578" style="font-weight:bold;" target="_blank" title="Click to know more about COSTS">COSTS</a> are zero<br/>There is freedom of <a href="https://interviewquestions.tuteehub.com/tag/entry-972873" style="font-weight:bold;" target="_blank" title="Click to know more about ENTRY">ENTRY</a> and exist<br/>Firm is a <a href="https://interviewquestions.tuteehub.com/tag/price-1165141" style="font-weight:bold;" target="_blank" title="Click to know more about PRICE">PRICE</a> taker<br/>None of these</p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/c-7168" style="font-weight:bold;" target="_blank" title="Click to know more about C">C</a></body></html> | |
| 4215. |
Distinguish between microeconomics and macroeconomics. Give an example of each. OR What will likely be the impact of large scale outflow of foregin capital of Production Possibilities curve of the economy and why ? |
| Answer» <html><body><p></p>Solution :<img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/SG_MIC_ECO_PW_E01_017_S01.png" width="80%"/> <br/> OR <br/> <a href="https://interviewquestions.tuteehub.com/tag/large-1066424" style="font-weight:bold;" target="_blank" title="Click to know more about LARGE">LARGE</a> scale <a href="https://interviewquestions.tuteehub.com/tag/outflow-1142710" style="font-weight:bold;" target="_blank" title="Click to know more about OUTFLOW">OUTFLOW</a> of foreign capital from the economy will reduce resources and thus production <a href="https://interviewquestions.tuteehub.com/tag/potential-1161228" style="font-weight:bold;" target="_blank" title="Click to know more about POTENTIAL">POTENTIAL</a> of the country will fall. Fall in production potential in turn will shift the production possibilities <a href="https://interviewquestions.tuteehub.com/tag/curve-941741" style="font-weight:bold;" target="_blank" title="Click to know more about CURVE">CURVE</a> <a href="https://interviewquestions.tuteehub.com/tag/downwards-959173" style="font-weight:bold;" target="_blank" title="Click to know more about DOWNWARDS">DOWNWARDS</a>.</body></html> | |
| 4216. |
A entrepreneur is planning to set up a factory in an extremely backward region of India and is thinking about the technique of production to be used for production. Suggest which technique of production should be used for the social uplitment of the region, if there are large number of unemployed people. |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :The entrepreneur should use labour intensive technique as it will <a href="https://interviewquestions.tuteehub.com/tag/reduce-1181332" style="font-weight:bold;" target="_blank" title="Click to know more about REDUCE">REDUCE</a> <a href="https://interviewquestions.tuteehub.com/tag/unemployment-1437065" style="font-weight:bold;" target="_blank" title="Click to know more about UNEMPLOYMENT">UNEMPLOYMENT</a> to a large <a href="https://interviewquestions.tuteehub.com/tag/extent-981159" style="font-weight:bold;" target="_blank" title="Click to know more about EXTENT">EXTENT</a> and it will <a href="https://interviewquestions.tuteehub.com/tag/raise-1176780" style="font-weight:bold;" target="_blank" title="Click to know more about RAISE">RAISE</a> their standard of living.</body></html> | |
| 4217. |
Explain the concept of Opportunity Cost with the help of an example |
| Answer» | |
| 4218. |
The MC curve may be rising or failing just before itbecomes equal to AVC and ATCcurves. |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :False. MC curve is always rising before it <a href="https://interviewquestions.tuteehub.com/tag/becomes-1994370" style="font-weight:bold;" target="_blank" title="Click to know more about BECOMES">BECOMES</a> <a href="https://interviewquestions.tuteehub.com/tag/equal-446400" style="font-weight:bold;" target="_blank" title="Click to know more about EQUAL">EQUAL</a> to <a href="https://interviewquestions.tuteehub.com/tag/avc-364692" style="font-weight:bold;" target="_blank" title="Click to know more about AVC">AVC</a> and ATC <a href="https://interviewquestions.tuteehub.com/tag/curves-941810" style="font-weight:bold;" target="_blank" title="Click to know more about CURVES">CURVES</a>.</body></html> | |
| 4219. |
Explain the kinds of advertisements. |
