ICWA Interview Preparation Guide
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ICWA Frequently Asked Questions in various ICWA Interviews asked by the interviewer. So learn ICWA with the help of this ICWA Interview questions and answers guide and feel free to comment as your suggestions, questions and answers on any ICWA Interview Question or answer by the comment feature available on the page.

40 ICWA Questions and Answers:

1 :: Explain an Oligopoly?

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 entiremarket 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

2 :: Explain what are business cycles and what role do the Federal Reserve and Federal Government have in trying to control them?

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.

3 :: Explain the average standard of living in Africa?

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.

4 :: Explain the advantage of mixed economy system?

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.

5 :: Explain what are the differences between perfect competition and monopoly competition?

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 amonopoly 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.

6 :: Explain what are the 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. 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'.

7 :: Explain GNI per capita?

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.

GNI = Gross Domestic Product + Net property income from abroad.

8 :: Explain what are the differences between absolute advantage and comparative advantage?

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 absoluteadvantage 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.

9 :: Explain what kind of market demand and supply information would be useful to you in deciding upon a business strategy?

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

10 :: Explain the difference between marginal cost and marginal costing?

Marginal Cost is the amount at any given volume of output by which aggregate costs are changed if the volume of output is increased or decreased by one unity. The aggregate costs consists of both, fixed cost and variable cost. In simple words, marginal cost indicates the per unit variable cost.
Marginal Costing is on the other hand is the ascertainment, by differentiating between fixed costs, variable costs, of the marginal costs and of the effect on profit of changes in volume and type of output.