Explore topic-wise InterviewSolutions in Current Affairs.

Correct option is (B) Internal migration

Transfer is an economic cause of migration. Migration due to transfer is when a person is transferred from one place to another distant place and hence is forced to move to that place.

Extant of natural resources:

When a particular place has abundance of natural resources, but quite less population relatively, people migrate to that place.

Example: Mines of gold and diamond, regions where petroleum is found, oil refineries, etc. are places that require technical staff in a huge number. Hence, people migrate to places like UAE, Australia, New Zealand, Canada, etc. where such opportunities are widely available.

War and unrest is a political reason for migration. In this, a region which is war- prone witnesses several small and big wars time and again. This makes the area unrest and unsafe and hence lacks stable employment opportunities. Hence, people residing in those areas migrate to safe, peaceful and progressive areas that give ample amount of employment opportunities.

Ours is a Village in Kadapa district in Andhra Pradesh. Once many people worked in our fields. But many of them went to Saudi and Kuwait for household and industrial works. They earned good incomes there and increased their assets here. We can say that the rich people in our area are mostly the migrated ones.

Correct option is (B) For ones’ own safety and safety of their families

When Think-Tank sees these peculiar things in his magical mirror, he guesses them as sandwiches which are a staple food of Earthlings.

जब अपने जादुई दर्पण में थिंक-टैंक इन अनूठी चीजों को देखता है तो इन्हें पृथ्वी के लोगों का प्रमुख आहार सैंडविच है।

Omega reports to Think-Tank that they have reached the earth without any special problem. They are surrounded by some peculiar things. Which he failed to identity. He had never seen such things earlier.

ओमेगा ने थिंक-टैंक को यह सूचना दी कि वे लोग बिना किसी समस्या के पृथ्वी पर पहुँच गए हैं। उनके आसपास कुछ अनूठी चीजें हैं, जिसे वह पहचान नहीं पा रहा है। उसने इस तरह की चीजें पहले कभी नहीं
देखी थी।

(c) Temporary unemployment

The Say’s Law of market is based on the following assumptions:

1. No single buyer or seller of commodity or an input can affect price.

2. Full employment. 

3. People are motivated by self interest and self – interest determines economic decisions. 

4. The laissez faire policy is essential for an automatic and self adjusting process of full employment equilibrium. Market forces determine everything right.

5. There will be a perfect competition in labour and product market. 

6. There is wage-price flexibility. 

7. Money acts only as a medium of exchange. 

8. Long – run analysis. 

9. There is no possibility for over production or unemployment.

Think-Tank had sent a manned space probe to attack on the earth planet. Martians had a plan to capture it. Think-Tank wanted to know their position, so he wanted to contact with the manned space probe. Noodle communicates with the crew members.

थिंक-टैंक ने मानवचलित अंतरिक्ष प्रोब को पृथ्वी पर आक्रमण करने हेतु भेजा। मंगल ग्रह के वासियों की योजना इस पर कब्जा करने की थी। थिंक-टैंक अपनी स्थिति जानना चाहता था, इसलिए वह मानवचलित अंतरिक्ष यान में संपर्क स्थापित करना चाहता था। दल के सदस्यों के साथ नूडल ने संचार स्थापित किया।

Sergeant Oop eats the sandwich ultimately. Omega and Iota watch him breathlessly. When he eats the sandwich, he makes terrible faces.

अंततः सार्जेंट ऊप सैंडविच को खाता है। ओमेगा और आयोटा साँस रोककर उसे देखते हैं। जब वह सैंडविच खाता है तो उसके चेहरे पर डरावने भाव आने लगते हैं।

(a) agriculture

Think-Tank describes the earth as a ridiculous little planet. He gives no importance to the earth and think is as a very insignificant place. He decides to put the earth under his generous ruler ship.

थिंक-टैंक पृथ्वी को एक छोटे और हास्यास्पद ग्रह के रूप में वर्णित करता है। वह पृथ्वी को कोई महत्व नहीं देता तथा सोचता है कि यह बहुत ही महत्वहीन स्थान है। वह पृथ्वी को अपनी प्रजाति के शासनाधीन करने का निर्णय लेता है।

Think-Tank’s space crew has arrived on the earth and taken shelter in some sort of squire place. This place is full of peculiar items (Books). The members of this crew take these books as sandwiches, but unable to eat them. When they are told that the Earthlings use them as a communication device,they try to hear them. But they are still helpless to hear them. So, they are puzzled on the earth.

थिंक-टैंक के अंतरिक्ष दल के सदस्य पृथ्वी पर पहुँचे तथा एक रमणीक-स्थल पर शरण ली। यह स्थान अनूठी वस्तुओं (पुस्तकों) से भरा था। दल के सदस्यों ने इन पुस्तकों को सैंडविच समझा, किंतु इन्हें खाने में असमर्थ रहे। जब उनसे कहा गया कि पृथ्वीवासी इसे संचार क्षेत्र के रूप में काम लेते हैं,तो उन्होंने उनसे सुनने की कोशिश की। किंतु वे इसे सुनने में असमर्थ रहे। अतः वे पृथ्वी पर दुविधा के शिकार रहे।

(b) Economy is always in the state of equilibrium

Think-Tank is planning to invade the earth. He thinks that earth is very insignificant. It is a ridiculous planet. He has sent a search team that will probe the earth. He is very desirous to put the earth under his rule.

