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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.
| 4251. |
In which period, some factors of production are fixed and others variable ? |
| Answer» SOLUTION :SHORT RUN. | |
| 4252. |
Discuss how you would use the the lottery method to select 3 student out of 10 in your class ? |
| Answer» Solution :A REPRESENTATIVE (random) sample of 3 students can be TAKEN out of 10 through lotterymethod. The names of all the 10 students of the class are written on 10 separate pieces of paper of EQUAL size and all the slips are folded in a similar manner. These slips are then mixed well and 3 slips with these names are selected ONE by one, so that all the students have equal chance of being selected in the sample. | |
| 4253. |
A lot of people died and many factories were destroyed in an earthquake (natural calamity). How will it affect the PPC ? |
| Answer» Solution :The PPC of the ECONOMY will shift to its LEFT as there is decrease in availability of RESOURCES and accordingly possibility to producemaximum reduces DUE to destruction of resources. | |
| 4254. |
Define Statistics as a plural noun. |
| Answer» Solution :In the PLURAL sense, Statistics refers to information in TERMS of NUMBERS or numerical data, such as POPULATION statistics, EMPLOYMENT statistics concerning public expenditure, etc. | |
| 4255. |
What is opportunity cost? |
| Answer» SOLUTION :It is the COST of the NEXT BEST a alternative USE of a factor. | |
| 4256. |
Does zero correlation mean independence ? |
| Answer» Solution :Zero CORRELATION only MEANS that there is no linear RELATIONSHIP between the two variables. It does not MEAN that the two variables are INDEPENDENT of each other . | |
| 4257. |
Which of the following is related to Microeconomics ? |
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Answer» Inflation in the economy |
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| 4258. |
Define primary data. |
| Answer» SOLUTION :Data collected by the investigator for his own purpose, for the first TIME from BEGINNING to end, are called PRIMARY data. These are collected from the source of origin. | |
| 4259. |
Mean value of the weekly income of 40 families is 265. But in the calculation, income of one family was read as 150 instead of 115. Find the ''Corrected'' mean. |
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| 4260. |
When does TR make an angle of 45^(@) ? |
| Answer» Solution :When Price remains same at all output levels, then TR INCREASES at a constant rate (DUE to constantMR). As a result, TR curve is a `45^(@)` POSITIVELY sloped straight line. | |
| 4261. |
A producer will change supply of a product only when there is a change in the price of given product. |
| Answer» Solution :The given statement is INCORRECT. Producer will ALSO change the supply if there is change in other factors, like change in price of factors of production, change in state of TECHNOLOGY, change in taxation POLICY, etc. | |
| 4262. |
If a Firm produces zero output in the shortperiod, then : |
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Answer» TOTAL COST will be zero |
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| 4263. |
An increase in price of cottee will lead to rise in equilibrium price of tea. |
| Answer» SOLUTION : Increase in PRICE of COFFEE (SUBSTITUTE GOOD) will lead to increase in demand of tea (given commodity), which will lead to rise in its equilibrium price. | |
| 4264. |
What is a multiple bar diagram ? |
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| 4265. |
A country's resources are fully and efficiently employed. The problem of scarcity exists. What advice be given to raise the efficiency level of the human resource to fight scarcity ? |
| Answer» SOLUTION :Human resources DEVELOPMENT in the FORM of INCREASED expenditure on education, skill development and through on the job or off the job training programmes can fight scarcity. | |
| 4266. |
What is producer's equilibrium? Explain the conditions of producer's equilibrium through the marginal cost and marginal revenue approach. Use diagram. |
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| 4267. |
On 19^(th) December, 2013, the following news item was printed in the Economic Times: "Household in Southern India prefer to eat organges 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 impact of the rise in price of apples and grapes on the market of oranges. |
Answer» SOLUTION : When the price of apples and grapes rises, consumers will substitute with these fruits with the relatively cheaper oranges. Thus, demand for oranges will increase and the demand curve SHIFTS rightwards to D'D'. At the prevailing market price (OP), there was an excess demand of AE. In this situation, buyers would REACT by competing with each other and raise the market price. As market price rises, quantity demanded of oranges contracts and the quantity supplied expands. This process will continued till a new equilibrium price is reached at `OP_(1)`, where market demand is equal to market demand is equal to market SUPPLY. `OP_(1)` is higher than the old price of oranges. Therefore, the equilibrium price of oranges increases and the equilibrium quantity also increases when the price of apples and grapes rises in Southern India. |
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| 4268. |
If the price of good X rises and this leads to a fall in the demand for good Y, how are the two goods related ? |
| Answer» SOLUTION :Both are COMPLEMENTARY GOODS. | |
| 4269. |
Difference between third quartile and first quartile of a series, is called …………….. (Quartile Deviation/Inter Quartile Range) |
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| 4270. |
Describe an economy |
| Answer» SOLUTION :An economy is the LARGE SET of inter-related production and consumption activities that aid in DETERMINING how scarce resources are allocated. The production and consumption of goods and services are used to fulfill the needs of those living and operating within the economy, which is also referred to as an economic SYSTEM. | |
| 4271. |
Explain with the help of TR and TC data, how does a producer choose the maximum profit position ? ""Or Explain the conditions leading to maximisation of profits by a producer. Use total cost adn total revenue approach. |
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| 4272. |
When marginal revenue falls to zero, average revenue becomes maximum. |
| Answer» Solution :False : as when MR FALLS to zero TR becomes constant and so AR will FALL as, AR = `(TR)/("OUTPUT")`. | |
| 4273. |
What changes will take place in MR, when : (i) TR increases at an increasing rate, (ii) TR increases at a diminishing rate, (iii) TR increases at a constant rate |
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Answer» Solution :The following changes will TAKE place in MR : (i) MR will increase. (II) MR will decrease, but will REMAIN positive. (iii) MR is CONSTANT. |