| Answer» <html><body><p></p>Solution :Advertising can be of three kinds : <br/> InformativePersuasiveDefensive <br/> Informative advertising gives information about new products, <a href="https://interviewquestions.tuteehub.com/tag/prices-1165311" style="font-weight:bold;" target="_blank" title="Click to know more about PRICES">PRICES</a>, quality, location, supply <a href="https://interviewquestions.tuteehub.com/tag/etc-975753" style="font-weight:bold;" target="_blank" title="Click to know more about ETC">ETC</a> to create awareness. It is not a costly method e.g., yellow pages, newspapers and magzines. Persuasive advertising attempts to persuade consumers of distinctivencess of product. <br/> Defensive advertising is undertaken when rival firms spend on <a href="https://interviewquestions.tuteehub.com/tag/advertisement-850826" style="font-weight:bold;" target="_blank" title="Click to know more about ADVERTISEMENT">ADVERTISEMENT</a>. It <a href="https://interviewquestions.tuteehub.com/tag/highly-2102664" style="font-weight:bold;" target="_blank" title="Click to know more about HIGHLY">HIGHLY</a> adds to total cost of all the firms. It sometimes causes wasteful expenditure.</body></html> | |
| 4220. |
Discuss the main measures of dispersion. |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<a href="https://interviewquestions.tuteehub.com/tag/common-923599" style="font-weight:bold;" target="_blank" title="Click to know more about COMMON">COMMON</a> examples of measures of statistical dispersion are the variance, standard <a href="https://interviewquestions.tuteehub.com/tag/deviation-950382" style="font-weight:bold;" target="_blank" title="Click to know more about DEVIATION">DEVIATION</a>, and interquartile <a href="https://interviewquestions.tuteehub.com/tag/range-1177030" style="font-weight:bold;" target="_blank" title="Click to know more about RANGE">RANGE</a>.</body></html> | |
| 4221. |
A consumer spends his entire income on two goods: X and Y. Currently his marginal rate of substitution (MRS) of X and Y is more than the price ratio of two goods. Discuss the changes that will take place so that consumer is able to reach the equilibrium position. |
| Answer» <html><body><p></p>Solution :Marginal rate of substitution (MRS) of X and Y is more than the price ratio of two <a href="https://interviewquestions.tuteehub.com/tag/goods-1009877" style="font-weight:bold;" target="_blank" title="Click to know more about GOODS">GOODS</a>, it <a href="https://interviewquestions.tuteehub.com/tag/means-1091780" style="font-weight:bold;" target="_blank" title="Click to know more about MEANS">MEANS</a> that to obtain one more <a href="https://interviewquestions.tuteehub.com/tag/unit-1438166" style="font-weight:bold;" target="_blank" title="Click to know more about UNIT">UNIT</a> of X, the <a href="https://interviewquestions.tuteehub.com/tag/consumer-25599" style="font-weight:bold;" target="_blank" title="Click to know more about CONSUMER">CONSUMER</a> is willing to sacrifice more units of Y as compared to what is required in the market. It induces the consumer to buy more of X. As a result, MRS falls and continue to fall till it becomes <a href="https://interviewquestions.tuteehub.com/tag/equal-446400" style="font-weight:bold;" target="_blank" title="Click to know more about EQUAL">EQUAL</a> to the ratio of prices and the equilibrium is achieved.</body></html> | |
| 4222. |
AR__________when price falls with rise in output |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/answer-15557" style="font-weight:bold;" target="_blank" title="Click to know more about ANSWER">ANSWER</a> :<a href="https://interviewquestions.tuteehub.com/tag/falls-983294" style="font-weight:bold;" target="_blank" title="Click to know more about FALLS">FALLS</a></body></html> | |
| 4223. |
Prove that area under AR (and MR) curve is equal to total revenue is case of perfect competition. |
