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economics
Macro Economics (b) Happens when business expands

(c) Happens in economy when they increase
Basic (d) Happens in firms when they expand their product

Ans. (d) [S.S.C (CGL) Exam, 2015]
r
1. When there is affect on economic activity of an specific 7. The best Example of capital intensive industry in India
i
country due to import and export, then such economy is-
are called- (a) Textile industry
(a) Closed economy
S
(b) Steel industry
(b) Open economy (c) Tourism industry
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(c) Agricultural economy (d) Spare goods industry.
v
Ans. (b) [S.S.C (10+2) Exam, 2011]
(d) Industrial economy
Ans. (b)
w.E [S.S.C LDC Exam, 2015]
8. The Removal of prohibitions and hindrance by
a
government is called.
2. The Worldwide great depression happens in which year-
(a) Globalisation
r
(a) 1936
(c) 1928
(b) 1929
(d) 1930 asy (b) Privatisation
(c) Liberalisation
u
Ans. (b)
3. En
[S.S.C Multitasking Exam, 2013]
Which among the following is not the investment of goods
(d) Bilateral understanding.
a
& services?
(a) Cost of machinery gin Ans. (c)
9.
[S.S.C (FCI) Exam, 2012]
Which of the following is related to South-South debate?
(b) Increase in cost of raw goods

ee (a) Cooperation between developing countries
G
(b) Defence Organisation
(c) Increasing deparment of company
(d) Cost of buying house.
rin
(c) Sitting between developed & developing countries
Ans. (c)
4.
[S.S.C (CGL) Exam, 2013]
Preparing butter and ghee for household consumption of
(d) All of the above.
Ans. (a)
g.n [S.S.C (CGL) Exam, 2011]
own family is a part of –
(a) Household investment production
(b) Industrial production
(b) Bad economy
et
10. In a economy “Development Stage” means-
(a) Starting of steadily increasing economy
(c) Economy is on the verge of destroying

(c) Consumption
(d) All tariff to be removed.
(d) Own Account Production
Ans. (a) [S.S.C (10+2) Exam, 2014]
11. The tree like structure of records in a database in-
5. Multinational firm is–
(a) Network Model (b) Hierarchical Model
(a) A company started by foreign governments
(c) Relational Model (d) Multi-Dimenmoral Model
(b) A single company established in different countries
(c) A company in India started by U.S. government Ans. (b) [S.S.C Steno Exam, 2011]
(d) A company started jointly by India and U.S. 12. According to Kenz, consumption function shows relation
between.
Ans. (b) [S.S.C Matric level Exam, 2006, S.S.C 10+2 Exam,
2011] (a) Total Consumption and Total Population
6. Internal profit– (b) Total Consumption and Normal Price Rate
(a) Happens when internal trade expands (c) Total Consumption and Total Income
Follos us:www.clickqualify.com () General Studies

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(d) Total Consumption and Rate of Interest (c) Member Nations (d) Borrowings
Ans. (c) [S.S.C (CGL) Exam, 2014] Ans. (c) [SSC CGL Exam, 2008]
13. The interest in infrastructure is less because. 20. The term “Micro Economics” and “Macro Economics”
(a) There is large invest in it was coined by–
(b) There needs a desired project (a) Alfred Marshal (b) Ragner Nurkse
(c) Time to finish the infrastructure is more (c) Ragner Frisch (d) J.M. Keynes
(d) Profit is gained after long time. Ans. (c) [SSC CGL Exam, 2010]
Ans. (d) [S.S.C Matric level Exam, 2006] 21. “Micro” and “Macro” words was firstly used by–
14. “World Bank” is also called as – (a) Ragnar Frisch (b) I. Fischer
r
(a) International Bank for Reconstruction and (c) James Tobin (d) Garle
i
development Ans. (a) [SSC 10+2 Exam, 2015]
(b) International, rehabilation and development bank 22. Arthashastra by “Kautilya” is related with–
S
(c) International rehabilated and development bank (a) Military Phase (b) Political Reign
(d) None of these. (c) Social Phase (d) Economic Postulates
Ans. (a)
ww [S.S.C Sect. Off. Exam, 2007] Ans. (b) [SSC CGL Exam, 2015]
v
15. What will happen if labour productivity is increased? 23. The Social Accounting system in India is classified into–
w.E
(a) Balanced cash wage will decrease (a) Assets, Liabilities and Debt Position
a
(b) Public sector, Private Sector and Joint Sector
(b) Competitive firms will be forced to invest more
(c) Income, Product and Expenditure
r
(d) None of the above. asy
(c) Labour demand curve will shift towards right (d) Enterprise, Households and Government
Ans. (c) [SSC CGL Exam, 2013]
u
Ans. (c)
En
[S.S.C (10+2) Exam, 2014] 24. The Production of a commodity mostly through the
natural process is an activity of–
a
16. Socialism is successful in achieving because of–
(a) Excess socialistic approach in society
(b) To increase standard of living
gin (a) Primary Sector
(c) Tertiary Sector
(b) Secondary Sector
(d) Technology Sector
ee Ans. (a) [SSC 10+2 Exam,2013]
G
(c) Equal distribution of income
(d) None of the above
Ans. (a) [SSC CGL Exam, 2012]
(a) Land
rin
25. Rent is a cost paid for–
(b) Restaurant
17. Which among of the following is not a positive sign for

any industry.
(c) Building
Ans. (a) g.n(d) Factory
[SSC Multitasking Exam, 2014]
(a) Decrease in profit (b) Labour instability
(c) Decrease in market (d) Decrease in demand
declared by? et
26. Due to worldwide great depression, ‘New Deal’ was
(a) Abhraham Lincon (b) Benzamin Frankllin

(c) J.F. Kennedy (d) Roozwelt
18. IMF was established to meet which of the following
objectives. Ans. (d) [SSC 10+2 Exam, 2015]
(i) Promoting International Monetary Cooperation 27. The Relationship between rate of interest and
consumption level was firstly estimated by–
(ii) Expending International Trade
(a) Amartya Sen (b) Milton Freedman
(iii) Lessening the inequlibrium in trade
(c) Irwing Fischer (d) James Duezan Berry
(iv) Avoiding competitive exchange depreciations.
Ans. (b) [SSC 10+2 Exam,2014]
(a) i,ii,iii (b) i, iii, iv
28. The Surplus earned by a factor other thus land in the
(c) ii, iv (d) i, ii, iii, iv
short period is referred as –
Ans. (b) [SSC CGL Exam, 2005]
(a) Economic Rent (b) Net Rent
19. The capital of IMF is made up by the contribution of–
(c) Quasi-Rent (d) Super-Normal Rent
(a) Credit (b) Deficit Financing
Ans. (c) [SSC CPO Exam, 2009]
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29. Labour Intensive Technique would get chosen in a– wage and the reservation wage
(a) Labour Surplus Economy (d) Economic rent is the amount one must pay to enter a
(b) Capital Surplus Economy desirable labour market
(c) Developed Economy Ans. (c) [SSC (10+2) Nov. Exam, 2014]
(d) Developing Economy 37. Who defined ‘Rent’ as that portion or produce of the
Earth, which is paid to the landlord for the use of original
Ans. (a) [SSC CPO Exam, 2009] and indestructible power of the soil?
30. Amartya Sen was awarded the Noble Prize for his (a) Ricardo (b) Marshall
contribution to–
(c) Keynes (d) Pigou
(a) Monetary Economics
Ans. (a) [SSC (10+2) Nov. Exam, 2014]
r
(b) Welfare Economics
38. The word ‘Oikonomia’ means–
i
(c) Econometrics
(a) Household Management
(d) Development Economics (b) Individual Management
Ans. (b) [SSC CPO Exam, 2006]
S
(c) Political Management
31. The Views of eminent economist Robert Malthus on (d) Fiscal Management
ww
Population is–
(a) Pessimistic (b) Optimistic
Ans. (a) [SSC CGL Aug Exam, 2014]
v
39. Economics is a–
w.E
(c) Both (a) and (b) (d) None of the above (a) Computer Science (b) Physical Science
a
Ans. (a) [SSC CPO Exam, 2009] (c) Social Science (d) Natural Science
32. Which among the following is not true about the work of Ans. (c) [SSC MTS Exam, 2013]
r
Human Resource and Development (HRD)–
(a) Caste – System asy
(b) Youth and Sport
40. The supply of labour in the economy depends on–
(a) Population (b) National Income
u
(c) Education
Ans. (a) En
(d) Child Development
[SSC Steno Exam, 2012]
(c) Per Capita Income (d) Natural Resources
a
Ans. (a) [SSC Constable (GD) Exam, 2012]
bad? gin
33. According to whom second chamber is unnecessary & 41. Wage Fund Theory was propounded by–
(a) JB Say (b) JS Mill
(a) Monkahour (b) Bentham
ee
G
(c) JR Hicks (d) JM Keynes
(c) Seale
Ans. (b)
(d) Loosky
[SSC CGL Exam, 2014]
Ans. (b)
rin [SSC Constable (GD) Exam, 2012]
42. The main feature of a capitalist economy is–
34. Who among the following promotes social justice?
(a) Herald Laski (b) John Keynes g.n
(a) AdMinistered Prices (b) Public Ownership
(c) Economic Planning (d) Private Ownership
(c) John Rowles
Ans. (c)
(d) All of the above
35. With which form of economy is the term ‘Laissez-Faire’
Ans. (d)
et
[SSC Constable (GD) Exam, 2012]
43. Exploitation of labour is said to exist when–
(a) Wage = Marginal Revenue Product
associated?
(a) Capitalist Economy (b) Wage < Marginal Revenue Product
(b) Socialist Economy (c) Wage > Marginal Revenue Product
(c) Mixed Economy (d) Marginal Revenue Product = 0
(d) Command Economy Ans. (b) [SSC Stenographer Exam, 2011]
Ans. (a) [SSC Tax Asst. Exam, 2007] 44. Consumption function expresses the relationship between
consumption and–
36. Which of the following statements is correct?
(a) Savings (b) Income
(a) Most workers will work for less than their reservation
wage (c) Investment (d) Price
(b) The reservation wage is the maximum amount of any Ans. (b) [SSC (10+2) Exam, 2011]
firm will pay for a worker 45. Price theory is also known as–
(c) Economic rent is the difference between the market (a) Macro Economics (b) Development Economics
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(c) Public Economics (d) Micro Economics Ans. (a) [SSC MTS Exam, 2006]
Ans. (d) [SSC CGL Exam, 2010] 54. The Capital formation in an economy depends on–
46. Who defined investment as “The construction of a new (a) Total Income (b) Total Demand
capital asset like machinery or factory building”? (c) Total Savings (d) Total Production
(a) Hansen (b) JM Keynes Ans. (c) [SSC SO Exam, 2006]
(c) Harrod (d) JR Hicks 55. Which of the following does not determine supply of
Ans. (b) [SSC Investigator Exam, 2010] labour?
47. “Economics is what it ought to be” This statement refers (a) Size and age-structure of population
to–
(b) Nature of work
(a) Normative Economics
r
(c) Marginal productivity of labour
(b) Positive Economics
i
(c) Monetary Economics (d) Work-leisure ratio
(d) Fiscal Economics Ans. (c) [SSC SO Exam, 2006]
S
Ans. (a) [SSC CGL Exam, 2010] 56. Equilibrium is a condition that can–
ww
48. Labour Intensive Technique would get choosen in a–
(a) Labour Surplus Economy
(a) never change
(b) change only if some outside factor changes
v
w.E
(b) Capital Surplus Economy (c) change only if some internal factor changes
(d) change only if government policies change
a
(c) Developed Economy
(d) Developing Economy Ans. (c) [SSC SO Exam, 2003]
r
Ans. (a)
asy
[SSC CPO Exam, 2009]
49. “Interest is a reward for parting with liquidity” is
57. Which of the following concepts are most closely
associated with JM Keynes?
u
according to–
(a) Keynes (b) Marshall En (a) Control of money supply
(b) Marginal utility theory
a
(c) Haberler
Ans. (a)
(d) Ohlin
gin
[SSC Tax Asst. Exam, 2008]
(c) Indifference curve analysis
(d) Marginal efficiency of capital
ee Ans. (d) [SSC SO Exam, 2003]
G
50. Who said, “Economics is the Science of Wealth”?
(a) Robbins
(c) Adam Smith
(b) JS Mill
(d) Keynes rin
58. An economy is in equilibrium when–
(a) Planned consumption exceeds planned saving
Ans. (c) [SSC MTS Exam, 2008]
51. Who among the following is not a classical economist? g.n
(b) Planning consumption exceeds planned investment
(c) Aggregate demand to aggregate supply
(a) David Ricardo
(c) Thomas Malthus
Ans. (d)
(b) John Stuart Mill
(d) John Maynard Keynes
Ans. (c) et
(d) Intended investment exceeds intended savings
59. In equilibrium, a perfectly competitive firm will equate–

