7498 + Interview Questions in Economics in Class 11 Page 94 InterviewSolution

4651.	If Marginal Cost is equal to Marginal Revenue at two output levels, then any one of the output level can be taken as state of producer's eqauilibrium. Defend or refute.
Answer» SOLUTION :The given STATEMENT is refuted. In such a situation, only that output level is the state of producer's equilibrium when marginal COST becomes GREATER than marginal revenue after the equilibrium.

Discussion

4652.	Price elasticity of demand (-3) means 3 percent fall in demand due to :
Answer» 3 per CENT fall in price 3 per CANT rise in price One per cent rise in price One per cent fall in price Answer :c

Discussion

4653.	The price determined by the intersection of demand curve and supply curve is
Answer» CONTROLLED price equilibrium price fixed price none of these Answer :B

Discussion

4654.	Marginal revenue of a firm is constant throughout under :
Answer» PERFECT COMPETITION MONOPOLISTIC competition Oligopoly All of these Answer :A

Discussion

4655.	When a producer charges different prices from different customers for the same produce
Answer» PRICE Competition Non-price Competition Price Discrimination None of these Solution :N/a

Discussion

4656.	Explain the method of calculating coefficient of mean deviation.
Answer»

Discussion

4657.	Explain the measure of 'Gini Coefficient .'
Answer» Solution :The GINI INDEX or Gini coefficient is a statistical measure of DISTRIBUTION which was developed by the Italian statistician Corrado Gini in 1912. It is used as a gauge of ECONOMIC inequality, measuring income distribution AMONG a population.

Discussion

4658.	Define stock.
Answer» SOLUTION :It refers to the total quantity of a particular commodity AVAILABLE with the firm at a particular point of TIME.

Discussion

4659.	A firm earns super normal (abnormal) profits when :
Answer» AR = AC AC GT AR AR gt AC none of these. Answer :C

Discussion

4660.	Describe the procedure of drawing a histogram, when class intervals are (i) equal, and (ii) unequal.
Answer»

Discussion

4661.	At what level of production is total cost equal to total fixed cost
Answer» SOLUTION :At ZERO LEVEL of OUTPUT

Discussion

4662.	Higher indifference curve represents higher level of satisfaction to the consumer. State the underlying assumption related to this property of indifference curve.
Answer» SOLUTION :The UNDERLYING ASSUMPTION is 'Non SATIETY'.

Discussion

4663.	What are the total fixed cost, total variable cost and total cost of a firm ? How are they related ?
Answer» Solution :Total fixed COST (TFC) refers to the cost which does not vary directly with the level of output. Total variable cost (TVC) refers to the cost which varies directly with the level of output. Total cost is the sum total of TFC and TVC at variouslevels of output. Relationship between TC,TFC and TVC are: 1. TFC CURVE is a horizontal straight line parallel to X-axis as it remains CONSTANT at all levels of output. 2.TC and TVC curves are inversely S-shaped because they rise initially at a decreasing rate, then at a constant rate and finally, at an increasing rate . The reason behind their SHAPE is the law of variable proportions. 3.At zero output,TC is equal to TFC because there is no variable cost at zero level of output. So,TC and TFC curves start from the same point,which is above origin. 4. The vertical distance betweenTFC curve and TC curve is equal to TVC. As TVC rises with increase in output, the distance between TFC and TC curves also goes on increasing. 5. TC and TVC curves are parallel to each other and the vertical distance between them remains the same at all levels of output because the gap between them represent TFC, which remains constant at all levels of output.

Discussion

4664.	An economy operate of PPF when there is :
Answer» Optimum utilisation of resources Inefficient use of resources Underemployment of resources None of these. Solution :A. In macroeconomics, the PPF represents the POINT at which a COUNTRY's economy is most efficiently PRODUCING its goods and services and, THEREFORE, allocating its resources in the best way possible.

Discussion

4665.	A seller cannot influence the market price under:
Answer» PERFECT COMPETITION monopoly monopolistic competition all of the above Answer :A

Discussion

4666.	Thus, for every change in variable (a) by 2 units there is a changein variable (b) by 5 units.
Answer» Solution : Here there is no SPECIFIC RELATIONSHIP between the two vaiables, though both tend to change in the same direction. That is, both are INCREASING, but not in any constant PROPORTION.

