Economics

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“Economics Interview Questions and Answers Guide will explain us now that Economics is the social science that studies the production, distribution, and consumption of goods and services. Economics Interview Questions and Answers are for your preparation of Economics jobs. Current economic models developed out of the broader field of political economy in the late 19th century. Learn more about the basic and advance Economics by our Economics Interview Questions and Answers Guide.”



115 Economics Questions And Answers

21⟩ How does one arrive at a competitive pricing strategy for a multi-service practice where there are no specific products in question?

If your question is competitive pricing of services then utilize ABC (Activity Based Costing) to determine the Cost per activity related to the service.

Accumulate all such activities into a package and arrive at Cost per Package. Analyze the overall revenues that packages may stream in discounted over the next three years. You now have two points of Play

a) Cost per package

b) Overall discounted cost per enhanced package

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22⟩ How do the average household income of the different countries compare?

In order to answer this question it is best to look at median household income. Median household income represents the statistical mid-point, with half of all households making more and half making less.

For the developed nations, median household income figures range from $30,000 to $55,000. For US states median household income figures range from $32,000 to $57,000. Overall, median household income levels among developed nations are similar to those found among US states.

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25⟩ What will be the long-term effects of the Baby Boom?

There are millions of Baby Boomers coming up hot and heavy. There are pros and cons...

PROS:

Baby Boomers want things right and aren't too old to fight for it which could be excellent in the areas of health care, politics, and taking a good solid stand on important issues of the country they are in.

Baby Boomers are either going to retire and travel, stay around home, have ill health perhaps, or many well go back to work part-time or full-time. Although I am not classed as a Baby Boomer I found that I would rather work part-time than stay home constantly and it helps financially. Baby Boomers may even have more free time to volunteer in places that need help, or, they may even go back to College or night school. Some may even go into their own businesses. They have much to offer.

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26⟩ What is the Gross Domestic Product of Norway?

Norway is one of the world's most developed nations and is home to one of the most advanced economies in the world. The country's overall GDP is quite large considering the nation's small population. Its GDP per capita is higher than that of the United States, ranked second in both nominal and PPP figures.

Its GDP figures in 2005 were as follows:

1) Nominal GDP: $296 billion (25th rank)

2) GDP PPP was $195 billion (42nd rank)

3) Nominal GDP per capita: $64,000 (2nd rank)

4) GDP PPP per capita: $42,000 (2nd rank)

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27⟩ What is the economy in Bulgaria like?

Bulgaria was somewhat hesitant in terms of embracing market reforms. The economy suffered greatly after the fall of communism with standard of living dropping drastically. In the mid 1990s, the economy improved and reforms were implemented. Economic growth has been steady and stable, ranging from 5% to 7% since the late 1990s. Currently its GDP per capita is considerably above that of most developing nations but still considerably lower than that of Eastern Europe's more developed economies, not to mention the post-industrial economies of Western Europe. 15% of its GDP is still derived from agriculture, compared to less than 3% in most developed nations. Unemployment remains relatively high at almost 10% and the country receives roughly $475 billion in financial aid annually. Overall, the nation has overcome many of the problems that have plagued the economy during the early 1990s. Bulgaria remains ahead of most other developing or quasi-developed nations, yet lags behind other former communist nations such as the Czech Republic, Slovenia or Hungary.

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28⟩ Who decides what goods services will be produced and sold in the US?

It is mostly the American consumer. The US government also plays a large role in the nation's economy, constituting roughly 36% of GDP - making it the largest and thus most influential economic institution and consumer. Manufacturers or those controlling supply may also manipulate demand through advertising and popular media.

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29⟩ Why is economics seen as a social science?

Beginning with a definition:

The social sciences are a group of academic disciplines that study human aspects of the world. They diverge from the arts and humanities in that the social sciences tend to emphasize the use of the scientific method in the study of humanity, including quantitative and qualitative methods.

Economics is clearly a human phenomenon. Even though some topics in economics, such as game theory, are used in the natural sciences and mathematics, economics remains a study of purely human phenomenon.

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31⟩ What does macroeconomics mean?

