2044 + Interview Questions in Economics Page 4 InterviewSolution

151.	Suppose ittakes 1.25 yen to buy a rupee, and the price level in Japan is 3 andthe price level in India is 1.2. Calculate the real exchange ratebetween India and Japan (the price of Japanese goods in terms ofIndian goods). (Hint: First find out the nominal exchange rateas a price of yen in rupees).
Answer» Suppose it takes 1.25 yen to buy a rupee, and the price level in Japan is 3 and the price level in India is 1.2. Calculate the real exchange rate between India and Japan (the price of Japanese goods in terms of Indian goods). (Hint: First find out the nominal exchange rate as a price of yen in rupees).

Discussion

152.	Undistributed profits are considered to be:
Answer» Undistributed profits are considered to be:

Discussion

153.	'Indian education system is considered faulty from the employment angle'. Do you agree? Explain.
Answer» 'Indian education system is considered faulty from the employment angle'. Do you agree? Explain.

Discussion

154.	Q50. In which of the following World Bank affiliates India is not a member? निम्नलिखित में से किस विश्व बैंक समूह संस्था का भारत सदस्य नहीं है?
Answer» Q50. In which of the following World Bank affiliates India is not a member? निम्नलिखित में से किस विश्व बैंक समूह संस्था का भारत सदस्य नहीं है?

154.

Q50. In which of the following World Bank affiliates India is not a member? निम्नलिखित में से किस विश्व बैंक समूह संस्था का भारत सदस्य नहीं है?

Answer»

Q50. In which of the following World Bank affiliates India is not a member?

निम्नलिखित में से किस विश्व बैंक समूह संस्था का भारत सदस्य नहीं है?

Discussion

155.	On 1st April, 2018, an existing firm had assets of ₹ 75,000 including cash of ₹ 5,000. Its creditors amounted to ₹ 5,000 on that date. The firm had a Reserve of ₹ 10,000 while Partners' Capital Accounts showed a balance of ₹ 60,000. If Normal Rate of Return is 20% and goodwill of the firm is valued at ₹ 24,000 at four years' purchase of super profit, find average profit per year of the existing firm.
Answer» On 1st April, 2018, an existing firm had assets of ₹ 75,000 including cash of ₹ 5,000. Its creditors amounted to ₹ 5,000 on that date. The firm had a Reserve of ₹ 10,000 while Partners' Capital Accounts showed a balance of ₹ 60,000. If Normal Rate of Return is 20% and goodwill of the firm is valued at ₹ 24,000 at four years' purchase of super profit, find average profit per year of the existing firm.

Discussion

156.	___, the spinning machine invented by Samuel Crompton became the basis of mechanical spinning for a century.
Answer» ___, the spinning machine invented by Samuel Crompton became the basis of mechanical spinning for a century.

Discussion

157.	Out of stabilisation measures and structural measures under NEP, can you choose one of them? If not why? Explain.
Answer» Out of stabilisation measures and structural measures under NEP, can you choose one of them? If not why? Explain.

Discussion

158.	Which of these statements about the Bombay Plan is incorrect?(a) It was a blueprint for India’s economic future.(b) It supported state-ownership of industry.(c) It was made by some leading industrialists.(d) It supported strongly the idea of planning.
Answer» Which of these statements about the Bombay Plan is incorrect? (a) It was a blueprint for India’s economic future. (b) It supported state-ownership of industry. (c) It was made by some leading industrialists. (d) It supported strongly the idea of planning.

Discussion

159.	Deposits with defined and long maturity periods are called:
Answer» Deposits with defined and long maturity periods are called:

Discussion

160.	Focus of the second FYP rested on which of the following?
Answer» Focus of the second FYP rested on which of the following?

Discussion

161.	Clarify the meaning of the terms 'entrepreneur', 'entrepreneurship' and 'enterprise'.
Answer» Clarify the meaning of the terms 'entrepreneur', 'entrepreneurship' and 'enterprise'.

Discussion

162.	To solve the various problems associated with rural credit, enumerate the objectives which should be followed by the cooperative credit societies.
Answer» To solve the various problems associated with rural credit, enumerate the objectives which should be followed by the cooperative credit societies.

Discussion

163.	Which of these economic agents supply labour as a factor of production?
Answer» Which of these economic agents supply labour as a factor of production?

Discussion

164.

Mr. A does not keep proper records of his business. Following information is available from records kept by him: 1-4-2016 31-3-2017 ₹ ₹ Cash 20,000 18,000 Bank 30,000 33,000 Debtors 17,000 25,000 Stock 40,000 60,000 Fixed Assets 29,000 29,000 Creditors 52,000 32,000 Loan 10,000 25,000 Mr. A withdrew from the business ₹ 3,000 per month upto 30th September 2016 and thereafter ₹ 4,000 per month as drawings. ₹ 50,000 realised by the proprietor as maturity value of National Saving Certificates was invested in the business.Prepare a statement showing net profit (or net loss) for the year.

