Economics GK Quiz-16

151. Pump priming should be resorted to at a time of ?
(1) Inflation (2) Deflation
(3) Stagflation (4) Reflation
Answer:
151. (2) Pump priming is the action taken to stimulate an
economy, usually during a recessionary/deflationary
period, through government spending, and interest
rate and tax reductions.Growth is accomplished
through the increase in purchasing power experienced
by those affected by the injection of funds, with the
goal of prompting higher demand for goods and services.

(SSC CGL Tier-I (CBE) Exam.
31.08.2016 (Ist Sitting))
152. When will demand become a
grant?
(1) When a demand is proposed
(2) After the discussion on demand is over
(3) After the demand is granted
(4) When the budget session is
closed.
Answer:
152. (3) The estimates of expenditure included in the Budget and required to be voted by Lok Sabha are in the
form of Demands for Grants. These Demands are arranged Ministry-wise and a separate Demand for each
of the major services is presented. Each Demand contains first a statement of the total grant and then a
statement of the detailed estimate divided into items.
A demand becomes a grant after it has been voted.
The voting of demands for grants is the exclusive privilege of the Lok Sabha and not of Rajya Sabha.

(SSC CGL Tier-I (CBE) Exam.
02.09.2016 (2nd Sitting))
153. Backward bending supply curve
belongs to which market?
(1) Capital (2) Labour
(3) Money (4) Inventories
Answer:
153. (2) In economics, backward bending supply curve is
related to labour. Also known as backward-bending
supply curve of labour, This curve models a situation
where workers choose to substitute leisure time for
work time, i.e. wages, thus reducing the pool of labour available. It shows how the change in real wage
rates affects the number of hours worked by employees.

(SSC CGL Tier-I (CBE) Exam.
04.09.2016 (Ist Sitting))
154. In terms of economics, if it is
possible to make someone betteroff without making someone
worseoff, then the situation is
(1) Inefficient (2) Efficient
(3) Optimal (4) Paretosuperior
Answer:
154. (1) Pareto efficiency is said to occur when it is impossible to make one party better off without making someone worse off.An inefficient situation is one where it
possible to make some people better off without making anyone else worse off.

(SSC CGL Tier-I (CBE) Exam.
04.09.2016 (Ist Sitting))
155. What are gilt–edged securities?
(1) Securities issued by the multinational companies.
(2) Securities issued by the Government
(3) Securities issued by the private sector
(4) Securities issued by the joint
venture companies
Answer:
155. (2) Gilt-edged securities are bonds issued by governments. They are government securities, i.e., instruments issued by the government to borrow money
from the market. Gilt-edged securities are a high-grade
investment with very low risk.ECONOMICS
SGAE–626

(SSC CGL Tier-I (CBE) Exam.
07.09.2016 (Ist Sitting))
156. Which curve shows the inverse
relationship between unemployment and inflation rates ?
(1) Supply curve
(2) Indifference curve
(3) IS curve
(4) Phillips curve
Answer:
156. (4) The Phillips curve shows the inverse relationship
between inflation and unemployment: as unemployment
decreases, inflation increases. The relationship, however, is not linear. Graphically, the short-run Phillips
curve traces an L-shape when the unemployment rate
is on the x-axis and the inflation rate is on the y-axis.

(SSC CGL Tier-I (CBE) Exam.
31.08.2016 (2nd Sitting))
157. Short term contractions and expansions in economic activity are
called _____
(1) Expansions
(2) Recession (3) Deficits
(4) The business cycle
Answer:
157. (4) The business cycle is the fluctuation in economic
activity that an economy experiences over a period of
time. It is basically defined in terms of periods of expansion or recession. During expansions, the economy grows in real terms (i.e. excluding inflation), as
evidenced by increases in indicators like employment,
industrial production, sales and personal incomes.
During recessions, the economy contracts, as measured by decreases in the above indicators.

(SSC CGL Tier-I (CBE) Exam.
31.08.2016 (2nd Sitting))
158. The concept of joint sector implies cooperation between
(1) Public sector and private sector industries
(2) State Government and Central Government
(3) Domestic and Foreign Companies
(4) None of these
Answer:
158. (1) Joint sector industries are owned jointly by the
government and private individuals who have contributed to the capital. In joint sector, both public sector
and private sector join hands to establish new
enterprise.The joint sector is an extension of the concept of mixed economy.

