IEcoS (Economic Services) Economics Paper-1: Questions 20 - 24 of 85

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Question number: 20

» Theory of Production » Duality and Cost Function, Measures of Productive Efficiency of Firms

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Appeared in Year: 2011

Short Answer Question▾

Write in Short

Establish mathematically the relationship between average cost (AC) and marginal cost (MC).

Question number: 21

» Quantitative Methods in Economics » Statistical and Econometric Methods » Measures of Central Tendency and Dispersions

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Appeared in Year: 2011

Essay Question▾

Describe in Detail

In computing the correlation coefficient between two variables X and Y from 25 pairs of observations, the intermediate results are:

Later on at the time of checking it was found that two pairs of observations which should be

Table shows the correct value of correlation coefficient

The correct value of correlation coefficient

X

8

12

y

6

8

Had been incorrectly recorded as

Table shows the incorrect value of correlation coefficient

The correct value of incorrelation coefficient

X

6

14

y

8

6

Calculate the correct value of correlation coefficient.

Explanation

Correct values

Table shows the correct value of correlation coefficient

The correct value of correlation coefficient

X

8

12

y

6

8

Incorrect Values

Table shows the incorrect value of correlation coefficient

The correct value of incorrelation coefficient

X

6

14

y

8

6

Correct

… (21 more words) …

Question number: 22

» Theory of Value » Pricing under Different Market Structures » Cross-Subsidy Free Pricing and Average Cost Pricing

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Appeared in Year: 2011

Essay Question▾

Describe in Detail

What do you mean by price discrimination? Under which condition is the price discrimination profitable? Trace out the equilibrium situation under price discrimination.

Explanation

Price discrimination is a practice wherein the buyer sells the same good at different prices to different consumers. There are three types of price discrimination. Firstly, Price discrimination of first degree is said to occur when the seller is able to sell each separate unit of the output at different price. It is also called as take it or leave

… (529 more words) …

Question number: 23

» Theory of Production » Equilibrium of the Firm and Industry

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Appeared in Year: 2013

Essay Question▾

Describe in Detail

Why does a perfectly competitive firm keep on producing in the short run when it is incurring losses?

Explanation

  • Explain also when the firm will shut down. Use suitable diagram.

  • In a perfectly competitive market, a firm is a price taker, that is, it can sell any amount of output at the prevailing market price. The equilibrium conditions are that MC = MR = Price and slope of MC should be greater than slope of MR. But the level of profits depends on the A

… (86 more words) …

Question number: 24

» Quantitative Methods in Economics » Statistical and Econometric Methods » Lorenz Curve and Gini Coefficient

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Appeared in Year: 2013

Essay Question▾

Describe in Detail

Describe Gini ‘s coefficient as a measure of inequality.

Explanation

  • Lorenz curve plots the proportion of total income that is cumulatively earned by the bottom x % of the population.

  • If there is no income inequality, then the Lorenz curve will be a straight line called as the line of equality. A large area (A) between Lorenz curve and line of equality means a high level of inequality. A larger value of A will

… (95 more words) …