EEC Questions for 4th sem

EEC FOR 4TH SEM 2015-19 BATCH MODULE 1 &2 PRACTICE QUESTION
                               prepared by-S.K DAS SIR                                                                                                                                

                                                                      QUESTIONS

 

                         MCQ ANSWER ARE GIVEN THERE ITSELF

            

                    EEC SHORT QUESTION ANSWERS

1. What is economics?

-> Economics is a social science, which deals with how people distribute their limited resources to satisfy their unlimited needs, wants and demands.

2. What is fundamental problem of economics?

-> The fundamental problems are:-

    i) Allocation of resources

   ii) Full utilization of resources

  iii) Growth of resources

3. What is micro economics?

-> Micro economics is the study of various parts of economy in isolation. It’s also called as pricing theory.

4. What is macro economics?

-> Macro economics is the study of income and consumption as a whole.

   Problems like inflation and unemployment known as part of macro economics.

5. Distinguish between micro economics and macro economics?

->    Micro economics     

- Micro economics is the study of various parts of economy in isolation.

 - It’s also called as pricing theory.

      Macro economics             

-       Macro economics is the study of income and consumption as a whole.

-          Problems like inflation and unemployment known as part of macro economics.

 6. State the law of demand?

-> Alfred Marshall defines “the amount demanded increases with a fall in price and decrease with a rise in price.”            

- Samuelson defines “people will buy more at lower price and buy less at higher price.”

- Ferguson defines “quantity demand varies inversely with price.”     Q α (1/P)           

7. State two important determinants of demand?

-> i) Nature of commodity

    ii) Habit of individuals

8. State two exceptions to the law of demand?

-> i) Ignorance

   ii) Change in fashion

9. What is meant by elasticity of demand?

-> Responsive of demand of a commodity due to price income and related price.

10. Define price elasticity of demand?

-> The degree of responsiveness of demand to change in price of the commodity is known as price elasticity of demand.

11. Define income elasticity of demand?

-> It can be defined as the degree of responsiveness of quantity demanded of a commodity due to small change in income of an individual.

12. Define cross elasticity of demand?

-> It can be defined as the degree of responsiveness of quantity demanded of a commodity-X due to change in price of commodity-Y.

13. State the law of supply?

-> The law of supply states that at higher prices large quantity of commodities supplied to the product market and at lower prices less quantity of commodities is supplied to the product market.

14. State two exceptions to the law of supply?

-> i) Future expectations

   ii) Agricultural goods

15. What is elasticity of supply?

-> Responsiveness of quantity supplied due to change in price is known as elasticity of supply.

16. What is perfect competition?

-> Perfect competition is a form of market in which there is a large number of buyers and sellers.

17. What is equilibrium price?

-> Equilibrium price is the price at which the forces such as demand and supply, determines the price of any commodity in the market.

18. What are factors of production?

-> Land, Labor, Capital, Enterprise

19. What is land?

-> In economics all natural resources are called as land.

20. What is labor?

-> All human effort physical and mentally efforts that people can put into the production process is called labor.

21. What is capital?

-> Manufactured resources which can be used to produce product and services is called as capital.

22. What is entrepreneurship?

-> The ability to organize land labor and capital into production process and also innovative is called entrepreneurship.             

23. What is isoquant?

-> An isoquant is a firm's counterpart of the consumer's indifference curve. An isoquant is a curve that shows all the combinations of inputs that yield the same level of output. 'Iso' means equal and 'quant' means quantity.

24. What is isocost?

-> The isocost line is an important component when analyzing producer's behavior. In simple words, an isocost line represents a combination of inputs which all cost the same amount.

25. State the law of increasing returns?

-> In a given state of technology when the units of variable factors are increased with the units of other fixed factors, the marginal productivity increases, it is called law of increasing returns.

26. State the law of decreasing returns?

-> In a production process, as one input variable is increased, there will be a point at which the marginal per unit output will start to decrease, it is called law of decreasing returns.

27. State the law of constant returns?

-> The law of constant returns is said to operate when the return remains the same as the business is expanded or contracted.

28. State the law of variable proportion?

-> The law of variable proportions states that as the quantity of one factor is increased, keeping the other factors fixed, the marginal product of that factor will eventually decline.

29. State the law of return to scale?

-> Returns to scale relates to the behavior of total output as all inputs are varied and is a long run concept is called as law of return to scale.

30. Define average product and marginal product?

-> Average Product is defined as the Average produced by every worker. When we divide the total product by output we get average product.

   The net change in total production by using the additional units of labor is known as Marginal Product of Labor.


(short type prepared by Anil Kumar sahoo ,EEE)