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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.
| 4301. |
Define budget line, budget set, attainable and non-attainable combinations using suitable schedule and diagram |
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| 4302. |
Define partial correlation . |
| Answer» SOLUTION :When more than two VARIABLES are involved and out of these the relationship between only two variables is studied treating other variables as constant, then the correlation is PARTIAL. | |
| 4303. |
Production poddibility frontier is concave shaped as production of one good can be increased only by reducing quantity of another good. |
| Answer» SOLUTION :PRODUCTION possibility frontier is concave SHAPED DUE to increasing marginal OPPORTUNITY cost. | |
| 4304. |
A firm is operating with a Total Variable cost of Rs 500 when 5 units of the given output are produced and the Total Fixed Costs are Rs 200, what will be the Average Total Cost of producing 5 units of output ? (i) Rs 140 (ii) Rs 100 (iii) Rs 120 (iv) Rs 300 |
| Answer» SOLUTION :RS 140 | |
| 4305. |
Consumer get maxiumum variety of good under: |
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Answer» PERFECTLY COMPETITION |
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| 4307. |
When the prevailing market price is different from the equilibrium price, is immediately results in : |
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Answer» EXCESS demand |
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| 4308. |
Define budget set. |
| Answer» Solution :BUDGET set is the set of all possible combinations of the TWO goods which a CONSUMER can AFFORD, given his income and prices in the market. | |
| 4309. |
In case of inefficient utilisation of resources: |
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Answer» PPC SHIFTS to its left |
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| 4310. |
Define viable industry. |
| Answer» Solution :It refers to an INDUSTRY in which the DEMAND curve and SUPPLY curve intersect each other in the POSITIVE AXIS i.e., at positive quantity. | |
| 4311. |
A simultaneous increase in demand and supply for a given commodity will result in more of the commodity being purchased. |
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| 4312. |
The part of economics which deals with the question of what, how and for whom to produce is known as macroeconomics. |
| Answer» SOLUTION :MICROECONOMICS DEALS with the QUESTION of what, how and for whom to PRODUCE. | |
| 4313. |
In plural sense, which of the following is not a characteristic of Statistics ? |
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Answer» Aggregate of data |
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| 4314. |
Coefficient of range is: |
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Answer» `((H+L)/(H-L))xx2` |
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| 4315. |
What is meant by revenue in microeconomics ? |
| Answer» SOLUTION :Revenue is the MONEY receipts received by a firm from the SALE of its PRODUCT. | |
| 4316. |
What is Marginal Rate of Transformation ? Explain with help of an example. |
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Answer» Solution :MRT is the RATE at which the unis of one good have to be sacrificed to produce one more UNIT of the other good in a twe good in a two goods ECONOMY. Suppose an economy produces only two goods X and Y. Further suppose that by EMPLOYING these resources fully and efficiently, the economy 1X + 10Y. If the economy decides to produce 2X it has to cut down production of Y by 2 UNITS. Then 2T is the oportunity 1X. Then 2Y:1X is the MRT. |
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| 4317. |
Explain the basic problem of distribution of income. |
| Answer» Solution :This problem is concerned with the distribution of income in an economy. It is concerned with either to PRODUCE goods for high-income groups or low- income groups. The CAPACITY of people to pay for goods depends upon their level of income. Thus, this problem is concerned with the distribution of income among factors of production who CONTRIBUTE in the production process. It has two aspects :(i) Personal distribution: It means how the national income of an economy is distributed among different groups of people in the society.(ii) Factoral distribution: It relates to income share of different factors of production such as wages for labour, INTEREST for capital, RENT for land etc | |
| 4318. |
What do you mean by a normal good ? |
| Answer» Solution :Normal goods REFER to those goods whose demand increases with an INCREASE in income. For EXAMPLE : If demand of 'Full Cream Milk' increase with increase in income, the 'Full Cream Milk' is a normal GOOD. | |
| 4319. |
What is the difference between census method and sampling method? |
| Answer» Solution :The census is a systematic method that COLLECTS and RECORDS the data about the MEMBERS of the population. ... In contrast, sampling is ALSO known as a PARTIAL enumeration survey method. In the census, each and every unit of population is researched | |
| 4320. |
A consumer consumes only two goods X and Y and is in equilibrium with MU_(x)=MU_(y) , then: |
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Answer» <P>`P_(X)=P_(y)` |
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| 4321. |
In percentilies , series is divided in hundred equal parts. |
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| 4322. |
Why can a firm not earn abnormal profits under perfect competition in the long run? Explain. |
| Answer» SOLUTION :It is because 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. | |
| 4323. |
Identify positive or normative statements from the following : Free education should be given to the poor till class XII |
| Answer» SOLUTION :NORMATIVE STATEMENTS because it is ADVICE | |
| 4324. |
Identify which of the following is not true for the Indifference Curves theory. Give valid reasons for choice of your answer. |
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Answer» Lower indifference curve represents lower level of satisfaction. |
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| 4326. |
Indifference Map refers to: |
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Answer» HIGHEST INDIFFERENCE curve |
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| 4327. |
Production in an economy is below its potential due to unemployment. Government starts employment generation schemes. Explain its effect using PPC. |
Answer» Solution :PPC REPRESENTS different COMBINATION of two goods which can be produced with given resources ASSUMING (i) Resources are fully and efficiently utilised (ii) Technique of PRODUCTION remains unchanged.  Due to unemployment, an economy operates inside the PPC (POint M and point N) implying under utilisation of resources. If the GOVERNMENT starts employment generation schemes, the output will increase and may lead to fuller utilisation of resources on PPC AB. |
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| 4328. |