Discussion

4667.	As long as MR is positive TR
Answer» decreases increases remains constant none of these Answer :B

Discussion

4668.	Identify the good whose demand would not respond to rise in its price.
Answer» TEXTBOOKS salt life SAVING durgs all of these. Answer :D

Discussion

4669.	What is the implication of budget line in a real life situation ?
Answer» Solution :Budget line GUIDES us to DISTRIBUTE our expenditure on VARIOUS items rationally so that we are able to MEET our demands of GOODS and services within our income. However, if entire income is not spent on consumption, we operate inside the budget line implying savings. (Ideally saving is a virtue)

Discussion

4670.	What causes movement along demand curve?
Answer» <P> SOLUTION :CHANGES in the price of GOOD itself (`P_(x)`)

Discussion

4671.	In convenience Sampling, sampling is done by the _____________in such a manner that suit his convenience. (Investigator/enumerators)
Answer» SOLUTION :INVESTIGATOR

Discussion

4672.	Which of the following staements accurately describe the relationship between AP and MP ?
Answer» AP rises when MP is above it and falls when MP is below it. MP INTERSECTS AP at its minimum point. AP and MP are always parallel to each other. AP is always RISING when MP is falling and vice-versa. Solution :A. AP rises when MP is above it and falls when MP is below it.

Discussion

4673.	State one feature of oligopoly
Answer» SOLUTION :Few FIRMS

Discussion

4674.	Howdoesan icreasae in thepriceof aninputaffectthe marketsupplycurve ?
Answer» Solution :If the cost of resources used to produce the GOOD increases, sellers will be LESS inclined to SUPPLY the same quantity with the given price, and the market supply CURVE SHIFT to the left.

Discussion

4675.	Is consumer willing to move away from consumer's equilibrium point ?
Answer» Solution :No, since CONSUMER's equilibrium POINT give the MAXIMUM utility to the consumer.

Discussion

4676.	Aballoon seller has decided that we will sell all his balloons at a fixed price of₹10 each. In such a case, TR curve will be :
Answer» Horizontal straight LINE parallel to the X-axis VERTICAL straight line parallel to the Y-axis Positively SLOPED straight line passing from the otigin DOWNWARD SLOPING straight line Solution :N/A

Discussion

4677.	Give reason why an economic problem arises?
Answer» Solution :An economic problem is basically the problem of choice which arises because of SCARCITY of RESOURCES. Human wants are unlimited but means to satisfy them are limited. Therefore, all human wants cannot be satisfied with limited means. ... In such a background, EVERY CONSUMER tries to satisfy his maximum wants.

Discussion

4678.	The slope of price line (in case of commodites X and Y) is given by:
Answer» TASTE and PREFERENCES of consumer Prices of both the commodities Price of COMMODITY X alone Price of commodity Y alone Answer :B

Discussion

4679.	In the longperiod , the supplyfor a commodity is :
Answer» PerfectlyInelastic Less Elastic Highly Elastic Perfectly Elacstic Solution : In long run, SUPPLY of a GOOD is highly elastic as quantity supplied is more responsive to the change in price. So, correct OPTION is(C).

Discussion

4680.	A budget set is a collection of all bundles of goods that a consumer wants to buy
Answer» Solution :Budget SET is collection of such bundles of goods which cost LESS than or EQUAL to consumer's MONEY income at the given prices.

Discussion

4681.	With increase in income of a consumer, the demand of inferior good:
Answer» increses decreses does not change none of these Answer :B

Discussion

4682.	Bivariate refers to a series of statistical data with ______. (two/ more than two)
Answer» ANSWER :TWO

Discussion

4683.	What is consumer's equilibrium ? Explain consumer's equilibrium in case of a single commodity with the help of a utilityy schedule
Answer»

Discussion

4684.	The Law of ________ deals with input-output relationship, when the output is increased by variying the quantity of one input.
Answer» VARIABLE Proportions Supply Demand Equi-marginal utility Answer :A

Discussion

4685.	Why does an indifference curves always convex to the origin ?
Answer» Solution :Indifference curves are always CONVEX to the ORIGIN because of the diminishing MARGINAL RATE of substitution.

