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4851.

Apples when its price falls.

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Answer :Movement from UPPER to LOWER POINT on the same dd curve (extension of demand)
Discussion
4852.

"Change in supply" of a good can be caused by :

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CHANGE in technology
Change in PRICE of other goods
Change in GOVERNMENT POLICY on production
All of above

Answer :D
Discussion
4853.

What is the general condition of consumer's equilibrium with respect to any particular product ?

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Solution :CONSUMER in CONSUMPTION of single COMMODITY (say,x) will be at equilibrium when marginal utility `(MU_(x))` is equal to Price `(P_(x))` paid for the commodity.
Discussion
4854.

A perfectly competitive firm has no control over the price of the product.

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Solution :A perfecily competitive firm is a price taker and has to ACCEPT the price as FIXED by MARKET forces of DEMAND and SUPPLY
Discussion
4855.

Explain 'black marketing' as a direct consequence of price ceiling Or Explain the concept of buffer stock as a tool of price floor.

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SOLUTION :Black Market' is the consequence of maximum price ceiling. When government fixes price of the commodity below the equilibrium price, there emerges excess demand and since there is shortage at the control price, there will always be some buyers who are willing to pay a higher price than the control price and obtain the quantity that they desire. This gives rise to the existence of black markets
Or
'Buffer stock' is an importanttool of price floor (MINIMUM price ceiling) when government fixes a price higher than the equilibrium price, there emerges excess supply and since there is surplus, the government will BUY the insold by committing to buy the surplus at the pre-announced support price. They may be added to its buffer stoks or used for exports. Buffer stocks may be used during natural CALAMITIES, for distribution through public distribution system, for giving to workers under 'Food for WORK' programme.
Discussion
4856.

Supply is said to be unitary elastic, when :

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Supply curveis a STRAIGHT line PASSING through theorigin .
Supply curvemakesan intercepton the positiveY-axis.
Supply curve makesan intercepton thepositive X-axis .
Supplycurveis a horizontal strainght line PARALLELTO theX-axis.

Solution :When supply curve passes through origin, its ELASTICITY of supply =1, IRRESPECTIVE of the angle it makes.our correct answer is (A).
Discussion
4857.

Minimum wage legislation helps in determining equilibrium in

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COMMODITY market
labour market
foreign EXCHANGE market
none of these

Solution :N/a
Discussion
4858.

AFC curve is a rectangular hyperbola curve. True/False

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Solution :TRUE. AFC is a RECTANGULAR HYPER curve as TFC remains constant with changes in the LEVEL of output PRODUCED.
Discussion
4859.

Find out the missing values from the following table : |{:("Variable Factor",0,1,2,3,4,5,6,7),("TP (in units)",-,-,-,-,25,-,-,-),("AP (in units)",-,5,-,-,-,-,-,-),("MP (in units)",-,-,8,4,-,5,0,-4):}|

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SOLUTION :
Discussion
4860.

Explain any two features of monopoly market.

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Solution : The features of MONOPOLY are: 1) Single Seller: Under Monopoly, there is a single seller selling the product. As a result, the monopoly firm and industry are one and the same thing and monopolist has fall control over the supply and price of the product. However, there are large no. of buyers of monopoly product and no single buyer can influence the market price. 2) No close substitutes: The product by a monopolist has no close substitutes. So, the monopoly firm has no fear of competition from new or EXISTING products. For example, there is no close substitutes of electricity services provided by TPDDL in some PARTS of Delhi. However, the product may have DISTANT substitutes LIKE inverter and generator.
Discussion
4861.

Slope of an indifference Curve is measured by:

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MARGINAL RATE of Substitution
Marginal Rate of Transformation
Marginal OPPORTUNITY Cost
None of these

Answer :A
Discussion
4862.

If the values in series are very large and the difference between the smallest value and zero is high, then we use___________base line.

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original
false
true
none of these

Solution :B
Discussion
4863.

If the goods X and Y are substitudes, a rise in price of X will result in a rightward shift in demand curve of Y.

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SOLUTION :Rise in price of X will increase the demand for Y as Y BECOMES relatively CHEAPER than X.
Discussion
4864.

Classification should be _____. (elastic / inelastic)

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ANSWER :ELASTIC
Discussion
4865.

What are the class limits?

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SOLUTION :The extreme values of a CLASS are limits Every class interval has TWO limits, lower LIMIT and upper limit.
Discussion
4866.

Explain the following (a) Why is an IC (i)downward sloping (ii) convex. (b) Why does higher IC represent a higher level of satisfaction ?

