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. |
Micro Economics is otherwise known as “price theory”. Do you agree with this statement? Justify your answer. |
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Answer» Yes. It is related to the theory of product and factor pricing. |
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| 2. |
Who is known as the father of modern Macro Economics?(a) Adam Smith (b) Alfred Marshall (c) J.M.Keynes (d) J.B.Say |
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Answer» (c) J.M.Keynes |
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| 3. |
Some Economic Variables are given below. Classify them in a table based on two branches of Economics.Give suitable titles to the column. General price level, Aggregate consumption,Rent for a house in a city, Demand for fish in a local market. |
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| 4. |
Them in a table based on two branches of Economics. Give suitable titles to the column. General price level, Aggregate consumption,Rent for a house in a city, Demand for fish in a local market. |
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| 5. |
Read the following statements carefully.Statement I: M/s. Sathyam Computers Ltd. decided to introduce a wage cut of 10% for the labourers in the company in November, 2008.Statement II: Reserve Bank of India introduced a new credit policy for the economy in the month of October, 2008.In which Branc of Economics do you include the statement and why? |
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Answer» Micro: Individual approach Macro: Aggregate / General approach |
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| 6. |
Identify the curve given below. What does the points A, B, C represents? |
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Answer» Production Possibility Curve: It shows various combinations of two goods that an economy can produce with a given level of resources and a given level of technology. Point ‘A’shows efficient utilisation of resources. Point ‘B’ We can say that at any point above the existing PPC shows the growth of resources and Point ‘C’ inside the production possibility curve implies insufficient utilisation of resources. |
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| 7. |
Central problems faced by an economy can be solved through different ways by different economic systems.(a) Which are the important economic systems? (b) How each system solves the central problems? |
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Answer» (a) Economic systems are: (i) Capitalism (ii) Socialism (iii) Mixed economy (b) Solution of central problems (i) Capitalist economy solves the central economic problems through price mechanism (ii) Socialist economy solves the central economic problems through economic planning. (iii) Mixed economy solves the central economic problems through both price mechanism and central planning. |
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| 8. |
Classify the following statements into two branches of Economics.(a) Reliance Communications reduced the STD charges by 20% from November onwards.(b) The Government proposed to reduce unemployment by introducing IT-related industries.(c) RBI hiked the cash reserve ratio.(d) Maruti Udyog decided to increase the production of the brand Estilo. |
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Answer» (a) Micro Economics (b) Macro Economics (c) Macro Economics (d) Micro Economics |
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| 9. |
How each of the following affects the Production Possibility Curve of an Economy?(a) The number of employed workers increase. (b) Tsunami destroys some production facilities. (c) Introduction of capital intensive technique. (d) Increase in fuel price. |
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Answer» (a) PPC shifts outward (b) PPC shifts inwards (c) PPC shifts outwards (d) PPC shifts inwards |
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| 10. |
Which among the following is not a characteristics of a Capitalist Economy?(a) Wages and prices are administered by the government. (b) Private ownership of means of production.(c) Production takes place for exchange (d) Sale and purchase of labour services at a price is called wage rate. |
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Answer» (a) Wages and prices are administered by the government. |
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| 11. |
In a centrally planned economy all important decisions regarding production, exchange and consumption are taken by(a) The Government (b) The Market (c) Either of (a) and (b) (d) The Central Bank |
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Answer» The Government |
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