52. "The national income consists of a collection of goods and (a) Marginal social cost with marginal social benefit
services reduced to common basis by being measured in (b) Market supply with market demand
terms of money" who says this?
(c) Marginal profit with marginal cost
(a) Samuelson (b) Kuznets
(d) Marginal revenue with marginal cost
(c) Hicks (d) Pigou
Ans. (d) [SSC CPO Exam, 2003]
60. The difference between the price the consumer is
53. Core industries are– prepared to pay for a commodity and the price which he
(a) Basic Industries actually pays is Called–
(b) Consumer Goods Industries (a) Consumer’s Surplus (b) Producer’s Surplus
(c) Capital Goods Industries (c) Landlord’s Surplus (d) Worker’s Surplus
(d) Government Industries Ans. (a) [SSC MTS Exam, 2002]

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61. Who is called the 'Father of Economics'? (b) Long-run unit costs of productions decreases as the
(a) JM Keynes (b) Malthus quantity the firm produces increases
(c) Ricardo (d) Adam Smith (c) Capital requirement are small due to the efficiency of
the large scale operation
Ans. (d) [SSC MTS Exam, 2001]
(d) The costs of entry into the market are likely to be
62. In the long-run equilibrium a competitive firm earns. substantial
(a) Super-normal profit (b) Profits equal to other firms Ans. (b) [SSC SO Exam, 2001]
(c) Normal profit (d) No profit 69. Disguised unemployment means–
Ans. (c) [SSC MTS Exam, 2000] (a) Willing to work and not getting the work
63. According to the Classical System, saving is a function of– (b) Not getting work on all days throughout the year
r
(a) Income (b) the interest rate (c) Insufficiency of capital structure to absorb the large
i
(c) the real wage (d) the price level labour force
Ans. (a) [SSC MTS Exam, 2000] (d) More people working, than required
S
64. The labour which creates value and gets rewarded for its Ans. (d) [SSC Stenographer Sep. Exam, 2014]
services is called– 70. The famous economist Thomas Robert Malthus, in his
ww
(a) Both Skilled and Unskilled Labour views regarding population, is–
v
(b) Average Labour (a) Optimistic
w.E
(c) Productive Labour (b) Partly optimistic and partly pessimistic
a
(d) Unproductive Labour (c) Pessimistic
r
Ans. (c)
asy
[SSC CGL April Exam, 2014]
65. Which of the following is not an economic problem? Ans. (c) [SSC CGL Aug. Exam, 2014]
u
(a) Deciding between paid work and leisure 71. Economic problem arises because of–
En
(b) Deciding between expenditure on one good and the (a) Scarcity of means (b) Multiplicity of resources
a
other
gin
(c) Deciding between alternative methods of personal
saving
(c) Scarcity of wants
Ans. (a)
(d) Over Population
[SSC MTS Exam, 2013]
ee 72. The Price mechanism is a feature of–
G
(d) Deciding between different ways of spending leisure
(a) Capitalist Economy
Ans. (d)
time
[SSC (10+2) Nov. Exam, 2014] (b) Barter Economy
rin
66. The basic infrastructure facilities in economics are
known as–
(c) Mixed Economy
(d) Socialist Economy
g.n
(a) Human Capital
(b) Physical Capital
(c) Social Overheads Capital
Ans. (a)
et [SSC FCI Exam, 2012]

73. Human development index was development by–
(a) Amartya Sen (b) Friedman
(d) Working Capital (c) Mahbub-ul-Haq (d) Montek Singh
Ans. (c) [SSC SO Exam, 2003] Ans. (c) [SSC Stenographer Exam, 2011]
67. What are the main components of basic social 74. Globalisation means–
infrastructure of an economy? (a) Integration of economy
(a) Education, Industry and Agriculture (b) Integration of financial market
(b) Education, Health and Civil Amenities (c) Integration of the domestic economy with the world
(c) Transport, Health and Banks economy
(d) Industry, Trade and Transport (d) Integration of the various sectors of economy
Ans. (b) [SSC SO Exam, 2003] Ans. (c) [SSC (10+2) Exam, 2011]
68. If an industry is characterised by economics of scale 75. Disinvestment in public sector is called–
then– (a) Liberalisation (b) Globalisation
(a) Barriers to entry are not very large
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(c) Industrialisation (d) Privatisation 83. The concept of mixed economy means–
Ans. (d) [SSC Stenographer Exam, 2011] (a) To have balanced development in the agricultural and
industrial sector
76. ‘Hire and Fire’ is the policy of–
(b) Simultaneous development of the rural and urban sector
(a) Capitalism (b) Socialism
(c) To have equal distribution of wealth among the rural
(c) Mixed economy (d) Traditional economy and the urban poor
Ans. (a) [SSC MTS Exam, 2011] (d) Simultaneous existence of the private and public
sector
77. The Economic development depends on–
Ans. (d) [SSC Matric Level Exam, 2002]
(a) Natural resources (b) Capital formation
84. In which sector of the Indian economy is productivity the
(c) Size of the market (d) All of these
highest?
r
Ans. (d) [SSC (10+2) Exam, 2011] (a) Manufacturing
i
78. Which one of the following categories of workers is (b) Transport, Communication and Commerce
termed as cultivators? (c) Agriculture
S
(a) Those who own land and cultivate (d) Other sectors
(b) Those who lease in land and cultivate Ans. (a) [SSC Matric Level Exam, 2001]
ww
(c) Those who cultivate the land of others 85. Which of the following is a part of tertiary sector ?
v
(d) Those who own land and lease in from others or (a) Power and Transportation
w.E
institutions and cultivate (b) Animal Husbandry
a
Ans. (c) [SSC Stenographer Exam, 2010] (c) Cotton Manufacturing
79. India is called a mixed economy because of the existence (d) Cultivation of Crops.
r
of–
1. Public Sector asy
2. Private Sector
Ans. (a) [SSC Matric Level Exam, 2010]
u
3.
Codes
Joint Sector
En
4. Cooperative Sector National Income
a
(a) 1 and 2
(c) 3 and 4
(b) 1 and 3
(d) 2 and 4 gin 1. Forced saving refers to-
(a) Compulsory deposits imposed on income tax payers
Ans. (b)
ee
[SSC Tax Asst. Exam, 2009] (b) Provident fund contribution of private sector employees
G
(c) Reduction of consumption consequent to a rise in
80. In an economy, the sectors are classified into public and
private on the basis of– price
rin
(d) Taxes on individual income and wealth
(a) Employment conditions
(b) Nature of economic activities
(c) Ownership of enterprises
Ans. (c)
g.n [S.S.C (CGL)-2013]
(d) Use of raw materials

Ans. (c) [SSC DEO Exam, 2009]
81. A mixed economy works primarily through the–
2.
et
The Expenditure on advertisement and public relation
by an enterprise is a part of its-
(a) Consumption of fined capital
(b) Final consumption Expenditure
(a) Market mechanism (c) Intermediate Consumption
(b) Central allocative machinery
(d) Fined Capital
(c) Market mechanism regulated by government policy
Ans. (c) [S.S.C (CGL) Exam, 2013]
(d) Market mechanism guided by government participation
and planning 3. If a country produces consumer goods only and nothing
else, then-
Ans. (d) [SSC SO Exam, 2006]
(a) Standard of living will be highest
82. A closed economy is one which–
(a) Does not trade with other countries (b) The country have certain amount of good
(b) Does not possess any means of international transport (c) The country will soon become poor if external trade
(c) Does not have a coastal line will not happen
(d) Is not a member of the UNO (d) The country will gradually become rich if external
trade will not happen
Ans. (a) [SSC CPO Exam, 2006]

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Ans. (c) [S.S.C Matric level Exam, 2006] Ans. (a) [SSC DEO Exam, 2009]
4. Which of the following represents the saving of the 12. National Income include–
Private Corporate Sector? (a) Financial help to earthquake victims
(a) Undistributed profits (b) Poket money of a child
(b) Excess of income over expenditure (c) Winning of a lottery Prize
(c) Dividends paid to shareholders (d) Construction of a new House
(d) Total profit of a company Ans. (d) [SSC 10+2 Exam,2010]
Ans. (a) [S.S.C (CGL) Exam, 2013] 13. Other name of Net National Product at market price?
5. The Income of Indians working abroad is- (a) National Income (b) Gross Domestic Production
r
(a) Domestic Income of India (c) Personal Income (d) Per Capital Income
i
(b) Income earned from abroad Ans. (a) [SSC 10+2 Exam,2012]
(c) Net domestic product of India 14. Compared to rich the poors saving is–
(d) Grave domestic product of India.
S
(a) A larger part of their income
Ans. (b) [S.S.C 10+2 Exam,2013] (b) An equal part of their income
6.
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When increase in income the increase in ratio between
income & expenditure changes–
(c) A small part of their income
v
(d) All of their incomes
w.E
(a) In same ratio
a
(b) Ratio less than 1
15. One of the main factors that led to rapid expansion of
(c) Ratio more than one
r
(d) None
Ans. (b) asy
[S.S.C CGL Exam, 2015]
Indian exports is–
(a) Imposition of export duty
(b) Liberalization of the economy
u
7. GDP is what percent of Fiscal deficit?
En (c) Recession in other countries
(d) Diversification of exports
a
(a) 7 (b) 4
(c) 8 (d) 1
gin Ans. (b)
16. A ‘Transfer Income’ is as –
Ans. (b)
ee
[S.S.C Multitasking Exam, 2013]
(a) Income which is not produced by as production
G
8. The Census of Indian agriculture is done by–
(a) Production Method (b) Income Method
(c) Expenditure Method (d) Consumption Method
process.
rin
(b) Income taken away from one person given over to
another.
Ans. (a) [SSC CGL Exam, 2006] (c) Unearned Income
(d) Earned Income g.n
9. The First Income Committee was established in–
(a) 1948
(c) 1950
(b) 1949
(d) 1951
Ans. (a)
et [SSC 10+2 Exam,2009]
17. Personal Income produced in a country is not included in–
(a) Production income from NDP
Ans. (b) [SSC Metric level Exam, 2008]
(b) Net Production Income from foreign.
10. The Central Statistical Organisation (CSO) provides
data under a new revised series in which the base year is (c) Transfer Income from government
taken as– (d) Current Payment on Foreign loans.
(a) 1960-61 (b) 1970-71 Ans. (d) [SSC CPO Exam, 2009]
(c) 2011-12 (d) 1990-91 18. The Effect of ‘Investment Multiplier’ is shows on–
Ans. (c) [SSC Multitasking Exam, 2013] (a) Employment (b) Savings
11. Depreciation is equal to– (c) Income (d) Consumption
(a) GNP – NNP Ans. (c) [SSC CGL Exam, 2013]
(b) NNP – GNP 19. A rising per Capita Income will indicate a better welfare
(c) GNP – Personal Income if it is accompanied by –
(d) Personal Income – Personal Taxes (a) Unchanged Income distribution overall.

