Explore topic-wise InterviewSolutions in Current Affairs.

(a) Most of the movement are issue-specific movements that seek to achieve a single objective within a limited time frame. Others are more general or generic movements that seek to achieve a broad goal. In India, Narmada Bachao Andolan is a good example of this kind of movement. 

(b) Interest Groups or pressure Groups are organizations that attempt to influence government policies. They do not aim to directly share political power. These are formed when people with common occupation, interest, aspirations or opinions come together for a common objective.

A stock is quantity measurable at a particular point of time. A stock has no time dimension. Water in a tank at a particular point of time, say, at 10 am is a stock.

The following are the benefits for local companies by entering into joint production with the MNCs. 

1. MNCs help finance additional investment such as new machines, etc. 

2. MNCs help in the upgradation of technology for the local companies. 

3. MNCs Create new opportunities for local companies provide services like IT sector.

Transfer earnings do not enter into national income as these have not been earned but merely transferred by the government to other agencies.

A flow is quantity measurable over a period of time. It changes over time. Water flowing out from a tank between 10 am and 11 am, is a flow concept.

Apart from wars and territorial expansion, culture also played a crucial role in the development of nationalism. Romanticism was a European cultural movement aimed at developing national unity by creating a sense of shared heritage and common history. The Romantic artists' emphasis on emotions, intuition and mystical feelings gave shape and expression to nationalist sentiments. The strength of art in promoting nationalism is well exemplified in the role played by European poets and artists in mobilising public opinion to support the Greeks in their struggle to establish their national identity.
Folk songs, dances and poetry contributed to popularising the spirit of nationalism and patriotic fervour in Europe. Collecting and recording the different forms of folk culture was important for building a national consciousness. Being a part of the lives of the common people, folk culture enabled nationalists to carry the message of nationalism to a large and diverse audience. The Polish composer Karol Kurpinski celebrated and popularised the Polish nationalist struggle through his operas and music, turning folk dances like the polonaise and mazurka into nationalist symbols.
Language also played a distinctive role in developing nationalist feelings in Europe. An example of this is how during Russian occupation, the use of Polish came to be seen as a symbol of struggle against Russian dominance. During this period, Polish language was forced out of schools and Russian language was imposed everywhere. Following the defeat of an armed rebellion against Russian rule in 1831, many members of the clergy in Poland began using language as a weapon of national resistance. They did so by refusing to preach in Russian, and by using Polish for Church gatherings and religious instruction. The emphasis on the use of vernacular language, the language of the masses, helped spread the message of national unity.

These are called subsidies.

Financial capital is a sort of expression used to convey securities, bonds etc. It is also known as Paper claims.

The income generated within the domestic territory of a country by all producers is termed as domestic factor income. 

Operating surplus.

The difference between the retained earnings of foreign companies located in a country and the retained earnings of resident companies located abroad is called as net retained earnings from abroad.

 It is an activity, which is directed to satisfy, wants. It refers to using up of a good.

The two categories are: (i) Investment in fixed capital and (ii) Inventory investment. 

-Control of reservoir(isolation of carriers) 

-Control of sanitation(sanitary disposal) 

-Immunization(vaccination)

-Toilet hygiene 

-Shower hygiene 

-Nail hygiene 

-Teeth hygiene 

-Sickness hygiene

(a) Direct taxes

Wants satisfying capacity of commodity is Utility.

In a perfectly competitive market, equilibrium occurs when market demand Equals market supply.

-Loss of Appetite 

-Unfavorable cultural practices 

-Decreased intestinal absorption 

-Worm/parasite infection 

-Protein loss

cY shows the dependence of consumption on Income.

Decentralisation of Industrial activity is necessary to reduce unemployment. If industrial activities are centralised at one place, there will be less employment opportunities in the under developed areas. So Govt. should adopt such policies which encourage decentralisation of industrial activity.

Government should provide facilities like irrigation, better seeds, manures, implements, credit, etc. to small and marginal farmers. In addition, self-employed persons in urban areas should be given facilities of credit, marketing, raw material, technical training and the like.

Prof. L.R. Klein: “The production function is a technical or engineering relation between input and output. As long as the natural laws of technology remain unchanged, the production function remains unchanged.”

Prof. George J. Stigler: “Production function is the relationship between inputs of productive services per unit of time and outputs of product per unit of time.”

