7498 + Interview Questions in Economics in Class 11 Page 92 InterviewSolution

4551.	What will be the effect of a rightward shift ofthe supply curve on the equilibrium price and quantity transacted?
Answer» SOLUTION :Equilibrium PRICE will fall and equilibrium quantity will RISE.

Discussion

4552.	Explain the main features of monopolistic competition.
Answer»

Discussion

4553.	What is meant by tabulation?
Answer» SOLUTION :TABULATION refers to the METHOD or process of presenting data in the FORM of a table.

Discussion

4554.	Under monopolistic competition, a firm faces a perfectly elastic demand curve.
Answer» SOLUTION :A firm under monopolistic competition FACES a downward SLOPING DEMAND CURVE as it can sell more output only by lowering the price of the product.

Discussion

4555.	price Ealsticity of Demand is zero if with 20% increase in expenditure on the commodity, also rises by 20%.
Answer» SOLUTION :when 20% increase in PRICE to 20% increasein expenditure on the commodity it means that quantity DEMANDED remains CONSTANT. As a result, Elasticity of Demand `(E_(d))=0`

Discussion

4556.	If the prevailing market price is above the equilibrium price, explain its chain of affects.
Answer» Solution :The EQUILIBRIUM PRICE is where quantity demanded equals quantity supplied. When the market price is above the equilibrium price there is excess supply in the economy. Since there is excess supply, there is a competition among sellers, so each seller lowers his price as he wants to sell his existing stock. With a decrease in price, market demand will INCREASE and market supply will fall. This price will continue to fall until the whole of the excess supply is WIPED out and the quantity demanded equals quantity supplied.

Discussion

4557.	Define slope of indifference curve.
Answer» Solution :The slope of the indifference curve is called the marginal RATE of substitution , which declines as the quantity of X increases relative to the quantity of Y. Of course, the AMOUNTS of commodities X and Y that the INDIVIDUAL will be able to consume DEPENDS on the level of that person's income.

Discussion

4558.	Explain the relation between miroeconomics and macroeconomics.
Answer»

Discussion

4559.	The demand curve under monopolistic cormpetiticn is more elastic as ccmpared to demand curve under monopaly
Answer» Solution :It happens because there exists CLOSE SUBSTITUTES under monopolistic COMPETITION, whereas, there are no close substitutes in CASE of monopoly.

Discussion

4560.	Explain price elasticity of demand.
Answer» Solution :PRICE Elasticity of demand is a measure of degree of RESPONSIVENESS of demand as a RESULT of CHANGE in price of the commodity.

Discussion

4561.	What is the relationship between AP and MP ?
Answer» Answer :(i)When MP > AP, AP INCREASES. (ii) When MP=AP, AP is CONSTANT and at its maximum POINT. (iii) When MP < AP ,AP falls. (iv) `MP_n=TP_n-TP_(n-1) and AP=(TP)/Q`

Discussion

4562.	If there is no change in quantity demanded to any charge in price, then demand is ___________and demand curve is a _______.
Answer» perfectly ELASTIC, horizontal straight LINE perfectly elastic, VERTICAL straight line perfectly INELASTIC , horizontal straight line. perfectly inelastic , horizontal straight line Solution :N/a

Discussion

4563.	Give the meaning of Market Demand
Answer» SOLUTION :MARKET DEMAND is the SUMMATION of the demand by all the CONSUMERS in the market.

Discussion

4564.	What is the general shape of APP curve ?
Answer» ANSWER :The general SHAPE of APP CURVE is INVERSE 'U'

Discussion

4565.	economic problem, in the context of a country, is using resource.
Answer» (a) FULLY (b) Efficiently (C) Both fully and efficiently (d) None of the above Answer :C

Discussion

4566.	The central problem to called central because these are facedby:
Answer» (a) All the CONSUMERS (B) All the PRODUCERS (C) All the INVESTORS (d) All the countries Answer :D

Discussion

4567.	Give the formula which provides relationship between elasticity of demand and slope fo demand curve.
Answer» SOLUTION : Elasticity of DEMAND `(E_(d))= 1/("Slope of Demand curve ") XX P/Q`

Discussion

4568.	Demand for electricity has "increased". However supply cannot be increased due to lack of resources. Explain how, in any two ways, demand for electricity can be "decreased".
Answer» Solution :Consumer can: (i) Use ENERGY saving ELECTRICAL appliances. (II) Use alternate sources of energy like SOLAR energy, etc.