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(b) Changed Income distribution in favour of rich. Ans. (d) [SSC (10+2) Exam, 2012]
(c) Changed Income distribution in favour of poor. 27. Per Capita Income is equal to–
(d) Changed Income distribution in favour of Industrial National Income
Labour. (a)
Total population of the country
Ans. (c) [SSC 10+2 Exam,2010] (b) National Income + Population
20. GDP at factor cost equals– (c) National Income - Population
(a) GDP – Indirect Tax + Subsidy (d) National Income x Population
(b) GNP – depreciation Ans. (a) [SSC FCI Exam, 2012]
(c) NNP + depreciation 28. Which one of the following is the most appropriate reason
r
(d) GDP – subsidy + indirect tax. for inequalities in income?
i
Ans. (a) [SSC Tax Asst. Exam, 2008] (a) Racial factors
21. A ‘Transfer Income’ is an– (b) Lack of opportunities
(c) Inheritance from family environment
S
(a) Income which is not produced by any production
process (d) Differences in ability
ww
(b) Income taken away from one person and given over to
another
Ans. (b) [SSC (10+2) Exam, 2012]
29. Which of the following is deducted from NNP to arrive at
v
(c) Unearned income
w.E
(d) Earned income
NI?
(a) Indirect tax
a
Ans. (a) [SSC DEO, (10+2) Exam, 2012] (b) Capital consumption allowance
r
22. Income and consumption are–
(a) Inversely Related asy
(b) Directly Related
(c) Subsidy
(d) Interest
u
(c) Partially Related
Ans. (b)
(d) Unrelated
En
[SSC (10+2) Exam, 2011]
Ans. (a) [SSC (10+2) Exam, 2011]
a
30. Which one of the following is not included while
activity in Economics? gin

23. Which of the following would not constitute an economic estimating National Income through income method?
(a) Rent (b) Mixed Income
(a) A teacher teaching students in his college
ee
G
(c) Pension (d) Undistributed Profits
(b) A teacher teaching students in a coaching institute
(c) A teacher teaching his own daughter at home
(d) A teacher teaching students under Sarva Shiksha
Ans. (d)
rin [SSC (10+2) Exam, 2011]
31. While computing National Income estimates, which of
Ans. (c)
Abhiyan Scheme
[SSC (10+2) Exam, 2011] g.n
the following is required to be observed?
(a) The value of exports to be added and the value of
24. Which one of the following is not a method of measurement
of National Income?
(a) Value Added Method (b) Income Method
et
imports to be subtracted
(b) The value of exports to be subtracted and the value of
imports to be added
(c) The value of both exports and imports to be added
(c) Investment Method (d) Expenditure Method
(d) The value of both exports and imports to be subtracted
Ans. (a) [SSC (10+2) Exam, 2011]
25. Gross Profit means–
32. Who estimated the National Income for the first time in
(a) Total investment over total savings
India?
(b) Changes in methods of production
(a) Mahalanobis (b) Dadabhai Naoroji
(c) Changes in the form of business organisation
(c) VKRV Rao (d) Sardar Patel
(d) Total receipts over total expenditure.
Ans. (b) [SSC MTS Exam, 2011]
33. National Income is generated from–
26. National Income is also called as– (a) any money-making activity
(a) GNP at factor cost (b) GNP at market price (b) any labourious activity
(c) NNP at factor cost (d) NNP at market price (c) any profit-making activity

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(d) any productive activity (c) winning of a lottery prize

Ans. (d) [SSC MTS Exam, 2011] (d) construction of a new house
Ans. (d) [SSC (10+2) Exam, 2010]
34. Which of the following is deducted from GNP to arrive at
NNP? 41. Depreciation is equal to–
(a) Depreciation (b) Interest (a) Gross National Product — Net National Product
(c) Tax (d) Subsidy (b) Net National Product — Gross National Product
Ans. (a) [SSC (10+2) Exam, 2011] (c) Gross National Product — Personal Income
35. The total value of goods and services produced in a (d) Personal Income — Personal Taxes
country during a given period is–
Ans. (a) [SSC (10+2) Exam, 2009]
(a) Disposable Income
r
42. Net National Product (NNP) of a country is–
(b) National Income
i
(a) GDP minus Depreciation allowances
(c) Per Capita Income
(b) GDP plus Net Income from abroad
(d) Net National Income
(c) GNP minus Net Income from abroad
S
(d) GNP minus Depreciation allowances
by–
ww
36. An individual’s actual standard of living can be assessed
Ans. (d)
43. Personal Disposable income is–
v
(a) Gross National Income
w.E
(b) Net National Income (a) Always equal to Personal Income
a
(c) Per Capita Income (b) Always more than Personal Income
(d) Disposable Personal Income (c) Equal to Personal Income minus Indirect Taxes
r
Ans. (c)
asy
37. A rising Per Capita Income will indicate a better welfare,
(d) Equal to Personal Income minus Direct Taxes
Ans. (d) [SSC CGL Exam, 2008]
u
if it is accompanied by–
(a) unchanged income distribution overall
En 44. Which of the following is not included in the National
Income?
a
gin
(b) changed income distribution in favour of rich
(c) changed income distribution in favour of poor
(a) Imputed rent of owner-occupied houses
(b) Government expenditure on making new bridges
ee
(d) changed income distribution in favour of industrial
G
labour (c) Winning a lottery
Ans. (c) [SSC Stenographer Exam, 2011]
38. Which one of the following is not method of estimating Ans. (c) rin
(d) Commission paid to an agent for sale of house
Nations Income?
(a) Expenditure method
45. GDP at factor cost is–
g.n
(a) GDP minus Indirect Taxes plus Subsidies
(b) Product method
(c) Matrix method
(d) Income method
et
(b) GDP minus Depreciation allowances
(c) NNP plus Depreciation allowances
(d) GDP minus Subsidies plus Indirect Taxes
Ans. (c) [SSC CGL Exam, 2011] Ans. (a) [SSC CGL Exam, 2008]
39. National Income Estimates in India are prepared by– 46. Which of the statements is correct about India’s National
(a) National Development Council Income?
(b) National Productivity Council (a) Percentage share of agriculture is higher than services
(c) National Income Committee (b) Percentage share of industry is higher than agriculture
(d) Central Statistical Organisation (c) Percentage share of services is higher than industry
Ans. (d) [SSC Stenographer Exam, 2010, CGL Exam, 2007, (d) Percentage share of services is higher than agriculture
Investigator Exam, 2006] and industry put together
40. National Income include– Ans. (d) [SSC CPO Exam, 2007]
(a) financial help to earthquake victims 47. The term ‘Green GNP’ emphasises–
(b) pocket money of a child (a) Rapid growth of GNP

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(b) Increase in Per Capita Income Ans. (d) [SSC Tax Asst. Exam, 2004]
(c) Economic Development 54. National Income refers to–
(d) Sustainable Development (a) Money value of goods and services produced in a
country during a year
Ans. (d) [SSC Tax Asst. Exam, 2006]
(b) Money value of stocks and shares of a country during a
48. Who among the following Indian economists has done year
pioneering work on National Income?
(c) Money value of capital goods produced by a country
(a) Jagdish Bhagwati (b) ML Seth during a year
(c) Amartya Sen (d) VKRV Rao (d) Money value of consumer goods produced by a country
during a year
Ans. (d) [SSC (10 +2) Exam, 2006]
r
49. In calculating National Income, which of the following is
included? 55. The National Income of a country is–
i
(a) Services of housewives (a) Government annual revenue
(b) Pensions (b) Total productive income
S
(c) Income of smugglers (c) Surplus of the public sector enterprise
Ans. (d) ww
(d) Income of watchmen
[SSC Tax Asst. Exam, 2005, (10+2) Exam, 2000]
(d) Export and Import
Ans. (b) [SSC SO Exam, 2003]
v
w.E
50. Which of the following is not required while computing
Gross National Product (GNP)?
56. The method of calculating the National Income by the
product method is otherwise known as–
a
(a) Net foreign investment (a) Income method (b) Value added method
r
(b) Private investment
(c) Per Capita Income of citizens asy (c) Expenditure method (d) Net output method
u
(d) Purchase of goods by government
Ans. (c) En
[SSC SO Exam, 2005]
57. National Income at factor cost is equal to–
(a) Net National Product - Indirect Taxes + Subsidies
a
gin
51. Which of the following results by dividing National
Income by size of population?
(b) Net National Product - Direct Taxes + Subsidies
(c) Gross National Product - Depreciation Charges
(a) Per Capita Income
ee
G
(d) Net National Product + Net Income from Abroad
(b) Subsistence level
(c) Subsistence expenditure
Ans. (a)
rin [SSC (10+2) Exam, 2002]
58. While estimating National Income which of the following
(d) Per capita production
Ans. (a) [SSC SO Exam, 2005] g.n
is not taken into account?
(a) Services of a teacher
52. What does National Income mean?
(a) The total value of all goods and services produced in
the country during a period of 1 year
(b) The total value of all stocks and shares in the country
(b) Services of a doctor
et
(c) Services of a housewife
(d) Services of a maid servant
during a period of 1 year Ans. (c) [SSC (10+2) Exam, 2002]

(c) The total value of all capital goods produced in the 59. Gross National Product is the money measure of–
country during a period of 1 year (a) All tangible goods produced in a country
(d) The total value of all consumer goods produced in the (b) Final goods and services produced in the economy
country during a period of 1 year
(c) Services generated annually in the economy
Ans. (a) [SSC SO Exam, 2005]
(d) All tangible goods available in the economy
53. The difference between the GNP and the NNP is equal to
the– Ans. (b) [SSC (10+2) Exam, 2002]
(a) Consumer expenditure on durable goods 60. Gross National Product means–
(b) Direct tax revenue (a) Gross value of finished goods
(c) Indirect tax revenue (b) Money values of the total national production for any
given period
(d) Capital depreciation
Follos us:www.clickqualify.com (10) General Studies
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(c) Gross value of raw materials (c) A process of inviting subscriptions to a public offer of
(d) Money value of inputs and outputs securities, essentially through a tendering process
(d) Publishers activity
Ans. (b) [SSC (10+2) Exam, 2002]
Ans. (c) [SSC SO Exam, 2003]
61. Aggregate net value of the output in 1 year is the–
68. An increase in per capita income is not an indication of
(a) National Income at factor cost
an increase in the economic welfare of the people–
(b) Gross Domestic Product at market prices
(a) When such increase is the result of an increased
(c) Net National Product at market prices production of comforts
(d) Gross National Product at market prices (b) When such increase is the result of an increase in
Ans. (c) [SSC (10+2) Exam, 2002] agricultural production
r
62. Net National Product in National Income accounting (c) When it is the result of an increase in the production of
industrial goods
i
refers to–
(a) Gross Domestic Product— Depreciation (d) When such increase is the result of increased production
of intoxicants
S
(b) Gross Domestic Product + Subsidies
(c) Gross Natic a Product—Depreciation
ww
(d) Gross National Product + Subsidies
69. ‘Golden Handshake Scheme’ is associated with–
(a) Inviting foreign companies
v
Ans. (c) [SSC (10 +2) Exam, 2002]
w.E
63. A very high rise in National Income at current market
(b) Private investment in public enterprises
(c) Establishing joint enterprises
a
prices and a low rise at constant prices reveals–
(a) The high rate of growth in the economy at the current (d) Voluntary retirement
r
period
asy
(b) The increased production in the current period
70. Fish catch by indian fishermen in the international
u
(c) The improper growth of the economy
En
(d) The high rate of inflation prevailing in the economy
waters are part of the GDP of–
(a) Sri Lanka (b) India and Sri Lanka
a
Ans. (d)
gin
[SSC (10+2) Exam, 2002]
64. National Income accounting is the study of the income
and expenditure of the entire–
(c) India
Ans. (c)
(d) India and Indonesia
[SSC (10+2) Exam, 2011]
ee
G
(a) Family (b) State 71. The best example of a capital intensive industry in India
(c) Economy
Ans. (c)
(d) Organisation
[SSC (10+2) Exam, 2001]
is–
rin
(a) Textile industry (b) Steel industry
65. GNP differs from NNP due to–

(a) Net indirect taxes
(c) Tourism industry
Ans. (b) g.n (d) Sports goods industry
[SSC (10+2) Exam, 2011]
(b) Direct taxes
(c) Interest on public debt
(d) Depreciation
by– et
72. The best index of economic development is provided
(a) Growth in per capita real income from year to year