The study of the overall aspects and workings of a national economy is such as income, output, and the interrelationship among diverse economic sectors. It is the study of all aspects of the economy. It is different from microeconomics, which studies how individual entities (such as people, families, or even corporations) fit in the economy.

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33⟩ How do tax cuts affect the economy?

Tax cuts improve the economy by giving the people more spending power and higher consumer confidence, which leads to them spending more of all of their income which leads to more jobs, more business investment in more efficient technologies, and ultimately higher GDP growth.

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34⟩ What is the difference in changing the scope between a spiral approach and a waterfall approach?

The scope of requirements changes in Waterfall model is less than that in Spiral Model. In Waterfall model, you progress to the next stage only when the requirements of the stage above it are finalized and signed off. So literally, we do not have any scope of changing the requirements once we move down the phases in this model.

However, Spiral model gives us flexibility to change the requirements and scope anytime during the life cycle.

In this model, we implement the individual requirements following all the standard phases of Software Life Cycle. Therefore, if any new change is there, we can implement it in next version of the software.

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35⟩ What is globalization and what are its effects on the Indian economy?

It is largely positive. Globalization has brought many jobs and large sums of investment to India. India's economy has been growing at exceptional rates for the past several years and many new opportunities have opened up for India. Yet, India does remain quite poor. Its GDP per capita is less than $2,000, a fraction of the GDP per capita found in some Latin American and Eastern European nations. Most of those who profit from globalization in India are the upper classes, with many in the lower classes being displaced and suffering from miserable labor conditions. Nonetheless, globalization has created a large economic boom for India with largely positive effects Define economics on the welfare and scaruty of resources. Economics need to be studied to see where the economy is going, what can be removed from the economy and what can be added in order to improve it.

Economics is one of the fundamentals of business and if studied carefully, one can do very well business if all the right moves are made.

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36⟩ What are the types of market economies?

From my understanding, there are 4 main types of market economies. They are also known as Economic Systems. The 4 are Free Market, Mixed Market, Command and Traditional Economy. Please try to understand that there are various terms for them, and it can be different from one book to another. What is important is to understand its characteristics. The Free Market, just simply means let the invisible hand in the Economy work, while in the Command Economy, the invisible hand is the government. The mixed Economy has a mixture of both. Traditional economy is a bit different though, the economy only moves when an elder tells them to.

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37⟩ How does outsourcing affect the economy?

In principle, outsourcing makes things a little cheaper and increase profitability. However, some things need to be done 'in house'. For example, some employers (largely) outsource recruitment to key posts. The people making the decisions may be good at picking bright people, but they often do not really know what is needed by the employer. In Britain, it often said that corporations 'hire people who are good at getting jobs but bad at doing them'. To the extent that this is true, it is damaging for all concerned.

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39⟩ What is a monopoly?

When one business or company dominates its area and squeezes out all its competition, the result is the consumer does not have a free choice, and inevitably, the price of its products or services will increase, and the 'Monopoly' increases its profit. Although, sometimes prices stay low to discourage anyone from entering the market, profit still does occur. Not to be confused with a pure monopoly, where a company has control over the entire market for a product because of barriers.

However, a monopoly is a philosophical process of direct competition leading to a pure monopoly it is not in itself a purely dominating force. It is rather, the process of obtaining competitive grounds for strive toward total control.

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40⟩ What is the significance of foreign exchange rate risk and how can this risk be mitigated?

Foreign exchange risk is the level of uncertainty that a company must manage for changes in foreign exchange rates that will adversely affect the money the company receives for goods and services over a period.

For example, a company sells goods to a foreign company. They ship the goods today, but will not receive payment for several days, weeks or months. During this grace period, the exchange rates fluctuate. At the time of settlement, when the foreign company pays the domestic company for the goods, the rates may have traveled to a level that is less than what the company contemplated. As a result, the company may suffer a loss or the profits may erode.

To minimize or manage the risk, companies enter into contracts to buy foreign currency at a specified rate. This allows the companies to minimize the uncertainty of the risk, so that they can price their products accordingly.

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