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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.
| 4351. |
What is rationing? |
| Answer» <html><body><p><br/></p>Solution :To ensure availability of goods at a maximum <a href="https://interviewquestions.tuteehub.com/tag/price-1165141" style="font-weight:bold;" target="_blank" title="Click to know more about PRICE">PRICE</a> <a href="https://interviewquestions.tuteehub.com/tag/fixed-457597" style="font-weight:bold;" target="_blank" title="Click to know more about FIXED">FIXED</a> by government an <a href="https://interviewquestions.tuteehub.com/tag/upper-721698" style="font-weight:bold;" target="_blank" title="Click to know more about UPPER">UPPER</a> limit on the <a href="https://interviewquestions.tuteehub.com/tag/quantity-1174212" style="font-weight:bold;" target="_blank" title="Click to know more about QUANTITY">QUANTITY</a> that can be purchased through fair price shopes is fixed. This maximum quantity fixed by government is called <a href="https://interviewquestions.tuteehub.com/tag/rationing-1177866" style="font-weight:bold;" target="_blank" title="Click to know more about RATIONING">RATIONING</a>.</body></html> | |
| 4352. |
Represent the following frequency distribution graphically : |
| Answer» | |
| 4353. |
What is meant by " price discrimination"? |
| Answer» <html><body><p></p>Solution :Price <a href="https://interviewquestions.tuteehub.com/tag/discrimination-955662" style="font-weight:bold;" target="_blank" title="Click to know more about DISCRIMINATION">DISCRIMINATION</a> refers to the practice of charging <a href="https://interviewquestions.tuteehub.com/tag/different-951434" style="font-weight:bold;" target="_blank" title="Click to know more about DIFFERENT">DIFFERENT</a> price from different buyers at the same <a href="https://interviewquestions.tuteehub.com/tag/time-19467" style="font-weight:bold;" target="_blank" title="Click to know more about TIME">TIME</a> for the same <a href="https://interviewquestions.tuteehub.com/tag/product-25523" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCT">PRODUCT</a>.</body></html> | |
| 4354. |
Which of the following errors is more serious and why ? (a) Sampling error. (b) Non-sampling error. |
| 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> :Non-sampling <a href="https://interviewquestions.tuteehub.com/tag/error-25548" style="font-weight:bold;" target="_blank" title="Click to know more about ERROR">ERROR</a> is more <a href="https://interviewquestions.tuteehub.com/tag/serious-7274293" style="font-weight:bold;" target="_blank" title="Click to know more about SERIOUS">SERIOUS</a> than a sampling error. Because a sampling error can be minimised by opting for a larger <a href="https://interviewquestions.tuteehub.com/tag/sample-1194587" style="font-weight:bold;" target="_blank" title="Click to know more about SAMPLE">SAMPLE</a> <a href="https://interviewquestions.tuteehub.com/tag/size-1211196" style="font-weight:bold;" target="_blank" title="Click to know more about SIZE">SIZE</a>. No such possibility exists in case of non-sampling errors.</body></html> | |
| 4355. |
What is the differnce between universe and sample ? |
| Answer» <html><body><p></p>Solution :The collection of all elements <a href="https://interviewquestions.tuteehub.com/tag/possessing-7703866" style="font-weight:bold;" target="_blank" title="Click to know more about POSSESSING">POSSESSING</a> common <a href="https://interviewquestions.tuteehub.com/tag/characteristics-19445" style="font-weight:bold;" target="_blank" title="Click to know more about CHARACTERISTICS">CHARACTERISTICS</a> that comprise universe is known as the population. ... The population consists of each and every element of the <a href="https://interviewquestions.tuteehub.com/tag/entire-972365" style="font-weight:bold;" target="_blank" title="Click to know more about ENTIRE">ENTIRE</a> group. On the other <a href="https://interviewquestions.tuteehub.com/tag/hand-1015171" style="font-weight:bold;" target="_blank" title="Click to know more about HAND">HAND</a>, only a handful of <a href="https://interviewquestions.tuteehub.com/tag/items-1052972" style="font-weight:bold;" target="_blank" title="Click to know more about ITEMS">ITEMS</a> of the population is included in a sample</body></html> | |
| 4356. |
The equality of marginal cost and marginal revenue is a condition necessary for equilibrium , but it is not by itselt sufficient to assure the attainment of producer's equilibrium . Comment. |
| Answer» <html><body><p><br/></p>Solution :The given statement is correct. <a href="https://interviewquestions.tuteehub.com/tag/equality-974006" style="font-weight:bold;" target="_blank" title="Click to know more about EQUALITY">EQUALITY</a> of marginal revenue (MR) and marginal cost (MC) is only one conditions for the equilibrium of the firm. Another conditions also <a href="https://interviewquestions.tuteehub.com/tag/needs-1112903" style="font-weight:bold;" target="_blank" title="Click to know more about NEEDS">NEEDS</a> to be fulfilled for the <a href="https://interviewquestions.tuteehub.com/tag/establishment-453083" style="font-weight:bold;" target="_blank" title="Click to know more about ESTABLISHMENT">ESTABLISHMENT</a> of the firm's equilibrium and that is , MC mustbe <a href="https://interviewquestions.tuteehub.com/tag/greater-476627" style="font-weight:bold;" target="_blank" title="Click to know more about GREATER">GREATER</a> than MR after MC=MR <a href="https://interviewquestions.tuteehub.com/tag/output-1142821" style="font-weight:bold;" target="_blank" title="Click to know more about OUTPUT">OUTPUT</a> level'.</body></html> | |
| 4357. |
Define quartile deviation. |