Discussion

4569.	In a village comprising 300 small and big famers, you are to select a sample of 10 % farming households. Theidea is to study cropping pattern in the village. How would you take your descision on selecting the sample ?
Answer» Solution :In order to study the cropping pattern in the village, STRATIFIED sampling method can be used. Under this method, the entire population WOULD be divided into two groups (strata), small farmers and BIG farmers. A SAMPLE would then be then drawn at random from each strata. Different samples drawn from the two stratas are then grouped TOGETHER to get the required sample for the population.

Discussion

4570.	Firm A decides to increase its production and produce the goods in the different plants. In the existing plant labour is in excess and its marginal production is negative. The firm decides to shift some labour from the existing plant tothe second plant. Should this transfer be facilitated ? What will be the outcome ?
Answer» Answer :Firm A Should transfer the LABOUR whose marginal product is negative. The cost of transferring this labour the other plant will be least as PRODUCTION in old plant will not suffer. Also they will be more productive in the second plant as lack of fixed FACTOR was the cause of their low marginal production in the first plant. It was that ideal factor ratio in the first plant was DISTURBED by EMPLOYING excess labour when excess labour is shifted to the second plant, (where they work in the ideal factor combination) they are productively employed.

Discussion

4571.	When equilibrium price of a good is less than its market price, there will be competition among the sellers.
Answer» Solution :When the PREVAILING market PRICE is higher than the equilibrium price, there will be excess supply and SINCE the sellers will not be ABLE to sell all they want to sell, there will be competition among sellers.

Discussion

4572.	When marginal product falls, average product will also falls.
Answer» Solution :FALSE. AP falls only when `MP lt AP`. If `MP` is more than AP, then AP will RISE even if MP falls.

Discussion

4573.	What is standard deviation? How does it differ from mean deviation? What are its advantages and disadvantages?
Answer» Solution :Standard deviation is the SQUARE ROOT of the arithmetic mean of the squares of all DEVIATIONS. Devations being measured from the arithmetic mean of the items. Merits :- 1. Based on all VALUES. 2. A certain measure. 3. Little effect of a change in sample. 4. Algebraic Treatment. Demerits :- 1. DIFFICULT to calculate. 2. Importance to extreme values.

Discussion

4574.	To what extent, can a firm influence the price under, (a) Perfect competition, (b) Monopolistic Competition, (c ) Monopoly, (d) Oligopoly.
Answer» SOLUTION :N/a

Discussion

4575.	At the Point of Satiety,
Answer» MU is Negative MU is zero MU is Rising None of these Answer :B

Discussion

4576.	Given below is the cost schedule of a product producedby a firm. The market price per unit of product at all levels fo output is Rs. 12. Using marginal cost and marginal revenue approach, find out the level of equilibrium output. Give reasons for your answer:
Answer» Solution : The producer is equilibrium at 5th UNIT of output. It is because this level of output satisfies both the conditions of producer's equilibrium : (i) MC is EQUAL to MR (RS. 12) (ii) MC becomes greater than MR (Rs.14 gt Rs.12) after this level of output (equilibrium) (The producer is not at equilibrium at 1st unit of output because MR gt MC after MR = MC at 1st unit. So second condition is not satisfied)

Discussion

4577.	If TR = Total Revenue and Q= Quantity sold, then TR div Q refers to :
Answer» ZERO REVENUE AVERAGE Revenue MARGINAL Revenue None of these SOLUTION :N/A

Discussion

4578.	The area under the given curve is
Answer» TC TVC AC AVC Answer :B

Discussion

4579.	A point outside the PPF indicates:
Answer» Fuller utilisation of resources UNUTILISATION of resources UNATTAINABLE COMBINATION None of these. Solution :C. If an economy is OPERATING at a POINT inside the production possibilities curve, its resources are not being used efficiently. A point outside the production possibilities curve represents a combination of goods that is: unattainable.

Discussion

4580.	In the calculation of standard deviation, deviations are taken only from the ………………… value of the series.
Answer» mean mode median quartile Solution :A

Discussion

4581.	What are the characteristics of a perfectly competitive market ?
Answer» SOLUTION :REFER to SECTION 10.3.

Discussion

4582.	Do rich countries also face central problems? Give resons for your answer.
Answer» Solution :YES, event in RICH countries, RESOURCES are scarce, having alternative uses and wants are unlimited.