Discussion

4686.	What is imperfect oligopoly ?
Answer»

Discussion

4687.	State the relation between total cost and marginal cost.
Answer» Solution :Total cost is the total cost incurred for producing a commodity. Marginal cost refers to an ADDITIONAL cost incurred to produce an additional UNIT of a commodity. RELATION between Total cost and Marginal cost is: "On the BASIS of total cost only marginal cost is incurred by the firm.

Discussion

4688.	Whichis the following is a variable cost for a firm ?
Answer» INTERSECT on loan Monthly rent Insurancepremium Wages to employes Solution :N//A

Discussion

4689.	How are the total revenue of a firm, market price, and the quantitiy sold by the firm related ro each other ?
Answer» SOLUTION :TOTAL Revenue = Market Price `xx` Quantity SOLD.

Discussion

4690.	In which form of market is the demand of a firm perfectly elastic :
Answer» MONOPOLY PERFECT competion monopolistic COMPLETION oligopoly Answer :B

Discussion

4691.	Macroeconomics deals with:
Answer» (a) Pricing of a product (B) Pricing of a factor of production (C) General price level (d) None of the above Answer :c

Discussion

4692.	Categorise the following diagrams as expansion, contraction, increase or decrease in demand (assuming the given commodity is a normal good) :
Answer» SOLUTION :(a) EXPANSION in demand , (b) INCREASE in demand, (c) Decrease in demand(d) CONTRACTION in demand.

Discussion

4693.	Given below are marks (out of 100) of 10 students in an examination . Calculate first and third quartiles. 90,64,79,33,85,59,60,70,40,95
Answer» Solution :Arranged in assending order of MAGNITUDE , the ITEMS are `Q_(1)=(N+1)/(4)`th ITEM `=(10+1)/(4)` th item =`(11)/(4)` th item =2.75 th item Value of 2nd item=40 mValue of 3rd item=59 Difference =59-40=19 `Q_(1)=40+(0.75xx19)=40+14.25=54.25` marks `Q_(3)=(3(N+1))/(4)`th item=`(3(10+1))/(4)` th item `=(33)/(4)` th item=8.25 th item. Value of 8th item=85 Value of 9TH item=90 Difference =90-85=5 ` Q_(3)=85+(.25xx5)=85+1.25=86.25` marks

Discussion

4694.	Which is macroeconomic variable?
Answer» (a) Unemployment (B) INFLATION (C) Income INEQUALITIES (d) All the above Answer :d

Discussion

4695.	The demand of these goods varies directly with income
Answer» SUBSTITUTE GOODS INFERIOR goods normal goods giffen goods Answer :C

Discussion

4696.	Cigarette smoking is injurious to health. How can the government reduce its consumption but only through the normal market forces. Explain the chain of effects of government's action.
Answer» Solution :The government can increase the taxes on the cigarette industry. This leads to an increase in the cost of productionof cigarettes, HENCE leading to a DECREASE in supply as the PROFIT margin of the producers reduce, keeping other things constant. The decrease in supply is associated with a LEFTWARDS shift in the supply curve. As a result, the priceincreases SINCE there is less supply leading to a competition among buyers. As the price rises, the qunatity demanded falls but the quantity supplied increases. This effect will continue until the quantity demanded equals the quantity supplied. As a result of all this, the equilibrium quantity falls and the equilibrium price rises, which is what the government actually wanted.

Discussion

4697.	In â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦, the entire information is recorded by the informants themselves. (questionnaires/schedules)
Answer» SOLUTION :QUESTIONNAIRES

Discussion

4698.	When does a production function satisfy, IRS, CRS and DRS ? (Out of syallabus ) IRS. Increasing returns to scale CRS. Constant returns to scale DRS. Diminishing returns to scale
Answer»

Discussion

4699.	Pocket allowance of 10 students is Rs. 15,20,30,22,25,18,40,50,55 and 65. Find out the average pocket allowance.
Answer» Solution :`{:("Pocket Allowance(R.)"),(""(X)),(""15),(""20),(""30),(""22),(""25),(""18),(""40),(""50),(""55),(""65),(sum X=340):}` `barX=(SUMX)/N=(X_(1)+X_(2)+...+X_(10))/10=340/10=34` AVERAGE pocket allowance of the 10 students = Rs. 34.