| Answer» <html><body><p></p>Solution :Quartile <a href="https://interviewquestions.tuteehub.com/tag/deviation-950382" style="font-weight:bold;" target="_blank" title="Click to know more about DEVIATION">DEVIATION</a> is half of <a href="https://interviewquestions.tuteehub.com/tag/inter-499525" style="font-weight:bold;" target="_blank" title="Click to know more about INTER">INTER</a> quartile range. It is also called semi-inter quartile range. Thus, <br/> Quartile Deviation `=(Q_(<a href="https://interviewquestions.tuteehub.com/tag/3-301577" style="font-weight:bold;" target="_blank" title="Click to know more about 3">3</a>)-Q_(1))/(<a href="https://interviewquestions.tuteehub.com/tag/2-283658" style="font-weight:bold;" target="_blank" title="Click to know more about 2">2</a>)`</body></html> | |
| 4358. |
Explain three properties of indifference curve |
| 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> :Property I. Indifference <a href="https://interviewquestions.tuteehub.com/tag/curves-941810" style="font-weight:bold;" target="_blank" title="Click to know more about CURVES">CURVES</a> slope downward to the right:<br/>This property implies that an indifference <a href="https://interviewquestions.tuteehub.com/tag/curve-941741" style="font-weight:bold;" target="_blank" title="Click to know more about CURVE">CURVE</a> has a negative slope.Indifference curve being downward sloping means that when the amount of one good in the combination is increased, the amount of the other good is reduced. This must be so if the level of satisfaction is to <a href="https://interviewquestions.tuteehub.com/tag/remain-1184279" style="font-weight:bold;" target="_blank" title="Click to know more about REMAIN">REMAIN</a> the same on an indifference curve.<br/>Property II: Indifference curves are convex to the origin:Another important property of indifference curves is that they are usually convex to the origin. In other words, the indifference curve is relatively flatter in its right-hand portion and relatively steeper in its left-hand portion.<br/>Property III: Indifference curves cannot intersect each other:Third important property of indifference curves is that they cannot intersect each other In other words only one indifference curve will <a href="https://interviewquestions.tuteehub.com/tag/pass-1148402" style="font-weight:bold;" target="_blank" title="Click to know more about PASS">PASS</a> through a point in the indifference map 1 his property can be easily proved by first making the two indifference curves cut each other and then showing the absurdity or self-contradictory result it leads to.</body></html> | |
| 4359. |
What is a price taker firm? |
| Answer» <html><body><p></p>Solution :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> <a href="https://interviewquestions.tuteehub.com/tag/taker-1238573" style="font-weight:bold;" target="_blank" title="Click to know more about TAKER">TAKER</a> firm is a firm which has no option but to sell at a price <a href="https://interviewquestions.tuteehub.com/tag/determined-949906" style="font-weight:bold;" target="_blank" title="Click to know more about DETERMINED">DETERMINED</a> at the industry <a href="https://interviewquestions.tuteehub.com/tag/level-1072714" style="font-weight:bold;" target="_blank" title="Click to know more about LEVEL">LEVEL</a>.</body></html> | |
| 4360. |
Define deviation bar diagram. |
| Answer» <html><body><p><br/></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 deviation are used to compare the net deviation of related <a href="https://interviewquestions.tuteehub.com/tag/variables-11302" style="font-weight:bold;" target="_blank" title="Click to know more about VARIABLES">VARIABLES</a> with <a href="https://interviewquestions.tuteehub.com/tag/respect-1186739" style="font-weight:bold;" target="_blank" title="Click to know more about RESPECT">RESPECT</a> to time and location. Bars <a href="https://interviewquestions.tuteehub.com/tag/representing-1185443" style="font-weight:bold;" target="_blank" title="Click to know more about REPRESENTING">REPRESENTING</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> and negative deviations are drawn above and below the base line.</body></html> | |
| 4361. |
Define economic problem. |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/economic-448435" style="font-weight:bold;" target="_blank" title="Click to know more about ECONOMIC">ECONOMIC</a> problem is a problem of making a choice. Choice of the <a href="https://interviewquestions.tuteehub.com/tag/manner-1086162" style="font-weight:bold;" target="_blank" title="Click to know more about MANNER">MANNER</a> in which limited resources are <a href="https://interviewquestions.tuteehub.com/tag/disposed-7279274" style="font-weight:bold;" target="_blank" title="Click to know more about DISPOSED">DISPOSED</a> off to satisfy unlimited <a href="https://interviewquestions.tuteehub.com/tag/human-1032714" style="font-weight:bold;" target="_blank" title="Click to know more about HUMAN">HUMAN</a> wants.</body></html> | |
| 4362. |
Twenty students of Class XI have secured the following marks : Present the data as a frequency array. |
