This node provides my interview transcript. Please note that the interview has not been edited nor does it represent a "perfect" transcript. It does, however, provide insight into the interview process.
Date: 26 July 2021
Time: 10:30 a.m.
Meeting place: Zoom Call
Panel: Lady1(young) as L1, Lady2(aged) as L2, Gentleman(aged) as GM
INTERVIEW BEGAN:-
(Gentleman took the charge)
GM- Hello there! how are you today?
Candidate- I am very good Sir, how are you?
GM- I am also fine. Thank you very much! So you are an Electrical Engineer, I guess then Engineers do everything except Engineering (he jokingly said to other panelists). Would you please tell us why did you decide to switch your field after Engineering?
Candidate- Sir in IITs/NITs, we are provided with a lot of optional courses to choose from. One such subject that I chose to study was Marketing Management. And our subject teacher started with very naive examples in order to create a base for us to understand further concepts. He explained demand-supply theory, elasticity in the market, various types of marketing strategies that are used in different market structures. From there I got introduced to the world of economics and decided to pursue it as my primary subject.
GM- This is great, Ashutosh! that you have decided to follow your area of interest. Hope to see you seen inside the campus. Now I will hand it over to L1.
Candidate-Thank you very much, sir!.
L1- Hello, Ashutosh! very good morning. So have you ever heard of the IS-LM model?
Candidate- Good morning, Ma'am! Yes, I have heard of it.
L1- Okay so now I will show you some graphs related to it and you will have to answer it accordingly.
Candidate- Okay, Ma'am!
L1- (On screen) Here is the standard IS-LM curve (downward sloping-IS curve and upward sloping-LM curve). So when the Corona hit the world last year, what do you think which curve must have shifted and in which direction when the Government started spending on various programs.
Candidate- Ma'am IS curve must have shifted rightward In the r-Y plane. And the LM curve would remain intact at its initial position.
L1- Okay! what do you mean by crowding out? Explain it in reference to the diagram shown on the screen (same as that of the previous one)
Candidate- Ma'am when Government spends, be it for highway construction, public park, etc. then in that case interest rate increases (rightward shift of IS curve) which cause the private investment to decrease because businesses seem less profitable at a higher interest rate. This decrease in private investment because of increment in Government spending is known as crowding out.
L1- What type of private investment you are talking about?
Candidate- Ma'am here private investment expenditure refers to the planned total expenditure incurred by all the private investors on the creation of capital goods such as expenditure on new machinery, tools, buildings, raw material, etc.
L1- Okay! you must have heard of the multiplier effect during Government expenditure or private expenditure, can you explain the intuition behind it like how does it work?
Candidate- Ma'am when any type of expenditure is done in the economy( either private or public), then that creates a source of income for people of that country and when people spend that money to purchase something according to their marginal propensity to consume (MPC), then that spent money becomes a source of revenue for some other people and that keeps happening as long as anyone is spending and it creates cascading effect and hence it increases income more than the expenditure done private or public players.
L1- Okay! so have you read Econometrics and Statistics?
Candidate- Yes Ma'am I have read both. (to be honest, I was very confident in Statistics but Econometrics was something new to me because I have read it once and was not actually in a position to make someone understand any concept clearly)
L1- Okay!
[after that L1 shared her screen and the question she showed was related to null and alternate hypotheses. the question was like- state the null hypothesis and corresponding alternate hypothesis. I don't remember the exact question but the crude idea was this only. and this is a pretty standard part of any econometrics' question with which we generally start while solving any question.]
[ I tried my best to answer this but to be honest, I was not very clear with my idea and fumbled in between while answering it (and this was when I got a little bit nervous), and after that, we moved on to the next question ]
L1- Here is a new question for you (while sharing that on screen)-"twenty percent of all telephones of a certain type are submitted for service while under warranty. of these, 60% can be repaired while the other 40% must be replaced with new units. if a company purchases ten of these telephones, what is the probability that exactly two will end up being replaced under warranty and what type of distribution is associated with it?" {question's idea was somewhat like this}
Candidate- Ma'am binomial distribution is associated with it. [after that, I took my time and answered it accordingly.]
L2- Hello, Ashutosh! very good morning. Do you know about the concept of elasticity with respect to the demand and supply curve?
Candidate- Ma'am, elasticity is defined as the percentage change in quantity demanded when there is a one percent change in its price [(dq/q)/(dp/p)]
L2- Okay! so what is the cross-elasticity of demand?
Candidate- Ma'am, The cross elasticity of demand is an economic concept that measures the responsiveness in the quantity demanded of one good when the price for other good changes. That is the percentage change in quantity demanded when there is a one percent change in the price of some other good.
L2- Okay! so suppose there are two goods and their cross elasticity is positive. What do you think the goods are with respect to each other- substitutes or complements?
Candidate-Ma'am, if cross elasticity is positive, then goods are substitutes.
L2- Okay, Ashutosh! it was nice interacting with you. Do you want to ask us something? (after that, she confirmed with other panelists whether they want to ask something and everybody replied negatively)
Candidate- Not particularly, Ma'am!
L2- Okay, Ashutosh!, now you can leave the meeting.
(Then I left the meeting saying goodbye to everyone while they nod positively)
INTERVIEW ENDED
Hereby, I am attaching the interview experience of various people coming from diverse backgrounds. I recommend you to skim through it, that would help you to know more about background-specific questions. All the best!
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