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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.
| 4401. |
An owner withdraws ₹ 10,000 from his personalbank account and puchaes a machinery for the business. Identify the explicit costand implicit cost. |
| Answer» <html><body><p></p>Solution :Imputed intereston amount <a href="https://interviewquestions.tuteehub.com/tag/withdrawn-3281170" style="font-weight:bold;" target="_blank" title="Click to know more about WITHDRAWN">WITHDRAWN</a> from bank' is the implicit <a href="https://interviewquestions.tuteehub.com/tag/cost-25707" style="font-weight:bold;" target="_blank" title="Click to know more about COST">COST</a> as the <a href="https://interviewquestions.tuteehub.com/tag/owner-1144378" style="font-weight:bold;" target="_blank" title="Click to know more about OWNER">OWNER</a> <a href="https://interviewquestions.tuteehub.com/tag/wouldhave-3285964" style="font-weight:bold;" target="_blank" title="Click to know more about WOULDHAVE">WOULDHAVE</a> earned the interestif the amountremained in the bank. "Amount of `₹10,000` paid to purchase the machinery" is theexplicit cost as it is <a href="https://interviewquestions.tuteehub.com/tag/actual-361632" style="font-weight:bold;" target="_blank" title="Click to know more about ACTUAL">ACTUAL</a> money expenditure.</body></html> | |
| 4402. |
Production in an economy is below its potential due to unemployment. Government starts employment generation schemes. Explain its effect using production possibility curve. |
| Answer» <html><body><p></p>Solution :Production below the potential means that total production in the economy is somewhere below the production possibility curve <a href="https://interviewquestions.tuteehub.com/tag/pp-592407" style="font-weight:bold;" target="_blank" title="Click to know more about PP">PP</a>' , for example at point U, in the diagrame. When <a href="https://interviewquestions.tuteehub.com/tag/government-1010037" style="font-weight:bold;" target="_blank" title="Click to know more about GOVERNMENT">GOVERNMENT</a> starts employment generation schemes, and since the production is below potential level due to unemployment and <a href="https://interviewquestions.tuteehub.com/tag/reach-1178062" style="font-weight:bold;" target="_blank" title="Click to know more about REACH">REACH</a> the potential. the <a href="https://interviewquestions.tuteehub.com/tag/movement-1104563" style="font-weight:bold;" target="_blank" title="Click to know more about MOVEMENT">MOVEMENT</a> <a href="https://interviewquestions.tuteehub.com/tag/forwards-997203" style="font-weight:bold;" target="_blank" title="Click to know more about FORWARDS">FORWARDS</a> is towards the PP' curve.</body></html> | |
| 4403. |
Law of Demand is a Qualitative statement. Comment |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/law-184" style="font-weight:bold;" target="_blank" title="Click to know more about LAW">LAW</a> of demand is only an indicative, and not a quantitative statement. It indicates only the direction, in which the demand will change with a change in price. It <a href="https://interviewquestions.tuteehub.com/tag/says-1195457" style="font-weight:bold;" target="_blank" title="Click to know more about SAYS">SAYS</a> nothing about the magnitude of such a change. For example, price of Pepsi rises from Rs. <a href="https://interviewquestions.tuteehub.com/tag/10-261113" style="font-weight:bold;" target="_blank" title="Click to know more about 10">10</a> to Rs. 12 per bottle then, as per law of demand, we can say that the demand for Pepsi wall fall. But the law does not give the actual <a href="https://interviewquestions.tuteehub.com/tag/amount-374803" style="font-weight:bold;" target="_blank" title="Click to know more about AMOUNT">AMOUNT</a> by which the demand for Pepsi will decline.</body></html> | |
| 4404. |
Define slope of budget line. |
| Answer» <html><body><p></p>Solution :This <a href="https://interviewquestions.tuteehub.com/tag/negative-570381" style="font-weight:bold;" target="_blank" title="Click to know more about NEGATIVE">NEGATIVE</a> relation between consumption quantities of two goods causes 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 to slope downwards. The slope of the budget line is the amount of good 2 given up to have <a href="https://interviewquestions.tuteehub.com/tag/one-585732" style="font-weight:bold;" target="_blank" title="Click to know more about ONE">ONE</a> more unit of good 1.</body></html> | |
| 4405. |
When MPP is falling and is positive, at what rate TPP is changing ? |