| Answer» <html><body><p></p>Solution :Following table presents these data in the form of a frequency array. The table shows that 3 students secured 11 marks, 4 students secured <a href="https://interviewquestions.tuteehub.com/tag/14-272882" style="font-weight:bold;" target="_blank" title="Click to know more about 14">14</a> marks, again 4 students secured 20 marks, and the like.As it is <a href="https://interviewquestions.tuteehub.com/tag/clear-408920" style="font-weight:bold;" target="_blank" title="Click to know more about CLEAR">CLEAR</a> from the table, in such series the items are arranged in the <a href="https://interviewquestions.tuteehub.com/tag/ascending-885487" style="font-weight:bold;" target="_blank" title="Click to know more about ASCENDING">ASCENDING</a> (or descending) order. Frequencies are noted infront of each item to signify the number of times that the itemoccurs in the series. In this table, the marks secured are shown in ascending order. Against these marks are shown their frequencies,that is, the number of students who have secured these marks. <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TRJ_ECO_XI_C04_S01_001_S01.png" width="80%"/> <br/> Thus, 3 is the frequency for 11, so 3 is written against it. This means 11 is occurring 3 times in the series, or 3 students have secured 11 marks. Likewise, <a href="https://interviewquestions.tuteehub.com/tag/5-319454" style="font-weight:bold;" target="_blank" title="Click to know more about 5">5</a> is written against <a href="https://interviewquestions.tuteehub.com/tag/17-278001" style="font-weight:bold;" target="_blank" title="Click to know more about 17">17</a>, 5 is the frequency of 17 or 5 students have secured 17 marks. <br/> Discrete series present the data in a very brief form. However, this type of presentation of the data becomes difficult when there is a large mass of data and a large number of small frequencies. In such situations, data are to be distributed in different classes.</body></html> | |
| 4363. |
Define Statistics as a singular noun. |
| Answer» <html><body><p></p>Solution :In the singular <a href="https://interviewquestions.tuteehub.com/tag/sense-25556" style="font-weight:bold;" target="_blank" title="Click to know more about SENSE">SENSE</a>, Statistics means science of Statistics or <a href="https://interviewquestions.tuteehub.com/tag/statistical-1226409" style="font-weight:bold;" target="_blank" title="Click to know more about STATISTICAL">STATISTICAL</a> <a href="https://interviewquestions.tuteehub.com/tag/methods-11862" style="font-weight:bold;" target="_blank" title="Click to know more about METHODS">METHODS</a>. It refers to techniques or methods relating to collection, classification, presentation, <a href="https://interviewquestions.tuteehub.com/tag/analysis-25709" style="font-weight:bold;" target="_blank" title="Click to know more about ANALYSIS">ANALYSIS</a> and interpretation of <a href="https://interviewquestions.tuteehub.com/tag/quantitative-22411" style="font-weight:bold;" target="_blank" title="Click to know more about QUANTITATIVE">QUANTITATIVE</a> data.</body></html> | |
| 4364. |
Average product will increase only when marginal product increases. |
| Answer» <html><body><p></p>Solution :False. <a href="https://interviewquestions.tuteehub.com/tag/average-13416" style="font-weight:bold;" target="_blank" title="Click to know more about AVERAGE">AVERAGE</a> product will increase only when marginal product is greater than average product whether <a href="https://interviewquestions.tuteehub.com/tag/mp-565167" style="font-weight:bold;" target="_blank" title="Click to know more about MP">MP</a> is <a href="https://interviewquestions.tuteehub.com/tag/rising-1189698" style="font-weight:bold;" target="_blank" title="Click to know more about RISING">RISING</a> or <a href="https://interviewquestions.tuteehub.com/tag/falling-983241" style="font-weight:bold;" target="_blank" title="Click to know more about FALLING">FALLING</a>.</body></html> | |
| 4365. |
When does a consumer buy less of a commodity at a given price? |
| 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 other factors affecting the demand of a commodity other than the price changes, a <a href="https://interviewquestions.tuteehub.com/tag/consumer-25599" style="font-weight:bold;" target="_blank" title="Click to know more about CONSUMER">CONSUMER</a> may buy less of the commodity. For example, a <a href="https://interviewquestions.tuteehub.com/tag/fall-983217" style="font-weight:bold;" target="_blank" title="Click to know more about FALL">FALL</a> inincome of the consumer in <a href="https://interviewquestions.tuteehub.com/tag/case-910082" style="font-weight:bold;" target="_blank" title="Click to know more about CASE">CASE</a> of a <a href="https://interviewquestions.tuteehub.com/tag/normal-1123860" style="font-weight:bold;" target="_blank" title="Click to know more about NORMAL">NORMAL</a> good.</body></html> | |
| 4366. |
Size and composition of population affect the demand for an individual. |
| 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> :It <a href="https://interviewquestions.tuteehub.com/tag/affects-851245" style="font-weight:bold;" target="_blank" title="Click to know more about AFFECTS">AFFECTS</a> the <a href="https://interviewquestions.tuteehub.com/tag/market-25464" style="font-weight:bold;" target="_blank" title="Click to know more about MARKET">MARKET</a> <a href="https://interviewquestions.tuteehub.com/tag/demand-436956" style="font-weight:bold;" target="_blank" title="Click to know more about DEMAND">DEMAND</a> and not the <a href="https://interviewquestions.tuteehub.com/tag/individual-1041871" style="font-weight:bold;" target="_blank" title="Click to know more about INDIVIDUAL">INDIVIDUAL</a> demand.</body></html> | |
| 4367. |
MC is minimum at point where TCstart increasing at an increasing rate. |
| 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. <a href="https://interviewquestions.tuteehub.com/tag/mc-1091384" style="font-weight:bold;" target="_blank" title="Click to know more about MC">MC</a> is minimum when the rate of increase in TC stops <a href="https://interviewquestions.tuteehub.com/tag/diminishing-2044202" style="font-weight:bold;" target="_blank" title="Click to know more about DIMINISHING">DIMINISHING</a>.</body></html> | |
| 4368. |
Higher indifference curve represents higher level of satisfaction to the consumer'. Explain The statement also state the underlying assumption related to this property of indifference curve |