Answer» Mr. A does not keep proper records of his business. Following information is available from records kept by him:

	1-4-2016	31-3-2017
	₹	₹
Cash	20,000	18,000
Bank	30,000	33,000
Debtors	17,000	25,000
Stock	40,000	60,000
Fixed Assets	29,000	29,000
Creditors	52,000	32,000
Loan	10,000	25,000

Mr. A withdrew from the business ₹ 3,000 per month upto 30th September 2016 and thereafter ₹ 4,000 per month as drawings. ₹ 50,000 realised by the proprietor as maturity value of National Saving Certificates was invested in the business.

Prepare a statement showing net profit (or net loss) for the year.

Discussion

165.	Which is regarded as the defining year to mark the demographic transition from its first to the second decisive stage?
Answer» Which is regarded as the defining year to mark the demographic transition from its first to the second decisive stage?

Discussion

166.	Reserve Bank's Liquidity Adjustment Facility (LAF) refers to:
Answer» Reserve Bank's Liquidity Adjustment Facility (LAF) refers to:

Discussion

167.	Why rate constant doesn't depend upon concentration
Answer» Why rate constant doesn't depend upon concentration

Discussion

168.	___ is the practice of growing two or more crops in the same piece of land in the same growing seasons.
Answer» ___ is the practice of growing two or more crops in the same piece of land in the same growing seasons.

Discussion

169.	Some infrastructural facilities have a direct impact on production of goods and services while others give indirect support by building the social sector of the economy. Using above information, differentiate between social and economic infrastructure.
Answer» Some infrastructural facilities have a direct impact on production of goods and services while others give indirect support by building the social sector of the economy. Using above information, differentiate between social and economic infrastructure.

Discussion

170.	Why should the aggregate final expenditure of an economy be equal to the aggregate factor payments? Explain.
Answer» Why should the aggregate final expenditure of an economy be equal to the aggregate factor payments? Explain.

Discussion

171.	According to recent statistics released by Ministry of Rural Development on completion of ten years of implementation of MGNREGA, which of the following statements is/are correct: Which of the above statements is/are correct
Answer» According to recent statistics released by Ministry of Rural Development on completion of ten years of implementation of MGNREGA, which of the following statements is/are correct: Which of the above statements is/are correct

171.

According to recent statistics released by Ministry of Rural Development on completion of ten years of implementation of MGNREGA, which of the following statements is/are correct: Which of the above statements is/are correct

Answer»

According to recent statistics released by Ministry of Rural Development on completion of ten years of implementation of MGNREGA, which of the following statements is/are correct:

Which of the above statements is/are correct

Discussion

172.	Disinvestment of PSE's implies(a) Sale of equity shares to private sector / public(b) Closing down operations(c) Investing in new areas(d) Buying shares of PSE's
Answer» Disinvestment of PSE's implies (a) Sale of equity shares to private sector / public (b) Closing down operations (c) Investing in new areas (d) Buying shares of PSE's

172.

Disinvestment of PSE's implies(a) Sale of equity shares to private sector / public(b) Closing down operations(c) Investing in new areas(d) Buying shares of PSE's

Answer» Disinvestment of PSE's implies

(a) Sale of equity shares to private sector / public

(b) Closing down operations

(c) Investing in new areas

(d) Buying shares of PSE's

Discussion

173.	When did the ironmaster realise his mistake?
Answer» When did the ironmaster realise his mistake?

Discussion

174.	Which of the following is/are recurring in nature?
Answer» Which of the following is/are recurring in nature?

Discussion

175.	In theabove example, if exports change to X = 100, find the changein equilibrium income and the net export balance.
Answer» In the above example, if exports change to X = 100, find the change in equilibrium income and the net export balance.

Discussion

176.	How do geological phenomena help us to know about the history of humankind?
Answer» How do geological phenomena help us to know about the history of humankind?

Discussion

177.	Cause of BoP imbalance relates to:
Answer» Cause of BoP imbalance relates to:

Discussion

178.	Name the pillars and the objectives of the ASEAN Community.
Answer» Name the pillars and the objectives of the ASEAN Community.

Discussion

179.	Suppose C= 40 + 0.8Y D. T = 50, I = 60, G = 40, X= 90, M = 50 + 0.05Y (a) Findequilibrium income (b) Findthe net export balance at equilibrium income (c) Whathappens to equilibrium income and the net export balance when thegovernment purchases increase from 40 to 50?
Answer» Suppose C = 40 + 0.8Y D. T = 50, I = 60, G = 40, X = 90, M = 50 + 0.05Y (a) Find equilibrium income (b) Find the net export balance at equilibrium income (c) What happens to equilibrium income and the net export balance when the government purchases increase from 40 to 50?