Ans. (d) [SSC Stenographer Sep. Exam, 2014] (b) Growth in national income at current prices
66. Which of the following is not viewed as national debt?
(c) Growth in savings ratio
(a) Life Insurance Policies
(d) Improvement in the balance of payments position
(b) Long-term Government Bonds
Ans. (a) [SSC (10+2) Exam, 2010]
(c) National Savings Certificates
73. India’s biggest nationalised enterprise today is–
(d) Provident Fund
(a) The Indian Railways
(b) The Indian Commercial Banking System
67. What is ‘book-building’?
(c) The Indian Power Sector
(a) Preparing the income and expenditure ledgers of a
company (book-keeping) (d) The Indian Telecommunication System
(b) Manipulating the profit and loss statements of a Ans. (a) [SSC SO Exam, 2007]
company
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74. Which of the following is a better measurement of 81. The standard of living in a country is represented by
economic development? its–
(a) GDP (b) Disposable Income (a) Poverty ratio (b) Per capita income
(c) NNP (d) Per Capita Income (c) National income (d) Unemployment rate
Ans. (d) [SSC SO Exam, 2007] Ans. (b) [SSC CGL Exam, 2002]
75. Which organisation collects data for the unorganised 82. In a highly developed country the relative contribution
sector? of agriculture to GDP is–
(a) NSSO (b) CSO (a) Relative high
(c) ASI (d) RBI (b) Relatively low
Ans. (a) [SSC CPO Exam, 2006] (c) Same as that of other sectors
r
76. Economic growth is dependent mainly on– (d) Zero
i
(a) Level of consumption Ans. (b) [SSC Matric Level Exam, 2001]
(b) Price stability
S
Tax
(c) Level of investment
Ans. (c) ww
(d) Population growth
[SSC Matric Level Exam, 2006]
1. Which among of the following is direct tax?
v
(a) Sales Tax (b) Excise Tax
(CSO)?
w.E
77. What is the main function of Central Statistical Office
(c) Wealth Tax (d) Entertainment Tax
a
Ans. (c) [S.S.C Multitasking Exam, 2013]
(a) Determination of money supply
r
asy
(b) Collection of estimates of national income
(c) Collection of detail data regarding employment
2. Which among of the following is largest source of income
for central govt.?
u
(a) Direct Taxes (b) Custom Duty
(d) Price determination
Ans. (b) En
[SSC SO Exam, 2005]
(c) Excise Duty (d) Entertainment Tax
a
gin
78. Which of the following is not true when the interest rate
in the economy goes up?
Ans. (a)
3.
[S.S.C Matric level Exam, 2008]
Which among of the following is not direct tax?
(a) Savings increases

ee (a) Income Tax (b) Property Tax
G
(c) Gift Tax (d) Sales Tax
(b) Lending decreases
(c) Cost of production increases
Ans. (d)
rin[S.S.C Stenographer Exam, 2005]
(d) Return on capital increases

4.
(a) Coorporate Tax
g.n
The Example of Sales tax is-
(b) Direct Tax
Ans. (d)
economy has to–

79. To achieve high rates of growth of national output, the
(a) reduce the rate of growth of population

(c) Indirect Tax
Ans. (c)
5.
et
(d) Welfare Tax
Which of the following tax is imposed by state govt.?
(a) Entertainment Tax (b) Property Tax
(b) borrow foreign capital
(c) Income Tax (d) Corporate Tax
(c) step up the rate of savings
Ans. (a) [S.S.C Matric level Exam, 2006]
(d) increase the rate of investment and reduce the capital
6. Taxes are called as Regressive when-
output ratio
(a) None of these
(b) It causes same burden on rich and poor
80. The self-employed in a developing country who are
engaged in small scale labour intensive work belong to (c) Less burden on poor as compared to rich
the– (d) More burden on poor as compared to rich
(a) Informal Sector (b) Primary Sector Ans. (c) [S.S.C (CPO) Exam, 2015]
(c) Secondary Sector (d) Tertiary Sector 7. In case of direct tax, impact of tax & incidence of tax is–
Ans. (b) [SSC Matric Level Exam, 2002] (a) On two different person

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(b) On same person (c) After every two year

(c) Any other person (d) After every five year
(d) On that department which called tax. Ans. (d) [SSC Tax Asst. Exam,2008]
Ans. (b) [S.S.C (CGL) Exam, 2014] 16. Which of the statements is correct about India’s National
8. Who was the Chairman of tenth Finance Commission? Income?
(a) Manmohan Singh (b) Vasant Sathe (a) Percentage share of agriculture is higher than services.
(c) Shiv Shankar (d) K.C. Pant (b) Percentage share of industry is higher than agriculture.
Ans. (d) [SSC CGL Exam, 2013] (c) Percentage share of services is higher than industry.
9. Who was the Chairman of 13th Finance Commission?
(d) Percentage share of services is higher than agriculture
r
(a) Dr. Vijay L Kelkar (b) Dr. C Rangrajan and industry put together.
i
(c) Dr. A.M. Khusro (d) Dr. C. Subbarao Ans. (d) [SSC CPO Exam, 2007]
Ans. (a) [SSC Steno Exam, 2011, 14] 17. In Centre – State financial relation in India, Gadgil
S
10. For becoming chairman of finance commission which formula is used in–
one is necessary? (a) Division of tax revenue
ww
(a) He should be from Finance and Banking sector
(b) Formulation of the policy for fresh borrowings
v
(b) He should be high level economist
(c) Writing off state’s indebtedness to the centre
w.E
(c) He should be specialist of Jurisdiction matters
a
(d) Allocating Central Plan assistance between States
(d) In case of public matters, he should be a man of
perfection Ans. (a) [SSC 10+2 Exam,2011]
r
Ans. (d)
asy
[SSC 10+2 Exam,2010]
11. Which among of the following is not a ‘canon of taxation’
18. Which authority decides about the states’ share in central
taxes?
u
according to Adam Smith?
(a) Canon of certainty En (a) Finance Commission
(b) Planning Commission
a
(b) Canon of simplicity
(c) Canon of convenience gin (c) Election Commission
(d) Finance Ministry
ee
G
(d) Canon of economy inefficiency Ans. (a) [SSC SO Exam, 2006]
Ans. (b)
12. VAT was firstly implemented in–
[SSC 10+2 Exam,2010]
rin
19. The practice of selling goods in a foreign country at a
price below their domestic selling price is called–
(a) Germany
(c) France
(b) Spain
(d) Russia
(a) ‘Diplomacy’
(c) ‘Dumping’ g.n (b) ‘Discrimination’
(d) ‘Double pricing’
Ans. (c)
13. CENVAT is related with–
(a) Service Tax
[SSC 10+2 Exam,2012]
(b) Wealth Tax

Ans. (c)
et
20. Indirect taxes by nature are–
(a) Degressive
[SSC SO Exam, 2006]
(b) Regressive
(c) Progressive (d) Proportional
(c) Excise duty (d) Selling Tax
Ans. (b) [SSC Stenographer Exam, 2011]
Ans. (c) [SSC 10+2 Exam,2015]
21. Taxation is a tool of–
14. ‘Value - added’ is equal to–
(a) Monetary Policy (b) Fiscal Policy
(a) Output Minus the Inputs
(c) Price Policy (d) Wage Policy
(b) Reconstruction profit
Ans. (b) [SSC (10+2) Exam, 2011]
(c) Gross profit
22. The Fringe Benefit Tax was introduced in the budget
(d) Investment profit
of–
Ans. (a) [SSC 10+2 Exam,2013]
(a) 2003-04 (b) 2004-05
15. Finance Commission is organised.
(c) 2005-06 (d) 2006-07
(a) Every year.
(b) After every four year
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23. The government set-up a committee headed by the (c) Lump sum Tax (d) Regressive Tax
Chairman. Central Board of Direct Taxes sometime back Ans. (b) [SSC SO Exam, 2006]
to go into–
30. Which of the following sets belong to Central tax?
(a) Codification of tax laws
(a) Excise Duty, Sales Tax and Customs Duty
(b) The entire structure of tax laws including the question (b) Excise Duty, Customs Duty and Income Tax.
of imposition of bank tax
(c) Income Tax, Customs Duty and House Tax
(c) The concerns of the foreign investors in India with (d) Customs Duty, Entertainment tax and Income Tax
regards to taxation matters
Ans. (b) [SSC Tax Asst. Exam, 2005]
(d) Aspects of generation of black money, its transfer
abroad and bringing back such money into India’s 31. Which of the following taxes is not shared between the
Legitimate Financial System. union and the states?
r
(a) Income Tax (b) Excise Duty
i
(c) Corporation Tax (d) Sales Tax
24. Which of the following taxes are levied and collected by
the centre but their net proceeds are wholly transferred Ans. (d) [SSC SO Exam, 2005]
S
to states? 32. Which of the following taxes is levied by the Union and
(a) Expenditure Tax and Gift Tax appropriated and planned by the states?
ww
(b) Additional duties of excise in lieu of sales tax
(c) Stamps and Registration
(a) Service Tax
(b) Stamp Duty
v
Ans. (d)
w.E
(d) Taxes on Advertisement
[SSC SAS 2010]
(c) Property Tax
(d) Passenger and Freight Duty
a
25. Which of the following is not the source of the revenue of Ans. (b) [SSC SO Exam, 2005]
r
Central Government?
(a) Income Tax asy 33. Interest on public debt is part of–
(a) Transfer payments by the enterprises
u
(b) Corporate Tax
(c) Agricultural Income Tax En (b) Transfer payments by the government
(c) National income
a
(d) Excise Duty
Ans. (c) gin
[SSC DEO Exam, 2008]
(d) Interest payments by households
Ans. (b) [SSC SO Exam, 2005, CGL Exam, 2000]
26. The Report of Vijay Kelkar Committee relates to–
ee
G
34. Which of the following taxes is such which does not cause
(a) Trade reforms
(b) Centre-state financial relations
rise in price?
(a) Import Duty
rin (b) Income Tax
(c) Disinvestment in public sector enterprises
(d) Tax reforms
(c) Octoroi
Ans. (b)
g.n (d) Sales Tax
[SSC SO Exam, 2005]
Ans. (d)
Central Government?
(a) Income Tax
27. Which of the following taxes is not collected by the
(b) Customs Duty

(a) Dalton
(c) Musgrave
et
35. Who among the following has suggested tax on
expenditure?
(b) Kaldor
(d) Gautam Mathur
(c) Professional Tax (d) Excise Duty
Ans. (c) [SSC Tax Asst. Exam, 2007]
36. Which amidst the following taxes collected by the Union
28. Excise duty on a commodity is payable with reference to is not mandated to be assigned to the states?
its– (a) Terminal taxes on goods or passengers carried by
(a) Production railway, sea or air.
(b) Production and Sale (b) Taxes on railway fares and freights
(c) Production and Transportation (c) Taxes on consignment of goods
(d) Production, Transportation and Sale (d) Service Tax
Ans. (a) [SSC SO Exam, 2007] Ans. (d) [SSC CGL Exam, 2004]
29. If the tax rate increases with the higher level of income, it 37. The main source of revenue for a State Government in
shall be called– India is–
(a) Proportional Tax (b) Progressive Tax (a) Sales Tax (b) Excise Duty
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(c) Income Tax (d) Property Tax (c) Excise Duties (d) Sales Tax
Ans. (a) [SSC CPO Exam, 2003] Ans. (d) [SSC Matric Level Exam, 2002]
45. Parallel economy emerges due to–
38. The proceeds of Income tax go to– (a) Tax Avoidance (b) Tax Evasion
(a) Central Government (c) Tax Compliance (d) Tax Estimation
(b) State Government Ans. (b) [SSC Matric Level Exam, 2002]
(c) Centre and States 46. The tax levied on gross sales revenue from business
(d) Corporation Authorities transactions is called–
Ans. (c) [SSC CPO Exam, 2003] (a) Turnover Tax (b) Sales Tax
r
39. How does the consumer benefit with VAT? (c) Capital Gains Tax (d) Corporation Tax
i
(a) It removes tax on tax and thus reduces price rise Ans. (a) [SSC Matric Level Exam, 2002]
(b) Reduces the cost of production 47. A tax is characterised by horizontal equity if its liability
is–
S
(c) With the abolition of the sales tax
(a) Proportional to the income of tax payers
(d) Due to the exemption of small businesses from the tax
ww
within certain limits prescribed by the state (b) Similar for tax payers in similar circumstances
(c) Proportional to the expenditure of tax payers
v
w.E
40. The receipts of which of the following taxes/duties are (d) The same for every tax payer
a
not shared with the states? Ans. (a) [SSC SO Exam, 2001]
(a) Tax on income except agriculture 48. Which authority recommends the principles governing
r
(b) Corporation tax
(c) Surcharge on Income tax asy the grants in aid of the revenues of the states out of the
Consolidated Fund of India?
u
(d) Capital gain tax
Ans. (a) En
[SSC SO Exam, 2003]
(a) Public Accounts Committee
(b) Union Ministry of Finance
a
41. Corporation tax is a tax imposed on–
(a) The net incomes of the companies gin (c) Finance Commission
(d) Inter-State Council
(b) The corporate properties
ee Ans. (c) [SSC SO Exam, 2001]
G
(c) The utilities provided by the corporation
(d) Tax imposed by the corporation on individual
properties rin
49. Buoyancy of a tax is defined as–
(a) Percentage increase in tax revenue/percentage increase
Ans. (a) [SSC Matric Level Exam, 2002]
42. The duties levied on alcoholic liquors, narcotic drugs and
in tax base
g.n
(b) Increase in tax revenue/percentage increase in tax
coverage
opium come under–
(a) Central Excise Duty (b) Land Revenue
(c) State Excise Duty (d) General Sales Tax
et
(c) Increase in tax revenue/increase in tax base
(d) Percentage increase in tax revenue/increase in tax
coverage
Ans. (a) [SSC Matric Level Exam, 2002] Ans. (c) [SSC SO Exam, 2001]
43. State which amongst the following is not true about 50. Which one of the following is not an Example of Indirect
VAT? tax?
(a) All states have uniform VAT for the same product (a) Sales Tax (b) Excise Duty
(b) State have discretion to fix the rate of tax within the (c) Customs Duty (d) Expenditure Tax
four rates prescribed
(c) It will promote production efficiency of investments
51. ‘Quota’ is–
(d) It will make our exports more competitive
(a) Tax levied on imports
Ans. [SSC SO Exam, 2003]
(b) Imports of capital goods
44. The most important source of revenue for the states in
India is– (c) Limit on the quantity of imports
(a) Corporation Tax (b) Income Tax (d) Limit on the quantity of exports