(SSC CGL Tier-I (CBE) Exam.
01.09.2016 (2nd Sitting))
159. Selling cost have to be incurred
in case of
(1) Perfect Competition
(2) Monopoly
(3) Monopolistic Competition
(4) None of the given options
Answer:
159. (3) Selling costs are the expenses on advertisement,
salesmanship, free sampling, free service, door-todoor canvassing, and so on. There is no selling problem under perfect competition where the product is
homogeneous. Under monopolistic competition where
the product is differentiated, selling costs are essential to push up the sales. They are incurred to persuade a buyer to purchase one product in preference
to another.

(SSC CGL Tier-I (CBE) Exam.
01.09.2016 (2nd Sitting))
160. Inflation is a situation characterised by
(1) Too much money chasing too
few goods
(2) Too few money chasing too
much goods
(3) Too many people chasing too
few goods
(4) Too many people chasing too
little money
Answer:
160. (1) Demand-pull inflation is asserted to arise when
aggregate demand in an economy outpaces aggregate
supply. It involves inflation rising as real gross domestic product rises and unemployment falls, as the
economy moves along the Phillips curve. This is commonly described as “too much money chasing too few
goods.”

(SSC CGL Tier-I (CBE) Exam.
02.09.2016 (2nd Sitting))
161. One of the following is ‘Labour’
in Economics.
(1) A Musician performing for a
benefit fund
(2) A Painter working for his
own pleasure
(3) Reading a book as a hobby
(4) A Mother teaching her own
son
Answer:
161. (1) Labour includes both physical and mental work
undertaken for some monetary reward. In this way,
workers working in factories, services of doctors, advocates, ministers, officers and teachers are all included in labour. Any physical or mental work which
is not undertaken for getting income, but simply to
attain pleasure or happiness, is not labour.

(SSC CGL Tier-I (CBE) Exam.
02.09.2016 (2nd Sitting))
162. Excise duty is levied on
(1) sale of goods
(2) production of goods
(3) import of goods
(4) export of goods
Answer:
162. (2) Excise duty is a tax on manufacture or production
of goods. Excise duty on alcohol, alcoholic preparations, and narcotic substances is collected by the State
Government and is called “State Excise” duty. The
Excise duty on rest of goods is called “Central Excise”
duty.

(SSC CGL Tier-I (CBE) Exam.
28.08.2016 (Ist Sitting))
163. The term ‘Macro Economics’ was
used by __________ .
(1) J.M. Keynes
(2) Ragner Frisch
(3) Ragner Nurkse
(4) Prof. Knight
Answer:
163. (2) Ragnar Frisch coined the widely-used term pair
macroeconomics/microeconomics in 1933. He was a
Norwegian economist and the co-recipient of the first
Nobel Memorial Prize in Economic Sciences in 1969.
He is known for having founded the discipline of econometrics.

(SSC CGL Tier-I (CBE) Exam.
31.08.2016 (IIIrd Sitting))
164. Tax on inheritance is called
(1) Excise duty
(2) Estate duty
(3) Gift tax (4) Sales tax
Answer:
164. (2) Estate duty is a tax on the total market value of a
person’s assets at the date of his or her death. The
deceased person’s assets, as a whole, are called an
estate. Inheritance tax is levied on assets that legal
heirs inherit, while estate duty is applicable on the
assets of those who are dead.

(SSC CGL Tier-I (CBE) Exam.
31.08.2016 (IIIrd Sitting))ECONOMICS
SGAE–579
165. Which of the following is not a
feature of a capitalist economy?
(1) Right to private property
(2) Existence of competition
(3) Service motive
(4) Freedom of choice to consumers
Answer:
165. (3) Capitalism is an economic system in which each
individual in his capacity as a consumer, producer,
and resource owner is engaged in economic activity
with a large measure of economic freedom. The inspiring force in this system is self-interest and maximization of profit. The decisions of businessmen, farmers, producers, including that of wage-earners are
based on the profit motive.

