Top 15 Economics interview Questions & Answers - Part 2 | textpound

 

Top 15 Economics Interview Questions & Answers

  

Top 15 Economics interview Questions

16. What is output Gap?

 It measures the gap between actual output and the output economy could produce at full employment.

17. What do IS curve shows?

 The IS curve shows the combinations of interests rates and levels of output such that planned spendings equals income.

18. How many members are there in the exclusive group of Third World Countries?

 122.

19. What is Business cycle?

Regular pattern of expansion and contraction in economic activity around the path of trend growth.

20.what are short term  and long term demand? 

The short term demand may be referred to as the demand for a product where adjustment takes place in response to change in the short term factors like price changes, income changes, etc.

 The long term demand for products is influenced by changes in long term factors such as changes in technology, the arrival of substitutions, influence in population, etc.

  

21. What is a perpetuity?

A bond which promises to pay interest forever, but not to repay the principal on the bond.

22. What is Okun’s Law?

One percentage decrease in unemployment is associated with two percentage points of additional growth in real GDP.

23. What are Producers and durable goods? 

Goods which indirectly satisfy human wants by helping the production of consumer goods are called producers goods. E.g. Tools, Machinery, etc.

Durable goods are those goods which last for a longer period or durable goods are those goods which are not exhausted in a single use. E.g. Television set, Refrigerator.

  

24. What is golden-rule saving rate?

The rate of saving that maximizes the level of long-run consumption.

25. What is Goodhart’s Law?

It suggests that controlling one part of the money supply will merely result in that item becoming less important.

26. Which are the Third world countries? 

The developing countries in Asia, Africa, and South America.

28. Is Pakistan a Third World country?

 Yes.

29. Define what is skim pricing?

Price skimming is a method of pricing new products. When a new product is introduced in the market, it is priced at a relatively high level with the intention of skimming the cream from the market.

30. Define what is meant by historical costs?

Historical cost is the original cost of an asset. In other words, it is the actual cost incurred on acquiring a particular cost.