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Ans. (c) [SSC Matric Level Exam, 2000] Ans. (d) [S.S.C 10+2 Exam,2015]
52. Taxation is a tool of– 2. Which of the following is not considered as National
(a) Monetary Policy (b) Fiscal Policy Debt?
(c) Price Policy (d) Wage Policy (a) National saving Certificate
Ans. (b) [SSC Matric Level Exam, 2000] (b) Long-term Government Bond
53. Which is the biggest tax paying sector in India? (c) Insurance Policies
(a) Agriculture sector (b) Industrial sector (d) Provident Fund
(c) Transport sector (d) Banking sector Ans. (c) [SSC CGL Exam, 2008]
Ans. (b) [SSC CGL Exam, 2010] 3. Which among of the following is open Bank for small
industries.
r
54. Value of output and value added can be distinguished if
(a) IDBI (b) SIDBI
i
we know–
(a) The value of intermediate consumption (c) IFCI (d) NABARD
(b) The value of net indirect taxes Ans. (b) [SSC Metric level Exam, 2006]
S
(c) The value of the sales 4. IDBI was established on–
ww
(d) The value of consumption of fixed capital (a) July, 1964
(c) July, 1962
(b) July, 1966
(d) July, 1968
v
Ans. (a) [SSC (10+2) Exam, 2010]
w.E
55. What is Value Added Tax (VAT) ? Ans. (a) [SSC 10+2 Exam,2015]
a
(a) A simple, transparent, easy to pay tax imposed on 5. Under the rules of the IMF, each member is required to
consumers declare the par value of its legal tender money in terms
r
asy
(b) A new initiative taken by the government to increase
the tax-burden of high income groups
of US Dollars and –
(a) Silver (b) Gold
u
En
(c) A single tax that replaces state taxes like, surcharge,
turnover tax etc
(c) Pound, sterling
Ans. (c)
(d) Diamond
a
gin
(d) A new tax to be imposed on the producers of capital
goods
6. Which among of the following bank was earlier known
as ‘Imperial Bank of India’?
Ans. (c)
ee
[SSC Tax Asst. Exam, 2006] (a) RBI (b) SBI
G
56. The incidence of tax refers to,– (c) UBI (d) PNB
(a) Who pays the tax ? Ans. (b)
rin [SSC CGL Exam, 2006]
(b) Who bears the burden of tax?
(c) How taxes can be shifted ?
7.
g.n
SBI was earlier known as –
(a) Cooperative Bank of India
(d) Who transfers the tax burden?
Ans. (b)
57. Ad Valorem tax is levied–
[SSC MTS Exam, 2002] (c) Syndicate Bank
(d) Canara Bank
et
(b) Imperial Bank of India
(a) According to value added by the government. Ans. (b) [SSC CGL Exam, 2015]
(b) According to value addition to a commodity 8. The Interest on saving deposits in all nationalized banks
(c) According to value given by producers of India is determined by–
(d) According to value added by the Finance ministry (a) Finance Minister
Ans. (c) [SSC MTS Exam, 2002] (b) Finance Commission

(c) Indian Cooperative Bank
Bank (d) Reserve Bank of India
1. By which law it has been said that with continue increase
9. The total Number of nationalized bank in India.
in income, expenses on food product decreases-
(a) 14 (b) 21
(a) Gresham’s Law (b) Griffin Law
(c) 20 (d) 22
(c) Say's Law (d) Angel Law

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Ans. (b) [SSC CGL Exam, 2014] Ans. (c) [SSC CPO Exam, 2005]
10. Which among the following is public sector 18. Minimum to Maximum reserved deposits in RBI by
undertaking? Commercial Banks in called–
(a) HSBC Bank (b) Syndicate Bank (a) Cash Deposits (b) Deposit Reserve
(c) South Indian Bank (d) Bank of Punjab (c) Excess Reserve (d) None of the above
Ans. (b) SSC Metric level Exam, 2006 Ans. (c) [SSC CGL Exam, 2011]
11. When were Fourteen India Banks nationalized in? 19. Which one of the following is not a quantitative credit
(a) 1967 (b) 1968 control measure of a Central Bank?
(c) 1969 (d) 1971 (a) Bank Rate Policy (b) Open Market Operations
(c) Cash reserve Ratio (d) Moral Suasion (Pressure)
r
Ans. (c) [SSC 10+2 Exam, 2014]
Ans. (d) [SSC 10+2 Exam,2011]
i
12. ‘NABARD’ Stands for–
(a) National Bank for Agricultural Refinance & Development 20. Remedy Finance is done by–
(b) National Board of Agricultural Research & Development (a) National Development Council
S
(c) National Academy of Banking and Agricultural (b) NABARD
ww
Research and Development
(d) Nation Bank for Agriculture and Rural Development.
(c) SBI
(d) RBI
v
w.E
13. ‘NABARD’ is related to development of –
Ans. (d) [SSC 10+2 Exam, 2015]
a
21. Which among the following is Known as “Hot Money”?
(a) Agriculture and Rural Areas
(a) FII (b) FDI
r
(b) Heavy Industries
(c) Banking Sector asy (c) ADR
Ans. (a)
(d) GDR
u
Ans. (a) En
22. Cash Reserve Ratio and open Market Operation are the
tools of–
a
institution? gin
14. Which of the following is not a industrial finance (a) Monetary Policy
(c) Trade Policy
(b) Budget Policy
(d) Fiscal policy
(a) UTI (b) ICICI
ee Ans. (a) [SSC 10+2 Exam, 2013]
G
(c) NABARD (d) SFC
Ans. (c) [SSC Metric Level Exam, 2002] reform.
rin
23. Which among of the following are related to banking
15. Whose signature is done on one rupee note?

(a) Finance Secretary
g.n
(a) L.C. Gupta Committee
(b) Narasimhan Committee
(b) Governor of RBI
(c) Finance Minister
(d) None of these
(d) Kelkar Committee
Ans. (b)
et
(c) Chakravarti Committee

Ans. (a) [SSC CGL Exam, 2015] 24. In E-banking, ‘E’ Stands for–
16. Decimal Money System was started in? (a) Economics Banking (b) Environment Banking
(a) 1955 (b) 1956 (c) Electronic Banking (d) Expand Banking
(c) 1957 (d) 1958 Ans. (c) [SSC CGL Exam, 2014]
Ans. (c) [SSC 10+2 Exam,2014] 25. Which of the following is a measure to check money
17. Bank rate is the rate of interest– supply in market?
(a) At which public borrow money from commercial Banks (a) Free Market Policy
(b) At which public borrows money from RBI (b) CRR
(c) At which commercial Banks borrow money from RBI (c) Bank Rate
(d) At which commercial Banks borrows money from the (d) Change in marginal necessities
public Ans. (a) [SSC CGL Exam, 2014]

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26. RBI does not transact the business of which state 33. ICI is related with–
government? (a) Multinational company for manufacture of chemicals
(a) Nagaland (b) Jammu and Kashmir (b) Indian Cannot Industry.
(c) Punjab (d) Assam (c) Chamber of Commerce and Industry
Ans. (b) [SSC Tax Asst. Exam, 2007] (d) Private Sector Bank
27. Who was appointed as governor of RBI After Dr. Y.V. Ans. (a) [SSC CPO Exam, 2008]
Reddy?
34. Open – Market operation indicates–
(a) Dr. Indra Rangrajan (b) Dr. Dilip Sanghai
(a) Loan taken by scheduled banks from RBI
(c) Dr. Vijay L. Kelkar (d) Shri D. Subbarao
(b) Loan for industry and trade from RBI by scheduled
Ans. (d) [SSC Tax Asst Exam, 2009]
r
banks
28. Which among the following is correct about money
i
(c) Selling and buying of government bonds and securities
supply in India? by RBI
(a) Money Possessed by public is not exchangeable (d) Total revenue of government
S
(b) Amount of money deposit in banks is greater than Ans. (c) [SSC 10+2 Exam,2010]
public holds
ww
(c) Amount of money possessed by public is more than
35. When money supply increases the LM curve?
(a) Remains parallel to x – axis
v
bank deposits
(b) Shift towards left
w.E
(d) Amount of money possessed by public is equal to bank
(c) Shift towards right
a
deposits
(d) Remains constant
r
29. ‘Hard Currency’ is–
(a) A currency which is paid for loan asy Ans. (c)
36. Monetary Policy is maintained by–
[SSC 10+2 Exam,2013]
u
(b) A currency which is paid for gold
En (a) Central Government
(b) RBI
a
(c) A currency which is easy to access
(d) A currency not easy to access
Ans. (d)
gin
(c) Industrial Finance Corporation
(d) IDBI
ee
G
30. The Financial Year of RBI is from – 37. The Largest Commercial Bank of India is –
(a) April to March
(b) July to June rin
(a) Central Bank of India
(b) SBI
(c) January to December
(d) August to July
g.n
(c) Indian Overseas Bank
(d) Bank of India
Ans. (b) [SSC Multitasking Exam, 2011]
31. A Schedule Bank in one which is included in the –
(a) II Schedule of Banking Regulation Act.
Ans. (b)
et [SSC 10+2 Exam,2011]
38. The Maximum branches of Indian Bank is in–
(a) Bangladesh (b) Sri Lanka
(b) II Schedule of Constitution (c) UK (d) USA
(c) II Schedule of RBI act Ans. (c) [SSC 10+2 Exam,2003]
(d) None of the above 39. Which among the following is true?
Ans. (c) [SSC CGL Exam, 2014] (a) Money is a good servant
32. Which among of the following is not a government (b) Money is a good servant but bad master
organization? (c) Money is a good master but bad servant
(a) National Residence Bank (d) Money is a good master and servant too
(b) SIDBI Ans. (b) [SSC FCI Exam, 2012]
(c) ICICI 40. Which among of the following is a Example of optional
(d) NABARD money?
Ans. (c) [SSC Steno Exam, 2014] (a) Currency Notes (b) Coins
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(c) Cheques (d) Bonds 48. Money supply is governed by the–