| 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/tpp-661681" style="font-weight:bold;" target="_blank" title="Click to know more about TPP">TPP</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> at a <a href="https://interviewquestions.tuteehub.com/tag/diminishing-2044202" style="font-weight:bold;" target="_blank" title="Click to know more about DIMINISHING">DIMINISHING</a> <a href="https://interviewquestions.tuteehub.com/tag/rate-1177476" style="font-weight:bold;" target="_blank" title="Click to know more about RATE">RATE</a></body></html> | |
| 4406. |
Give an example of indirect inervention by government in market mechanism. |
| Answer» <html><body><p><br/></p>Solution :Under indirect <a href="https://interviewquestions.tuteehub.com/tag/intervention-1049983" style="font-weight:bold;" target="_blank" title="Click to know more about INTERVENTION">INTERVENTION</a>, market price is changed indirectly via shifting the demand and supply curves through taxes and subsidies. Sales <a href="https://interviewquestions.tuteehub.com/tag/tax-1239527" style="font-weight:bold;" target="_blank" title="Click to know more about TAX">TAX</a>, <a href="https://interviewquestions.tuteehub.com/tag/subsidy-654596" style="font-weight:bold;" target="_blank" title="Click to know more about SUBSIDY">SUBSIDY</a> on essential goods and <a href="https://interviewquestions.tuteehub.com/tag/excise-978933" style="font-weight:bold;" target="_blank" title="Click to know more about EXCISE">EXCISE</a> duty are the examples of indirect intervention.</body></html> | |
| 4407. |
Coefficient of standard deviation is: |
| Answer» <html><body><p>`(MD_(<a href="https://interviewquestions.tuteehub.com/tag/barx-2461082" style="font-weight:bold;" target="_blank" title="Click to know more about BARX">BARX</a>))/(barX)`<br/>`(MD_(m))/(M)`<br/>`(MD_(<a href="https://interviewquestions.tuteehub.com/tag/z-750254" style="font-weight:bold;" target="_blank" title="Click to know more about Z">Z</a>))/(Z)`<br/>all of these </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</body></html> | |
| 4408. |
Unemployment is reduced due to the measures taken by the government. State its economic value in the context of production possibilities frontier. |
| Answer» <html><body><p></p>Solution :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> value of reduction in unemployment is that it will help the <a href="https://interviewquestions.tuteehub.com/tag/economy-21801" style="font-weight:bold;" target="_blank" title="Click to know more about ECONOMY">ECONOMY</a> in realizing its <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/potential-1161228" style="font-weight:bold;" target="_blank" title="Click to know more about POTENTIAL">POTENTIAL</a>.</body></html> | |
| 4409. |
What is meant by the puchasing power of money ? |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/purchasing-1172776" style="font-weight:bold;" target="_blank" title="Click to know more about PURCHASING">PURCHASING</a> power of money <a href="https://interviewquestions.tuteehub.com/tag/means-1091780" style="font-weight:bold;" target="_blank" title="Click to know more about MEANS">MEANS</a> the power of money to <a href="https://interviewquestions.tuteehub.com/tag/command-11508" style="font-weight:bold;" target="_blank" title="Click to know more about COMMAND">COMMAND</a> other commodities in its <a href="https://interviewquestions.tuteehub.com/tag/exchange-454713" style="font-weight:bold;" target="_blank" title="Click to know more about EXCHANGE">EXCHANGE</a>.</body></html> | |
| 4410. |
Both equilibrium price and quantity rise when : |
| Answer» <html><body><p>Increase in demand `<a href="https://interviewquestions.tuteehub.com/tag/gt-1013864" style="font-weight:bold;" target="_blank" title="Click to know more about GT">GT</a>` Increase in <a href="https://interviewquestions.tuteehub.com/tag/supply-1235254" style="font-weight:bold;" target="_blank" title="Click to know more about SUPPLY">SUPPLY</a><br/>Decrease in supply when the demand is prefectly <a href="https://interviewquestions.tuteehub.com/tag/inelastic-7382420" style="font-weight:bold;" target="_blank" title="Click to know more about INELASTIC">INELASTIC</a> <br/>Increase in supply when the demand is <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<br/>Decrease in demand `<a href="https://interviewquestions.tuteehub.com/tag/lt-537906" style="font-weight:bold;" target="_blank" title="Click to know more about LT">LT</a>` Increase in supply</p>Answer :(a)</body></html> | |
| 4411. |
When TP increases at increasing rate, MP |
| Answer» <html><body><p>falls<br/>rises<br/>remains constant<br/>all of these</p>Answer :<a href="https://interviewquestions.tuteehub.com/tag/b-387190" style="font-weight:bold;" target="_blank" title="Click to know more about B">B</a></body></html> | |
| 4412. |
Which cure is not affected by fixed cost ? |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/mc-1091384" style="font-weight:bold;" target="_blank" title="Click to know more about MC">MC</a> Curve<br/>TC Curve<br/>AC Curve<br/>AFC Curve</p>Solution :N//A</body></html> | |