| Answer» <html><body><p></p>Solution :In case of perfect competition AR is constant, therefore AR =MR. AR curve is horizontal straight line which represents the value of different <a href="https://interviewquestions.tuteehub.com/tag/levels-1072811" style="font-weight:bold;" target="_blank" title="Click to know more about LEVELS">LEVELS</a> of output at uniform price. <br/> In the diagram, price (<a href="https://interviewquestions.tuteehub.com/tag/equal-446400" style="font-weight:bold;" target="_blank" title="Click to know more about EQUAL">EQUAL</a> to OP) is constant and given output is OQ. <br/> <a href="https://interviewquestions.tuteehub.com/tag/tr-661737" style="font-weight:bold;" target="_blank" title="Click to know more about TR">TR</a> =P <a href="https://interviewquestions.tuteehub.com/tag/x-746616" style="font-weight:bold;" target="_blank" title="Click to know more about X">X</a> Q =OP x OQ =<a href="https://interviewquestions.tuteehub.com/tag/area-13372" style="font-weight:bold;" target="_blank" title="Click to know more about AREA">AREA</a> of OQEP<br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/MIC_ECO_XI_U03_C07_E01_054_S01.png" width="80%"/></body></html> | |
| 4224. |
Out of the following costs, which cost can never be zero : |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/afc-362161" style="font-weight:bold;" target="_blank" title="Click to know more about AFC">AFC</a> <br/>AVC<br/>TVC<br/>None of these</p>Solution :N//A</body></html> | |
| 4225. |
Identify positive or normative statements from the following : Economics is study of choice/alternatives |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<a href="https://interviewquestions.tuteehub.com/tag/positive-1159908" style="font-weight:bold;" target="_blank" title="Click to know more about POSITIVE">POSITIVE</a> <a href="https://interviewquestions.tuteehub.com/tag/statements-17642" style="font-weight:bold;" target="_blank" title="Click to know more about STATEMENTS">STATEMENTS</a></body></html> | |
| 4226. |
How will decrease in price of 'X' affect consumer equilibrium when the consumer consumes two goods X' and 'Y ? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :When the price of good <a href="https://interviewquestions.tuteehub.com/tag/x-746616" style="font-weight:bold;" target="_blank" title="Click to know more about X">X</a> <a href="https://interviewquestions.tuteehub.com/tag/falls-983294" style="font-weight:bold;" target="_blank" title="Click to know more about FALLS">FALLS</a>, then the consumer consumes more of good X and less of good Y. <br/>This is because, with given <a href="https://interviewquestions.tuteehub.com/tag/income-25499" style="font-weight:bold;" target="_blank" title="Click to know more about INCOME">INCOME</a> he can <a href="https://interviewquestions.tuteehub.com/tag/buy-391430" style="font-weight:bold;" target="_blank" title="Click to know more about BUY">BUY</a> more of good X.</body></html> | |
| 4227. |
The following diagram represents the demand curve of: |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/perfect-1150611" style="font-weight:bold;" target="_blank" title="Click to know more about PERFECT">PERFECT</a> competition<br/>Monopolist Competition<br/>Monopoly<br/>Oligopoly</p>Solution :N/a</body></html> | |
| 4228. |
What is decrease in supply? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :If refers to a fall in the supply of a <a href="https://interviewquestions.tuteehub.com/tag/commodity-923558" style="font-weight:bold;" target="_blank" title="Click to know more about COMMODITY">COMMODITY</a>, <a href="https://interviewquestions.tuteehub.com/tag/due-433472" style="font-weight:bold;" target="_blank" title="Click to know more about DUE">DUE</a> to unfavourable changes in other factors, at the same price, e.g., when price of inputs <a href="https://interviewquestions.tuteehub.com/tag/rises-1189694" style="font-weight:bold;" target="_blank" title="Click to know more about RISES">RISES</a>.</body></html> | |
| 4229. |
Briefly explain the concept of the cost function. |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :The relation between cost and output is <a href="https://interviewquestions.tuteehub.com/tag/known-534098" style="font-weight:bold;" target="_blank" title="Click to know more about KNOWN">KNOWN</a> as 'cost function'. Cost function refers to the <a href="https://interviewquestions.tuteehub.com/tag/functional-466801" style="font-weight:bold;" target="_blank" title="Click to know more about FUNCTIONAL">FUNCTIONAL</a> relationship between cost and output. It is <a href="https://interviewquestions.tuteehub.com/tag/expressed-7259249" style="font-weight:bold;" target="_blank" title="Click to know more about EXPRESSED">EXPRESSED</a> as :c=f (q)[where: C= cost of production; q= Quantity of output; f=Functional relationship</body></html> | |