Ans. (c) [SSC 10+2 Exam,2010] (a) Planning Commission
41. Which among of the following statement is correct? (b) Finance Commission
(a) Good money drives bad money out of circulation. (c) Reserve Bank of India
(b) Bad money drives out good money from circulation (d) Commercial Banks
(c) Good and bad money Cannot circulate together. Ans. (c) [SSC MTS Exam, 2011]
(d) Can’t say 49. “Bad money will drive out good money from circulation.”
Ans. (b) [SSC CPO Exam, 2008] This is known as–
42. A part of National Debt known as External Dept is the (a) Engle’ Law (b) Gresham’s Law
r
amount. (c) Say Law (d) Wagner’s Law
i
(a) Borrowed by its citizen from abroad Ans. (b) [SSC MTS Exam, 2006]
(b) Lent by into citizens to foreign governments 50. The demand for money, according to Keynes is for–
(a) Speculative Motive
S
(c) Borrowed by its government from abroad
(d) Lent by its government to foreign government (b) Transaction Motive
Ans. (c)
ww [SSC 10+2 Exam,2013] (c) Precautionary Motive
v
43. Green Banking means- (d) All of the above
w.E
(a) Development of forestry by banks. Ans. (c) [SSC MTS Exam, 2001]
a
(b) Financing of environment friendly projects by banks 51. The rate of interest is determined by–
(c) Financing of irrigation projects by banks
r
Ans. (d) asy
(a) The rate of return on the capital invested
(b) Central Government
u
(c) Liquidity Preference
En
44. A currency having a falling exchange rate due to
continuing balance of payments deficit is called a– (d) Commercial Banks
a
(a) Soft Currency
(c) Scarce Currency
(b) Hard Currency
gin
(d) Surplus Currency
Ans. (d)
52. Cheap money means–
Ans. (a)
ee
[SSC Matric Level Exam, 2002] (a) low rates of interest
G
(b) low level of saving
45. What is referred to as ‘Depository Services’?
(a) A new scheme of fixed deposits
rin
(c) low level of income
(b) A method for regulating stock exchanges
(c) An agency for safe keeping of securities. Ans. (a) g.n
(d) low level of standard of living
(d) An advisory service to investors
Ans. (c)
46. Liquidity preference means–
[SSC Tax Asst. Exam, 2006] et
53. ‘Gold Bullion Standard’ refers to–
(a) gold coin as an unlimited legal tender
(b) gold as the measure of value
(a) Showing preference to hold bonds and securities (c) free coinage of gold
(b) Refraining from consumption (d) no restriction on import and export of gold
(c) Desire of the public to hold cash Ans. (b) [SSC CGL Aug. Exam, 2014]
(d) Showing preference to hold capital assets 54. Reserve Bank of India was nationalised in–
Ans. (c) [SSC CGL April Exam, 2014] (a) 1948 (b) 1947
47. Increase in cash reserve ratio leads to– (c) 1949 (d) 1950
(a) increase in bank credit Ans. (c) [SSC FCI Exam, 2012]
(b) decrease in bank credit 55. Monetary Policy in India is formulated by–
(c) constant bank credit (a) Finance Ministry (b) RBI
(d) excess bank credit (c) SEBI (d) CLB
Ans. (b) [SSC CGL July Exam, 2014] Ans. (b) [SSC DEO, (10+2) Exam, 2012]

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56. Which one of the following is not a quantitative credit 64. The bank cheques are processed by using of–
control measure of a Central Bank? (a) OCR (b) MICR
(a) Bank Rate Policy (b) Open Market Operations (c) OMR (d) PMR
(c) Cash Reserve Ratio (d) Moral Suasion Ans. (b) [SSC SAS Exam, 2011]
Ans. (d) [SSC (10+2) Exam, 2011] 65. The RBI issues currency notes under the–
57. The reserve held by commercial banks over and above (a) Fixed Fiduciary System
the statutory minimum, with the RBI are called–
(b) Maximum Fiduciary System
(a) Cash Reserves (b) Deposit Reserves
(c) Fixed Minimum Reserve System
(c) Excess Reserves (d) Momentary Reserves
(d) Proportional Reserve System
r
Ans. (c) [SSC DEO Exam, 2009. CGL Exam, 2004]
58. Which one of the following is an Example of optional
i
money? 66. The present Indian Monetary System is based on–
(a) Currency Note (b) Coins (a) Gold Reserve System
S
(c) Cheque (d) Bond (b) Proportional Reserve System
(c) Convertible Currency System
Ans. (c)
ww [SSC Stenographer Exam, 2011]

59. Who is authorised to issue coins in India? (d) Minimum Reserve System
v
(a) Reserve Bank of India Ans. (d) [SSC Tax Asst. Exam, 2009]
w.E
(b) Ministry of Finance 67. The relationship between the value of money and the
a
price level in an economy is–
(c) State Bank of India
r
(d) Indian Overseas Bank
Ans. (b) asy
(a) Direct
(c) Proportional
(b) Inverse
(d) Stable
u
Ans. (b) [SSC DEO Exam, 2009]
Bank in an economy?
En
60. Which one of the following is not a function of the Central
68. Which from the following is not true when the interest
a
rate in the economy goes up?
(a) Dealing with foreign exchange
(b) Controlling Monetary Policy gin (a) Saving increases
ee (b) Lending decreases
G
(c) Controlling government spending (c) Cost of production increases
(d) Acting as a banker’s bank
Ans. (c) [SSC CPO Exam, 2011] Ans. (d) rin
61. Insurance sector in India is regulated by–
g.n
69. ‘Jeevan Aastha’ — a scheme relating to investment and
saving, was launched during 2008-09, by–
(a) MRBI
(c) IRDA
Ans. (c)
(b) CII
(d) SEBI
[SSC Investigator Exam, 2010]
(a) Tata AIG
(c) Bajaj Allianz
Ans. (d)
et
(b) ICICI Prudential
(d) LIC
62. The existence of a parallel economy or black money–
70. Which of the following has the sole right of issuing
(a) Makes the economy more competitive
currency (except one rupee coins and notes) in India?
(b) Makes the monetary policies less effective
(a) The Government of India
(c) Ensures a better distribution of income and wealth
(b) The Planning Commission
(d) Ensures increasing productive investment
(c) The State Bank of India
Ans. (b) [SSC SAS Exam, 2010]
(d) The Reserve Bank of India
63. Consequent upon the recommendations of the working
Ans. (d) [SSC SO Exam, 2007, 2005]
group on rural banks, 5 Rural Regional Banks were
initially set-up in the year– 71. The Narasimham Committee (1991) on financial reforms
proposed for establishment of a–
(a) 1973 (b) 1974
(a) Four Tier hierarchy of the banking structure
(c) 1975 (d) 1976
(b) Three Tier hierarchy of the banking structure
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(c) Two Tier hierarchy of the banking structure (c) Variable Deposits
(d) Unified control by the apex institutions (d) Demand Deposits
Ans. (a) [SSC SO Exam, 2008] Ans. (d) [SSC SO Exam, 2006]
72. Which of the following Indian banks became the first to 80. Regional Rural Banks are sponsored by–
touch a market capitalisation of `100000 crore in India? (a) Nationalised Commercial Bank
(a) ICICI (b) HDFC (b) Reserve Bank of India
(c) SBI (d) PNB (c) State Bank of India
Ans. (c) [SSC CGL Exam, 2008] (d) Government of India
73. Long-term funds in the capital market can be raised either Ans. (a) [SSC MTS Exam, 2006]
by borrowing from certain institutions or through–
r
81. The Imperial Bank of India, after its nationalisation
(a) Issue of note
i
came to be known as–
(b) Taking loan from government
(a) Reserve Bank of India
(c) Issue of securities
(b) State Bank of India
S
(d) Taking loan from foreign institutions
(c) United Bank of India
ww
74. The permission given to a bank customer to draw cheques
(d) Indian Overseas Bank
v
in excess of his current account balance is called–
82. Interest paid by the government on the loans raised is
w.E
(a) A personal loan called–
a
(b) An ordinary loan (a) Debt Servicing
r
(c) Discounting a bill of exchange (b) Deficit Financing
(d) An overdraft
asy (c) Discounted Budgeting
(d) Bridge Loan
u
En
75. Foreign currency which has a tendency of quick migration Ans. (a) [SSC MTS Exam, 2006]
a
is called– 83. If the Central Bank wants to encourage an increase in the
(a) Scarce Currency
(c) Gold Currency
(b) Soft Currency
(d) Hot Currency
gin supply of money and decrease in the cost of borrowing
money, it should–
ee (a) Lower Cash Reserve Ratio
G
76. Purchasing power parity theory is related with–
(a) Interest Rate (b) Bank Rate rin
(b) Raise Discount Rates
(c) Sell Government Securities
(c) Wage Rate

Ans. (d)
(d) Exchange Rate
[SSC SO Exam, 2007]
Ans. (a) g.n [SSC CPO Exam, 2006]
77. What does ECS in banking transactions stand for?

(a) Excess Credit Supervisor
(b) Extra Cash Status
issued by– et
84. In India, one-rupee coins, notes and subsidiary coins are
(a) The Reserve Bank of India

(b) The Central Government
(c) Exchange Clearing Standard (c) The State Bank of India
(d) Electronic Clearing Service (d) The Unit Trust of India
Ans. (d) [SSC CGL Exam, 2007] Ans. (b) [SSC SO 2006]
78. The ‘Interest Rate Policy’ is a component of– 85. What is the name of the electronic communication
(a) Fiscal Policy (b) Monetary Policy network of the Reserve Bank of India ?
(c) Trade Policy (d) Direct control (a) BOLT (b) RBISAT
Ans. (b) [SSC SO Exam, 2006] (c) RBINET (d) RBIDOT
79. Bank deposits that can be withdrawn without notice are Ans. (c) [SSC Investigator Exam, 2006]
called– 86. Which of the following is Apex bank for industrial
(a) Account Payee Deposits loans?
(b) Fixed Deposits (a) RBI (b) NABARD
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(c) ICICI (d) IDBI (b) Cash Reserve Ratio

Ans. (d) [SSC SO Exam, 2005] (c) Statutory Liquidity Ratio
87. The basic regulatory authority for mutual funds and (d) Minimum Reserve Ratio
stock markets lies with the– Ans. (b) [SSC Tax Asst. Exam, 2004]
(a) Government of India
95. The best way, a bank can avoid loss is to–
(b) Reserve Bank of India
(a) Lend only to individuals known to the bank
(c) SEBI
(b) Accept sound collateral
(d) Stock Exchange
(c) Give only short-term loans
(d) Lend only to bank’s old customers
r
88. ‘Dear Money’ means–
(a) Low rate of interest (b) High rate of interest
i
96. Which of the following Mahatma Gandhi seires of
(c) Depression (d) Inflation currency notes Issued by the RBI has a drawing of the
Ans. (b) [SSC Investigator Exam, 2005] ‘Parliament House’ depicted on it–
S
89. A Commercial Bank law creates credit only if it has– (a) `500 (b) `100
ww
(a) Cash in the vault
(b) Excess reserves
(c) `50
Ans. (c)
(d) `0
v
w.E
(c) Permission of Reserve Bank of India 97. Which of the following Mahatma Gandhi series of
currency notes issued by the RBI has ‘Ecology’ depicted
a
(d) Cooperation of other banks
on it?
r
90. The rate of interest is determined by–
asy
(a) The rate of return on the capital invested
(a) `500
(c) `50
(b) `100
(d) `5
u
(b) Central Government
(c) Liquidity preference En Ans. (b) [SSC CGL Exam, 2003]
98. The Government of India made it obligatory on the
a
(d) Commercial banks
Ans. (c) gin
part of all commercial banks that they should give some
cash amount while purchasing government bonds. What
would you call this?
91. ‘Legal Tender Money’ refers to–
ee
G
(a) Statutory Liquidity Ratio
(a) Cheques
(c) Bill of Exchange
(b) Drafts
(d) Currency Notes rin
(b) Cash Reserve Ratio
(c) Minimum Reserve Ratio
Ans. (d) [SSC Investigator Exam, 2005]
92. What is known as the open market operation of the g.n
(d) Floating Reserve Ratio
RBI?
(a) Buying and selling of stocks
(b) Auctioning of foreign exchange
(c) Trading in securities
is– et
99. The main source of long-term credit for a business unit
(a) sale of stocks and bonds to the public

(b) borrowing from banks
(d) Transactions in gold
(c) loans from the government
Ans. (c) [SSC MTS Exam, 2005, Tax Asst. Exam, 2004, SO
Exam, 2003] (d) deposits from the public and financial institutions
93. Under the minimum Reserve System, the Reserve Bank Ans. (a) [SSC SO Exam, 2003]
of India as the sole authority of note issue is required to 100. A Scheduled Bank is one which is included in the–
maintain assets worth not less than–
(a) `115 crores (b) `85 crores (a) II Schedule of Banking Regulation Act
(c) `200 crores (d) `210 crores (b) II Schedule of Constitution
Ans. (c) [SSC CGL Exam, 2004] (c) II Schedule of Reserve Bank of India Act
94. The ratio of a bank’s cash holdings to its total deposit (d) None of the above
liabilities is called the–
(a) Variable Reserve Ratio