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| 4274. |
Distinsuish between Non-collusive and collusive oligopoly. Explain the following features of iligopoly : {:((a)"few firms",(b)"Non-price competition"):} |
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| 4275. |
Draw a Lorenz curve of the data given below: |
Answer» SOLUTION : 
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| 4276. |
Define quota sampling. |
| Answer» Solution :In quota SAMPLING, the POPULATION is DIVIDED into different GROUPS or classes according to different characteristics of the population. | |
| 4277. |
Explain the various kinds of price elasticities of demand |
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| 4278. |
Define tabulation. Explain its merits. |
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| 4279. |
What is the reason for the long run equilibrium of a firm in monopolistic competition to be associated with zero profit? |
| Answer» Solution :The LONG RUN EQUILIBRIUM of a FIRM in monopolistic competition is ASSOCIATED with zero profits because of 'Freedom of Entry and Exit'. Under monopolistic competition,firms are free to enter into or exit from the industry at any time they wish. It ensures zero profit or absence of abnormal profits in the long run. | |
| 4280. |
Deepak is working as a sales manager at a salary of Rs. 1,00,000 per month. He received 2 major job offers. He got an offer of Rs. 70,000 from Relaince Industry and offer of Rs.85,000 from Tata Industry. What is his opportunity cost for working as a sales manager? |
| Answer» SOLUTION :In the given CASE, the next BEST offer DEEPAK is that of Rs. 85,000 from Tata industry. So, the opportunity COST of Deepak for working as a sales manager is Rs.85,000 | |
| 4281. |
Explain how rise in income of a consumer affects the demand of a good. Give example. |
| Answer» SOLUTION :An INCREASE in income of the consumer LEADS to an increase in demand of the commodity in case of a normal good as the consumer now has more money to spend on the good whereas a DECREASE in income of the consumer leads to fall in demand of a normal good as the consumer now has LESS disposable income to spend on the good. | |
| 4282. |
When a firm faces perfectly elastic demand for its product, at all levels of output : |
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Answer» AR `GT` MR |
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| 4283. |
Price elasticity of demand measure shows : |
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Answer» RESPONSE of PRICE to CHANGE in DEMAND |
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| 4284. |
The distinction drawan between fixed and variable costs is based on : |
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Answer» Whether the costs or cannot be CHANGED during the life of the plant |
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| 4285. |
Average cost must exceed marginal cost at the point when average cost is minimum. |
| Answer» Solution :False. When average cost is minimum, It is equal to MARGINAL cost. So when average cost does not change,then MC=AC. It happens when falling AC REACHES its LOWER POINT. | |
| 4286. |
What is the problem of 'for whom to produce'? |
| Answer» Solution :It is the PROBLEM of distribution of GOODS and SERVICES produced. | |
| 4287. |
Demand curve of Pepsi will not shift with rise or fall in its price. |
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| 4288. |
Which of the following factors will lead to a leftward shift in the demand curve : |
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Answer» INCREASE in income in case of INFERIOR goods |
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| 4289. |
If Marginal Rate of Substituation is increasing throughout, the Indifference Curve will be, (Choose the correct alternative) |
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Answer» DOWNWARD SLOPING convex |
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| 4290. |
What difference does it make to the market when we say that there are large number of sellers in a perfectly competitive market? Explain |
| Answer» Solution : Very LARGE no. of buyers and sellers: The no. of sellers is so large that the share of each seller is insignificant in the TOTAL supply. Hence, an INDIVIDUAL seller cannot influence the market price. Similarly, a single BUYER's share in total purchase is so insignificant because of their large no. that an individual buyer cannot influence the market price. Under such conditions, price of a commodity is determined by the market forces of demand and supply and each buyer and seller has to ACCEPT the same price. As a result, uniform price prevails in the market. | |
| 4291. |
In the operation of the Law of variable Propertions, all the factors are assumed to be variable. |
| Answer» Solution :False. LAW of VARIABLE PROPORTIONS operates when ONE input is variable and all other inputs are fixed. | |
| 4292. |
State the conditions of consumer's equilibrium in the Indifference Curve Analysis and explain the rationale behind these conditions |
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Answer» Solution :LET the only two goods the consumes are X and Y. The two CONDITIONS of equilibrium are: (1) `MRS_(XY) = (P_(X))/(P_(Y))` (2) MRS falls as more of X is consumed in place of Y. Rationale behind these conditions: (1) SUPPOSE `MRS_(XY) gt (P_(X))/(P_(Y))` it means that to obtain one more unit of X, the consumer 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 become equal to the RATIO of prices and the equilibrium is established. (Explanation based on `MRS lt P_(X)//P_(Y)` is also correct) (2) Unless MRS falls as consumer consumes more of X, the consumer will not reach equilibrium again. |
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| 4293. |
Under perfect Competition, each firm is a: |
| Answer» Solution :N/a | |
| 4294. |
What is the method for measuring price elasticity of supply? |
| Answer» SOLUTION :METHOD for MEASURING price elasticity of SUPPLY is Percentage method/Proportionate method. | |
| 4295. |
Homogeneous products' is a characteristic of : |
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Answer» PERFECT competition only |
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| 4296. |
A goods can be considered a normal good if an increase in income of the consumer causes ______ in demand of the given food. |
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Answer» Increase |
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| 4297. |
……………………bar diagrams are used generally when the values are of high megnitude. (Differential/Percentage) |
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| 4299. |
Is it enough to say that profit is maximized when MC=MR? |
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| 4300. |
How does the total fixed cost change when output changes ? |
| Answer» SOLUTION :TOTAL fixed cost does not change with change in the output. | |