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4801.

How do changes in marginal revenue affect the total revenue?

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Discussion
4802.

Computer marginal opportunity cost (MOC) from the following data:

Answer»

SOLUTION :
Discussion
4803.

Explain the process of price-determination through price floor adopted for agricultural goods. Use suitable diagram.

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SOLUTION :N/a
Discussion
4804.

Giving reason, comment on the shape of Production Possibilities curve based on the following schedual: {:("Good X (units)",0,1,2,3,4),("Good Y (units)",8,6,4,2,0):}

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ANSWER :(As MRT is Constant, PPC will B DOWNWARD SLOPING straightline)
Discussion
4805.

A housewife uses 10 kg of Wheat, 20 kg of Fuel, 5 kg of Sugar, and 2 kg of oil. Prices (per kg) of these items are Rs. 1.50, 50 paise, Rs. 2.80 and Rs. 10 respectively. Taking quantities used as weights find out the weighted arithmetic average of the prices.

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Answer :Weighted Arithmetic AVERAGE = RS. 1.59 PER kg
Discussion
4806.

Suppose size of the Universe is 1000. the size of sample is 100.

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7
11
15
20

Solution :A
Discussion
4807.

Which of the following indicates a stage of statistical study?

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COLLECTION of data
Presentation of data
Analysis of data
All of these

Solution :D
Discussion
4808.

What is the average product of an input ?

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Solution :Average product REFERS to output PER unit of VARIABLE input.
Discussion
4809.

Define standard deviation.

Answer»

SOLUTION :Standard deviation is the SQUARE ROOT of the squares of deviations of the items from their mean VALUE.
Discussion
4810.

Explain the significance of elasticity of demand.

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Solution :The CONCEPT of elasticity for DEMAND is of great importance for determining prices of various FACTORS of production. Factors of production are PAID according to their elasticity of demand. In other words, if the demand of a factor is inelastic, its price will be HIGH and if it is elastic, its price will be low.
Discussion
4811.

If one of the variable is missing from the data sereies:

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We can CALCULATE arithmetic mean by IGNORING the missing item.
We can calculate ARITMETIC mean by assuming some value of the missing item.
We can ASSUME that the value of missing item is equal to the arithmetic mean of the remaining ITEMS.
We cannot calculate arithmetic mean.

Solution :D
Discussion
4812.

The number of variables or items that come under any class is called class frequency (True/False)

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ANSWER :TRUE.
Discussion
4813.

In the context of rising prices, following statements are made by two people: Udit: Prices in the economy are continously rising, Shivam: The Government should take reasonable steps to control rising prices. Identify the statements as Positive Statement and Normative Statement.

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UDIT POSITIVE, SHIVAM, Normative
Udit, Normative, Shivam, Positive
Both are Positive Statements
Both are Normative Statements

SOLUTION :A
Discussion
4814.

How does an increase in input price affect the equilibrium price and quantity?

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Solution :EQUILIBRIUM PRICE rises and equilibrium QUANTITY falls (due to decrease in supply).
Discussion
4815.

What happens to the equilibrium price of a good when the demand for that good increases?

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SOLUTION :When the demand for a GOOD INCREASES, the equilibrium price will INCREASE, assuming no CHANGE in supply.
Discussion
4816.

Inflation is measured in terms of changes in wholesale price index, based on weekly statements of wholesale prices. "" (True/False)

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ANSWER :1
Discussion
4817.

The size of class interval is the distance between:

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LOWER LIMIT and higher limit of the same CLASS
Higher limit of the class and lower limit of the NEXT class
Lower limit of the class and lower limit of the next calss
NONE of the above.

Solution :C
Discussion
4818.

Explain the relationsphip between the marginal products (MP) and the total product (TP) of an input.

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SOLUTION :The relationship between TP and MP is explained through the Law of VARIABLE Proportions. As LONG as the the TP increases at an increasing rate, the MP also increases. This goes on till MP reaches maximum. When TP increases at a diminishing rate, MP declines.
Discussion
4819.

Give on example, when a consumer buys less of a commodity at the same price OR Give one reason for a leftward shift in demand curve.

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SOLUTION :PRICE of a SUBSTITUDE GOOD FALLS.
Discussion
4820.

Calculate rank correlation coefficient from data in Example 3 in Section 11.4.