| Answer» <html><body><p><br/></p>Solution :Higher indifference <a href="https://interviewquestions.tuteehub.com/tag/curve-941741" style="font-weight:bold;" target="_blank" title="Click to know more about CURVE">CURVE</a> represents higher level of satisfaction. In other words, any combination of goods which lie on a higher indifference curve represents higherlevel of satisfaction as consumer is able to buy more of goods on a higher <a href="https://interviewquestions.tuteehub.com/tag/ic-495793" style="font-weight:bold;" target="_blank" title="Click to know more about IC">IC</a>. <br/>In the diagram Bgt A as consumer is able to buy more of `IC_2` both the goods on as <a href="https://interviewquestions.tuteehub.com/tag/compared-7256615" style="font-weight:bold;" target="_blank" title="Click to know more about COMPARED">COMPARED</a> to `IC_1` <br/>The underlying assumption is Monotonic Preference i.e., a consumer prefers a combination which contains more of Good at least one good and no less of the other good. <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/MIC_ECO_XI_U02_C02_E01_044_S01.png" width="80%"/></body></html> | |
| 4369. |
The following change in PPC is due to: |
| Answer» <html><body><p>Massive Unemployment <br/>Destruction of Resources <br/>Increase in Resouces <br/>Fuller <a href="https://interviewquestions.tuteehub.com/tag/utilisation-722282" style="font-weight:bold;" target="_blank" title="Click to know more about UTILISATION">UTILISATION</a> of Resources </p>Solution :The PPC of an economy shifts outward if: Resources used in production such as <a href="https://interviewquestions.tuteehub.com/tag/coal-421360" style="font-weight:bold;" target="_blank" title="Click to know more about COAL">COAL</a>, oil, and population in the economy increase. The economy sees improvements in technology which make production more <a href="https://interviewquestions.tuteehub.com/tag/efficient-966565" style="font-weight:bold;" target="_blank" title="Click to know more about EFFICIENT">EFFICIENT</a>; more goods can be produced with the same resources.</body></html> | |
| 4370. |
What conditions must hold if a profit maximising firm produces positive output in a competitive market ? |
| Answer» <html><body><p></p>Solution :(i) MR = MC ` "" ` (ii) MC <a href="https://interviewquestions.tuteehub.com/tag/gt-1013864" style="font-weight:bold;" target="_blank" title="Click to know more about GT">GT</a> MR after equilibrium <br/> (iii) In the short <a href="https://interviewquestions.tuteehub.com/tag/run-1192138" style="font-weight:bold;" target="_blank" title="Click to know more about RUN">RUN</a>, `P <a href="https://interviewquestions.tuteehub.com/tag/ge-1003146" style="font-weight:bold;" target="_blank" title="Click to know more about GE">GE</a> AVC` and In the long run `P ge AC`.</body></html> | |
| 4371. |
Why is the equality between marginal cost and marginal revenue necessary for a firm to be in equilibrium ? Is it sufficient to ensure equilibrium ? Explain. |
| Answer» <html><body><p><br/></p>Solution :The producer's equilibrium conditions are `(i) MC=MR and (II) MC gt MR` after equilibrium. <br/><a href="https://interviewquestions.tuteehub.com/tag/suppose-656311" style="font-weight:bold;" target="_blank" title="Click to know more about SUPPOSE">SUPPOSE</a> `MC gt MR:` in this situation it will be profitable for the firm to produce more or less depending upon relative <a href="https://interviewquestions.tuteehub.com/tag/change-913808" style="font-weight:bold;" target="_blank" title="Click to know more about CHANGE">CHANGE</a> in MC and MR till MC=MR. <br/> Suppose `MC lt MR:` it will be profitable for the producer to producer more till MC=MR. <br/> MC =MR is not a sufficient <a href="https://interviewquestions.tuteehub.com/tag/condition-409743" style="font-weight:bold;" target="_blank" title="Click to know more about CONDITION">CONDITION</a> to ensure equilibrium. <a href="https://interviewquestions.tuteehub.com/tag/given-473447" style="font-weight:bold;" target="_blank" title="Click to know more about GIVEN">GIVEN</a> MC=MR suppose the behaviour of MC and MR is such that if one more unit is produced, MC becomes less than MR. <br/> Then in this case it will be profitable for the firm to producemore . therefore <a href="https://interviewquestions.tuteehub.com/tag/inthis-2746203" style="font-weight:bold;" target="_blank" title="Click to know more about INTHIS">INTHIS</a> case though MC=MR , the producer is notin equilibrium However, if after MC=MR output. ,MC becomes greater than MR It will be most advantageous for thefirm to produce only upto MC=MR.</body></html> | |
| 4372. |
When MR is falling but positive, TR will also be falling and positive. |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/false-459184" style="font-weight:bold;" target="_blank" title="Click to know more about FALSE">FALSE</a> : When <a href="https://interviewquestions.tuteehub.com/tag/mr-549185" style="font-weight:bold;" target="_blank" title="Click to know more about MR">MR</a> is falling but positive, TR will be rising.</body></html> | |
| 4373. |
Calculate coefficient of correlation between the price and quantitysupplied. |