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SOLUTION :i) Virtually all indifference curves have a negative SLOPE. That is, they slope downward from left to right. The slope of an indifference curve shows the rate of substitution between two goods, i.e. the rate at which an individual is willing to give up some quantity of good A to get more of good B. If we assume that the individual likes both goods, the quantity of good B has to increase as the quantity of good A decreases, to keep the overall level of satisfaction the same. Because both axes each represent one of the two goods, this relationship results in a downward sloping curve. This becomes pretty obvious if we look at the illustration below.
ii)In most cases, indifference curves are bowed inward. This has to do with the marginal rate of substitution (MRS). We know that the marginal utility of consuming a good decreases as its supply increases (see also diminishing marginal utility). Therefore consumers are willing to give up more of this good to get another good of which they have little.
iii)Consumers will always prefer a higher indifference curve to a lower one. This is due to the basic ECONOMIC assumption that “more is always better“. Think about it if someone were to ask you if you wanted a free slice of pizza or an entire pizza for free, what would you say? Who says no to free pizza, right? Now, of course, it’s not always that simple, but in basic economic theory, we can assume that consumers have a PREFERENCE for larger quantities. This is reflected in the indifference curves. The higher the indifference curves are, the larger the quantities of both goods. And thus, the more preferable the indifference curve becomes.
Discussion
4867.

If price of x rises and it causes increase in demand for y, how are x and y related?

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SOLUTION :These are SUBSTITUTE GOODS
Discussion
4868.

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

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Discussion
4869.

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

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Solution :TOTAL FIXED COST: Cost of production that does NOT change with CHANGES in the quantity of output produced by a firm in the short run.total VARIABLE cost. The overall expense associated with producing a good or providing a service that change in direct proportion to the quantity produced or provided.Total cost, is the sum of all costs incurred by a firm in producing a certain LEVEL of output. Total cost is the sum of fixed and variable costs. Variable costs change according to the quantity of a good or service being produced. The amount of materials and labor that is needed for to make a good increases in direct proportion to the number of goods produced. The cost “varies” according to production.
Discussion
4870.

Cofficient of correlation lies always between :

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0 and +1
`-1 and 0`
`-1 and +1`
NONE of these

Solution :C
Discussion
4871.

When is demand for a commodity said to be inelastic ?

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SOLUTION :DEMAND for a COMMODITY is said to be perfectly INELASTIC when there is no change in quantity demanded when the price of the commodity changes.
Discussion
4872.

Give the meaning of 'Oligopoly' If the firms are earning abnormla profits how will the 'number of firms in industry' change?

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SOLUTION :Oligopoly refers to a market situation in which there are a few firms SELLING HOMOGENEOUS or DIFFERENTIATED products.
Discussion
4873.

Ina monopoly market the MR curve:

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LIES above the AR cruve
Lies below the AR curve
Coincides with the AR curve
Intersects with the AR curve

Answer :B
Discussion
4874.

A new steel plant comes up in Jharkhand. Many people who were previously unemployed in the area are now employed. How will this affect demand curve for B.W. TV and Colour TV ?

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Solution :The DEMAND curve of B.W.TV will shift towards left (being an INFERIOR GOOD) as increase in income of the people due to employment will induce the people to shift from B.W. TV to Colour TV. On the other hand, demand curve of Colour TV will shift towards right (being a normal good) as increase in income will increase its demand.
Discussion
4875.

So long as Average Product is rising :

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MARGINAL PRODUCT is also rising
Marginal product is GREATER than average product
Average product is greater than marginal product
Marginal product is LESS than average product

Answer :B
Discussion
4876.

Give theformula for measuring price is generally price elasticity of demand according to percentage method.

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Solution :Elasticity of Demand `(E_(d))=("percentage CHANGE INDEMAND")/("Percentage Change in PRICE")`
Discussion
4877.

Distinguish between random sampling and 'stratified sampling' clearly explaining the two in detail. Give examples of both.

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Solution :Simple random samples and stratified random samples are both statistical measurement tools. A simple random SAMPLE is used to REPRESENT the entire data population. A stratified random sample DIVIDES the population into smaller groups, or strata, based on shared characteristics.The population is the total set of observations or data. A sample is a set of observations from the population. The sampling method is the PROCESS used to pull samples from the population.Unlike simple random samples, stratified random samples are used with populations that can be easily broken into different subgroups or subsets. These groups are based on certain criteria, then randomly choose elements from each in proportion to the group's size versus the population.This method of sampling means there will be SELECTIONS from each different group—the size of which is based on its proportion to the entire population. But the researchers must ensure the strata do not overlap. Each point in the population must only belong to one stratum so each point is mutually exclusive.
Discussion
4878.

What will be the effect on MR when (i) TR increases at a decreasing rate, and (ii) TR increases at constant rate ?

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Solution :(i) MR falls but remains POSITIVE.
(II) MR is constant and positive
Discussion
4879.

What is the behaviourof Total Variable Cost as outputincreases ?

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Solution :Initially TOTAL variable cost INCREASES at a DECREASING rate and after a point, it increases at an INCREASING rate.
Discussion
4880.

Free entry and exit is a characterisitic fearture of

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Perfec Competition
Monopoly
Duopoly
Oligopoly

Solution :N/a
Discussion
4881.

State briefly the method of calculating average deviation from grouped data .

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Discussion
4882.

With fall in price of a commodity, demand of the commodity increases as it becomes relatively cheapter in comparision to other commodities. This effect is known as :

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SUBSTITUTION Effect
Income Effect
LAW of DEMAND Law of DIMINISHING Returns.

Answer :A
Discussion
4883.