179.

Suppose C= 40 + 0.8Y D. T = 50, I = 60, G = 40, X= 90, M = 50 + 0.05Y (a) Findequilibrium income (b) Findthe net export balance at equilibrium income (c) Whathappens to equilibrium income and the net export balance when thegovernment purchases increase from 40 to 50?

Answer»

Suppose C
= 40 + 0.8Y D. T = 50, I = 60, G = 40, X
= 90, M = 50 + 0.05Y

(a) Find
equilibrium income

(b) Find
the net export balance at equilibrium income

(c) What
happens to equilibrium income and the net export balance when the
government purchases increase from 40 to 50?

Discussion

180.	Select the correct equation.
Answer» Select the correct equation.

Discussion

181.	WTO was preceded by ___ .
Answer» WTO was preceded by ___ .

Discussion

182.

Construct index numbers of the following data by Fisher's Method: Commodity Base Year Current Year Price Value Price Value A B C D E 3 5 6 4 8 18 35 42 32 24 7 10 11 6 9 10 100 55 60 36

Answer» Construct index numbers of the following data by Fisher's Method:

Commodity	Base Year		Current Year
Commodity	Price	Value	Price	Value
A B C D E	3 5 6 4 8	18 35 42 32 24	7 10 11 6 9	10 100 55 60 36

Discussion

183.	Give the meaning of factor income to abroad and factor income from abroad. Also give an example of each.
Answer» Give the meaning of factor income to abroad and factor income from abroad. Also give an example of each.

183.

Give the meaning of factor income to abroad and factor income from abroad. Also give an example of each.

Answer»

Give the meaning of factor income to abroad and factor income from abroad. Also give an example of each.

Discussion

184.	Explain why G − T = (Sg − I) − (X − M).
Answer» Explain why G − T = (S^g − I) − (X − M).

Discussion

185.	Open market operations as an instrument of credit control are performed by:
Answer» Open market operations as an instrument of credit control are performed by:

Discussion

186.	How is income related to precautionary demand for money?
Answer» How is income related to precautionary demand for money?

Discussion

187.	How would you distinguish between development and non-development expenditure?
Answer» How would you distinguish between development and non-development expenditure?

Discussion

188.	A boat is sent across a river with a velocity of 8 km per hour. if the resultant velocity of boat is 10 km per hour then calculate the velocity of the river.
Answer» A boat is sent across a river with a velocity of 8 km per hour. if the resultant velocity of boat is 10 km per hour then calculate the velocity of the river.

Discussion

189.	Why was Douglas determined to get over his fear of water?
Answer» Why was Douglas determined to get over his fear of water?

Discussion

190.	Budgetary deficit of a Government is Rs. 50,000 crores, the borrowings, and other liabilities are Rs. 7,000 crores, What is the amount of fiscal deficit?
Answer» Budgetary deficit of a Government is Rs. 50,000 crores, the borrowings, and other liabilities are Rs. 7,000 crores, What is the amount of fiscal deficit?

Discussion

191.	What is the 'collateral' demand that lenders make against loans?
Answer» What is the 'collateral' demand that lenders make against loans?

191.

What is the 'collateral' demand that lenders make against loans?

Answer»

What is the 'collateral' demand that lenders make against loans?

Discussion

192.	Who was Dr Sadao? Where was his house?
Answer» Who was Dr Sadao? Where was his house?

Discussion

193.	The conduct of foreign affairs is an outcome of a two-way interaction between domestic compulsions and prevailing international climate. Take one example from India’s external relations in the 1960s to substantiate your answer.
Answer» The conduct of foreign affairs is an outcome of a two-way interaction between domestic compulsions and prevailing international climate. Take one example from India’s external relations in the 1960s to substantiate your answer.

Discussion

194.	Under which qualitative tool does the RBI fix the maximum limit on loan and advances that can be made, which the commercial banks cannot exceed?
Answer» Under which qualitative tool does the RBI fix the maximum limit on loan and advances that can be made, which the commercial banks cannot exceed?

Discussion

195.	Which rank does India hold in producing wind energy?
Answer» Which rank does India hold in producing wind energy?

Discussion

196.	Which of the following is the principal topic of the passage?
Answer» Which of the following is the principal topic of the passage?

Discussion

197.	The natural environment consists of the air, water, soil, sunlight and temperature in a place. Do you agree? Give reasons.
Answer» The natural environment consists of the air, water, soil, sunlight and temperature in a place. Do you agree? Give reasons.

Discussion

198.	Explain the 'standard of deferred payment' function of money. How has it solved the related problem created by the barter system?
Answer» Explain the 'standard of deferred payment' function of money. How has it solved the related problem created by the barter system?