Prof. Richard J. Lipsey: “The relationship between inputs and outputs is summarized in what is called the production function. This is a technological relation showing for a given state of technological knowledge how much can be produced with given amounts of inputs.”

a) Both the statements are true.

c) distribution of workforce among different sectors of an economy

(c) Statement 1 is true and Statement 2 is false

Income tax. Corporate tax. 

In general, an insurance contract must meet four conditions in order to be legally valid: it must be for a legal purpose; the parties must have a legal capacity to contract; there must be evidence of a meeting of minds between the insurer and the insured; and there must be a payment or consideration.

(b) Marketable Surplus

Polycentrism refers to the existence of many centers of Communist ideological thought especially. The existence of a number of autonomous national Communist movements.

Ex-ante saving is planned or intended amount of saving at different level of income with the given period of time.

Answer: Marketable Surplus.

The functions of money are as follows: 

1. Medium of exchange: Money plays an important role as a medium of exchange. It facilitates exchange of goods for money. It has solved the problems of barter system. Money has widened the scope of market transactions. Money has become a circulating material between buyers and sellers. 

2. Measure of value/unit of account: The money acts as a common measure of value. The values of all goods and services can be expressed in terms of money. 

3. Stork of value: People can save part of their present income and hold the same for future. Money can be stored for precautionary motives needed to overcome financial stringencies. Money solves one of the deficiencies of barter system, i.e. difficulty to carry forward one’s wealth under the barter system. 

4. Transfer of value: Money acts as a transfer of value from person to person and from place to place. As a transfer of value, money helps us to buy goods, properties or anything from any part of the country or the world. Further, money earned in different places can be brought or transferred to anywhere in the world.

The final goods are those goods which are meant for final use and will not pass through any more stages of production or transformations. They are called final goods because once they have been sold they pass out of the active economic flow.

However, they may undergo transformation by the action of the ultimate purchaser.

In fact, many final goods are transformed during their consumption. For instance, tea leaves purchased by the consumer are not consumed in that form – they are used to make drinkable tea, which is consumed. Similarly most of the items that enter our kitchen are transformed through the process of cooking.

But cooking at home is not an economic activity, even though the product involved undergoes transformation. Home-cooked food is not sold to the market. However, if the same cooking or tea was done in hotel where the cooked product would be sold to customers, then the same items are not considered as final goods and would be counted as inputs to which economic value addition can take place.

Thus, it is not in the nature of the good but in the economic nature of its usage that a good becomes a final good.

Capitalist economy can be defined as an economy in which most of the economic activities have the following characteristics: 

1. There is private ownership of means of production. 

2. Production takes place for selling the output. 

3. There is sale and purchase of labour service at a price called wage rate. 

In a capitalist country, production activities are mainly carried out by capitalist enterprises. A typical capitalist enterprise has one or several entrepreneurs. Entrepreneurs are those who exercise control over major decisions and bear a large part of the risk associated with the firm. They may themselves supply the capital needed to run the enterprise or they may borrow the capital.

To carry out the production they also need natural resources. They need the most important element of human labour to carry out production. This is called as labour. After producing output with the help of land, labour and capital, the entrepreneur sells the product in the market to earn money called revenue. Part of the revenue is paid out as rent for land, interest for capital and wage for labour and keeps the rest of the revenue as profit.

Profits are often used by the producers in the next period to buy new machinery or to build new factories, so that production can be expanded. These expenses which raise productive capacity are examples of investment expenditure.

In the long run, all inputs are variable. There are no fixed costs, The total cost and the total variable cost coincide in the long run. There are two types of long-run costs. They are as follows:

a. Long-run average cost (LRAC): The long-run average cost is the cost per unit of output produced. It is obtained by dividing the total cost by the output produced. It can be calculated as follows: 

LRAC = TC/q 

Where, TC is total cost and ‘q’ is quantity of output produced.

b. Long-run marginal cost: The long-run marginal cost is the change in total cost per unit of change in output. When output changes in discrete units, then, if we increase production from q₁ – 1 to q₁ units of output, the marginal cost of producing q₁^th unit will be measured as follows: LRMC = (TC at q 1 units) – (TC at q₁ -1 units) or LRMC = TC_n – TCn_-1.

The author maintains that censorship will not work in the case of cyberspace because it is not a frontier where bad people can grab unsuspecting children. It is also not a giant television that telecast offensive messages at unwilling viewers. In cyberspace users choose where they visit, what they see and what they do. It is optional.

