Tag: economics

Questions Related to economics

The statistical data are of two types. These types are

economics partition values introduction to statistics introduction to statistical method and econometrics frequency distribution tables and graphs

  1. Technical data and presentation data

  2. Primary data and secondary data

  3. Primary data and personal data

  4. None of these

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Correct Option: B
Explanation:

The data is of two types, primary and secondary data.

Which one of the following represents statistical data?

economics partition values introduction to statistics introduction to statistical method and econometrics frequency distribution tables and graphs

  1. The names of all owners of shops located in a shopping complex.

  2. A list giving the names of all states of India.

  3. A list of all European countries and their respective capital cities.

  4. The volume of a rainfall in certain geographical area, recorded every month for 24 consecutive months.

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Correct Option: D
Explanation:
$\Rightarrow$  Statistics is a very broad subject, with applications in a vast number of different fields.
$\Rightarrow$  Statistics is the methodology which scientists and mathematicians have developed for interpreting and drawing conclusions from collected data. 
$\Rightarrow$  Everything that deals even remotely with the collection, processing, interpretation and presentation of data belongs to the domain of statistics, and so does the detailed planning of that precedes all these activities.
$\Rightarrow$  Statistics consists of a body of methods for collecting and analyzing data.
$\therefore$  Option $D$ represent statistical data, since its collecting and analyzing the data.

The price of an article was increased by $r$%. Later the new price was decreased by $r$%. If the latest price was Re. $1$, then the original price was:

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  1. Re. $1$

  2. Rs. $\left( \cfrac { 1-{ r }^{ 2 } }{ 100 } \right) $

  3. Rs. $\cfrac { \sqrt { 1-{ r }^{ 2 } } }{ 100 } $

  4. Rs. $\left( \cfrac { 10000 }{ 10000-{ r }^{ 2 } } \right) $

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Correct Option: D
Explanation:
Let the original price of product be 'P'
Price increased by r%
$\therefore$ Increased price$=P\left( 1+\cfrac { r }{ 100 }  \right) $
New price decreased by r%
$\therefore $ Latest price$=\left[ P\left( 1+\cfrac { r }{ 100 }  \right)  \right] \left( 1-\cfrac { r }{ 100 }  \right) $
$=P\left( 1+\cfrac { { r }^{ 2 } }{ { 100 }^{ 2 } }  \right) $
Given latest price=Re. $1$
$\therefore P\left( 1+\cfrac { { r }^{ 2 } }{ { 100 }^{ 2 } }  \right) =1$
$P=$Rs. $\left( \cfrac { 10000 }{ 10000-{ r }^{ 2 } }  \right) $

A set of annual numerical data, comparable over the years, is given for the last $12$ years.
Consider the following statements:
$1.$ The data is best represented by a broken line graph, each corner (turning point) representing the data of one year.
$2.$ Such a graph depicts the chronological change and also enables one to make a short-term forecast.
Which of the above statements is/are correct?

economics partition values introduction to statistics introduction to statistical method and econometrics frequency distribution tables and graphs

  1. $1$ only

  2. $2$ only

  3. Both $1$ and $2$

  4. Neither $1$ nor $2$

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Correct Option: A
Explanation:

The first statement is true as we can easily track the ups and downs of datat form 1 year to the next.

Statement 2 is false as the graph would require some kind of mathematical model to predict the short-term forecast and would not be helpful on its own. 

In industry statistics is applied in the following areas...

economics partition values introduction to statistics introduction to statistical method and econometrics frequency distribution tables and graphs

  1. Plant layout

  2. Quality control

  3. No. of vendors

  4. Transfers of Managers

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Correct Option: B
Explanation:

In industries, statistics is applied majorly in areas of Quality Control.

Two-sector economy consists of _______________.

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  1. Households, firms

  2. Firms, Foreign sector

  3. Households, Government

  4. Firms, Government

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Correct Option: A
Explanation:

Two sector economy consists of:
a) Household sector: It includes consumers of goods and services. Households are also the owners of the factors of production.
b) Producer sector: It includes all producing units in the economy. For the production of goods and services, the firms purchase factors of production.

Stock variable is defined as a variable which is __________________.

economics basic concepts of national income macroeconomic theories some basic concepts of macroeconomics introduction to macroeconomics

  1. Measured over a period of time

  2. Measured at a particular point of time

  3. Cannot be measured

  4. None of these

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Correct Option: B
Explanation:

Stock variable is defined as a variable which is measured at a particular point of time. Stock is not time dimensional. It influences the flow. Example: wealth, capital, etc.

The following statement is true or false? Give reasons.
Final goods include only those goods which are consumed by the households. 

economics basic concepts of national income macroeconomic theories some basic concepts of macroeconomics introduction to macroeconomics

  1. True

  2. False

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Correct Option: B
Explanation:

Final goods include those goods which are either consumed by the households or purchased by the producers for investment purposes. 

The following statements true or false? Give reasons.
End-use of the goods categorise the goods as intermediate goods and final goods. 

economics basic concepts of national income macroeconomic theories some basic concepts of macroeconomics introduction to macroeconomics

  1. True

  2. False

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Correct Option: A
Explanation:

If the end-use of the good is for further production or resale, then the good Is an intermediate good. However, if the end-use of the good is consumption or investment, then the good is a final good. 

The following statement is true or false? Give reasons.
Butter is only a final product. 

economics basic concepts of national income macroeconomic theories some basic concepts of macroeconomics introduction to macroeconomics

  1. True

  2. False

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Correct Option: B
Explanation:

The statement is false because:
It depends on the end use of butter. If butter is purchased by a household, then it Is a final good.
However, if it is purchased by a bakery shop for making cakes, then it is an intermediate good.