Discussion

199.	The business practice of hiring a third-party to perform services which were previously done in-house is called ___.
Answer» The business practice of hiring a third-party to perform services which were previously done in-house is called ___.

Discussion

200.	A key difference between goods and services is :
Answer» A key difference between goods and services is :

Discussion

Explore topic-wise InterviewSolutions in .

Suppose ittakes 1.25 yen to buy a rupee, and the price level in Japan is 3 andthe price level in India is 1.2. Calculate the real exchange ratebetween India and Japan (the price of Japanese goods in terms ofIndian goods). (Hint: First find out the nominal exchange rateas a price of yen in rupees).

Undistributed profits are considered to be:

'Indian education system is considered faulty from the employment angle'. Do you agree? Explain.

Q50. In which of the following World Bank affiliates India is not a member? निम्नलिखित में से किस विश्व बैंक समूह संस्था का भारत सदस्य नहीं है?

___, the spinning machine invented by Samuel Crompton became the basis of mechanical spinning for a century.

Out of stabilisation measures and structural measures under NEP, can you choose one of them? If not why? Explain.

Which of these statements about the Bombay Plan is incorrect?(a) It was a blueprint for India’s economic future.(b) It supported state-ownership of industry.(c) It was made by some leading industrialists.(d) It supported strongly the idea of planning.

Deposits with defined and long maturity periods are called:

Focus of the second FYP rested on which of the following?

Clarify the meaning of the terms 'entrepreneur', 'entrepreneurship' and 'enterprise'.

To solve the various problems associated with rural credit, enumerate the objectives which should be followed by the cooperative credit societies.

Which of these economic agents supply labour as a factor of production?

Which is regarded as the defining year to mark the demographic transition from its first to the second decisive stage?

Reserve Bank's Liquidity Adjustment Facility (LAF) refers to:

Why rate constant doesn't depend upon concentration

___ is the practice of growing two or more crops in the same piece of land in the same growing seasons.

Some infrastructural facilities have a direct impact on production of goods and services while others give indirect support by building the social sector of the economy. Using above information, differentiate between social and economic infrastructure.

Why should the aggregate final expenditure of an economy be equal to the aggregate factor payments? Explain.

According to recent statistics released by Ministry of Rural Development on completion of ten years of implementation of MGNREGA, which of the following statements is/are correct: Which of the above statements is/are correct

Disinvestment of PSE's implies(a) Sale of equity shares to private sector / public(b) Closing down operations(c) Investing in new areas(d) Buying shares of PSE's

When did the ironmaster realise his mistake?

Which of the following is/are recurring in nature?

In theabove example, if exports change to X = 100, find the changein equilibrium income and the net export balance.

How do geological phenomena help us to know about the history of humankind?

Cause of BoP imbalance relates to:

Name the pillars and the objectives of the ASEAN Community.

Suppose C= 40 + 0.8Y D. T = 50, I = 60, G = 40, X= 90, M = 50 + 0.05Y (a) Findequilibrium income (b) Findthe net export balance at equilibrium income (c) Whathappens to equilibrium income and the net export balance when thegovernment purchases increase from 40 to 50?

Select the correct equation.

WTO was preceded by ___ .

Construct index numbers of the following data by Fisher's Method: Commodity Base Year Current Year Price Value Price Value A B C D E 3 5 6 4 8 18 35 42 32 24 7 10 11 6 9 10 100 55 60 36

Give the meaning of factor income to abroad and factor income from abroad. Also give an example of each.

Explain why G − T = (Sg − I) − (X − M).

Open market operations as an instrument of credit control are performed by:

How is income related to precautionary demand for money?

How would you distinguish between development and non-development expenditure?

A boat is sent across a river with a velocity of 8 km per hour. if the resultant velocity of boat is 10 km per hour then calculate the velocity of the river.

Why was Douglas determined to get over his fear of water?

Budgetary deficit of a Government is Rs. 50,000 crores, the borrowings, and other liabilities are Rs. 7,000 crores, What is the amount of fiscal deficit?

What is the 'collateral' demand that lenders make against loans?

Who was Dr Sadao? Where was his house?

The conduct of foreign affairs is an outcome of a two-way interaction between domestic compulsions and prevailing international climate. Take one example from India’s external relations in the 1960s to substantiate your answer.

Under which qualitative tool does the RBI fix the maximum limit on loan and advances that can be made, which the commercial banks cannot exceed?

Which rank does India hold in producing wind energy?

Which of the following is the principal topic of the passage?

The natural environment consists of the air, water, soil, sunlight and temperature in a place. Do you agree? Give reasons.

Explain the 'standard of deferred payment' function of money. How has it solved the related problem created by the barter system?

The business practice of hiring a third-party to perform services which were previously done in-house is called ___.

A key difference between goods and services is :