| 4413. |
What will happen if the price prevailing in the market is (i) Above the equilibrium price ? (ii) Below the equilibrium price ? |
| Answer» <html><body><p></p>Solution :(i) When the market <a href="https://interviewquestions.tuteehub.com/tag/price-1165141" style="font-weight:bold;" target="_blank" title="Click to know more about PRICE">PRICE</a> is above the equilibrium price there will be excess <a href="https://interviewquestions.tuteehub.com/tag/supply-1235254" style="font-weight:bold;" target="_blank" title="Click to know more about SUPPLY">SUPPLY</a> i.e., 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> <a href="https://interviewquestions.tuteehub.com/tag/demanded-7675308" style="font-weight:bold;" target="_blank" title="Click to know more about DEMANDED">DEMANDED</a> 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 quantity supplied. <br/> (ii) When the market price is lower than the equilibrium price there will be excess demand i.e., the quantity demanded is more than the quantity supplied.</body></html> | |
| 4414. |
Demand is more elastic in the long period than in the short period. |
| Answer» <html><body><p></p>Solution :Because consumers find it difficult to change their 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> <a href="https://interviewquestions.tuteehub.com/tag/period-1151023" style="font-weight:bold;" target="_blank" title="Click to know more about PERIOD">PERIOD</a>, wherse, in the long period, it is <a href="https://interviewquestions.tuteehub.com/tag/easy-444822" style="font-weight:bold;" target="_blank" title="Click to know more about EASY">EASY</a> to shift to other subsitiutes in case <a href="https://interviewquestions.tuteehub.com/tag/price-1165141" style="font-weight:bold;" target="_blank" title="Click to know more about PRICE">PRICE</a> of the given commodity rises.</body></html> | |
| 4415. |
Both average product and marginal product can be zero. |
| 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/marginal-555038" style="font-weight:bold;" target="_blank" title="Click to know more about MARGINAL">MARGINAL</a> product can be zero when <a href="https://interviewquestions.tuteehub.com/tag/total-711110" style="font-weight:bold;" target="_blank" title="Click to know more about TOTAL">TOTAL</a> product remains same with increase in variable <a href="https://interviewquestions.tuteehub.com/tag/input-11237" style="font-weight:bold;" target="_blank" title="Click to know more about INPUT">INPUT</a>. Average product can also be zero when total product is zero.</body></html> | |
| 4416. |
What will be the impact of recently launched 'Clean India Mission' (Swachh Bharat Mission) on the Production Possibilities curve of the economy and why? |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/cleanliness-918613" style="font-weight:bold;" target="_blank" title="Click to know more about CLEANLINESS">CLEANLINESS</a> reduces chances of <a href="https://interviewquestions.tuteehub.com/tag/people-1150079" style="font-weight:bold;" target="_blank" title="Click to know more about PEOPLE">PEOPLE</a> <a href="https://interviewquestions.tuteehub.com/tag/falling-983241" style="font-weight:bold;" target="_blank" title="Click to know more about FALLING">FALLING</a> ill and, thus can ensure bwtter health. This in turn will reduce forced absenteeism form work, raise efficiency level and thus raise country's <a href="https://interviewquestions.tuteehub.com/tag/production-14556" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCTION">PRODUCTION</a> potential. Rise in this potential shifts PP <a href="https://interviewquestions.tuteehub.com/tag/curve-941741" style="font-weight:bold;" target="_blank" title="Click to know more about CURVE">CURVE</a> to the right.</body></html> | |
| 4417. |
Explain the effects of a 'Price Ceiling'. |
| Answer» <html><body><p></p>Solution :Price ceiling <a href="https://interviewquestions.tuteehub.com/tag/refers-1181652" style="font-weight:bold;" target="_blank" title="Click to know more about REFERS">REFERS</a> to fixing the <a href="https://interviewquestions.tuteehub.com/tag/maximum-556915" style="font-weight:bold;" target="_blank" title="Click to know more about MAXIMUM">MAXIMUM</a> price of a commodity that is lower than the equilibrium price.<br/>As a result of price ceiling, 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> price falls below the equilibrium price <a href="https://interviewquestions.tuteehub.com/tag/leading-1070220" style="font-weight:bold;" target="_blank" title="Click to know more about LEADING">LEADING</a> to excess <a href="https://interviewquestions.tuteehub.com/tag/demand-436956" style="font-weight:bold;" target="_blank" title="Click to know more about DEMAND">DEMAND</a>. This creates a shortage of the commodity leading to "black marketing".</body></html> | |