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101. Which of the following is not an objective of the Monetary (c) IDBI Bank (d) Canara Bank
Policy of the RBI? Ans. (c) [SSC CGL Exam, 2002]
(a) Boost economic development
108. The symbol of Reserve Bank of India is–
(b) Direct credit in desirable direction
(a) Capital of Asokan Pillar
(c) Control inflationary pressure
(d) Ensure social justice (b) Kuber with a purse of money
Ans. (d) [SSC SO Exam, 2003] (c) Ttiger before a palm tree
102. Merchant Banking is an Institution which provides (d) A dog sitting in a defensive state
finances– Ans. (c) [SSC CGL Exam, 2002]
(a) Domestic whole sale trade 109. Funds which flow into a country to take advantage of
r
(b) International trade among countries atavourable rates of interest in that country is called–
(c) Domestic retail trade among
i
(a) Cold Money (b) Black Money
(d) International aid agencies
(c) Hot Money (d) White Money
Ans. (c)
S
103. A seller or buyer protects his business or holdings from
110. Speculative demand for cash is determined by–
as–
ww
changing prices and takes action against it. It is known
(a) The rate of interest
v
(a) Defense (b) Betting (b) The level of income
w.E
(c) Inter-trading (d) Mortgage (c) The general price level
a
Ans. (a) [SSC SO Exam, 2003] (d) The market conditions
104. Which among the following subjects is not an aim of the
r
asy
Monetary Policy of the Reserve Bank of India?
(a) Giving impetus to economic development
Ans. (a)
111. Legal tender money is–
u
(a) Accepted only by government
(b) Direct credit with objective criteria
En (b) Accepted by people and government as per the law
a
(c) To control pressure of inflation
(d) To ensure social justice
Ans. (d)
gin
[SSC SO Exam, 2003]
(c) Not accepted for business purposes by law
(d) Not accepted by government
ee Ans. (b) [SSC MTS Exam, 2002]
G
105. What is ‘Narrow Money’?
112. The Reserve Bank of India–
(a) The sum of currency in circulation and the demand
deposits in banks rin
(a) Provides direct finance to agriculture
(b) The sum of Ml money and the time deposits

(c) The sum of currency in circulation with the public and g.n
(b) Provides finance to primary cooperative societies
(c) Provides finance to state cooperative banks
the cash reserves held by banks
(d) The market value of the stocks held by all the holders
excluding the promoters
Ans. (d) et
(d) Does not provide finance to agriculture
113. Commercial Banking System in India is–
Ans. (a) [SSC SO Exam, 2003] (a) Mixed Banking (b) Unit Banking
106. Ways and means advances refers to– (c) Branch Banking (d) None of the above
(a) Industries getting temporary loans from commercial Ans. (c) [SSC MTS Exam, 2001]
banks
(b) Farmers getting loans from NABARD Planning
(c) Government getting temporary loans from RBI
(d) Government getting loans from international financial 1. Without insurance or uncertainity problem is –
institutions (a) Fire
Ans. (c) [SSC MTS Exam, 2002] (b) Flood
107. Which amidst the following banks was recently converted (c) Change in price of product
to a ‘Universal Bank’?
(d) Change in fashion.
(a) Corporation Bank (b) Bank of Baroda
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2. Verghese Kurien is related to – 11. “Plan Holiday” was declared after–

(a) Blue Revolution (b) White Revolution (a) First Five Year Plan (b) Second Five Year Plan
(c) Yellow Revolution (d) Green Revolution (c) Third Five Year Plan (d) Fourth Five Year Plan
Ans. (b) [S.S.C Steno Exam, 2014] Ans. (c) [SSC CGL Exam, 2014]
3. Blue revolution is related to – 12. Which is not correct–
(a) Fish production (a) First Five Year Plan 1951-56
(b) Milk production (b) Second Five Year Plan 1956-61
(c) Oilseed production (c) Third Five Year Plan 1961-66
(d) Fertilizer production. (d) Fourth Five Year Plan 1966-71
r
Ans. (a) [S.S.C Steno Exam, 2005] Ans. (d) [SSC CPO Exam, 2008]
i
4. Blue and White Revolution is related with – 13. Poverty alleviation was the aim of which Five Year Plan.
(a) Fish and Fertilizer (b) Milk (a) Fourth (b) Fifth
S
(c) Fish and Milk (d) Fish and Agriculture. (c) Sixth (d) Seventh
Ans. (c) [S.S.C Steno Exam, 2014] Ans. (b) [SSC Tax Asst. Exam, 2008]
5.
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Brown Revolution is called as – 14. The Slogan “Poverty Alleviation” was added to which
v
Five Year Plan.
(a) Fodder revolution
w.E
(b) Increase in sea products
(a) First (b) Second
a
(c) Fifth (d) Fourth
(c) Increase in fertilizer production
r
(d) Increase in milk production.
Ans. (c)
asy
[S.S.C (CPO) Exam, 2011]
Ans. (c) [SSC 10+2 Exam, 2015
15. The Duration of 12th Five year Plan is–
u
(a) 2010-2015 (b) 2011-2016
6. Golden Revolution is related with –
En (c) 2012-2017 (d) 2013-2018
a
(c) Beekeeping
gin
(a) Rearing of lagoons (b) Agriculture of flowers
(d) Grapes production
16. Which five year plan’s duration was only four year?
Ans. (b)
ee
[S.S.C (CPO) Exam, 2011] (a) Third (b) Fourth
G
7. India adopted ………………………….. to give socialistic (c) Fifth (d) Seventh
shape to country.
(a) Socialism (b) Mixed Economy
Ans. (c)
rin [SSC Multitasking Exam, 2014
(c) Capitalism
Ans. (b)
(d) Political Economy
[SSC FCI Exam, 2012]
Model?
g.n
17. Which Five Year Plan was based upon Mahalanobis
8. The Economic planning is a part of–

(a) Mixed Economy (b) Dual Economy
(c) Socialistic Economy (d) Capitalistic Economy
(a) First
(c) Third
Ans. (b)
et(b) Second
(d) Fourth
[SSC Matriculation level Exam, 2008
18. Second five year plan was based on–
Ans. (c) [SSC CGL Exam, 2012]] (a) Mohalanobis Model
9. Which among the following is not a positive sign for any (b) Wakil and Brahmanand Model
industry. (c) Herald-Domar Growth model
(a) Decrease in profit (b) Labour instability (d) Salo growth model
(c) Decrease in market (d) Decrease in demand Ans. (a) [SSC CGL Exam, 2006
Ans. (a) [SSC CGL Exam, 2006] 19. Which among of the following is not among basic aims of
10th five year plan?
10. Which three year is said as “Planning Holiday” for our
country? (a) Decrease in poverty ratio
(b) Drinking water to all villages till 2012.
(a) 1965-68 (b) 1966-69
(c) Decrease in infant mortality rate.
(c) 1968-71 (d) 1969-72
(d) Decrease is import.
Ans. (b) [SSC Steno Exam, 2011]
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20. "The Social Forestry scheme" was started in– (c) Poor Farmers (d) Liberalty of People
(a) Second five year plan Ans. (a) [SSC CPO Exam, 2011
(b) Sixth five year plan 28. In Indian Agriculture High Yielding Variety Programme
(c) Fifth five year plan was started in–
(d) Eight five year plan
(a) 1968 (b) 1967
(c) 1966 (d) 1965
21. Which type of product does CACP recommend minimum
support price for? Ans. (c) [SSC CPO Exam, 2011
(a) Industrial Products 29. The Census of 2011 was.
(b) Agricultural products (a) 13th Census (b) 14th Census
r
(c) Pharmaceutics Products
(c) 15th Census (d) 16th Census
i
Ans. (c) [SSC Tax Asst Exam, 2008
Ans. (b) [SSC 10+2 Exam,2010
30. Sex-ratio means–
22. Which is odd.
S
(a) S.G.S.Y. → Swarna Jayanti Gram Swarazgar Yojana (a) Number of females per thousand males.
ww
(b) S.J.S.R.Y. → Swarna jayanti Shahri Rozagar Yojana
(c) N.O.A.P.S. →National Old Age Pension Scheme.
(b) Number males per thousand females.
(c) Number of child per thousands males.
v
(d) N.R.E.G.S.→National Rural Employment Guarantee
w.E
Scheme.
(d) Number of males per thousands child.
Ans. (a) [SSC 10+2 Exam,2015
a
Ans. (c) [SSC Steno Exam, 2014
31. Which among of the following is not a feature of
r
success.
asy
23. In which matter green revolution has achieved maximum population of developed countries?
(a) Low birth rate and low death rate.
u
(a) Sugarcane (b) Pulses
(c) Wheat (d) Rice
En (b) High birth rate and high death rate.
(c) High ratio of urban population
a
Ans. (c)
24. The Vintage car are manufactured–
gin
[SSC CPO Exam, 2006
(d) Low growth rate of population
Ans. (b) [SSC Tax Asst. Exam, 2008
(a) Between 1945 and 1960
ee 32. The Planning Commission of India was constituted in the
G
(b) Between 1939 and 1945 year–
(c) Between 1930 and 1939 (a) 1942
rin (b) 1947
(d) Between 1918 and 1930
Ans. (d) [SSC CPO Exam, 2006
(c) 1950
Ans. (c) g.n (d) 1955
[SSC SO Exam, 2008]
25. The gradation and standardization of agricultural
products are conducted through –
(a) Food corporation of India
(b) Directorate of Marketing and Inspection
(c) Fifth
et
33. Which Five Year Plan duration was of four years only?
(a) Third (b) Fourth
(d) Seventh
Ans. (c) [SSC CGL April Exam, 2014]
(c) Indian Standards Institution
34. Which of the following plans had actual growth rate
(d) Central statistical organization higher than the targetted growth rate?
Ans. (b) [SSC CPO Exam, 2007, CGL Exam, 2002 (a) Eighth Five Year Plan
26. The Cattle rearing along with farming is called. (b) Fourth Five Year Plan
(a) Mixed Farming (b) Mixed Agriculture (c) Fifth Five Year Plan
(c) Dairy Farming (d) Truck Agriculture (d) Seventh Five Year Plan
Ans. (a) [SSC CGL Exam, 2014 Ans. (a) [SSC CGL April Exam, 2014]
27. The achievement in agriculture by India has not reached 35. IRDP was introduced during the–
upto a greater level due to– (a) Third Five Year Plan (b) Sixth Five Year Plan
(a) Small holdings (b) Shortage of Tractors (c) Fifth Five Year Plan (d) Fourth Five Year Plan

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Ans. (b) [SSC CGL April Exam, 2014] 44. The government has renamed NREGA scheme and the
36. Who advocated the adoption of PURA’ model to eradicate name associated with the scheme is that of–
rural poverty? (a) Rajiv Gandhi (b) Jawahar Lal Nehru
(a) MS Swaminathan (c) Mahatma Gandhi (d) Indira Gandhi
(b) Maulana Abul Kalam Azad Ans. (c) [SSC DEO Exam, 2009]
(c) Dr APJ Abdul Kalam
45. The implementation of 'Jawahar Rojgar Yojana' rests
(d) AM Khusro with–
Ans. (c) [SSC FCI Exam, 2012] (a) Gram Panchayats (b) District Collectors
37. The Annapurna Scheme was implemented in the year– (c) State Governments (d) Union Government
(a) 1998 (b) 1996
r
(c) 1999 (d) 2000
46. The nature of unemployment in agriculture in India is–
i
Ans. (d) [SSC FCI Exam, 2012]
(a) Only seasonal (b) Only disguised
38. The objective of ‘Jawahar Rojgar Yojana’ is to–
(c) All of the above (d) None of the above
S
(a) Provide employment to youth in rural areas
Ans. (c) [SSC Tax Asst. Exam, 2009]
(b) Create employment opportunities for unemployed persons
ww
(c) Strengthen the rural economic and social structure
47. A situation where we have people whose level of income
is not sufficient to meet the minimum consumption
v
(d) All of the above expenditure is considered as–
Ans. (d)
w.E [SSC Constable (GD) Exam, 2012] (a) Absolute poverty (b) Relative poverty
a
39. AGMARK is a guarantee of standard– (c) Urban poverty (d) Rural poverty
r
(a) Quality
(c) Weight
(b) Quantity
(d) Size asy Ans. (a) [SSC Tax Asst. Exam, 2009]
48. Who is the ex-officio Chairman of the Planning
u
Commission?
Ans. (a)
En
[SSC (10+2) Exam, 2011]
40. The Minimum Wages Act was first passed in India in the (a) Minister for Planning and Development
a
year.
(a) 1947 (b) 1948 gin (b) Finance Minister
(c) Prime Minister
(c) 1950 (d) 1951
ee (d) Minister for Rural and Community Development
G
Ans. (b) [SSC MTS Exam, 2011, Tax Asst. Exam, 2008] Ans. (c) [SSC CPO Exam, 2009]
41. The food stocks that are built up during the years of
bumper harvest are called– rin
49. The draft of the Five Year Plans in India is approved by
the–
(a) Capital stock
(c) Production stock
(b) Buffer stock
(d) Grain stock
g.n
(a) National Development Council
(b) Planning Commission
Ans. (b) [SC CGL Exam, 2011, CPO Exam, 2010]
42. What type of products, does CACP recommend minimum
support price for?
(d) Ministry of Finance
Ans. (a)
et
(c) National Productivity Council