| 4230. |
Mr. Goyal has a budget of Rs.1,00,000 which he plans to spend on sweets and crackers on Diwali. He actually spent Rs.1,25,000 because of more expenditure on crackers. How will you show his planned expenditure and actual expenditure through budget line? Is this over expenditure justified ? |
| Answer» <html><body><p><br/></p>Solution :His planned and actual expenditure can be <a href="https://interviewquestions.tuteehub.com/tag/shown-1206565" style="font-weight:bold;" target="_blank" title="Click to know more about SHOWN">SHOWN</a> through the <a href="https://interviewquestions.tuteehub.com/tag/budget-25496" style="font-weight:bold;" target="_blank" title="Click to know more about BUDGET">BUDGET</a> line as given in adjacent figure.<br/> The budget line rotates <a href="https://interviewquestions.tuteehub.com/tag/rightwards-1189403" style="font-weight:bold;" target="_blank" title="Click to know more about RIGHTWARDS">RIGHTWARDS</a> due to over expenditure on crackers which implies more quantity bought of crackers. Over expenditure is not justified as it is a wasteful expenditure. Also crackers <a href="https://interviewquestions.tuteehub.com/tag/cause-910965" style="font-weight:bold;" target="_blank" title="Click to know more about CAUSE">CAUSE</a> <a href="https://interviewquestions.tuteehub.com/tag/air-852233" style="font-weight:bold;" target="_blank" title="Click to know more about AIR">AIR</a> pollution and noise pollution and harm the environment. <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/MIC_ECO_XI_U02_C02_E01_049_S01.png" width="80%"/></body></html> | |
| 4231. |
The problem of 'What to produce' covers the issue relating to: |
| Answer» <html><body><p>What gods are to be produce <br/>What quantities of good to be produced <br/>Both (a) and (b) <br/>Neither (a) nor (b) </p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :C. This problem involves selection of goods and services to be produced and the quantity to be produced of each <a href="https://interviewquestions.tuteehub.com/tag/selected-3017558" style="font-weight:bold;" target="_blank" title="Click to know more about SELECTED">SELECTED</a> commodity. Every <a href="https://interviewquestions.tuteehub.com/tag/economy-21801" style="font-weight:bold;" target="_blank" title="Click to know more about ECONOMY">ECONOMY</a> has limited resources and thus, cannot produce all the goods. More of one good or service usually means less of others.For example, production of more sugar is <a href="https://interviewquestions.tuteehub.com/tag/possible-592355" style="font-weight:bold;" target="_blank" title="Click to know more about POSSIBLE">POSSIBLE</a> only by reducing the production of other goods. Production of more war goods is possible only by reducing the production of <a href="https://interviewquestions.tuteehub.com/tag/civil-2779" style="font-weight:bold;" target="_blank" title="Click to know more about CIVIL">CIVIL</a> goods. So, on the basis of the importance of various goods, an economy has to decide which goods should be produced and in what quantities. This is a problem of allocation of resources among different goods.</body></html> | |
| 4232. |
Can simple correlation cofficient measure any type of relationship ? |
| Answer» <html><body><p></p>Solution :No. <a href="https://interviewquestions.tuteehub.com/tag/simple-1208262" style="font-weight:bold;" target="_blank" title="Click to know more about SIMPLE">SIMPLE</a> correlation <a href="https://interviewquestions.tuteehub.com/tag/measures-1091959" style="font-weight:bold;" target="_blank" title="Click to know more about MEASURES">MEASURES</a> only <a href="https://interviewquestions.tuteehub.com/tag/linear-1074458" style="font-weight:bold;" target="_blank" title="Click to know more about LINEAR">LINEAR</a> <a href="https://interviewquestions.tuteehub.com/tag/relationship-1183331" style="font-weight:bold;" target="_blank" title="Click to know more about RELATIONSHIP">RELATIONSHIP</a> between the variables.</body></html> | |
| 4233. |
Interdependence Between Firms' is a feature of which type of market form: |