Marginal utlility is:

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The UTILITY from first UNIT of a commodily consumed.
The utility from the LAST unit consumed.
Total utility DIVIDED by the NUMBER of unit consumed.
Always positive.

Answer :B
Discussion
4884.

Upward sloping supply curve shows that :

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When SUPPLY RISES PRICE rises
When supply FALLS price rises
When price rises supply rises
When supply rises price falls

Answer :C
Discussion
4885.

Will a profit- maximising firm in a competitive merket produce a positive level of output in the short run it the market price is less than the minimum of AVC? Give an explanation.

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Solution :No, a profit-maximising firm will not produce a LEVEL of OUTPUT in the SHORT RUN when market price is less than the minimum of AVC. It happens because equality between market price and minimum AVC indicates shut down point and a firm will NEVER operate at a price less than the minimum AVC.
Discussion
4886.

Explain the factors that affect supply/market supply of a commodity.

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Discussion
4887.

What is meant by a two-way table? Gibe an illustration.

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SOLUTION :N/a
Discussion
4888.

Which of the following diagram correctly depicts the situation of Less Demand ?

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SOLUTION :N/a
Discussion
4889.

The slope of demand curve is generally :

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Negative
Positive
Constant
Either (a) or (B)

ANSWER :A
Discussion
4890.

Give two examples each of sample and population.

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Solution :(i) SAMPLE : (a) to test the electric bulbs produced in a factory (b) to find out-the average weight of the students of a class.(ii) Population : (a) population of INCOME or PRICES, (b) population of HEIGHTS and weights of all individuals.(iii) Variable : (a) Height of the individuals;(b) Prices of commodities.
Discussion
4891.

An indifference curve is

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CONVEX to the origin
concave to the origin
a STRAIGHT LINE curve
none of these

Solution :A
Discussion
4892.

Why isequalitybetweenMC and MRnecessary for a firmto be in equilibrium ? Is it sufficient to ensureequilibrium ? Explain.

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Solution :Theproducer's equilibrium conditions are : (i) MC =MR and (II)`MC gt MR`afterequilibrium.
Suppose `MC gt MR`. In thissituations it willbe profitable for thefirmto produce moreor less dependinguponrelativechanges in MC and MRtill MC=MR.
Suppose `MC gt MR` . It will beprofitablefor theproducer toproduce more tillMC=MR.
MC=MR is not asufficient condition to ensure equilibrium .Given MC=MR supposethe behaviour of MC and MR is such thatif onemoreunit isproduced . MCbecomes lessthan MR .
Thenin thiscase it will be profitablefor the firm to produce more .Therefore in thiscase THOUGH MC=MR theproducer is not inequilibrium. However if after MC=MR output MC becomes greater than MRit willbe mostadvantageous for THEFIRM to produce only upto MC=MR.
Discussion
4893.

Increase in price of bulbs will shift its demand curve towards left.

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SOLUTION :There will be no shift in DEMAND CURVE. RATHER, there will be an upward movement along the same demand curve.
Discussion
4894.

In the long run, all factors of production are variable.

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SOLUTION :True. In the LONG run, firm can ADJUST all its inputs to make CHANGES in the output.
Discussion
4895.

Due to a 10 percent rise in the price of a commodity , its quantity supplied rises from 400 units to 450 units. Calculate its price elasticity of supply. Is its supply elastic ?

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Solution :`E_(s)=(%"Change in supply")/(% "Change in PRICE ")=((50)/(400)XX100)/(10)=((25)/(2))/(10)=(25)/(10)=1.25`
Supply is elastic because `E_(s) gt 1`.
Discussion
4896.

What is 'ordinal utility'?

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SOLUTION :ORDINAL UTILITY is the utility EXPRESSED in RANKS.
Discussion
4897.

Some measures of dispersion depend upon the spread of values whereas some calculate the variaton of values from a central value. Do you agree?

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Solution :Yes, it is true that some measures of dispersion depend upon the spread of values, whereas some calculate the VARIATION of values from the central value. The spread of values is determined by the absolute measures of dispersion like Range, QUARTILE MEAN Deviation, and Standard Deviation. These measures express dispersion in terms of original unit of the series and it cannot be USED for the comparison of statistical data having different units. On the other hand, the relative measures of the dispersion calculate the variability of the values from a central value. The relative measure includes coefficient of Range, Mean Deviation and Variation. It is used when the comparison has to be made between two statistical SETS. These measures are free from any units.
Discussion
4898.

Why MR curve of a price taking firm is perfectly elastic and equal to AR? (Use diagram)

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Discussion
4899.

State and explain the law of supply with the law of supply with the help of a hypothetical schedule and diagram.

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Discussion
4900.

One of the central problems of an economy is "How to Produce". The planners of Indian Economy are stressing on using labour intensive techniques for production of goods and services. Do you justify this on the grounds of moral responsibility?

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Solution :Yes, I AGREE with the Indian planners. India is FACING a severe problem of unemployment and promoting EMPLOYMENT GENERATING opportunities is of utmost importance. Use of labour intensive techniques will reduce the problem of unemployment and will ALSO help in fighting with problem of poverty.
Discussion