थिंक-टैंक पृथ्वी पर हमला करने की योजना बना रहा है। वह समझता है कि पृथ्वी बहुत ही महत्वहीन है यह एक हास्यास्पद ग्रह है। उसने पृथ्वी के बारे में जाँच-पड़ताल करने वाली एक खोजी टीम भेजी। वह पृथ्वी को अपने अधीन करने के लिए बेताब था।

Full employment refers to a situation in which every able bodied person who is willing to work at the prevailing wage rate, is employed. In other words full employment means that persons who are willing to work and able to work must have employment or a job.

(c) Dynamic society

(d) man power planning

Correct Answer is: (c) Effective demand

Correct Answer is: (a) J.B. Say

(b) Classical Economist

1. The aggregate demand is the amount of money which entrepreneurs expect to get by selling the output produced by the number of labourers employed. 

2. Therefore, it is the expected income or revenue from the sale of output at different levels of employment. 

3. Aggregate demand has the following four components: 

1. Consumption demand 

2. InvestmenTdemand 

3. Government expenditure and 

4. Net Export (export – import)

(d) A.C. Pigou – French Economist

Implications of Say’s Law: 

1. There is no possibility for over production or unemployment. 

2. If there exist unutilized resources in the economy, it is profitable to employ them up to the point of full employment. This is true under the condition that factors are willing to accept rewards on a par with their productivity.

3. As automatic price mechanism operates in the economy, there is no need for government intervention. (However, J.M. Keynes emphasized the role of the State) 

4. Interest flexibility brings about equality between saving and investment.

5. Money performs only the medium of exchange function in the economy, as people will not hold idle money.

(d) Aggregate private saving – C + S + T

1. An indifference curve shows different bundles that give the consumer the same level of satisfaction. In other words, an indifference curve joins all points representing bundles which are considered indifferent by the consumer.

2. Points A and B are on the indifference curve indicating the same level of satisfaction. Point C lies above the indifference curve representing the preferred bundles. Point D lies below the indifference curve showing the inferior bundles.

The slope of the indifference curve shows the rate at which the consumer is willing to substitute with others. Here the substitution is in terms of satisfaction. The slope of the budget line shows the rate at which a consumer is able to substitute our good for others. Here the substitution is in terms of price.

Correct answer is (b) DMRS

IC is negatively sloped. This is because for the consumer to get the same level of satisfaction, the quantity of one product must decrease when the other is increased.

When a new car is supplied in the market at a lower price, the demand for two wheelers will be reduced. This is because, more customers will switch over their demand of two wheelers and start demanding the new car.

Correct Answer is: (b) Short run

The factors affecting elasticity of supply are 

1. nature of the commodity 

2. cost of production 

3. time period 

4. technique of production

1. Average cost 

2. Price ceiling 

3. Shutdown point

a. 1. Contraction of supply 

b. 2. Perfectly inelastic 

c. 3. Short run AVC

(b) Expansion of demand

Price elasticity of supply is defined as the degree of responsiveness of change in supply due to change in price. That is,

Es = \(\frac{Percentage\,change\,in\,supply}{Percentage\,change\,in\,Price}\)

Symbolically,Es = \(\frac{ΔQ}{ΔP}\times\frac{P}{Q}\)

In the given example,

Es = 2, ΔQ = 50, Q = 100, P = 25

Therefore,2 = \(\frac{50}{ΔP}.\frac{25}{100}\)

ΔP = \(\frac{50\times25}{100\times2}\) = 6.25

Therefore, new price = 25 + 6.25 = 31.25

(a) Balanced budget

Correct answer is (c) 1

(a) Both (i) and (ii) are true

Given income of the consumer and the prices goods he buys, the consumer is said to be in equilibrium when he spends income in such a way that he gets maximum satisfaction.

(i) Marginal Rate Substitution (MRS)= P_x/P_y

(ii) MRS falls as more is consumed of X.

Explanation:

(i) Suppose MRS> P_x/P_y. It means that consumer is willing to pay more for goods X, than the prevailing market price. Consumer buys more of X and less of Y till MRS= P_x/P_y again.

(ii)  Unless MRS has a tendency to fall as more is purchased the consumer will never reach equilibrium again.

(Note: Explanation MRS< P_x/P_y is also correct)

Difference between Cardinal Utility and Ordinal Utility:

India is a land of religious, linguistic, caste and communal diversities. The people living in India speak diverse languages. There are 122 languages and 234 mother tongues. Similarly India is inhabited by the hindus, the muslims, the parsi, the sikhs and the Christians. Ways of living, food habits, religious belief, cultural traits also differ widely from North to South and East to West. In spite of all these diversities there is widespread unity as proved from time to time. Communal harmony is the basic trait which has kept all the Indians united in times of peace and war. To sum up Indian are the one socially, politically and culturally united among all the diversities.

(d) C + S + T + Rf

1. The Budget line slopes downwards from left to right 

2. The bundle of goods whose price is equal to consumer’s income lie on the budget line. 

3. The bundle of goods whose price is less than consumer’s income lie below budget line. 

4. The bundle of goods whose price is more than consumer’s income lie above the budget line.

1. The Law of DMU is not applicable to money. 

2. It does not apply to rare collections like ancient coins, stamps, etc. 

3. If the consumer is irrational, the law of DMU does not apply.