| Answer» <html><body><p>Oligopoly<br/>Monopolistic Competition<br/>Monopoly<br/> <a href="https://interviewquestions.tuteehub.com/tag/perfect-1150611" style="font-weight:bold;" target="_blank" title="Click to know more about PERFECT">PERFECT</a> Competition</p>Solution :N/a</body></html> | |
| 4234. |
What is meant by bar diagram ? |
| Answer» <html><body><p><br/></p>Solution :Bar diagrams are those diagrams in which <a href="https://interviewquestions.tuteehub.com/tag/data-25577" style="font-weight:bold;" target="_blank" title="Click to know more about DATA">DATA</a> are presented in the form of bars of <a href="https://interviewquestions.tuteehub.com/tag/rectangles-1180618" style="font-weight:bold;" target="_blank" title="Click to know more about RECTANGLES">RECTANGLES</a>. Bars are <a href="https://interviewquestions.tuteehub.com/tag/also-373387" style="font-weight:bold;" target="_blank" title="Click to know more about ALSO">ALSO</a> called columns.</body></html> | |
| 4235. |
Any consumption beyond the point of Satiety leads to disutility |
| Answer» <html><body><p><br/></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/point-1157106" style="font-weight:bold;" target="_blank" title="Click to know more about POINT">POINT</a> of satiety shows the stage of maximum <a href="https://interviewquestions.tuteehub.com/tag/satisfaction-1195186" style="font-weight:bold;" target="_blank" title="Click to know more about SATISFACTION">SATISFACTION</a>. Any consumption beyond this point <a href="https://interviewquestions.tuteehub.com/tag/leads-540453" style="font-weight:bold;" target="_blank" title="Click to know more about LEADS">LEADS</a> to disutility as <a href="https://interviewquestions.tuteehub.com/tag/marginal-555038" style="font-weight:bold;" target="_blank" title="Click to know more about MARGINAL">MARGINAL</a> utility becomes negative.</body></html> | |
| 4236. |
A typical indifference curve is downwards sloping convex curve because as we move downwards along the indifference curve, the slope of the curve |
| Answer» <html><body><p>Decreases<br/><a href="https://interviewquestions.tuteehub.com/tag/increases-1040626" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASES">INCREASES</a><br/>Unchanged <br/><a href="https://interviewquestions.tuteehub.com/tag/initially-516121" style="font-weight:bold;" target="_blank" title="Click to know more about INITIALLY">INITIALLY</a> increases, then decreases</p>Answer :A</body></html> | |
| 4237. |
The following headline appeared in the Hindustan Times on 2 August 2014 : ''Crop damaged in Himachal sent tomato prices roaring in Delhi.'' Use a diagram and economic theory to analyse the statement. Or On 19 December 2013, the following news item was item was printed in the Economic Times : Households in Southern India prefer to eat oranges for breakfast as banana plantations in Kerala have been destroyed and price of apples and grapes have also risen. Use a diagram and economic theory to analyse the imapact of the rise in price of apples and grapes on the market or oranges, |
| Answer» <html><body><p></p>Solution :As the toamto crop was damaged in Himachal, the production and supply of tomatoes would fall. <br/> As a result the supply curve would shilft to its left. <br/> In the adjoining figure, demand curve DD and supply curve SS <br/> equilibrium point is E <br/> equilibrium price is OP <br/> equilibrium <a href="https://interviewquestions.tuteehub.com/tag/quantity-1174212" style="font-weight:bold;" target="_blank" title="Click to know more about QUANTITY">QUANTITY</a> is OM <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/MIC_ECO_XI_U04_C11_E01_027_S01.png" width="80%"/> <br/> Observations <br/> (i) Due to damge of tomato crop, supply of the commodity <a href="https://interviewquestions.tuteehub.com/tag/decreases-946143" style="font-weight:bold;" target="_blank" title="Click to know more about DECREASES">DECREASES</a> and the supply curve shifts to left from SS to `S_(<a href="https://interviewquestions.tuteehub.com/tag/2-283658" style="font-weight:bold;" target="_blank" title="Click to know more about 2">2</a>)S_(2).