| 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> :<img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TRJ_ECO_XI_C12_S01_005_S01.png" width="80%"/> <br/> `r=(sumdxdy-((sumdx) xx(sumdy))/(N))/(sqrt(sumdx^(2)=((sumdx)^(2))/(N))xx sqrt(sumdy^(2)-((sumdy)^(2))/(N)))` <br/> `=(205-((13)xx(<a href="https://interviewquestions.tuteehub.com/tag/0-251616" style="font-weight:bold;" target="_blank" title="Click to know more about 0">0</a>))/(<a href="https://interviewquestions.tuteehub.com/tag/5-319454" style="font-weight:bold;" target="_blank" title="Click to know more about 5">5</a>))/(sqrt(213-((13)^(2))/(5))xxsqrt(<a href="https://interviewquestions.tuteehub.com/tag/250-297421" style="font-weight:bold;" target="_blank" title="Click to know more about 250">250</a>-((0)^(2))/(5)))` <br/> `=(205-0)/(sqrt(213-33.80)xxsqrt(250-0))` <br/> `=(205)/(sqrt(179.20)xxsqrt(250))=(205)/(13.39xx15.81)` <br/> `=(205)/(211.70)` <br/> `+0.97` <br/> coefficient of Correlation (r)=+0.97. <br/> This is a <a href="https://interviewquestions.tuteehub.com/tag/situation-1210683" style="font-weight:bold;" target="_blank" title="Click to know more about SITUATION">SITUATION</a> of a high degree of positive correlation.</body></html> | |
| 4374. |
Monoatomic preference is in the indifferences Curve Analysis means that |
| 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 <a href="https://interviewquestions.tuteehub.com/tag/increases-1040626" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASES">INCREASES</a> as quantity of goods with the consumer increases<br/>Total utility <a href="https://interviewquestions.tuteehub.com/tag/decreases-946143" style="font-weight:bold;" target="_blank" title="Click to know more about DECREASES">DECREASES</a> as quantity of goods with the <a href="https://interviewquestions.tuteehub.com/tag/cosumer-2550290" style="font-weight:bold;" target="_blank" title="Click to know more about COSUMER">COSUMER</a> decreases<br/>Both (a) And (b) <br/>Neither (a) nor (b) </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> | |
| 4375. |
Average variable cost falls when it is more than marginal cost. |
| 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/true-713260" style="font-weight:bold;" target="_blank" title="Click to know more about TRUE">TRUE</a>. When average variable <a href="https://interviewquestions.tuteehub.com/tag/cost-25707" style="font-weight:bold;" target="_blank" title="Click to know more about COST">COST</a> is more than marginalcost (or marginal cost curve is below average variable cost curve), average variable cost 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> | |
| 4376. |
A person's total utility (TU) schedule is given below. Derive marginal utility (MU) {:("Units",0,1,2,3,4,5),(TU,0,12,21,29,32,30):} |
| 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/mu-566056" style="font-weight:bold;" target="_blank" title="Click to know more about MU">MU</a>:-12,9,8,3,-<a href="https://interviewquestions.tuteehub.com/tag/2-283658" style="font-weight:bold;" target="_blank" title="Click to know more about 2">2</a></body></html> | |
| 4377. |
Identify the three phases of the Law of Variable Proportions from the data in question number 2. |
| Answer» <html><body><p></p>Solution :The three <a href="https://interviewquestions.tuteehub.com/tag/phases-1152932" style="font-weight:bold;" target="_blank" title="Click to know more about PHASES">PHASES</a> of the Law of <a href="https://interviewquestions.tuteehub.com/tag/variable-1442996" style="font-weight:bold;" target="_blank" title="Click to know more about VARIABLE">VARIABLE</a> Proportions are identified from the behaviour of <a href="https://interviewquestions.tuteehub.com/tag/mp-565167" style="font-weight:bold;" target="_blank" title="Click to know more about MP">MP</a>. <br/> The first phase is up to 2 <a href="https://interviewquestions.tuteehub.com/tag/units-1438468" style="font-weight:bold;" target="_blank" title="Click to know more about UNITS">UNITS</a> because MP is increasing. <br/> The second phase is 3 units to 4 units because MP is falling but <a href="https://interviewquestions.tuteehub.com/tag/positive-1159908" style="font-weight:bold;" target="_blank" title="Click to know more about POSITIVE">POSITIVE</a>. <br/> The third phase is from 5th unit because MP is negative.</body></html> | |
| 4378. |
What does a point on the Budget Line indicate in terms of prices ? |
| 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> :In terms of prices, a <a href="https://interviewquestions.tuteehub.com/tag/point-1157106" style="font-weight:bold;" target="_blank" title="Click to know more about POINT">POINT</a> on 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 <a href="https://interviewquestions.tuteehub.com/tag/represents-1185452" style="font-weight:bold;" target="_blank" title="Click to know more about REPRESENTS">REPRESENTS</a> the ratio of price of the good shown on the X-axis to the price of the good shown on the Y-axis.</body></html> | |
| 4379. |
"In a hypothetical market of mobile phones, the brand AWAAZ was leading the market share. Its nearest competitor VAARTA suddenly changed its strategy by bringing in a new model of the mobile phone at a relatively lesser price. in response, AWAAZ too slashed its price." Based on the above information, identify the form of market represented and discuss any one featureof the market. |
| Answer» <html><body><p></p>Solution :The form of market represented in the question is <a href="https://interviewquestions.tuteehub.com/tag/oligopoly-585440" style="font-weight:bold;" target="_blank" title="Click to know more about OLIGOPOLY">OLIGOPOLY</a>. Under oligopoly, firms are in a position to <a href="https://interviewquestions.tuteehub.com/tag/influence-1043703" style="font-weight:bold;" target="_blank" title="Click to know more about INFLUENCE">INFLUENCE</a> the prices. However, they try to avoid price competition for the fear of price war. They follow the policy of price rigidity. Price rigidity refers to a situation in which price tends to stay fixed irrespective of changes in demand and supply conditions. Firms use <a href="https://interviewquestions.tuteehub.com/tag/methods-11862" style="font-weight:bold;" target="_blank" title="Click to know more about METHODS">METHODS</a> like advertising, better services to customers,etc to compete with each other.If a firm tries to reduce the price, the rivals will also react by reducing their prices. However, if it tries to raise the price, other firms might not do so. It will lead to loss of customers for the firm, which intended to raise the price. So, firms prefer non-price competition <a href="https://interviewquestions.tuteehub.com/tag/instead-516622" style="font-weight:bold;" target="_blank" title="Click to know more about INSTEAD">INSTEAD</a> of price competition.</body></html> | |