| 4418. |
Define variable cost. |
| Answer» <html><body><p></p>Solution :It <a href="https://interviewquestions.tuteehub.com/tag/refers-1181652" style="font-weight:bold;" target="_blank" title="Click to know more about REFERS">REFERS</a> to those <a href="https://interviewquestions.tuteehub.com/tag/costs-25578" style="font-weight:bold;" target="_blank" title="Click to know more about COSTS">COSTS</a> which <a href="https://interviewquestions.tuteehub.com/tag/vary-1443941" style="font-weight:bold;" target="_blank" title="Click to know more about VARY">VARY</a> <a href="https://interviewquestions.tuteehub.com/tag/directly-955045" style="font-weight:bold;" target="_blank" title="Click to know more about DIRECTLY">DIRECTLY</a> with the level of output.</body></html> | |
| 4419. |
What is the impact of diminishing marginal rate of substitution on the slope of indifference curve ? |
| Answer» <html><body><p></p>Solution :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> <a href="https://interviewquestions.tuteehub.com/tag/become-389953" style="font-weight:bold;" target="_blank" title="Click to know more about BECOME">BECOME</a> <a href="https://interviewquestions.tuteehub.com/tag/convex-933348" style="font-weight:bold;" target="_blank" title="Click to know more about CONVEX">CONVEX</a> towards the <a href="https://interviewquestions.tuteehub.com/tag/origin-1139399" style="font-weight:bold;" target="_blank" title="Click to know more about ORIGIN">ORIGIN</a>.</body></html> | |
| 4420. |
Producer's equilibrium is determined where difference between TR and TC is |
| Answer» <html><body><p>constant<br/>minimum<br/>maximum<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> | |
| 4421. |
What is the shape of perfecitly elastic demand 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> :A perfectly elastic <a href="https://interviewquestions.tuteehub.com/tag/demand-436956" style="font-weight:bold;" target="_blank" title="Click to know more about DEMAND">DEMAND</a> <a href="https://interviewquestions.tuteehub.com/tag/curve-941741" style="font-weight:bold;" target="_blank" title="Click to know more about CURVE">CURVE</a> is horizontal or it is <a href="https://interviewquestions.tuteehub.com/tag/parallel-1146369" style="font-weight:bold;" target="_blank" title="Click to know more about PARALLEL">PARALLEL</a> to the X-axis.</body></html> | |
| 4422. |
Which of the following measures of price elasticity shows elastic supply? (Choose the correct alternative) |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/0-251616" style="font-weight:bold;" target="_blank" title="Click to know more about 0">0</a><br/>`0.5` <br/>`1.0` <br/>`1.5`</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> :1.5</body></html> | |
| 4423. |
What will be the effect on equilibrium price and equilibrium quantitywhen income increases in case of normal goods ? |
| Answer» <html><body><p>Both equilibrium price and quantity <a href="https://interviewquestions.tuteehub.com/tag/falls-983294" style="font-weight:bold;" target="_blank" title="Click to know more about FALLS">FALLS</a><br/>Both equilibrium price and quantity <a href="https://interviewquestions.tuteehub.com/tag/rises-1189694" style="font-weight:bold;" target="_blank" title="Click to know more about RISES">RISES</a><br/>Equilibrium price rises and equilibrium quantity falls<br/>Equilibrium price falls and equilibrium quantity rises</p>Answer :(<a href="https://interviewquestions.tuteehub.com/tag/b-387190" style="font-weight:bold;" target="_blank" title="Click to know more about B">B</a>)</body></html> | |
| 4424. |
When Economists speak of the utility of a certain product, they are referring to: |
| Answer» <html><body><p>Demands for the product<br/>Usefulness of the product in consumption<br/>Satisfaction <a href="https://interviewquestions.tuteehub.com/tag/gained-2665852" style="font-weight:bold;" target="_blank" title="Click to know more about GAINED">GAINED</a> from consuming such product<br/>Rate at which consumers are willing to <a href="https://interviewquestions.tuteehub.com/tag/exchange-454713" style="font-weight:bold;" target="_blank" title="Click to know more about EXCHANGE">EXCHANGE</a> <a href="https://interviewquestions.tuteehub.com/tag/one-585732" style="font-weight:bold;" target="_blank" title="Click to know more about ONE">ONE</a> <a href="https://interviewquestions.tuteehub.com/tag/good-1009017" style="font-weight:bold;" target="_blank" title="Click to know more about GOOD">GOOD</a> for another</p>Answer :C</body></html> | |
| 4425. |
If the percentage increase in the quantity demanded of a commodity is less than the percentage fall in its price, then elasticity of demand is: |