(SSC CGL Tier-I (CBE) Exam.
01.09.2016 (IIIrd Sitting))
166. When the demand for a good increases with an increase in income, such a good is called
(1) Superior good
(2) Giffin good
(3) Inferior good
(4) Normal good
Answer:
166. (1) A superior good is a product that people demand
more of as they their incomes grow. These are products that are generally more expensive and rarer like
diamonds and classic cars. Such a good must possess two economic characteristics: it must be scarce,
and, along with that, it must have a high price.

(SSC CGL Tier-I (CBE) Exam.
02.09.2016 (IIIrd Sitting))
167. The demand of a commodity is a
direct demand but the demand
of a factor of production is
called a
(1) Crossed demand
(2) Joint demand
(3) Derived demand
(4) Independent demand
Answer:
167. (3) In the words of McConnell, the demand for factors
of production is a derived demand that is derived
from the finished goods and services which resources
help to produce. While the demand for good is direct
demand, demand for factors is derived demand. It is
based on the productivity of the factors.

(SSC CGL Tier-I (CBE) Exam.
02.09.2016 (IIIrd Sitting))
168. Depreciation is loss in value of
________
(1) Final goods
(2) Machinery
(3) Capital stock
(4) Stock of inventory
Answer:
168. (2) The term depreciation represents loss or diminution in the value of an asset consequent upon wear
and tear, obsolescence, effluxion of time or permanent fall in market value. Physical deterioration of an
asset is caused from movement, strain, friction, erosion etc. For instance, building, machineries, furniture, vehicles, plant etc. The wear and tear is general
but primary cause of depreciation.

(SSC CGL Tier-I (CBE) Exam.
02.09.2016 (IIIrd Sitting))
169. HDI is an aggregate measure of
progress in which of the three
dimensions?
(1) Health, Education, Income
(2) Food Security, Employment,
Income
(3) Agriculture, Industry, Services
(4) Height, Weight, Colour
Answer:
169. (1) The Human Development Index (HDI) is an aggregate measure of progress in three dimensions—health,
education and income which are used to rank countries into four tiers of human development. The HDI
was developed by the Pakistani economist Mahboob
ul Haq working alongside Indian economist Amartya
Sen.

(SSC CGL Tier-I (CBE) Exam.
04.09.2016 (IIIrd Sitting))
170. What is an octroi ?
(1) Tax
(2) Tax collection centre
(3) Tax processing centre
(4) Tax information centre
Answer:
170. (1) Octroi is a local tax which is collected by the state
government on those goods that have been bought
into the city/state for the purpose of personal use
and sale. The charges on the items are generally levied after on the weight, value and total number of
goods. It is levied on certain articles, such as foodstuffs, on their entry into a city.

(SSC CGL Tier-I (CBE) Exam.
08.09.2016 (IIIrd Sitting))
171. The basis of determining dearness allowance to employees in
India is _______
(1) National Income
(2) Consumer Price Index
(3) Standard of Living
(4) Inflation Rate
Answer:
171. (2) The Consumer Price Index Numbers for Industrial
Workers CPI (IW) is utilized for fixation and revision of
wages and determination of variable Dearness Allowances payable to workers in organized sectors of the
economy. Despite the coverage being limited to Industrial Workers, presently, the CPI (IW) is also utilized as an indicator for measuring inflationary trend
in the country and for policy formulations.

(SSC CGL Tier-I (CBE) Exam.
09.09.2016 (IIIrd Sitting))
172. An indifference curve measures
the same level of
(1) Output from two factors
(2) Satisfaction from two commodities
(3) Satisfaction from Income
and Capital
(4) Satisfaction from expenditure and savings
Answer:
172. (2) An indifference curve is a locus of combinations of
goods which derive the same level of satisfaction, so
that the consumer is indifferent to any of the combination he consumes. If a consumer equally prefers
two product bundles, then the consumer is indifferent between the two bundles. The consumer gets the
same level of satisfaction (utility) from either bundle.
In other words, an indifference curve is the locus of
various points showing different combinations of two
goods providing equal utility to the consumer.

