“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.”
Generally the government is very good at wasting money and resources so less spending, by the government helps the economy as those resources are allocated in areas that are more efficient.
Since opportunity cost is defined as the cost of any activity measured in terms of the best alternative activity, which is forgone, in this case, the opportunity cost can be a field for students to play around or a land where a library can be built. Another example would be the opportunity cost of coming to school. This answer will be the time enjoyed going to the cinema or time spent with your partner. Hence, the opportunity cost of coming to school will be the cost of not going to cinema and spending time with your partner.
A measure of the wealth is earned by nations through economic activates all around the world.
Gross National Income comprises the total value of goods and services produced within a country (i.e. its Gross Domestic Product), together with its income received from other countries (notably interest and dividends), and less similar payments made to other countries. It is also known as GNP.
It can be calculated as follows:
GNI = Gross Domestic Product + Net property income from abroad.
It is extremely low. Africa is the most impoverished continent on the face of the planet. The average African has scarce access to safe drinking water and most commonly lacks plumbing. "Informal housing" is the rule with electricity and safe transportation remaining luxuries. Even life style attributes taken for granted by the average Mexican or Russian are out of reach for many Africans. In terms of employment, many Africans are unemployed or employed in agriculture.
Sub-Saharan Africa in particular is one the world's poorest regions. According to the World Bank 74.9% of the population lived on less than $2 a day in 2003; 44% lived on less than $1 a day.
Oligopoly is a market where the supply is controlled by a small group of companies. In this condition, the actions of one company will have a material effect on the entire market for a product.
Several characteristics of an Oligopoly:
1) Substantial barriers to entry
2) Market dominated by a few large firms
3) Differentiated products
4) Price rigidity
An example of this type of monopoly would be the corporations Visa and MasterCard. They are in the business of card securities and hold major market share. However, it could be noted that Visa holds more of a pure monopoly status; MasterCard does have a high level of control to create a competitive market situation.
Market Demand and Supply Information
A customer-filled form of the following fields will be of great use. 1) Do you need product urgently?
2) How many times have you visited our store?
3) Was the proper information provided to you?
4) Were you attended properly?
5) Can you afford to pay more for a quick delivery?
6) Have you ever used our product?
7) How do you know about our product?
Advantages of Regional Integration
Most economic experts cite that regional integration allows disadvantaged countries to realize economies of scale, compete on a broader (often global) platform and increase overall economic efficiency. Alassane D. Ouattara the Deputy Managing Director of the International Monetary Fund states that regional integration 'enables participating countries to pool their resources and avail themselves of regional institutional and human resources, in order to attain a level of technical and administrative competence that would not be possible on an individual basis'.
A normative statement in economics is like a normative statement in any other academic subject--it is a statement about something with an implicit value judgment or moral claim.
It is distinct from a descriptive statement that is supposed to be value/ideologically neutral.
For example, a descriptive statement in economics could be something like, 'Social Security is set to go bankrupt by 2050.' Whereas a normative statement would be something like, 'Social Security is set to go bankrupt by 2050 and thus must be saved to prevent a huge boom in elderly poverty.'
In a monopoly, you are gaining an unfair advantage over any competition because you own so many infrastructures. Monopolies used to be known as trusts, which is why you sometimes hear of Anti-Trust Law violations.
At one time, AT&T owned every phone line, every phone and every piece of phone equipment in the country. They monopolized the industry; how could you compete with them when they owned everything? Similarly, the Post Office has an excellent infrastructure for delivering mail, but they do not have a monopoly because FedEx and UPS and DHL have all found ways to carve out a healthy piece of the parcel moving business, so although UPS always grumbles about the Post Office, they do OK in competition.
It is very important that you understand that the Federal Reserve is not a government institution. It does not take its orders from the federal government. Yes, they put their hand in and try to change the course of the U.S. Economy.
Advantages are:
1) People can make there own decisions
2) The government has limited control, which is good for structure
3) Provides freedoms such as Enterprise, ownership, Social Welfare, Profit Earnings, Political Freedom
4) All national resources are utilized under mixed economy.
5) It will activate the government support and direction.
There are two ways the price of a currency can be determined against another. A fixed, or pegged, rate is a rate the government (central bank) sets and maintains as the official exchange rate. A set price will be determined against a major world currency (usually the U.S. dollar, but also other major currencies such as the euro, the yen, or a basket of currencies). In order to maintain the local exchange rate, the central bank buys and sells its own currency on the foreign exchange market in return for the currency to which it is pegged.
If, for example, it is determined that the value of a single unit of local currency is equal to USD 3.00, the central bank will have to ensure that it can supply the market with those dollars. In order to maintain the rate, the central bank must keep a high level of foreign reserves. This is a reserved amount of foreign currency held by the central bank which it can use to release (or absorb) extra funds into (or out of) the market. This ensures an appropriate money supply, appropriate fluctuations in the market (inflation/deflation), and ultimately, the exchange rate. The central bank can also adjust the official exchange rate when necessary.
Because of the increasing inflation level
Absolute advantage and comparative advantage are two basic concepts to international trade. Under absolute advantage, one country can produce more output per unit of productive input than another can. With comparative advantage, if one country has an absolute (dis)advantage in every type of output, the other might benefit from specializing in and exporting those products, if any exist.
A country has an absolute advantage economically over another, in a particular good, when it can produce that good at a lower cost. Using the same input of resources, a country with an absolute advantage will have greater output. Assuming this one good is the only item in the market, beneficial trade is impossible. An absolute advantage is one where trade is not mutually beneficial, as opposed to a comparative advantage where trade is mutually beneficial.
An experiment is described by an exponential random variable with mean ? and x1 and x2. A proposed test of the hypothesis ?=2 against the alternative ?=½ uses the critical region {(x1, x2): min(x1, x2) <¼} Show that this test has size of approximately 0.22 and find its power. Obtain a better test of the same size
The socialist system is based on the notion of equality for everyone, everyone has a job and everyone has a place to live. Everyone has to forfeit his or her class rights in a socialist system. A socialist system has universal health care and dental care, childcare, as well as similar access to resources such as food and water. Ideally, the socialist system could cater to the needs of the poor because it provides equal access to all folks, regardless of income.
Although advantageous to the poor, the socialist system can mean heavy taxation on all citizens. There could be corruption as well as unequal access to resources, which means that the people who tow the party line usually have more access to better goods. The socialist system means highly unusual labor quotas, food ration cards, long lines at the store, or below superior quality goods available.
Privatization is the transfer of ownership from the public sector (government) to the private sector (business).
Project feasibility study is required to make a decision whether the project proposal is technically and economically feasible. After finalization of the project feasibility report by the experts (technical & economical), the decision for going ahead for preparation of Detailed Project Report (DPR) for the project proposal.
Price ceiling is government rules or laws setting price floors or ceilings that forbid the adjustment of price to clear markets. Price ceilings make it illegal for sellers to charge more than a specific maximum price. Ceilings may be introduced when a shortage of a commodity threatens to raise its price a lot.
Price Mechanism
Price mechanism is the point, which equilibrates supply and demand within a market. It is a mechanism of pricing. The price mechanism is one, which allows the prices of good and services to be decided by the interplay between supply and demand. There is no centralized price fixing.
The price mechanism is the concept that the free market, when left to its own devices, will formulate fair prices of the goods or services on its own by the natural laws of supply and demand.
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