| Answer» <html><body><p>`<a href="https://interviewquestions.tuteehub.com/tag/gt1-2686122" style="font-weight:bold;" target="_blank" title="Click to know more about GT1">GT1</a>`<br/>`=<a href="https://interviewquestions.tuteehub.com/tag/1-256655" style="font-weight:bold;" target="_blank" title="Click to know more about 1">1</a>`<br/>`<a href="https://interviewquestions.tuteehub.com/tag/lt1-2804386" style="font-weight:bold;" target="_blank" title="Click to know more about LT1">LT1</a>`<br/>`=<a href="https://interviewquestions.tuteehub.com/tag/0-251616" style="font-weight:bold;" target="_blank" title="Click to know more about 0">0</a>`</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> :N/a</body></html> | |
| 4426. |
In case of single commodity, consumer's equilibrium is achieved when: |
| Answer» <html><body><p><<a href="https://interviewquestions.tuteehub.com/tag/p-588962" style="font-weight:bold;" target="_blank" title="Click to know more about P">P</a>>`MU_(<a href="https://interviewquestions.tuteehub.com/tag/x-746616" style="font-weight:bold;" target="_blank" title="Click to know more about X">X</a>) gt P_(X)`<br/>`MU_(X) <a href="https://interviewquestions.tuteehub.com/tag/lt-537906" style="font-weight:bold;" target="_blank" title="Click to know more about LT">LT</a> P_(X)`<br/>`MU_(X) != P_(X)`<br/>`MU_(X) = P_(X)`</p>Answer :D</body></html> | |
| 4427. |
When edmand curve is parallel to Y axis, whatwill be its price elasticity. |
| Answer» <html><body><p></p>Solution :When demand curve is parallel to Y <a href="https://interviewquestions.tuteehub.com/tag/axis-889931" style="font-weight:bold;" target="_blank" title="Click to know more about AXIS">AXIS</a>, the price <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 demand will be zero <a href="https://interviewquestions.tuteehub.com/tag/implying-7690042" style="font-weight:bold;" target="_blank" title="Click to know more about IMPLYING">IMPLYING</a> that demand of the commodity is unaffected by any <a href="https://interviewquestions.tuteehub.com/tag/changes-913881" style="font-weight:bold;" target="_blank" title="Click to know more about CHANGES">CHANGES</a> in the price <a href="https://interviewquestions.tuteehub.com/tag/level-1072714" style="font-weight:bold;" target="_blank" title="Click to know more about LEVEL">LEVEL</a> of the good.</body></html> | |
| 4428. |
What does sub-divided bar diagram show ? |
| 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> :Sub-divided <a href="https://interviewquestions.tuteehub.com/tag/bar-892478" style="font-weight:bold;" target="_blank" title="Click to know more about BAR">BAR</a> diagrams which simultaneously <a href="https://interviewquestions.tuteehub.com/tag/preset-592842" style="font-weight:bold;" target="_blank" title="Click to know more about PRESET">PRESET</a>, <a href="https://interviewquestions.tuteehub.com/tag/total-711110" style="font-weight:bold;" target="_blank" title="Click to know more about TOTAL">TOTAL</a> values as well as part values of a set of data.</body></html> | |
| 4429. |
Economising of resources refer to saving resources of future use. |
| Answer» <html><body><p></p>Solution :It <a href="https://interviewquestions.tuteehub.com/tag/refers-1181652" style="font-weight:bold;" target="_blank" title="Click to know more about REFERS">REFERS</a> to making optimum of <a href="https://interviewquestions.tuteehub.com/tag/best-390038" style="font-weight:bold;" target="_blank" title="Click to know more about BEST">BEST</a> possible <a href="https://interviewquestions.tuteehub.com/tag/use-1441041" style="font-weight:bold;" target="_blank" title="Click to know more about USE">USE</a> of available <a href="https://interviewquestions.tuteehub.com/tag/resources-11387" style="font-weight:bold;" target="_blank" title="Click to know more about RESOURCES">RESOURCES</a>.</body></html> | |
| 4430. |
AR and price are always equal under : |
| 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> competion only <br/>monopolistic competion only<br/>monopoly only <br/>all <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/forms-11384" style="font-weight:bold;" target="_blank" title="Click to know more about FORMS">FORMS</a> </p>Answer :D</body></html> | |
| 4431. |
When price ofa good rises ny 10%, the supply remains the same. What is Es ? |
| 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/zero-751093" style="font-weight:bold;" target="_blank" title="Click to know more about ZERO">ZERO</a></body></html> | |
| 4432. |
How does an increase in the price of an input affect the supply curve of a firm ? |