| 4380. |
Give one point of differnece between law of demand and elasticity of demand. |
| 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> :Law of demand reflects the <a href="https://interviewquestions.tuteehub.com/tag/direction-1696" style="font-weight:bold;" target="_blank" title="Click to know more about DIRECTION">DIRECTION</a> of change in demand <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 change in price, whereas <a href="https://interviewquestions.tuteehub.com/tag/elasticity-14238" style="font-weight:bold;" target="_blank" title="Click to know more about ELASTICITY">ELASTICITY</a> of <a href="https://interviewquestions.tuteehub.com/tag/dmeand-2590304" style="font-weight:bold;" target="_blank" title="Click to know more about DMEAND">DMEAND</a> measures the degree or magnitudeof change in demand due to change in price of the commodity.</body></html> | |
| 4381. |
What do you understand by positive economic analysis? |
| 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> :Positive <a href="https://interviewquestions.tuteehub.com/tag/economics-260" style="font-weight:bold;" target="_blank" title="Click to know more about ECONOMICS">ECONOMICS</a> <a href="https://interviewquestions.tuteehub.com/tag/deals-945317" style="font-weight:bold;" target="_blank" title="Click to know more about DEALS">DEALS</a> with what are the <a href="https://interviewquestions.tuteehub.com/tag/economic-448435" style="font-weight:bold;" target="_blank" title="Click to know more about ECONOMIC">ECONOMIC</a> problems and how are they actually solved.</body></html> | |
| 4382. |
Price floor is ______ the equilibrium price : |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/lower-1080637" style="font-weight:bold;" target="_blank" title="Click to know more about LOWER">LOWER</a> than<br/>higher than<br/>equal to<br/>all of these</p>Solution :N/a</body></html> | |
| 4383. |
When AP falls due to increase in quantity of variable input : |
| Answer» <html><body><p>`<a href="https://interviewquestions.tuteehub.com/tag/mp-565167" style="font-weight:bold;" target="_blank" title="Click to know more about MP">MP</a> lt <a href="https://interviewquestions.tuteehub.com/tag/ap-380277" style="font-weight:bold;" target="_blank" title="Click to know more about AP">AP</a>`<br/>`MP = AP`<br/>`MP <a href="https://interviewquestions.tuteehub.com/tag/gt-1013864" style="font-weight:bold;" target="_blank" title="Click to know more about GT">GT</a> AP`<br/>None of these</p>Answer :A</body></html> | |
| 4384. |
If with the rise in price of good Y, demand for good X rises, the two good are : |
| Answer» <html><body><p>Substitutes<br/>Complements<br/>Not related<br/>Jointly demanded</p>Answer :A</body></html> | |
| 4385. |
Explain vital aspects of functioning of an economy? |
| Answer» | |
| 4386. |
How do the equilibrium price and quantity of a commodity change when price of input used in its production changes? |
| Answer» <html><body><p></p>Solution :A change in price of <a href="https://interviewquestions.tuteehub.com/tag/inputs-1045695" style="font-weight:bold;" target="_blank" title="Click to know more about INPUTS">INPUTS</a> will directly influence the equilibrium price and quantity of the commodity. <br/> An <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 price of inputs will raise the <a href="https://interviewquestions.tuteehub.com/tag/production-14556" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCTION">PRODUCTION</a> <a href="https://interviewquestions.tuteehub.com/tag/cost-25707" style="font-weight:bold;" target="_blank" title="Click to know more about COST">COST</a> and it will lead to decrease in supply of the commodity. It will lead to excess demand. <br/> On the other hand, a decrease in price of inputs will increase the supply due to fall in cost of production and rise in profit margin. It will lead to excess supply.</body></html> | |
| 4387. |
A straight-line supply curve cuts the Y-axis in its positive range. What is the elasticity of supply? |
| Answer» <html><body><p></p>Solution :Highly elastic `(Es <a href="https://interviewquestions.tuteehub.com/tag/gt-1013864" style="font-weight:bold;" target="_blank" title="Click to know more about GT">GT</a> <a href="https://interviewquestions.tuteehub.com/tag/1-256655" style="font-weight:bold;" target="_blank" title="Click to know more about 1">1</a>)` because quantity supplied is more <a href="https://interviewquestions.tuteehub.com/tag/responsive-11248" style="font-weight:bold;" target="_blank" title="Click to know more about RESPONSIVE">RESPONSIVE</a> to the change in <a href="https://interviewquestions.tuteehub.com/tag/price-1165141" style="font-weight:bold;" target="_blank" title="Click to know more about PRICE">PRICE</a></body></html> | |
| 4388. |
Cumulative frequency indicates ' less than' or more than' value of the series. |
| Answer» <html><body><p><br/></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/true-713260" style="font-weight:bold;" target="_blank" title="Click to know more about TRUE">TRUE</a> because it is for both</body></html> | |
| 4389. |
There is no selling cost under monopoly due to presence of single seller. |