` <br/> (ii) This causes excess demand TE. <br/> (iii) This causes competition among buyers which pushes the price upwards. <br/> (iv) Due to rise in price, the demand contracts from point E to point `E_(2)` and supply extends from point T to point `E_(2)`. <br/> (v) Market demand and market supply become equal again at point `E_(2)` which corresponds to a higher euilibrium price `OP_(2)` and lower equilibrium quantity `OM_(2)`. <br/> This explains how prices of tomatoes rose in Delhi due to damage of tomato crop in Himachal. <br/> Or <br/> Households in Southern India prefer to but oranges becuase there is shorage of bananas (as banana plantations in Kerala have been destroyed) and price of apples and <a href="https://interviewquestions.tuteehub.com/tag/grapes-1011007" style="font-weight:bold;" target="_blank" title="Click to know more about GRAPES">GRAPES</a> have also gone up. <br/> In the adjoining figure, demand curve DD and the supply curve <br/> SS of oranges intersect each other at point E. <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/MIC_ECO_XI_U04_C11_E01_027_S02.png" width="80%"/> <br/> Accordigly, <br/> equilibrium point is E <br/> equilibrium price is OP <br/> equilibrium quantity is OM, <br/> Observations <br/> (i) Due to increase in price of substitute fruits, there is increase in demand of oranges and demand curve shifts to <a href="https://interviewquestions.tuteehub.com/tag/right-1188951" style="font-weight:bold;" target="_blank" title="Click to know more about RIGHT">RIGHT</a> from DD to `D_(1)D_(1)`. <br/> (ii) This cuses excess demand EN. <br/> (iii) Due to increase in demand, there is competition among buyers, which pushes the price upwards. <br/> (iv) Due to increase in price, supply extends from point E to point `E_(1)` and demand contracts from point N to point `E_(1)`. <br/> (v) Market demand and market supply become equal again at point `E_(1)` which corresponds to a higher equilibrium price `OP_(1)` and higher equilibrium quantity `OM_(1)`. <br/> `OP_(1)` is higher than the old price of oranges. This explains the impact of rise in price of apples and grapes on market of oranges that there is increase in equilibrium price and equilibrium qt. of oranges.</body></html> | |
| 4238. |
Use the data in following table that relate to monthly household expenditure (in Rs.) on food of 50 households, and (i) Obtain the range of monthly household expenditure on food. (ii) Divide the range into appropriate number of class intervals and obtain the frequency distribution of expenditure. (iii) Find the number of households whose monthly expenditure on food is (a) less than Rs. 2,000, (b) more than Rs. 3,000, (c) between Rs. 1,500 and Rs. 500. |
| Answer» <html><body><p><br/></p>Answer :Range= <a href="https://interviewquestions.tuteehub.com/tag/highest-1022683" style="font-weight:bold;" target="_blank" title="Click to know more about HIGHEST">HIGHEST</a> <a href="https://interviewquestions.tuteehub.com/tag/value-1442530" style="font-weight:bold;" target="_blank" title="Click to know more about VALUE">VALUE</a> of the series - <a href="https://interviewquestions.tuteehub.com/tag/lowest-1081124" style="font-weight:bold;" target="_blank" title="Click to know more about LOWEST">LOWEST</a> value of the series <br/> = 5,090-1,007 <br/> =4,083 <br/> `(##TRJ_ECO_XI_C04_E01_076_A01##)` <br/> (iii)(a)Number of households whose monthly expenditure on food is less than Rs.2,000 <br/> =20+13=33. <br/> (<a href="https://interviewquestions.tuteehub.com/tag/b-387190" style="font-weight:bold;" target="_blank" title="Click to know more about B">B</a>)Number of households whose monthly expenditure on food in more than <br/> Rs.3,000=2+1+2+1=6 <br/> (c )Number of households whose monthly expenditure on food is between Rs.1,500 and Rs.2500 =13+6=19.</body></html> | |
| 4239. |
Calculate the coefficient of correlation between price of a good and its demand by direct method. |