| Answer» <html><body><p></p>Solution :It will increase MC. Thus supply of the commodity will <a href="https://interviewquestions.tuteehub.com/tag/decrease-946104" style="font-weight:bold;" target="_blank" title="Click to know more about DECREASE">DECREASE</a> and the supply curve will <a href="https://interviewquestions.tuteehub.com/tag/shift-1205367" style="font-weight:bold;" target="_blank" title="Click to know more about SHIFT">SHIFT</a> <a href="https://interviewquestions.tuteehub.com/tag/leftwards-1071055" style="font-weight:bold;" target="_blank" title="Click to know more about LEFTWARDS">LEFTWARDS</a>.</body></html> | |
| 4433. |
What is scarcity? |
| 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> :Scarcity means that resources are <a href="https://interviewquestions.tuteehub.com/tag/limited-1074043" style="font-weight:bold;" target="_blank" title="Click to know more about LIMITED">LIMITED</a> in <a href="https://interviewquestions.tuteehub.com/tag/relations-15885" style="font-weight:bold;" target="_blank" title="Click to know more about RELATIONS">RELATIONS</a> to demand for them. <a href="https://interviewquestions.tuteehub.com/tag/demandis-2570787" style="font-weight:bold;" target="_blank" title="Click to know more about DEMANDIS">DEMANDIS</a> greater than Supply.</body></html> | |
| 4434. |
Due to 'Make in India', there has been large inflow of foreign capital. It will lead to the folowing change in PPC: |
| Answer» <html><body><p><img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/SG_MIC_ECO_C01_S01_151_O01.png" width="30%"/><br/><img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/SG_MIC_ECO_C01_S01_151_O02.png" width="30%"/><br/><img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/SG_MIC_ECO_C01_S01_151_O03.png" width="30%"/><br/><img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/SG_MIC_ECO_C01_S01_151_O04.png" width="30%"/></p>Solution :B. The <a href="https://interviewquestions.tuteehub.com/tag/ppc-25541" style="font-weight:bold;" target="_blank" title="Click to know more about PPC">PPC</a> of an economy shifts outward if: Resources used in <a href="https://interviewquestions.tuteehub.com/tag/production-14556" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCTION">PRODUCTION</a> such as coal, oil, and population in the economy <a href="https://interviewquestions.tuteehub.com/tag/increase-1040383" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASE">INCREASE</a>. The economy sees improvements in technology which make production more efficient; more goods can be produced with the same resources.</body></html> | |
| 4435. |
When total revenue is constant, what will be the effect on average revenue ? |
| Answer» <html><body><p>AR 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> <br/>AR will <a href="https://interviewquestions.tuteehub.com/tag/increase-1040383" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASE">INCREASE</a> <br/>AR will also be <a href="https://interviewquestions.tuteehub.com/tag/constant-930172" style="font-weight:bold;" target="_blank" title="Click to know more about CONSTANT">CONSTANT</a> <br/>No <a href="https://interviewquestions.tuteehub.com/tag/effect-966056" style="font-weight:bold;" target="_blank" title="Click to know more about EFFECT">EFFECT</a> on AR </p>Solution :N/A</body></html> | |
| 4436. |
How does technological progress affect the supply curve of a firm? |
| Answer» <html><body><p></p>Solution :It <a href="https://interviewquestions.tuteehub.com/tag/reduces-621012" style="font-weight:bold;" target="_blank" title="Click to know more about REDUCES">REDUCES</a> MC (marginal cost). Thus <a href="https://interviewquestions.tuteehub.com/tag/supply-1235254" style="font-weight:bold;" target="_blank" title="Click to know more about SUPPLY">SUPPLY</a> <a href="https://interviewquestions.tuteehub.com/tag/increases-1040626" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASES">INCREASES</a> and the supply <a href="https://interviewquestions.tuteehub.com/tag/curve-941741" style="font-weight:bold;" target="_blank" title="Click to know more about CURVE">CURVE</a> shifts to right.</body></html> | |
| 4437. |
When two or more goods are demanded simultaneously, it is known as : |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/joint-1061928" style="font-weight:bold;" target="_blank" title="Click to know more about JOINT">JOINT</a> Demand<br/>Alternate Demand<br/>Direct Demand<br/>Composite Demand</p>Answer :A</body></html> | |
| 4438. |
Disucuss the percentagemethod to measure price elasticity of demand. |
| Answer» | |
| 4439. |
