Explore topic-wise InterviewSolutions in Current Affairs.

Price elasticity of supply is equal to one.

Correct option is D) those boys are doing

The Total Cost is the actual cost incurred in the production of a given level of output. In other words, the total expenses (cost) incurred, both explicit and implicit, on the resources to obtain a certain level of output is called the total cost.

It is a form of market in which there are a few firms. 

Correct option is B) into

Total expenditure will increase. 

Total variable cost is derived by summing up of marginal cost.

Substitute goods are a pair of goods which can be used in place of each other to satisfy a given want (tea and coffee) where as complementary goods are a pair of goods which are used together to satisfy a given want (Car and petrol).

A producer is said to reach equilibrium at the level of output which gives him maximum profit. Its conditions of equilibrium are

(i) TR – TC is maximum or

(ii) MR = MC and MC should be rising

Implication of product differentiation in Monopolistic Competition is that buyers of a product differentiate between the same product produced by different firms. Therefore, they are also willing to pay different prices for the same product produced by different firms. This gives some monopoly power to an individual firm to influence market price of its product. 

Homogeneous product means that the buyer treat product of all firms in the industry as identical. Therefore the buyers are willing to pay only the same price for the products of all the firms in the industry. It also implies that no individual firm is in a position to change a higher price for its product. This ensures uniform price in the market.

The circular flow means the unending flows of production of goods and services, income and expenditure in an economy. It shows the redistribution of income in a circular manner between the production unit and households.

These are Land, Labour, Capital and Entrepreneurship

• The contribution made by fixed natural resources (called ‘land’), payment for which is called ‘rent’
• The contribution made by a human worker (labour), payment for which is called ‘wage’.
• The contribution made by capital, payment for which is called ‘interest’.
• The contribution made by entrepreneurship, payment for which is ‘profit’.

Theory of Demographic Transition is a theory that throws light on changes in birth rate and death rate and consequently on the growth-rate of population.

Along with the economic development, tendencies of birth-rate and death rate are different.

Because of it, growth rate of population is also different.

“Demographic transition refers to a population cycle that begins with a fall in the death rate, continues with a phase of rapid population growth and concludes with a decline in the birth rate”- E.G. Dolan.

Put tan(3pi/4) = -1 and simplify it  

You will get  tan² x - 2tan x - 1 = 0  

so, tan x is 1 + root 2 or 1 - root 2

5sinx+3sin(x-q)

= 5sinx+3sinxcosq-3cosxsinq

=(5+3cosq) sinx-3sinqcosx

=asinx-bcosx, [where (5+3cosq)=a and 3sinq =b]

= (a²+b²)^1/2[{a/(a²+b²)^1/2}sinx-{b/(a²+b²)^1/2}cosx]

= (a²+b²)^1/2[cosØsinx-sinØcosx], where tanØ=b/a

=(a²+b²)^1/2[sin(x-Ø)]

this will have maximum value for sin(x-Ø)=1

Hence max[5sinx+3sin(x-q)] =7

=> (a²+b²)^1/2=7

=>(a²+b²)=49

=> ((5+3cosq)²+(3sinq)²)=49

=> (25+9cos²q+30cosq+9sin²q)=49

=> 34+30cosq=49 {since 9cos²q+9sin²q=9]

=> cosq=1/2=cos(π/3)

So q = 2nπ±π/3, where n belongs to Z

Demonetization 

Demonetization is the act of stripping a currency unit of its status as legal tender. The old unit of currency must be retired and replaced with a new currency unit On 8 November 2016, Prime Minister Narendra Modi announced the "demonetization" of Rs. 500 and Rs. 1,000 notes with effect from the next day. The first claim is that demonetization would plug terror financing. The second claim is that demonetization would help unearth black money." The third claim is that the unearthed black money would expand the fiscal space of the government. When unaccounted cash is not returned to the banking system, the Reserve Bank of India (RBI) can use the savings to pay the government e dividend. The fourth claim is that demonetization would help-reduce interest rates in the banking system. The fifth claim is that demonetization would help formalise India's informs economy reduce the extent of transactions in cash and help create a less-cash economy" Demonetization as a cleaning exercise may produce good things economy. The immeasurable benefits of having more transparency and reduced volume of black money activities can be expected as long term benefits.

2^sinx+2^cosx=2*2^(-1/√2) 

=>2^{(sinx+1/√2)}+2^{(cosx+1/√2)}=2=2⁰+2⁰

=>sinx+1/√2=0 and cosx+1/√2=0

So sinx=sin(-π/4)

=>x = nπ - (-1)ⁿ​​​​​(π/4), where n€Z

And for cosx =-1/√2=cos(3π/4)

=>x=2kπ+(3π/4) and 2kπ-(3π/4)

Where k € Z

(a) 5 Units 

(b) 4 Units 

(c) Downward 

(d) Yes 

(e) True.

Meaning by Balance of Payments (BoP) Balance of payments of a country is a systematic record of all economic transactions between residents of a country with residents of foreign countries in an accounting year. It records a country’s all economic transactions with the rest of the world which involves flow of foreign exchange. 

In simple words it records inflow and outflow of currency from the country. 

(i) Balance of payments is a flow concept, because generally it relates with one accounting year. 

(ii) It is a way of listing receipts and payments in international transactions. 