Discussion

4583.	What is a variable? Distinguish between a discrete and a continuous variable.
Answer» Answer :A variable refers to that quantity which is subject to change and which can be measured by some unit. The principle difference between a DISCRETE and a continuous variable is that while discrete variable assumes values in complete numbers LIKE 2,4,6 and 8, continuous variable assumes values in FRACTIONS like 2-4, 4-6 and 6-8 or values in some RANGE like 2-4, 4-6, ETC.]

Discussion

4584.	'Law of diminishing marginal utility will operate even if consumption takes place in intervals''. Defend or refute.
Answer» Solution :The GIVEN statement is refuted. Law of diminishing marginal utility will operate only when CONSUMPTION is a continuous PROCESS. For example, if one burger is consumed in the morning and another in the AFTERNOON, then the second burger may provide EQUAL or higher satisfaction as compared to the first one.

Discussion

4585.	Ar curve coincides with MR curve in :
Answer» MONOPOLY OLIGOPOLY PERFECT COMPETITION all of these. Answer :C

Discussion

4586.	In caseof zeroelasticsupply,supplycurve is a horiozontalstriangleline.
Answer» SOLUTION :FALSE : INCASE ofzeroelasticityof SUPPLY ,SUPPLYCURVE is a verticalstraight lineparallelto theY-axis.

Discussion

4587.	Define explicit cost
Answer» Solution :It refers to the ACTUAL payment MADE to outsides for hiring or PURCHASING services of the FACTORS of production.

Discussion

4588.	When we consider costs in economics, we include explicit cost only.
Answer» Solution :False. Costsin economics INCLUDE both explicit and implicit costs.Implicit cost is the opportunity cost equal to what a firm MUST give up in ORDER to use a FACTOR of productionfor which it already owns and thus does not pay rent .It is the opposite of an explicit cost,Which is borne DIRECTLY.

Discussion

4589.	Price elasticity of demand for flowers and toys are respectively (-) 0.9 and (-) 0.5. Demand for which one is more elastic and why ?
Answer» SOLUTION :DEMAND for flowers is more elastic as with 1% fall in price of flowers. Its demand RISES by 0.9 %. However, in case of toys, 1% fall in price RAISES the demand by just 0.5%.

Discussion

4590.	A monopolist firm has full control over the price and demand for this product. Do you agree with the given statement?
Answer» Solution :No, I do not agree with the given statement. A monopolist firm has full CONTROL over the PRICE, but demand of the product is not in his control. The monopolist firm faces a downward sloping demand curve, which INDICATES that demand varies INVERSELY with price.

Discussion

4591.	Give the example of a series which has more than one mode. What is the name given to sucha series ?
Answer» ANSWER :2,3,3,3,4,5,5,5,6,7

Discussion

4592.	Consumer price index numbers are used by government to frame policies on __________. "" (prices/quantities)
Answer» ANSWER :PRICES

Discussion

4593.	When equilibrium price of a good is less than its market price, there will be competition among the sellers. Defend or refute.
Answer» Solution :The given statement is defended. It happens because when the prevailing market price is higher than the equilibrium price, there will be excess supply and since the sellers will not be ABLE to SELL all they WANT to sell, there will be competition AMONG sellers.

Discussion

4594.	Formula of Karl pearson's cofficient of colleration is :
Answer» `(Nsigma_(X)sigma_(y))/(N^(3)-N)` `(sumxy)/(Nsigma_(x)sigma_(y))` `(sigma_(x)sigma_(y))/(N^(3)-N)` `(sumxy)/(sigma_(x)sigma_(y))` SOLUTION :B

Discussion

4595.	An economiat claims that if cost is zero, production is also zero but if production is zero, the cost may not be zero. Defend or refute his claim.
Answer» Solution :I defend his claim as when COST of PRODUCTION is not incurred production cannot take place and on the other hand, when production is zero, some fixed costs MUST have been incurred by the producerr like rent of the BUILDING minimum electricity bill, minimum telephone bill etc. i.e., even if total variable cost is zero, fixed cost remain POSITIVE.