There is a sudden change in climatic conditions resulting in hot weather. Assuming no change in the price of the cold drinks, it will lead to : |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/upward-721781" style="font-weight:bold;" target="_blank" title="Click to know more about UPWARD">UPWARD</a> movement along the same market <a href="https://interviewquestions.tuteehub.com/tag/demand-436956" style="font-weight:bold;" target="_blank" title="Click to know more about DEMAND">DEMAND</a> curve<br/>Downward movement along the same market demand curve<br/>Rightward <a href="https://interviewquestions.tuteehub.com/tag/shift-1205367" style="font-weight:bold;" target="_blank" title="Click to know more about SHIFT">SHIFT</a> in the market demand curve<br/>Leftward shift in the market demand</p>Answer :C</body></html> | |
| 4440. |
How does change in price of a substitute/complementary good affect the demand of the given good ? Explain with the help of an example. |
| Answer» <html><body><p></p>Solution :There are two types of related <a href="https://interviewquestions.tuteehub.com/tag/goods-1009877" style="font-weight:bold;" target="_blank" title="Click to know more about GOODS">GOODS</a> :- (i) Substitute goods, (ii) <a href="https://interviewquestions.tuteehub.com/tag/complementary-2532127" style="font-weight:bold;" target="_blank" title="Click to know more about COMPLEMENTARY">COMPLEMENTARY</a> goods. <br/>In case of substitute goods there is a positive relationship between price of one good and the <a href="https://interviewquestions.tuteehub.com/tag/demand-436956" style="font-weight:bold;" target="_blank" title="Click to know more about DEMAND">DEMAND</a> for another i.e as price of one good rises the demand for its substitute rises.<br/>On the other hand, in case of complementary goods there is a negative relationship between price of one good and the demand for its <a href="https://interviewquestions.tuteehub.com/tag/complement-925776" style="font-weight:bold;" target="_blank" title="Click to know more about COMPLEMENT">COMPLEMENT</a> i.e as price of one good rises the demand for its complement falls.</body></html> | |
| 4441. |
Describe the four genreal guidelines for the construction of a table. |
| 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> :N/a</body></html> | |
| 4442. |
Give two examples of underutilisation of resources. |
| Answer» <html><body><p></p>Solution :(i) Underutilised labour <a href="https://interviewquestions.tuteehub.com/tag/leading-1070220" style="font-weight:bold;" target="_blank" title="Click to know more about LEADING">LEADING</a> to mass unemployment. <br/> (ii) <a href="https://interviewquestions.tuteehub.com/tag/lower-1080637" style="font-weight:bold;" target="_blank" title="Click to know more about LOWER">LOWER</a> <a href="https://interviewquestions.tuteehub.com/tag/production-14556" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCTION">PRODUCTION</a> during <a href="https://interviewquestions.tuteehub.com/tag/depression-948762" style="font-weight:bold;" target="_blank" title="Click to know more about DEPRESSION">DEPRESSION</a>.</body></html> | |
| 4443. |
When price falls with rise in output, then as quantity sold increases : |
| Answer» <html><body><p>MR falls quicklythan AR <br/>MR falls <a href="https://interviewquestions.tuteehub.com/tag/slowly-2273700" style="font-weight:bold;" target="_blank" title="Click to know more about SLOWLY">SLOWLY</a> than AR <br/>Both MR and AR fall at the same rate <br/>MR and AR do not <a href="https://interviewquestions.tuteehub.com/tag/change-913808" style="font-weight:bold;" target="_blank" title="Click to know more about CHANGE">CHANGE</a> </p>Solution :N/A</body></html> | |
| 4444. |
Marginal revenue of (n-1) units is : |
| Answer» <html><body><p>`TR_n-TR_(n-1)` <br/>`TR_(n-1)-TR_n` <br/>`TR_(n-1)-TR_(n-2)` <br/>`TR_(n-2)- TR_(n-1)` </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/c-7168" style="font-weight:bold;" target="_blank" title="Click to know more about C">C</a></body></html> | |
| 4445. |
"_____" cost refers to actual payment made by the entreneurto the providers of factor services. |
| Answer» <html><body><p>Explicit<br/>Implicit<br/>Variable<br/>Fixed</p>Solution :N//A</body></html> | |
| 4446. |
A consumer consumes only two goods X and Ywhose prices are Rs. 4 and Rs. 5 per unit respectiveely. Ifthe consumer chooses a combination of the two goods with marginal utility of X equal to 5 and that of Y equal to 4 , isthe consumer in equilibrium ? Given reasons . What will a rational consumer do in this situation ? Use utility 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> :<a href="https://interviewquestions.tuteehub.com/tag/given-473447" style="font-weight:bold;" target="_blank" title="Click to know more about GIVEN">GIVEN</a> `P_(x)=4,P_(y)=5and MU_(x)=5,MU_(y)=4` , a consumer will be in equilibrium when :<br/>`(MU_(x))/(P_(x))=(MU_(y))/(P_(y))`<br/>Substituting values , we find that<br/>`(5)/(4)gt(4)/(5)" Or " (MU_(x))/(P_(x))gt(MU_(y))/(P_(y))`<br/>Since <a href="https://interviewquestions.tuteehub.com/tag/per-590802" style="font-weight:bold;" target="_blank" title="Click to know more about PER">PER</a> <a href="https://interviewquestions.tuteehub.com/tag/rupess-3000947" style="font-weight:bold;" target="_blank" title="Click to know more about RUPESS">RUPESS</a> `MU_(x)`is higher than per rupee `MU_(y)` , consumer is not in equilibrium.Theconsumer will continue till`(MU_(x))/(P_(x))and(MU_(y))/(P_(y))`<a href="https://interviewquestions.tuteehub.com/tag/areequal-1963396" style="font-weight:bold;" target="_blank" title="Click to know more about AREEQUAL">AREEQUAL</a> and consumer is in equilibrium.</body></html> | |