(SSC CGL Tier-I (CBE) Exam.
09.09.2016 (IIIrd Sitting))
173. Lorenz curve shows
(1) Inflation
(2) Unemployment
(3) Income distribution
(4) Poverty
Answer:
173. (3) In economics, the Lorenz curve is a graphical representation of the distribution of income or of wealth. It
was developed by Max O. Lorenz in 1905 for representing inequality of the wealth distribution.On the graph, a
straight diagonal line represents perfect equality of wealth
distribution; the Lorenz curve lies beneath it, showing
the reality of wealth distribution.ECONOMICS
SGAE–627

(SSC CGL Tier-I (CBE) Exam.
10.09.2016 (IIIrd Sitting))
174. Which of the following is a tertiary activity?
(1) Farming
(2) Manufacturing
(3) Dairying
(4) Trading
Answer:
174. (4) The tertiary sector or service sector is the third of
the three economic sectors of the three-sector theory.
The others are the secondary sector (manufacturing),
and the primary sector (agriculture). Tertiary activities are service based and give non-tangible value to
customers such as provision of services, trading, etc.

(SSC CGL Tier-I (CBE) Exam.
06.09.2016 (IInd Sitting))
175. ”The General Equilibrium Analysis” was developed by
(1) Marshall (2) Ricardo
(3) Walras (4) Adam Smith
Answer:
175. (3) French economist Leon Walras put forward the
General Equilibrium Theory in his pioneering 1874
work ‘Elements of Pure Economics’. The theory attempts to explain the functioning of economic markets as a whole, rather than as individual phenomena. It tried to show how and why all free markets
tended toward equilibrium in the long run.

(SSC CGL Tier-I (CBE) Exam.
07.09.2016 (IInd Sitting))
176. Insider trading is related to
(1) Trade sector
(2) Share market
(3) Credit market
(4) Horse racing
Answer:
176. (2) Insider trading is the trading of a public company’s
stock or other securities by individuals with access to
non-public information about the company. It is related to share markets. Insider trading is an unfair
practice, wherein the other stock holders are at a great
disadvantage due to lack of important insider nonpublic information.

(SSC CGL Tier-I (CBE) Exam.
07.09.2016 (IInd Sitting))
177. An indifference curve measures
______________ level of satisfaction derived from different combinations of commodity X and Y.
(1) same (2) higher
(3) lower (4) minimum
Answer:
177. (1) An indifference curve may be defined as the locus
of points, each representing a different combination
of two substitute goods, which yield the same utility
or level of satisfaction to the consumer. Therefore, he
is indifferent between any two combinations of goods
when it comes to making a choice between them. So
if, for example, a consumer makes five combinations
a, b, c, d and e of two substitute commodities, X and
Y, all these combinations yield the same level of satisfaction indicated by U.

(SSC CGL Tier-I (CBE) Exam.
11.09.2016 (IInd Sitting))
178. A motion that seeks to reduce
the amount of demand presented
by government to Re. 1/is
known as
(1) Disapproval of policy Cut
(2) Token cut
(3) Economy cut
(4) Vote on account
Answer:
178. (1) Disapproval of Policy Cut seeks to reduce the amount
of the demand be reduced to Re.1/-’ representing disapproval of the policy underlying the demand. A member giving notice of such a motion shall indicate in
precise terms the particulars of the policy which he
proposes to discuss. The discussion shall be confined
to the specific point or points mentioned in the notice
and it shall be open to members to advocate an alternative policy.

(SSC CGL Tier-I (CBE) Exam.
11.09.2016 (IInd Sitting))
179. What is included in the Tetiary
sector ?
(1) Banking
(2) Manufacturing
(3) Forestry
(4) Mining
Answer:
179. (1) The tertiary industry is the segment of the economy that provides services to its consumers. It includes
a wide range of activities that service based and give
non-tangible value to customers such as provision of
trading, insurance, banking, etc. The other sectors
are the secondary sector (manufacturing), and the primary sector (agriculture and allied activities).