| 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> :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 incurred under monopoly. <a href="https://interviewquestions.tuteehub.com/tag/however-1032379" style="font-weight:bold;" target="_blank" title="Click to know more about HOWEVER">HOWEVER</a>, they are of <a href="https://interviewquestions.tuteehub.com/tag/small-1212368" style="font-weight:bold;" target="_blank" title="Click to know more about SMALL">SMALL</a> amount as they are meant only for information purpose</body></html> | |
| 4390. |
which ofthe followingdiagramcorrectlydepicts the situation of UnitaryElastic Supply ? |
| Answer» <html><body><p><img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/SG_MIC_ECO_C09_E01_027_O01.png" width="30%"/><br/><img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/SG_MIC_ECO_C09_E01_027_O02.png" width="30%"/><br/><img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/SG_MIC_ECO_C09_E01_027_O03.png" width="30%"/><br/>All ofthese</p>Solution :All of these <a href="https://interviewquestions.tuteehub.com/tag/situation-1210683" style="font-weight:bold;" target="_blank" title="Click to know more about SITUATION">SITUATION</a> depicts the unitary <a href="https://interviewquestions.tuteehub.com/tag/elastic-967540" style="font-weight:bold;" target="_blank" title="Click to know more about ELASTIC">ELASTIC</a> <a href="https://interviewquestions.tuteehub.com/tag/supply-1235254" style="font-weight:bold;" target="_blank" title="Click to know more about SUPPLY">SUPPLY</a> because the supply curve is <a href="https://interviewquestions.tuteehub.com/tag/passing-1148520" style="font-weight:bold;" target="_blank" title="Click to know more about PASSING">PASSING</a> through the origin irrespective of the <a href="https://interviewquestions.tuteehub.com/tag/angle-875388" style="font-weight:bold;" target="_blank" title="Click to know more about ANGLE">ANGLE</a> it makes.</body></html> | |
| 4391. |
How is price elasticty of demand of a commodity affected by the number of its substitutes ? |
| Answer» <html><body><p></p>Solution :If the good has more <a href="https://interviewquestions.tuteehub.com/tag/substitutes-1231649" style="font-weight:bold;" target="_blank" title="Click to know more about SUBSTITUTES">SUBSTITUTES</a> available then <a href="https://interviewquestions.tuteehub.com/tag/demand-436956" style="font-weight:bold;" target="_blank" title="Click to know more about DEMAND">DEMAND</a> is elastic as the consumer can shift to other <a href="https://interviewquestions.tuteehub.com/tag/goods-1009877" style="font-weight:bold;" target="_blank" title="Click to know more about GOODS">GOODS</a> in case of a <a href="https://interviewquestions.tuteehub.com/tag/change-913808" style="font-weight:bold;" target="_blank" title="Click to know more about CHANGE">CHANGE</a> in price. On the other hand, if a good has less or no substitutes then its demand will be less elastic or it will <a href="https://interviewquestions.tuteehub.com/tag/inelastic-7382420" style="font-weight:bold;" target="_blank" title="Click to know more about INELASTIC">INELASTIC</a> as the consumer will have no choice available.</body></html> | |
| 4392. |
What is the shape of total revenue curve under perfect competition? |
| Answer» <html><body><p></p>Solution :TR curve under <a href="https://interviewquestions.tuteehub.com/tag/perfect-1150611" style="font-weight:bold;" target="_blank" title="Click to know more about PERFECT">PERFECT</a> <a href="https://interviewquestions.tuteehub.com/tag/competition-423521" style="font-weight:bold;" target="_blank" title="Click to know more about COMPETITION">COMPETITION</a> is a <a href="https://interviewquestions.tuteehub.com/tag/straight-633156" style="font-weight:bold;" target="_blank" title="Click to know more about STRAIGHT">STRAIGHT</a> `45^(@)` positively <a href="https://interviewquestions.tuteehub.com/tag/sloped-7330990" style="font-weight:bold;" target="_blank" title="Click to know more about SLOPED">SLOPED</a> line.</body></html> | |
| 4393. |
if a good takes up significant share of consumers' budget, it will be |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/less-1071906" style="font-weight:bold;" target="_blank" title="Click to know more about LESS">LESS</a> <a href="https://interviewquestions.tuteehub.com/tag/elastic-967540" style="font-weight:bold;" target="_blank" title="Click to know more about ELASTIC">ELASTIC</a> <br/><a href="https://interviewquestions.tuteehub.com/tag/highly-2102664" style="font-weight:bold;" target="_blank" title="Click to know more about HIGHLY">HIGHLY</a> elastic<br/>Unitary elastic <br/><a href="https://interviewquestions.tuteehub.com/tag/perfectly-7309466" style="font-weight:bold;" target="_blank" title="Click to know more about PERFECTLY">PERFECTLY</a> elastic</p>Solution :N/a</body></html> | |
| 4394. |
Total utility is minimum when marginal utility is zero |
| Answer» <html><body><p></p>Solution :Total <a href="https://interviewquestions.tuteehub.com/tag/utility-1441817" style="font-weight:bold;" target="_blank" title="Click to know more about UTILITY">UTILITY</a> is <a href="https://interviewquestions.tuteehub.com/tag/maximum-556915" style="font-weight:bold;" target="_blank" title="Click to know more about MAXIMUM">MAXIMUM</a> when <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 is <a href="https://interviewquestions.tuteehub.com/tag/zero-751093" style="font-weight:bold;" target="_blank" title="Click to know more about ZERO">ZERO</a>.</body></html> | |
| 4395. |
What are the properties of a good measure of dispersion? |