| 4447. |
When total revenue is constant, average revenue 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> :True : AR = `(<a href="https://interviewquestions.tuteehub.com/tag/tr-661737" style="font-weight:bold;" target="_blank" title="Click to know more about TR">TR</a>)/("Output")`. When TR is <a href="https://interviewquestions.tuteehub.com/tag/constant-930172" style="font-weight:bold;" target="_blank" title="Click to know more about CONSTANT">CONSTANT</a>, AR falls with <a href="https://interviewquestions.tuteehub.com/tag/rise-1189674" style="font-weight:bold;" target="_blank" title="Click to know more about RISE">RISE</a> in output.</body></html> | |
| 4448. |
Marginal revenue is always the price at which last unit of a commodity is sold. |
| 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> : It is possible only when price is <a href="https://interviewquestions.tuteehub.com/tag/constant-930172" style="font-weight:bold;" target="_blank" title="Click to know more about CONSTANT">CONSTANT</a> at all levels of output. If price falls with <a href="https://interviewquestions.tuteehub.com/tag/rise-1189674" style="font-weight:bold;" target="_blank" title="Click to know more about RISE">RISE</a> in output, then <a href="https://interviewquestions.tuteehub.com/tag/marginal-555038" style="font-weight:bold;" target="_blank" title="Click to know more about MARGINAL">MARGINAL</a> revenue is less than the price (or average revenue).</body></html> | |
| 4449. |
Explain the relationship between : (i) Prices of other goods and demand for the given good , (ii) Income of the buyers and demand for a good. |
| 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> :(i) If the 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> are substitues, then 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> in price of one good leads to fall in <a href="https://interviewquestions.tuteehub.com/tag/demand-436956" style="font-weight:bold;" target="_blank" title="Click to know more about DEMAND">DEMAND</a> of the other good and vice-versa. On the other hand, if the two goods are complementary goods, a fall in price of one good leads to an increase in demand of the other good and vice-versa<br/>(ii)In case the good is a normal good, a rise in income of the consumer leads to an increase in demand for the good and vice-versa. <br/>If the good is an inferior good, a rise in income of the consumer leads to a decrease in demand of the commodity and vice-versa.</body></html> | |
| 4450. |
How are equilibrium price and quantity affected when income of the consumers: (a) Increase, (b) Decrease |
| Answer» <html><body><p></p>Solution :(a) An increase in income of buyers will increase the demand (assuming <a href="https://interviewquestions.tuteehub.com/tag/normal-1123860" style="font-weight:bold;" target="_blank" title="Click to know more about NORMAL">NORMAL</a> goods) at the given price. It will lead to excess demand. This leads to competition among buyers, which raises the price. Increase in price leads to <a href="https://interviewquestions.tuteehub.com/tag/rise-1189674" style="font-weight:bold;" target="_blank" title="Click to know more about RISE">RISE</a> in supply and fall in demand. These <a href="https://interviewquestions.tuteehub.com/tag/changes-913881" style="font-weight:bold;" target="_blank" title="Click to know more about CHANGES">CHANGES</a> continue till supply and demand become <a href="https://interviewquestions.tuteehub.com/tag/equal-446400" style="font-weight:bold;" target="_blank" title="Click to know more about EQUAL">EQUAL</a> at a new equilibrium price. As there is an increase in demand only, equilibrium price rises. <br/> (b) A <a href="https://interviewquestions.tuteehub.com/tag/decrease-946104" style="font-weight:bold;" target="_blank" title="Click to know more about DECREASE">DECREASE</a> in income will decrease the demand (assuming normal goods) at the given price. It will lead to excess supply. This leads to competition among sellers, which reduces the price. Fall in price leads to decrease in supply and rise in demand. These changes continue till supply and demand become equal at a new equilibrium price. As there is a decrease in demand only, both equilibrium price and equilibrium quantity will fall.</body></html> | |