(SSC CGL Tier-I (CBE) Exam.
27.10.2016 (Ist Sitting))
180. According to Malthusian theory
of population
(1) Population increases in geometric ratio, food supply increases in arithmetic ratio
(2) Population increases in arithmetic ratio, food supply increases in geometric ratio
(3) Population increases in a harmonic mean, food supply increases in geometric ratio
(4) Population increases in a harmonic ratio, food supply increases in a arithmetic ratio
Answer:
180. (1) In his 1798 work, An Essay on the Principle of Population, Malthus examined the relationship between population growth and resources and developed the Malthusian theory of population growth. He proposed that
human populations grow exponentially (i.e., doubling with
each cycle) while food production grows at an arithmetic
rate (i.e. by the repeated addition of a uniform increment in each uniform interval of time).

(SSC CGL Tier-I (CBE)
Exam. 03.09.2016) (IInd Sitting)
181. The innovation theory of profit
was proposed by
(1) Marshall
(2) Clark
(3) Schumpeter
(4) Joan Robbinson
Answer:
181. (3) The Innovation Theory of Profit was proposed by
Joseph. A. Schumpeter, who believed that an entrepreneur can earn economic profits by introducing successful innovations. In other words, innovation theory of profit posits that the main function of an entrepreneur is to introduce innovations and the profit in
the form of reward is given for his performance.

(SSC CGL Tier-I (CBE)
Exam. 04.09.2016) (IInd Sitting)
182. An economy in which there are
no flows of labour, goods or money to and from other nations is
a/an
(1) slow economy
(2) mixed economy
(3) closed economy
(4) open economy
Answer:
182. (3) An economy that does not interact with the economy of any other country is known as closed economy.
A closed economy is self-sufficient, meaning no imports are brought in and no exports are sent out. It is
the opposite of an open economy, in which a country
conducts trade with outside regions.

(SSC Multi-Tasking Staff
Exam. 30.04.2017 Ist Sitting)
183. Elasticity of demand is the degree of responsiveness of demand of a commodity to a
(1) change in consumers’ wealth
(2) change in the price of substitutes
(3) change in consumers’ tastes
(4) change in its price
Answer:
183. (4) The elasticity of demand, also known as price elasticity of demand, is the degree of responsiveness of
demand to change in price. Its measure depends upon
comparing the percentage change in the price with
the resultant percentage change in the quantity demanded. Thus, elasticity of demand is the ratio of
percentage change in amount demanded to a percentage change in price.

(SSC Multi-Tasking Staff
Exam. 30.04.2017 Ist Sitting)
184. The price of a commodity is the
same as
(1) Average revenue
(2) Total cost
(3) Average cost
(4) Total revenue
Answer:
184. (1) Average Revenue refers to revenue received per
unit of output sold. It is the same as Price of the
commodity. Average revenue can be obtained by dividing the total revenue by the number of units sold.
Thus,
Average Revenue (AR) = Total Revenue (TR)/Quantity
sold (Q)
When we take the case of a single commodity, TR = P × Q
So, AR=
P Q
´ Q
= P, where
P = Price of the commodity

(SSC Multi-Tasking Staff
Exam. 30.04.2017 Ist Sitting)
185. Which one of the following is not
a feature of monopoly ?
(1) Single seller of the product
(2) Heavy selling costs
(3) Barriers to entry of new
firms
(4) Price discriminations
Answer:
185. (2) Heavy selling cost is one of the defining features of
an oligopoly. Firms resort to heavy selling cost to attract customers. Under this market form, the firms
have to compete to promote their sale by largely homogenous products, differentiated mainly by heavy
advertising and promotional expenditure that ultimately
adds to the total selling cost.

(SSC Multi-Tasking Staff
Exam. 30.04.2017 Ist Sitting)ECONOMICS
SGAE–580
186. The supply of labour in the market depends on
(1) the proportion of the population in the labour force
(2) the number of person hours
put in by each person
(3) the size of population
(4) All the above
Answer:
186. (4) Supply of labour in an economy depends upon
both economic as well as non-economic factors. It
depends upon the size of population, the number of
workers available for work out of a given population,
the number of hours worked, the intensity of work,
the skills of workers.

Post a Comment

0 Comments