| Answer» <html><body><p></p>Solution :1. It should be rigidly <a href="https://interviewquestions.tuteehub.com/tag/defined-947013" style="font-weight:bold;" target="_blank" title="Click to know more about DEFINED">DEFINED</a>.<br/> <a href="https://interviewquestions.tuteehub.com/tag/2-283658" style="font-weight:bold;" target="_blank" title="Click to know more about 2">2</a>. It should be based on all the items.<br/> <a href="https://interviewquestions.tuteehub.com/tag/3-301577" style="font-weight:bold;" target="_blank" title="Click to know more about 3">3</a>. It should not be unduly affected by extreme items.<br/> <a href="https://interviewquestions.tuteehub.com/tag/4-311707" style="font-weight:bold;" target="_blank" title="Click to know more about 4">4</a>. It should lend itself for algebraic manipulation.<br/>5. It should be simple to understand and easy to calculate.</body></html> | |
| 4396. |
Explain the meaning and need for maximum price ceiling. |
| Answer» <html><body><p><br/></p>Solution :Maximum price ceiling refers to the maximum price that the producers are allowed to charge by <a href="https://interviewquestions.tuteehub.com/tag/selling-25929" style="font-weight:bold;" target="_blank" title="Click to know more about SELLING">SELLING</a> their goods and services. These interventions is usually done in the situations of "shortages" as if not controlled, this my lead to high market price of the good. It is <a href="https://interviewquestions.tuteehub.com/tag/generally-471963" style="font-weight:bold;" target="_blank" title="Click to know more about GENERALLY">GENERALLY</a> imposed on necessary items like <a href="https://interviewquestions.tuteehub.com/tag/wheat-736282" style="font-weight:bold;" target="_blank" title="Click to know more about WHEAT">WHEAT</a>, rice, kerosene, sugar etc. and it is <a href="https://interviewquestions.tuteehub.com/tag/fixed-457597" style="font-weight:bold;" target="_blank" title="Click to know more about FIXED">FIXED</a> below the market-determined price <a href="https://interviewquestions.tuteehub.com/tag/since-644476" style="font-weight:bold;" target="_blank" title="Click to know more about SINCE">SINCE</a> at the market-determined price some section of the population will not be able to afford these goods.</body></html> | |
| 4397. |
Cross price effect occurs in case of substitude goods only |
| Answer» <html><body><p></p>Solution :It <a href="https://interviewquestions.tuteehub.com/tag/occurs-1127848" style="font-weight:bold;" target="_blank" title="Click to know more about OCCURS">OCCURS</a> in complementary goods also. <a href="https://interviewquestions.tuteehub.com/tag/cross-939411" style="font-weight:bold;" target="_blank" title="Click to know more about CROSS">CROSS</a> price effect shows effect on demand of a <a href="https://interviewquestions.tuteehub.com/tag/given-473447" style="font-weight:bold;" target="_blank" title="Click to know more about GIVEN">GIVEN</a> commodity due to change in price of related commodity and both <a href="https://interviewquestions.tuteehub.com/tag/substitue-3084248" style="font-weight:bold;" target="_blank" title="Click to know more about SUBSTITUE">SUBSTITUE</a> and complementary goods are related goods.</body></html> | |
| 4398. |
Average fixed cost curve touches the Y-axis because at zero output, average fixed cost is zero. |
| Answer» <html><body><p></p>Solution :False. Average fixed cost can never touch the Y-axis because at <a href="https://interviewquestions.tuteehub.com/tag/zero-751093" style="font-weight:bold;" target="_blank" title="Click to know more about ZERO">ZERO</a> output, it is infinite. AFC=<a href="https://interviewquestions.tuteehub.com/tag/tfc-659819" style="font-weight:bold;" target="_blank" title="Click to know more about TFC">TFC</a>/Output so, TFC is 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/value-1442530" style="font-weight:bold;" target="_blank" title="Click to know more about VALUE">VALUE</a> at zero output and any positive value divided by zero will provide infinite value.</body></html> | |
| 4399. |
Explain the effect of : (a) change in own price and (b) chane in price of substitude on demand of a good. |
| Answer» <html><body><p></p>Solution :(a) A change in own price of the commodity will lead to change in qunatity <a href="https://interviewquestions.tuteehub.com/tag/demanded-7675308" style="font-weight:bold;" target="_blank" title="Click to know more about DEMANDED">DEMANDED</a> or in other <a href="https://interviewquestions.tuteehub.com/tag/words-25841" style="font-weight:bold;" target="_blank" title="Click to know more about WORDS">WORDS</a>, expansion or contraction demand. It leads to movement <a href="https://interviewquestions.tuteehub.com/tag/along-1974109" style="font-weight:bold;" target="_blank" title="Click to know more about ALONG">ALONG</a> the demand curve. <br/>(b) Price of substitue goods and qunatity demanded of another subsitute has a positive relationship. <a href="https://interviewquestions.tuteehub.com/tag/hence-484344" style="font-weight:bold;" target="_blank" title="Click to know more about HENCE">HENCE</a>, an <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 price of the substitute good will lead to an increase in demand of the concerned good and vice-versa. It leads to a shift in the demand curve.</body></html> | |
| 4400. |
Explainthe relationshipbetweenaverage variable cost and marginal cost with the help of a diagram. |
| 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> : Marginal cost (MC) is the cost of producing an extra unit of output. Review: Average variable cost (AVC) is the cost of labor <a href="https://interviewquestions.tuteehub.com/tag/per-590802" style="font-weight:bold;" target="_blank" title="Click to know more about PER">PER</a> unit of output produced. When MC is below AVC, MC <a href="https://interviewquestions.tuteehub.com/tag/pulls-1172384" style="font-weight:bold;" target="_blank" title="Click to know more about PULLS">PULLS</a> the average down. You should understand the exact relationship between marginal cost (MC) and average variable cost (AVC).</body></html> | |