| Answer» <html><body><p></p>Solution :<img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/ECO_XI_A_U03_C11_S01_001_S01.png" width="80%"/> <br/> `<a href="https://interviewquestions.tuteehub.com/tag/gamma-470142" style="font-weight:bold;" target="_blank" title="Click to know more about GAMMA">GAMMA</a>=(NSigmaXY-(SigmaX)(SigmaY))/(sqrt(NSigmaX^(2)-(SigmaX)^(2))sqrt(NSigmaY^(2)-(SigmaY)^(2)))` <br/> `gamma=((7xx517)-(28xx177))/(sqrt((7xx140)-(28)^(2))sqrt((7xx5869)-(<a href="https://interviewquestions.tuteehub.com/tag/177-278680" style="font-weight:bold;" target="_blank" title="Click to know more about 177">177</a>)^(2)))` <br/> `gamma=(3619-4956)/(sqrt((980-784))sqrt(41083-31329))` <br/> `gamma=(-1337)/(sqrt(<a href="https://interviewquestions.tuteehub.com/tag/196-281839" style="font-weight:bold;" target="_blank" title="Click to know more about 196">196</a>)xxsqrt(<a href="https://interviewquestions.tuteehub.com/tag/9754-1936735" style="font-weight:bold;" target="_blank" title="Click to know more about 9754">9754</a>))=(-1337)/(sqrt(196xx9754))` <br/> `=(-1337)/(sqrt(1911784))=(-1337)/(1382.67)=-0.97.`</body></html> | |
| 4240. |
List two ways in which oligopoly firms may behave |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :Oligopoly firms <a href="https://interviewquestions.tuteehub.com/tag/may-557248" style="font-weight:bold;" target="_blank" title="Click to know more about MAY">MAY</a>, (i) <a href="https://interviewquestions.tuteehub.com/tag/cooperate-2017614" style="font-weight:bold;" target="_blank" title="Click to know more about COOPERATE">COOPERATE</a> with each other in determing price or <a href="https://interviewquestions.tuteehub.com/tag/output-1142821" style="font-weight:bold;" target="_blank" title="Click to know more about OUTPUT">OUTPUT</a> or both, (ii) Compete with each other, i.e. non-coperate oligopoly firms.</body></html> | |
| 4241. |
What do you mean by substitutes? Give examples of two goods which are substitutes of each other |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/substitutes-1231649" style="font-weight:bold;" target="_blank" title="Click to know more about SUBSTITUTES">SUBSTITUTES</a> are the <a href="https://interviewquestions.tuteehub.com/tag/goods-1009877" style="font-weight:bold;" target="_blank" title="Click to know more about GOODS">GOODS</a> which can be used in <a href="https://interviewquestions.tuteehub.com/tag/place-1155224" style="font-weight:bold;" target="_blank" title="Click to know more about PLACE">PLACE</a> of each other. For <a href="https://interviewquestions.tuteehub.com/tag/example-978283" style="font-weight:bold;" target="_blank" title="Click to know more about EXAMPLE">EXAMPLE</a>, coffee and tea.</body></html> | |
| 4242. |
What will you say about MPP of a factor when TPP is rising at diminishing rate? |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/answer-15557" style="font-weight:bold;" target="_blank" title="Click to know more about ANSWER">ANSWER</a> :<a href="https://interviewquestions.tuteehub.com/tag/mpp-549071" style="font-weight:bold;" target="_blank" title="Click to know more about MPP">MPP</a> is <a href="https://interviewquestions.tuteehub.com/tag/falling-983241" style="font-weight:bold;" target="_blank" title="Click to know more about FALLING">FALLING</a> but <a href="https://interviewquestions.tuteehub.com/tag/remains-621920" style="font-weight:bold;" target="_blank" title="Click to know more about REMAINS">REMAINS</a> <a href="https://interviewquestions.tuteehub.com/tag/positive-1159908" style="font-weight:bold;" target="_blank" title="Click to know more about POSITIVE">POSITIVE</a>.</body></html> | |
| 4243. |
Why is a firm under perfect competition and monopolistic competition. |
| Answer» | |
| 4244. |
Which one of these is a determinant of individual demand ? |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/size-1211196" style="font-weight:bold;" target="_blank" title="Click to know more about SIZE">SIZE</a> and <a href="https://interviewquestions.tuteehub.com/tag/composition-22493" style="font-weight:bold;" target="_blank" title="Click to know more about COMPOSITION">COMPOSITION</a> of population<br/>Season and weather<br/>Distribution of Income<br/>None of these</p>Answer :D</body></html> | |
| 4245. |
In case of cardinal utility approach, utility is measured in: |
| Answer» <html><body><p>Rupees<br/>Ranks<br/>Utils<br/>None of these</p>Answer :<a href="https://interviewquestions.tuteehub.com/tag/c-7168" style="font-weight:bold;" target="_blank" title="Click to know more about C">C</a></body></html> | |
| 4246. |
When we add up utility derived from consumption of all the units of the commodities, we get: |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/total-711110" style="font-weight:bold;" target="_blank" title="Click to know more about TOTAL">TOTAL</a> Utility<br/>Initial utility<br/>Marginal Utility<br/>None of these</p>Answer :A</body></html> | |