Discussion

4596.	Economic problem arises because of:
Answer» (a) Unlimited WANTS (B) Unlimited RESOURCES (c) Both a and b Neither a nor b Answer :A

Discussion

4597.	What is meant by classification?
Answer» SOLUTION :Classification is the GROUPING of related FACTS into different classes. In other words, the process by which DATA is divided into different classes on the BASIS of their similarity or diversity is called classification

Discussion

4598.	Due to fall in cost of making bicycles, its price has reduced. It will shift the demand curve of bicycles towards right.
Answer» Solution :Fall in PRICE of given COMMODITY (bicycles) will lead to downward movement along the same demand CURVE.

Discussion

4599.	If the lower limit of the class of the lowest value is zero , the value of coefficient of range is :
Answer» ZERO `0.50` `0.75` `1.00` SOLUTION :D

Discussion

4600.	How many classes a frequency distribution should have?
Answer» LARGE number Small number Neither very large nor very small number Not more than 10. Solution :C.There should be between 5 and 20 classes. The class width should be an ODD number. This will guarantee that the class MIDPOINTS are integers INSTEAD of decimals.

Discussion

Explore topic-wise InterviewSolutions in .

What will be the effect of a rightward shift ofthe supply curve on the equilibrium price and quantity transacted?

Explain the main features of monopolistic competition.

What is meant by tabulation?

Under monopolistic competition, a firm faces a perfectly elastic demand curve.

price Ealsticity of Demand is zero if with 20% increase in expenditure on the commodity, also rises by 20%.

If the prevailing market price is above the equilibrium price, explain its chain of affects.

Define slope of indifference curve.

Explain the relation between miroeconomics and macroeconomics.

The demand curve under monopolistic cormpetiticn is more elastic as ccmpared to demand curve under monopaly

Explain price elasticity of demand.

What is the relationship between AP and MP ?

If there is no change in quantity demanded to any charge in price, then demand is ___________and demand curve is a _______.

Give the meaning of Market Demand

What is the general shape of APP curve ?

economic problem, in the context of a country, is using resource.

The central problem to called central because these are facedby:

Give the formula which provides relationship between elasticity of demand and slope fo demand curve.

Demand for electricity has "increased". However supply cannot be increased due to lack of resources. Explain how, in any two ways, demand for electricity can be "decreased".

In a village comprising 300 small and big famers, you are to select a sample of 10 % farming households. Theidea is to study cropping pattern in the village. How would you take your descision on selecting the sample ?

When equilibrium price of a good is less than its market price, there will be competition among the sellers.

When marginal product falls, average product will also falls.

What is standard deviation? How does it differ from mean deviation? What are its advantages and disadvantages?

To what extent, can a firm influence the price under, (a) Perfect competition, (b) Monopolistic Competition, (c ) Monopoly, (d) Oligopoly.

At the Point of Satiety,

Given below is the cost schedule of a product producedby a firm. The market price per unit of product at all levels fo output is Rs. 12. Using marginal cost and marginal revenue approach, find out the level of equilibrium output. Give reasons for your answer:

If TR = Total Revenue and Q= Quantity sold, then TR div Q refers to :

The area under the given curve is

A point outside the PPF indicates:

In the calculation of standard deviation, deviations are taken only from the ………………… value of the series.

What are the characteristics of a perfectly competitive market ?

Do rich countries also face central problems? Give resons for your answer.

What is a variable? Distinguish between a discrete and a continuous variable.

'Law of diminishing marginal utility will operate even if consumption takes place in intervals''. Defend or refute.

Ar curve coincides with MR curve in :

In caseof zeroelasticsupply,supplycurve is a horiozontalstriangleline.

Define explicit cost

When we consider costs in economics, we include explicit cost only.

Price elasticity of demand for flowers and toys are respectively (-) 0.9 and (-) 0.5. Demand for which one is more elastic and why ?

A monopolist firm has full control over the price and demand for this product. Do you agree with the given statement?

Give the example of a series which has more than one mode. What is the name given to sucha series ?

Consumer price index numbers are used by government to frame policies on __________. "" (prices/quantities)

When equilibrium price of a good is less than its market price, there will be competition among the sellers. Defend or refute.

Formula of Karl pearson's cofficient of colleration is :

An economiat claims that if cost is zero, production is also zero but if production is zero, the cost may not be zero. Defend or refute his claim.

Economic problem arises because of:

What is meant by classification?

Due to fall in cost of making bicycles, its price has reduced. It will shift the demand curve of bicycles towards right.

If the lower limit of the class of the lowest value is zero , the value of coefficient of range is :

How many classes a frequency distribution should have?

If there is no change in quantity demanded to any charge in price, then demand is _____and demand curve is a _.