Identify the following as Positive Statements and Normative Statements: (i) People should save more for their future. (ii) In India, population is increasing at an alarming rate. (iii) The Government should ompose heavy taxes on rich people. (iv) Smoking should be discouraged in the world. (v) In India, tax rate slabs increase with increase in income. (vi) Higher interest rates induces people to save more out of their income. (vii) High taxes on cigarettes discourage smoking. (viii) Government should put more efforts to reduce pollution. |
| Answer» SOLUTION :Positive Statement: (ii),(V),(vi),(VII), NORMATIVE Statements, (i),(III),(iv),(viii). | |
| 4329. |
What is meant by inputs ? |
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| 4330. |
Mean marks obtainedby a student in his five subjects are 15. In English he secures 8 marks, in Economics 12, in Mathematics 18, and in Commerce 9. Find out the marks he secured in Statistics. |
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| 4331. |
The law diminishing retuns refers to an eventual fall in : |
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Answer» PRODUCTIVITY of FACTORS of production |
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| 4333. |
Explain the characteristic of a perfectly competitive market. |
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| 4334. |
Distinguish between. (i) Normal good and inferior good (ii) Complementary good and substitute good (iii) Movement along demand curve and Shift in demand curve (iv) Change in quantity demanded and Change in demand (v) Constraction in demand and Decrease in demand (vi) Expansion in demand and Increase in demand (vii) Individual Demand and Market Demand (viii) Individual Demand Curve and Market Demand Curve |
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| 4335. |
'Cardinality'' means utility can be: |
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Answer» MEASURED |
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| 4336. |
What should be the base year like ? |
| Answer» SOLUTION :Base year should be an year which is without wide fluctuations,not far from the PERIOD of study, NEITHER very long not very short and for which reliable data are AVAILABLE. | |
| 4337. |
What do you mean by a normal good? |
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| 4338. |
Market for a necessary good is competitive in which the existing firms are earning super-normal profits. How can the policy of liberalisation by the government help in making themarket more competitive in the interests of the consumers. Explain. |
| Answer» Solution :The policy of libralisation ENCOURAGES NEW firms to enter the industry. This RAISES output of the industry. Total market demand remaining unchanged, price starts falling. Consumers now GET the good at a cheaper price. | |
| 4339. |
the following diagram represents____________elastic demand for commodity X. |
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Answer» LESS |
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| 4340. |
What is the difference between table and tabulation? |
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| 4341. |
Government has fixed the price as OP_(1), while the equilibrium price is OP as seen in the following diagram: The price fixed by the government is known as: |
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Answer» PRICE Floor |
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| 4342. |
Calculate rank correlation coefficient from data in Example 4 in Section 11.4 |
Answer» Solution : `rho=1-(6[SigmaD^(2)+(1)/(12)(m^(3)-m)+(1)/(12)(m^(3)-m)...])/(N(N^(2)-1))` `=1-[(6[18+(1)/(12)(5^(3)-5)])/(5(5^(5)-1))]` `=1-(6[18+(1)/(12)XX(125-5)])/(5xx24)=1-(6(18+10))/(120)` `=1-(168)/(120)=1-1.04=-0.4` |
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| 4343. |
On what basis, monopoly, monopolistic competition and oligopoly are simialr to each other: |
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Answer» NUMBER of sellers |
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| 4344. |
The choice of diagram is determined by: |
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Answer» RESOURCES with the investigator |
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| 4345. |
If a machinary has no possible alternative use, its opportunity cost will be very high. |
| Answer» SOLUTION :FALSE. The opportunity cost ofsuch MACHINERY will be zero.Opportunity cost is the next-highest-valued ALTERNATIVE use of that resource. | |
| 4346. |
What is market demand for a good? Name the factors determining market demand. |
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Answer» Solution :Market DEMAND is the sum of demand by all the INDIVIDUALS in the market. 1. Size of population. 2. Distribution of income. 3. SEASON and climate. 4. Tastes and preferences. 5. Price of RELATED goods. |
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| 4347. |
In case of perfect competition a firm is in equilibrium when: |
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Answer» MC=MR |
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| 4348. |
How are central problem solves in different types of economies? |
Answer» Solution :The classification of an economy or solution of central problems in different types of economies can be studied under three heads :  (i) Market Economy. IN a market economy, all economy activities are organised through the market. It is also known as capitalist economy. In a market or capitalist economy, central problems of what, how and for whom to produce are solved by price mechanism i.e., by the prices PREVAILING in the market. In this economy, market forces, demand and supply are left free to determine price. Here production is done mainly for earning profits. In this economy, MEANS of production are owned and controlled by the private sector. There is not Govt. interference. (ii) Centrally PLANNED Economy. It is also known as a SOCIALIST economy. Here central problems of what, how and for whom to produce are solved through central planning. The Govt. or central authority of the economy plans all the important activities like production, exchange etc. The prices are determined by the planning authority. All decisions are taken with respect to maximize social welfare. (iii) Mixed Economy. It is mix of public and private sector in the field of production. In this economy important decisions regarding what, how and for whom to produce are taken by Govt. and economic activitis are by and large conducted by the market. All decisions AIM to achieve profit maximisation alongwith social welfare. 
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| 4349. |
Adjustment Factor for any Class is equal to : |
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Answer» `"Class Interval of the FIRST Class"/ "LOWEST Class Interval"` |
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| 4350. |
In the market, three exists demand for LPG cylinders. To do away with this excess demand government has tried to restrict its usage by providing only 9 LPG cylinders at subsidized rates in a year. What policy implication does this move by government have ? |
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Answer» `**` Since the cylinders now come with a greater price tag, people will optimise its usage `**` It will HELP in SAVING of natural resources `**` It will life off some pressure from the government due to fall in its expenditure on subsidies. |
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