(iii) The term residents means those persons and institutions which resides in a country for more than one accounting year and their economic interest lie in that country. 

(v) Balance of payments accounts are made on double entry system. Payments are recorded on the debit side and receipt on the credit side. Therefore balance of payment account must be balanced from accounting point of view. 

When MOC is constant. 

PPC is concave to the origin because of increasing marginal rate of transformation (or increasing marginal opportunity cost).

Production Possibility Curve shows the different combinations of two goods which an economy can produce with available technology and resources. It would shift towards right-hand side in case of growth of resources or technological progress. 

It is the amount of wage/salary the person would have earned in a job.

The general term of the expression is

t_r.  = tan^-1(1/(1+r+r^^2))

=>t_r =tan^-1(r+1)-tan^-1(r)

So inserting r=1 to infinity and summing up we get the required sum as

S =t₁+t₂+t₃+.......t_infinity

=tan^-1(infinity)-tan^-1(1)

=pi/2-pi/4=pi/4

cos^-1x -sin^-1x =sin^-1(1-x)

=>cos^-1x -(π/2-cos^-1x) =sin^-1(1-x) ;

=>2cos^-1x =π/2+sin^-1(1-x) ;

=>cos(2cos^-1x) =cos(π/2+sin^-1(1-x) );

=>2[coscos^-1x]²-1 =-sinsin^-1(1-x)

=> 2x²-1=-1+x

=>2x²-x=0

=> x(2x-1)=0

So x=0 and x=1/2

Hence option (b) is correct

Option (a) and (c) accepted

We know that for the relation

 sin^-1x+cos^-1x=π/2 , x€[-1,1]

As -1/2€[-1,1], f(-1/2)=π/2-> option (a)valid 

Now k²-2k+3=(k-1)²+2>2 for k€R

So ( k²-2k+3) does not belong to [-1,1]

Hence option (b) is not valid

Again 0<1/(1+k²) <1 for k€R

So (1/(1+k²)) € [-1,1] 

Hence option (c)  is valid.

As -2 does not belong to [-1,1]

Option (d) is not valid

Consumer theory is the study of how people decide to spend their money based on their individual preferences and budget constraints. A branch of microeconomics, consumer theory shows how individuals make choices, subject to how much income they have available to spend and the prices of goods and services.

• Consumer theory is the study of how people decide to spend their money based on their individual preferences and budget constraints.
• Building a better understanding of individuals' tastes and incomes is important because these factors impact the shape of the overall economy.
• Consumer theory is not flawless, though, as it based on a number of assumptions about human behavior.

Correct option: (4) a, b, c and d

Correct option is: (C) 10cos10x

Correct option is: (D) 0

Correct option is: B. 1

Correct option is: (B) cos^-1x + k

Interest rates and bond prices are inversely related. Suppose a person owns a bond of the value of Rs.1000 carrying 8% interest. His yearly income is Rs.80. Now further suppose that the rate of interest rises to 10%. The interest income of the bondholder will still be Rs.80, but the value of the bond will fall to Rs.800. It is because that Rs.800 will give an income of Rs.80 at the 10% rate of interest. Reverse will happen, if the rate of interest falls.

Primary, secondary and tertiary sectors are the three important sectors of an economy. Primary sector produces mainly agricultural products, whereas secondary sector produces manufactured goods and tertiary sector provides various services to the economy.

Transfer payments are those payments, which are received without doing any work or without contributing to the flow of goods and services.

Karl Marx in his famous book ‘capital’ published in 1867 gave an explanation of profit in terms of ‘the theory of surplus value’. According to him, value is created only by labour. But the labour gets less than the value it creates. In other words, the entrepreneur who hires labour pays less to labour in form of wages as compared to value created by it. The difference is termed as surplus value, which is actually created by labour but goes to entrepreneur’s pocket. Karl Marx says the ownership of the means of production by the entrepreneurs makes it possible for them to exploit labour. 

(i) Health; 

(ii) Law and order, and 

(iii) Street lighting.

Utility in a good can be created by a number of ways. 

These are: 

1. Form utility; 

2. Place utility; 

3. Time utility; 

4. Knowledge utility; 

5. Possession utility;

6. Service utility.

Economic efficiency refers to the process of operation of free market economy efficiently. As resources are scarce; they are to be utilized in such a way that there is no wastage of resources. It is therefore important to decide whether decisions regarding—what to produce, how to produce and for whom to produce–are economically efficient.

Productive efficiency means producing maximum level of output from given amount of resources.

K = ΔY/ΔI = 50/10 = 5

∴ mps = ΔS/ΔY = 500/500 = 1

In recent years, national income studies have become very useful for an economy. 

The points below explain the importance of national income studies: 

(a) The government uses national income data to formulate economic policies. 

(b) National income figures are important indicators of the economic progress and welfare of a country. 

(c) National income estimates are used in comparing the international level of economic progress of welfare. 

(d) National income data enable us to have an idea about the structure of an economy. 

(e) The data relating to national income are very useful for the trade unions. 

(f) National income data are also useful to determine the expenditure for the development of defence in the country.

Capital losses are the loss of value of fixed assets due to unexpected obsolescence such as natural calamities like floods, earthquakes, depletion of mineral resources etc. Production generally comes to an end during the time of capital loss.