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Solution :
`rho=1-(6SigmaD^(2))/(N(N^(2)-1))=1-(6xx0)/(6(36-1))=1-(0)/(210)=1-0=1`
Discussion
4821.

Calculate coefficient of correlation from the following data:

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SOLUTION :
`r=(sumdx'dy'-((sumdx') XX(sumdy'))/(N))/(sqrt(sumdx'^(2)=((sumdx')^(2))/(N))xx sqrt(sumdy'^(2)-((sumdy')^(2))/(N)))`
`=(42-((3)xx(4))/(6))/(sqrt(19-((3)^(2))/(6))xxsqrt(196-((4)^(2))/(6)))`
`=(42-2)/(sqrt(19-1.5)xxsqrt(96-2.67))`
`=(40)/(sqrt(17.5)xxsqrt(93.33))`
`=(40)/(4.18xx9.66)=(40)/(40.3788)=0.99`
Coefficient of Correlation (r)=0.99
Discussion
4822.

Explain the concept of short run and the long run

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SOLUTION :SHORT Run is a PERIOD when only some of the FACTORS of production are variable and some are fixed.
Long run is a period where all the factors of production are variable.
Discussion
4823.

Identify positive or normative statements from the following : There are inequalities in the distribution of income and wealth in India

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SOLUTION :POSITIVE STATEMENTS BECAUSEIT is FACT
Discussion
4824.

Slope of a budget line is

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Increaseing throghout
DECREASING through out
CONSTANT throughout
Fluctuating through out

ANSWER :C
Discussion
4825.

Individual supply curves are steeper as compared to market supply curve. Defend or refute.

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SOLUTION :The given statement is defended. It happens because with a change in price, the proportionate change in MARKET supply is more than the proportionate change in INDIVIDUAL SUPPLIES.
Discussion
4826.

In order to encourage tourism in Goa, Indian Airlines reduces the air fare to Goa. How will it affect market demand curve for air travel to Goa ?

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Solution :There will be DOWNWARD movement along the same MARKET demand curve for air TRAVEL to Goa. It happens because of DECREASE in the air fare.
Discussion
4827.

When marginal revenue is constant and not equal to zero, then total revenue will also be constant.

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SOLUTION :False : When MR is constant and not EQUAL to ZERO, it may be positive or NEGATIVE. TR INCREASES when MR is positive and decreases when it is negative.
Discussion
4828.

Explain three factors that can bring about an increase in the market demand for a commodity.

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Solution :THREE factors that can resultin an increase in demand for a commodity are :
(i) An increase in price of substitute good.
(ii) A fall in price of complementary good.
(III) A favourable change in tastes and PREFERENCES of the consumer.
Discussion
4829.

Mode refers to that value of a series occurs __________ times in the series.

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zero
infinite
maximum
MINIMUM

Solution :minimum
Discussion
4830.

Give the meaning of ''inferior'' good and explain the same with th help of an example.

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Solution :When with the rise in INCOME of a consumer, the consumer BUYS less quantity of a good, then that good is an inferior good for that consumer. SUPPOSE when the consumer's income rises. He buys less of coarse cloth and PURCHASES finecloth. Then for that consumer speciafically coarse cloth is an inferior good.
Discussion
4831.

Define producer's equilibrium. Stateits conditions. ""Or Explain the meaning and conditions of producer's equilibrium. (Using a numerical example)

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Solution :A PRODUCER is SAID to be in equilibirium when it has no inclination to EXPAND or contract its output.Producer will be in equilibirium when-1. MR=MC2. MR cuts MC from below.
Discussion
4832.

Ceteris paribus' clause in the law of Demand means that the price of the given commodity does not change.

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SOLUTION :It means that there is no CHANGE in FACTORS other than price of the GIVEN commodity.
Discussion
4833.

Which one of thefollowingis not a determintof Individalsupply ?

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Price of thegivencommodity
Taxation Policy
Less elastic
Numberof FIRMS

Solution : In case of individual supply , there is only one firm SUPPLYING the good and hence there is no WAY that number of firms is a determinant of individual supply.our CORRECT option is (D).
Discussion
4834.

Explain the meaning of 'Budget set' and 'Budget line'

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Solution :BUDGET set refers to the set of POSSIBLE COMBINATION of the two goods the CONSUMER CONSUME which he can afford from his income and given price, whereas budget line is the graphical presentation of the whole collection of the combination of the two goods which costs the consumer exactly his income.
Discussion
4835.