(a) Price ceiling

The term ‘psychology’ is derived from the word ‘psyche’, Greek means ‘soul’ or ‘spirit’

Cyber communities will have to have a moderator because anyone is free to post anything. Because of that there will be unwanted advertising, discussions that are. not healthy and rude participants. Then the cyberspace will become too noisy. To keep these negative elements in check a moderator would be needed.

In the long run, all inputs are variable. There are no fixed costs, the total cost and the total variable cost coincide in the long run. There are two types of long-run costs. 

They are as follows:

1. Long-run average cost (LRAC): The long-run average cost is the cost per unit of output produced. It is obtained by dividing the total cost by the output produced. It can be calculated as follows: 

LRAC = TC/q 

Where, TC is total cost and ‘q’ is quantity of output produced.

2. Long-run marginal cost: The long-run marginal cost is the change in total cost per unit of change in output. When output changes in discrete units, then, if we increase production from q₁ – 1 to q₁ units of output, the marginal cost of producing q₁^th unit will be measured as follows: LRMC = (TC at q₁ units) – (TC at q₁ – 1 units) or LRMC – TC_n – TC_n-1.

Goods produced by the firm are not homogenous. Such a market structure is called Monopolistic competition.

The modern psyche loves new frontiers. We love wide-open spaces; we like to explore; we like to make rules instead of following them.

A firm’s marginal cost curve is a part of its marginal cost curve. Any factor that affects a firm’s marginal cost curve is a determinant of its supply curve. 

Following are the two factors determining a firm’s supply curve:

a. Technological progress: The organisational innovation by the firm leads to more production of output. That means, to produce a given level of output, the organizational innovation allows the firm to use fewer units of inputs. It is expected that this will lower the firm’s marginal cost at any level of output, i.e. there is a rightward shift of the MC curve. As the firm’s supply curve is essentially a segment of the MC curve, technological progress shifts the supply curve of the firm to the right. At any given market price, the firm now supplies more quantity of output.

b. Input prices: A change in the prices of factors of production (inputs) also influences a firm’s supply curve. If the price of input (e.g. wage) increases, the cost of production also increases. The consequent increase in the firm’s average cost at any level of output is usually accompanied by an increase in the firm’s marginal cost at any level of output which leads to upward shift of the MC curve. That means, the firm’s supply curve shifts to the left and the firm produces less quantity of output.

Oligopoly market structure makes the market price of the commodity Rigid.

Cyberspace is the community of networked computers. It is the imagined place where electronic data goes before this was a playground for computer nerds and techies. But now it embraces all kinds of people, including children.

Some of the traditional metaphors used to denote cyberspace are highways and frontiers.

A firm’s marginal cost curve is a part of its marginal cost curve. Any factor that affects a firm’s marginal cost curve is a determinant of its supply curve. 

Following are the two factors determining a firm’s supply curve:

a. Technological progress: The organisational innovation by the firm leads to more production of output. That means to produce a given level of output, the organisational innovation allows the firm to use fewer units of inputs. It is expected that this will lower the firm’s marginal cost at any level of output, i.e. there is a rightward shift of the MC curve. As the firm’s supply curve is essentially a segment of the MC curve, technological progress shifts the supply curve of the firm to the right. At any given market price, the firm now supplies more quantity of output.

b. Input prices: A change in the prices of factors of production (inputs) also influences a firm’s supply curve. If the price of input (e.g. wage) increases, the cost of production also increases. The consequent increase in the firm’s average cost at any level of output is usually accompanied by an increase in the firm’s marginal cost at any level of output, which leads to an upward shift of the MC curve.

That means the firm’s supply curve shifts to the left and the firm produces less quantity of output.

Macroeconomics tries to address situations facing the economy as a whole.

What is special about cyberspace is that it frees us from the tyranny of power structures of the terrestrial communities. Cyberspace allows communities of any size and kind to flourish. In cyberspace communities are chosen by the users, not forced on them by accidents of geography. This freedom gives the rules in cyberspace a moral authority that rules in terrestrial environments don’t have. Most people are forced to stay in the country of their birth. But if you don’t like the rules of the cyberspace community, you can quit. It loves it or leave it, which is not possible in terrestrial communities.

The three major areas of services available in cyberspace are: 

First, the private email conversations similar to the talks you have on the telephone or voice mail. 

Second, information and entertainment services. Here people can download anything. These places are like book stores, malls, and movie-houses. 

Third, there are ‘real communities’- groups of people who communicate among themselves. They are like shops or restaurants or playgrounds. Each participant contributes to a general conversation, generally through posted messages. Other participants may simply listen or watch.