InterviewSolution
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InterviewSolution
This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
With the ₹500 cash award received by a student prepares a list of goods. She writes to have each of the goods priced @₹500.1. An Economics textbook. 2. A movie with her friends. 3. An outing. 4. A dinner with her parents.Explain opportunity cost. Identify the opportunity cost of buying one economic textbook. |
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Answer» Opportunity cost is the next best alternative forgone. The opportunity cost of buying an economic textbook is the foregone movie with friends. |
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| 2. |
Give two examples of underutilization of resources. |
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Answer» 1. Improper distribution of scarce resources leads to under utilisation of capacities, 2. Due to technological backwardness, industrial workers’ capacity is underutilized |
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| 3. |
“Since resources are limited, they should be properly used”. Comment on this statement in the light of utilization of energy resources in Kerala. |
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Answer» This statement relates to the problem of scarcity of resources and thus connected to the scarcity definition of Lionel Robbins. According to this statement, the scarcity of resources forces the economy to choose the most urgent need that is to be satisfied. Since energy resource in Kerala is limited in supply, it has to be judiciously utilized. Control over the utilization of energy is necessary in states like Kerala so that this scarce resource can be protected. |
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| 4. |
The government should increase tax on tobacco products. Explain whether the statement is positive or normative. |
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Answer» This is a normative statement because it says how the government should tax. It is only an opinion. This cannot be proved. Since it contains a value judgment it is a normative statement. |
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| 5. |
Classify the following statement into two branches of economics.1. Indian economy grew by 9.2% GDP in the financial year 2006. 2. An unexpected lorry strike caused the price of vegetables to rise. 3. Recently the RBI reduced the Cash Reserve Ratio to 5.5%. 4. Madras Cement LTD is planning to add 40 lakh tonne to its existing production capacity of 60 lakh tonnes. |
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Answer» 1. Macroeconomics 2. Microeconomics 3. Macroeconomics 4. Microeconomics |
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| 6. |
Classify the following into Microeconomics and Macroeconomics. |
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Answer» Demand analysis, Consumption function, Theory of international trade, Income determination, Pricing of factors of production, Investment function.
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| 7. |
A few statements are given below. Classify them under two branches of economics. 1. RBI formulated its new monetary policy. 2. National Income recorded the highest growth last year. 3. Shyam purchased a new mobile phone. 4. Inflation adversely affects the fixed income of people. 5. Total Fixed Cost of a firm remains constant even if output increases. |
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Answer» 1. Macro economics 2. Macro economics 3. Microeconomics 4. Macroeconomics 5. Microeconomics |
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| 8. |
Classify the following statements into positive and normative statements. 1. Statement I: India introduced a new economic policy in 1991. 2. Statement II: Globalization badly aected India’s agricultural sector. 3. Statement III: The number of people living below poverty line has to be reduced from the present level of 21%. 4. Statement IV: Mean, median and mode are the measures of central tendency. |
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Answer» 1. Statement I: positive statement 2. Statement II: normative statement 3. Statement III: normative statement 4. Statement IV: positive statement. |
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| 9. |
Scarcity definition was given by:(i) Adam Smith (ii) Alfred Marshall (iii) Lionel Robbins (iv) Samuelson |
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Answer» (iii) Lionel Robbins |
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| 10. |
How does a market economy solve central economic problems? (i) Central planning (ii) Price mechanism (iii) Both (i) and (ii) (iv) None of the above |
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Answer» Correct answer is (ii) Price mechanism |
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| 11. |
What is the shape of a production possibility curve? (i) Convex to origin (ii) Concave to origin (iii) Horizontal (iv) Vertical |
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Answer» (ii) Concave to origin |
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| 12. |
As a result of liberalisation policy, the inflow of foreign capital has increased. What is its impact on production possibility frontier? |
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Answer» PPC shifts upward as a result of the increase in the availability of capital resources. |
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| 13. |
“Labour intensive technique is the best technique of production”. Give arguments in favour of and against this statement. |
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Answer» Arguments in favour of: 1. Labour intensive technique provides more employment opportunities. 2. Labour intensive technique needs less capital. 3. Labour intensive technique requires less skill only. Arguments against: 1. Labour intensive technique is less productive. 2. Labour intensive technique prevents development 3. Labour intensive technique makes the economy less productive |
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