Discussion

4700.	What do you mean by profit maximisation of a producer ?
Answer» Solution : profit maximization is the short run or LONG run PROCESS by which a firm may DETERMINE the price, input, and output LEVELS that lead to the highest profit.

Discussion

Explore topic-wise InterviewSolutions in .

If Marginal Cost is equal to Marginal Revenue at two output levels, then any one of the output level can be taken as state of producer's eqauilibrium. Defend or refute.

Price elasticity of demand (-3) means 3 percent fall in demand due to :

The price determined by the intersection of demand curve and supply curve is

Marginal revenue of a firm is constant throughout under :

When a producer charges different prices from different customers for the same produce

Explain the method of calculating coefficient of mean deviation.

Explain the measure of 'Gini Coefficient .'

Define stock.

A firm earns super normal (abnormal) profits when :

Describe the procedure of drawing a histogram, when class intervals are (i) equal, and (ii) unequal.

At what level of production is total cost equal to total fixed cost

Higher indifference curve represents higher level of satisfaction to the consumer. State the underlying assumption related to this property of indifference curve.

What are the total fixed cost, total variable cost and total cost of a firm ? How are they related ?

An economy operate of PPF when there is :

A seller cannot influence the market price under:

Thus, for every change in variable (a) by 2 units there is a changein variable (b) by 5 units.

As long as MR is positive TR

Identify the good whose demand would not respond to rise in its price.

What is the implication of budget line in a real life situation ?

What causes movement along demand curve?

In convenience Sampling, sampling is done by the _____________in such a manner that suit his convenience. (Investigator/enumerators)

Which of the following staements accurately describe the relationship between AP and MP ?

State one feature of oligopoly

Howdoesan icreasae in thepriceof aninputaffectthe marketsupplycurve ?

Is consumer willing to move away from consumer's equilibrium point ?

Aballoon seller has decided that we will sell all his balloons at a fixed price of₹10 each. In such a case, TR curve will be :

Give reason why an economic problem arises?

The slope of price line (in case of commodites X and Y) is given by:

In the longperiod , the supplyfor a commodity is :

A budget set is a collection of all bundles of goods that a consumer wants to buy

With increase in income of a consumer, the demand of inferior good:

Bivariate refers to a series of statistical data with ______. (two/ more than two)

What is consumer's equilibrium ? Explain consumer's equilibrium in case of a single commodity with the help of a utilityy schedule

The Law of ________ deals with input-output relationship, when the output is increased by variying the quantity of one input.

Why does an indifference curves always convex to the origin ?

What is imperfect oligopoly ?

State the relation between total cost and marginal cost.

Whichis the following is a variable cost for a firm ?

How are the total revenue of a firm, market price, and the quantitiy sold by the firm related ro each other ?

In which form of market is the demand of a firm perfectly elastic :

Macroeconomics deals with:

Categorise the following diagrams as expansion, contraction, increase or decrease in demand (assuming the given commodity is a normal good) :

Given below are marks (out of 100) of 10 students in an examination . Calculate first and third quartiles. 90,64,79,33,85,59,60,70,40,95

Which is macroeconomic variable?

The demand of these goods varies directly with income

Cigarette smoking is injurious to health. How can the government reduce its consumption but only through the normal market forces. Explain the chain of effects of government's action.

In â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦, the entire information is recorded by the informants themselves. (questionnaires/schedules)

When does a production function satisfy, IRS, CRS and DRS ? (Out of syallabus ) IRS. Increasing returns to scale CRS. Constant returns to scale DRS. Diminishing returns to scale

Pocket allowance of 10 students is Rs. 15,20,30,22,25,18,40,50,55 and 65. Find out the average pocket allowance.

What do you mean by profit maximisation of a producer ?