"X" and "Y" are substitute goods. Explain the effect of a fall in the price of X on the demand of Y.

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Solution :Substitutes GOODS are the goods which are used in PLACE of one another. A FALL in price of X will lead to an increase in its demand and thus leading to a DECREASE in demand of good Y as these goods are used in place of one another.
Discussion
4836.

Two indifference curves intersect each other when they represent same level of satisfaction.

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SOLUTION :To indifference curves cannot REPRESENT the same LEVEL of satisfaction. So, they can never INTERSECT each other.
Discussion
4837.

Mention two reasons for occurrence of the phase of increasing returns to a factor.

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SOLUTION :(i) Better utilization of the fixed factor, (II) Increased EFFICIENCY of VARIABLE factor.
Discussion
4838.

What is meant by a product being perfectly homogeneous? What is its implication for the price charge by producers in the market? OR In a perfectly competitive market, the buyers treat products of all the firms as homogeneous. Explain the significance of this feature.

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SOLUTION :N/a
Discussion
4839.

List any four inputs used in production.

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Answer :RAW material, LABOUR, POWER and land
Discussion
4840.

Giving reasons explain the Law of Variable Proportions

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Solution :The law of DIMINISHING returns to a FACTOR states that Marginal PRODUCT of a factor initially rises with its employment level, but after a certain level of employment it starts falling and ultimately becomes negative.
Reasons behind Phase-1
(i) Better utilisation of FIXED factor.
(ii) Effecient utilisation of variable factor.
(iii) Better co-ordination between factors.
Reasons behind Phase-2
(i) Over-utilisation of the fixed factor.
(ii) Imperfect Substitution of factors.
(iii) Poor Coordination.
Reasons behind Phase-3
(i) Fixity of fixed factor.
(ii) Overcrowding of fixed factor.
(iii) Defective factor ratio.
Discussion
4841.

Give the meaning of 'Long run production function'.

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Solution :Long RUN production function refers to a situation when OUTPUT is INCREASED by INCREASING all the inputs simultaneously and in the same proportion.
Discussion
4842.

sigma=sqrt((N_(1)sigma_(1)^(2)+N_(2)sigma_(2)^(2)+N_(1)d_(1)^(2)+N_(2)d_(2)^(2))/(N_(1)+N_(2))) is the formula of:

Answer»

COMBINED mean DEVIATION
combined quartile deviation
combined STANDARD deviation
coefficient of variation

Solution :C
Discussion
4843.

Fail in productivityof wheatdue toa cyclonewillleadto a downloadmovementalongthe samesupplycurveofwheat .

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SOLUTION :False: It will LEAD to aleftwardshiftin SUPPLY curve of wheat as fall in PRODUCTIVITY will DECREASE its supply at the sameprice.
Discussion
4844.

In_________quadrant, the value of X will be negative but that of Y will be positive. (second/third)

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SOLUTION :SECOND
Discussion
4845.

What is consumer's equilibrium ? State its condition in case of a single commodity

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SOLUTION :Consumer's Equilibrium refers to the SITUATION when a consumer is having maximum satisfaction with limited income and has no tendency to change his way of existing expenditure. The consumer has to pay a price for each unit of the commodity. So, he cannot buy or consume UNLIMITED quantity.
In CASE of SINGLE commodity the consumer is in equilibrium when marginal utility of a good in terms of money becomes equal to the price of that good.
Discussion
4846.

Explain the significance of 'barriers to entry' feature of monopoly.

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Discussion
4847.

What is implicit cost?

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SOLUTION :It REFERS to the cost of self-supplied or self-owned FACTORS of production including NORMAL PROFITS.
Discussion
4848.

Explain the meaning and need for 'Price Ceiling' with the help of diagram. Explain Black Marketing as its direct consequence.

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Discussion
4849.

What is minimum price ceiling? Explain Its implications.

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Solution :Price floor or Minimum Price Ceiling is the minimum price FIXED for a commodity by the government (above the equilibrium price), which MUST be paid to the producers for their produce. As a result of price floor, the market price is above the equilibrium price, leading to excess SUPPLY. The implications are that the producers start selling their products illegally at a price lower than that set by the government SINCE the demand is not enough at the price set by the government.
Discussion
4850.

In case of perfect inequality , the value of Gini Coefficient will be :

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ZERO
INFINITY
1
`-1`

SOLUTION :D
Discussion