| 4247. |
Calculate coefficient of correlation,between the age of husbands and wives. |
| Answer» <html><body><p></p>Solution :<img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TRJ_ECO_XI_C12_S01_004_S01.png" width="80%"/> <br/> <a href="https://interviewquestions.tuteehub.com/tag/x-746616" style="font-weight:bold;" target="_blank" title="Click to know more about X">X</a>=(X-<a href="https://interviewquestions.tuteehub.com/tag/bar-892478" style="font-weight:bold;" target="_blank" title="Click to know more about BAR">BAR</a>(X)),y=(Y-bar(Y)) <br/> `bar(X)=(sunX)/(N)=(174)/(6)=29,bar(Y)=(sumY)/(N)=(156)/(6)=26` <br/> `sumxy=191=sumx^(2)=<a href="https://interviewquestions.tuteehub.com/tag/208-292892" style="font-weight:bold;" target="_blank" title="Click to know more about 208">208</a>,sumy^(2)=<a href="https://interviewquestions.tuteehub.com/tag/178-1797122" style="font-weight:bold;" target="_blank" title="Click to know more about 178">178</a>` <br/> `r=(sumxy)/(sqrt(sumx^(2)xxsumy^(2)))` <br/> `r=(191)/(sqrt(208xx178))` <br/> `=(191)/(sqrt(37,024))` <br/> `=(191)/(192.42)=0.993` <br/> Coefficient of Correlation (r)=0.993 <br/> Thus, there is a high degree of <a href="https://interviewquestions.tuteehub.com/tag/positive-1159908" style="font-weight:bold;" target="_blank" title="Click to know more about POSITIVE">POSITIVE</a> correlation between the age of husband and wife.</body></html> | |
| 4248. |
Average cost falls only when marginal cost falls. |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<a href="https://interviewquestions.tuteehub.com/tag/false-459184" style="font-weight:bold;" target="_blank" title="Click to know more about FALSE">FALSE</a>. Average <a href="https://interviewquestions.tuteehub.com/tag/cost-25707" style="font-weight:bold;" target="_blank" title="Click to know more about COST">COST</a> (AC) can <a href="https://interviewquestions.tuteehub.com/tag/also-373387" style="font-weight:bold;" target="_blank" title="Click to know more about ALSO">ALSO</a> falls when marginal cost (MC) rises, provided MC is <a href="https://interviewquestions.tuteehub.com/tag/less-1071906" style="font-weight:bold;" target="_blank" title="Click to know more about LESS">LESS</a> than AC.</body></html> | |
| 4249. |
Market for a good is in equilibrium. There is simultaneous "Increase" both in demand and supply of the good. Explain its effect on market price. OR Suppose there is a sudden increase in birth rate. The increase in population has raised the demand for shirts. At the same time, due to fall in price of cotton, the supply of shirts have also increased. How will it affect the equilibrium price and equilibrium quantity of shirts? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :If the <a href="https://interviewquestions.tuteehub.com/tag/increase-1040383" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASE">INCREASE</a> in demand is <a href="https://interviewquestions.tuteehub.com/tag/equal-446400" style="font-weight:bold;" target="_blank" title="Click to know more about EQUAL">EQUAL</a> to increase in supply then the equilibrium price will not change.<br/>If the increase in demand is more than the increase in supply then the equilibrium price will rise.<br/>If the increase in demand is less than the increase in supply then the equilibrium price will <a href="https://interviewquestions.tuteehub.com/tag/fall-983217" style="font-weight:bold;" target="_blank" title="Click to know more about FALL">FALL</a>.</body></html> | |
| 4250. |
PPC is concave when marginal opportunity cost |
| Answer» <html><body><p>falls<br/>remains constant<br/>rises<br/>all of these</p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/ppc-25541" style="font-weight:bold;" target="_blank" title="Click to know more about PPC">PPC</a> is <a href="https://interviewquestions.tuteehub.com/tag/concave-927978" style="font-weight:bold;" target="_blank" title="Click to know more about CONCAVE">CONCAVE</a> when marginal <a href="https://interviewquestions.tuteehub.com/tag/opportunity-1137192" style="font-weight:bold;" target="_blank" title="Click to know more about OPPORTUNITY">OPPORTUNITY</a> cost rises</body></html> | |