(a) Industrial products 50. Indian agriculture is typically characterised as–
(b) Agricultural products (a) Land surplus, Labour Scarce Economy
(c) Pharmaceutical products (b) Land surplus, Labour Surplus Economy
(d) None of the above (c) Land scarce, Labour Surplus Economy
Ans. (b) [SSC (10+2) Exam, 2011] (d) Land scarce, Labour Scarce Economy
43. Poverty in less developed countries is largely due to– Ans. (c) [SSC SO Exam, 2008]
(a) Voluntary idleness 51. Mahalanobis Model has been associated with which Five
(b) Income inequality Year Plan?
(c) Lack of cultural activities (a) First Five Year Plan
(d) Lack of intelligence of the people (b) Second Five Year Plan
Ans. (b) [SSC CISF Exam, 2010] (c) Third Five Year Plan
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(d) Fourth Five Year Plan 58. In India, disguised unemployment is generally observed
Ans. (b) [SSC Matric Level Exam, 2008] in–
(a) The agricultural sector
52. Which is not the objective of public procurement and
distribution system followed by Indian Government? (b) The factory sector
(c) The service sector
(a) Maintain price stability through creation of buffer
stocks (d) All of the above
(b) Protect the interests of both consumers and poor Ans. (a) [SSC SO Exam, 2007]
farmers 59. Compared to the rich, the poor save–
(c) Control the production of food grains (a) A larger part of their income
(d) Reduce personal and regional inequality in the (b) An equal part of their income
r
distribution (c) A smaller part of their income
i
Ans. (c) [SSC SO Exam, 2008] (d) All of their incomes
53. NREGP is the abbreviated form of– Ans. (c) [SSC CPO Exam, 2007]
S
(a) National Rural Employment Guarantee Programme 60. Kisan Credit Card Scheme was introduced in–
(b) National Rural Educational Guarantee Programme
ww
(c) National Rapid Educational , Guarantee Programme
(a) 1991
(c) 1998
(b) 1996
(d) 2000
v
(d) National Rapid Employment Guarantee Programme Ans. (c) [SSC CPO Exam, 2007]
Ans. (a)
w.E [SSC Tax Asst. Exam, 2008] 61. The gradation and standardisation of agricultural
a
54. The commission in India dealing with minimum products are conducted through–
r
support price, procurement price etc, in connection with
agricultural goods is the–
(a) Planning Commission asy (a) Food Corporation of India
(b) Directorate of Marketing and Inspection
u
En
(b) Agricultural Costs and Prices Commission
(c) Indian Standards Institution
(d) Central Statistical Organisation
a
(c) Agricultural Price Commission
(d) National Marketing Commission
Ans. (a)
gin
62. Planning and control are so related that–
ee (a) Planning initiates control
G
55. Who coined the term ‘Hindu rate of growth’ for Indian
economy?
(a) AK Sen (b) Kirit S Parikh rin
(b) Control initiates planning
(c) Both are equivalent
(c) Raj Krishna
Ans. (c)
(d) Montek Singh Ahluwalia
[SSC SO Exam, 2008] Ans. (d) g.n
(d) Both go on simultaneously in cycle
[SSC SO Exam, 2005]
56. The famous slogan ‘Garibi Hatao’ (remove poverty) was
launched during the–
(a) First Five Year Plan (1951-56)
et
63. Antyodaya programe is associated with–
(a) liberation of bonded labour
(b) bringing up cultural revolution in India
(b) Third Five Year Plan (1961-66) (c) demands of textile labourers
(c) Fourth Five Year Plan (1969-74) (d) upliftment of the poorest of the poor
(d) Fifth Five Year Plan (1974-79) Ans. (d) [SSC CPO Exam, 2005]
Ans. (d) [SSC SO Exam, 2007] 64. One of the objectives of Industrial Licensing Policy in
57. The highest body which approves the Five Year Plan in India was to ensure–
India is the– (a) creation of adequate employment opportunities
(a) Planning Commission (b) free flow of foreign capital in Indian industries
(b) National Development Council (c) use of modern technology
(c) Finance Ministry (d) balanced indsutrial development across regions
(d) Union Cabinet Ans. (d) [SSC CGL Exam, 2004]
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65. During which Five Year Plan India lay down objective (d) Optimum growth and resources
the need to ensure environmental substain- ability of the Ans. (b) [SSC Matric Level Exam, 2002]
development strategy?
72. ISI mark is not given to which of the following
(a) Sixth Five Year Plan
products?
(b) Seventh Five Year Plan
(a) Electric Goods (b) Hosiery Goods
(c) Eighth Five Year Plan
(d) Ninth Five Year Plan (c) Biscuits (d) Cloth
Ans. (d) [SSC SO Exam, 2003] Ans. (c) [SSC Matric Level Exam, 2002]
66. What is the extent of change of the literacy rate envisaged 73. The economic problem arises mainly due to–
by the end of the Ninth Five Year Plan? (a) Overpopulation
r
(a) From 65% to 75% (b) Unemployment
i
(b) From 60% to 70% (c) Scarcity of resources
(c) From 50% to 55% (d) Lack of industries
(d) From 45% to 50% Ans. (c)
S
[SSC Matric Level Exam, 2001]
Ans. (a) [SSC CPO Exam, 2003] 74. India adopted the Five Year Plans from–
seeds’? ww
67. Why did the Government ban the import of ‘Terminator (a) France (b) Former USSR
v
(c) America (d) England
w.E
(a) To contain a virus which can destroy local crops
Ans. (b) [SSC Matric Level Exam, 2001]
a
(b) These seeds are injurious to human and animal health
75. Which of the following is the largest employer in India?
(c) These seeds contain genetically engineered properties
r
to prevent further multiplication
asy
(d) These seeds multiply at very slow rates
(a) Food Corporation of India
(b) Posts and Telegraphs Department
u
(c) Indian Railways
Ans. (c)
68. Whatis’AGMARK’? En
(d) Steel Authority of India
a
gin
(a) It is a marketing seal issued on the graded agricultural
commodity
Ans. (c) [SSC Matric Level Exam, 2001]
76. To achieve economic self-reliance was the main objective
(b) It stands for agricultural marketing
ee of which Five Year Plan?
G
(a) First Five Year Plan
(c) It represents agricultural management and regulation
rin
(b) Second Five Year Plan
(c) Third Five Year Plan
69. Commercialisation of agriculture implies– g.n
(d) Fourth Five Year Plan
(a) Cultivation of timbers

(b) Plantation
(c) Production of crops for sale
Ans. (d)
et [SSC Matric Level Exam, 2001]

77. Structural unemployment arises due to–
(a) Deflationary conditions
(b) Heavy industry bias
(d) Production of crops like wheat or rice
(c) Shortage of raw materials
Ans. (c) [SSC Matric Level Exam, 2002]
(d) Inadequate productive capacity
70. India’s First Five Year Plan gave priority to–
(a) Industry (b) Trade
78. What was the objective of Command Area Development
(c) Transportation (d) Agriculture
Programme ?
Ans. (d) [SSC Matric Level Exam, 2002]
(a) To ensure that land is given to the tillers
71. Malthusian theory of population explored the relationship
(b) To ensure better utilisation of irrigation potential
between–
(c) To develop the areas under the command of Army
(a) Food supply and technology
(d) Poverty alleviation in selected areas
(b) Food supply and population growth
(c) Population growth and development

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(c) Vote on Account

Budget (d) From the Treasury
Ans. (b) [SSC 10+2 Exam, 2010]
1. Expenditure, taxation and loan taking policies of
9. The Economic Survey of India is published by–
government are called as-
(a) Statistical Department
(a) Fiscal Policy (b) Monetary Policy
(b) CSO
(c) Bank Policy (d) Tax Policy
(c) Ministry of Finance
Ans. (a) [S.S.C (10+2) Exam, 2012]
(d) Department of Economic Affairs
2. Fiscal policy is related to –
(a) Monetary Policy
r
10. Government takes “Ways and Means advances” from
(b) Banking System
i
(a) RBI (b) IDBI
(c) Economic Progress Planning
(c) SBI (d) ICICI
(d) Receiving and Expenditure of Govt.
S
11. The Maximum Part of revenue of Indian railway comes
3.
ww
According to socialism who is the greatest enemy of
society.
from.
v
(a) Coaches (b) Transport of goods
(a) Personal Property (b) Capitalist Class
w.E
(c) Religion (d) Cost
(c) Tickets (d) Other sources
a
Ans. (b) [SSC Steno Exam, 2014]
Ans. (a) [S.S.C (CGL) Exam, 2015]
r
4.
asy
From national point of view, which of the following
represent micro approach.
12. Disinvestment in Public Sector is called–
(a) Liberalization (b) Globalization
u
(c) Industrialization (d) Privatization
(a) Study of selling of Tisco
(b) Educated unemployment in India
En Ans. (d) [SSC CGL Exam, 2011]
a
(c) Per capital income in India
(d) Money inflation in India. gin 13. Which one of the following is a development expenditure?
(a) Irrigation Expenditure
Ans. (a)
ee
[S.S.C (CGL) Exam, 2015] (b) Civil Administration
G
5. From national point of view, which of the following (c) Debt Services
represent Macro approach.
(a) Selling of Bata-shoe company
(d) Grant-in-Aid
rin
(b) Inflation in India
(c) Import of mangoes from U.S.A
Ans. (a)
14. Disinvestements is– g.n [SSC CPO Exam, 2008]
(d) Revenue from Railway.

Ans. (b)
6.
[S.S.C (CGL) Exam, 2015]
Subsidy by government of India is given to–
government
et
(a) of floading of shares of privates companies to
(b) offloading of government shares to private companies

(c) increase in investment
(a) Consumer Unit (b) Productive Unit
(c) Banking Unit (d) Government Employee (d) closing down of business concerns
Ans. (b) [SSC 10+2 Exam, 2014] Ans. (b) [SSC CPO Exam, 2008]
7. The Prominent factor responsible for division of 15. Subsidies are payment by government to–
contingency fund. (a) Consuming Units (b) Producing Units
(a) Death (b) Harm (c) Banking Units (d) Retired Persons
(c) Accident (d) Vulnerability Ans. (a) [SSC (10+2) Nov. Exam, 2014]
Ans. (d) [SSC 10+2 Exam, 2014] 16. Which one of the following is not an objective of Fiscal
8. For which fund can the unanticipated expenditure be Policy in India?
met without the prior approval of the parliament? (a) Full Employment
(a) Consolidated Fund of India (b) Price Stability
(b) Contingency Fund of India (c) Equitable distribution of wealth and incomes
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(d) Regulation of international trade 23. The single largest item of expenditure of the Central
Ans. (d) [SSC (10+2) Exam, 2011] Government in India in recent years is–
17. In the budget figures of the Government of India, interest (a) Defence (b) Subsidies
payments, subsidies, pensions, social services and the like (c) Interest Payment (d) General services
are parts of the– Ans. (c) [SSC Matric Level Exam, 2002]
(a) Plan Expenditure
(b) State Government Expenditure Balance Of Payment
(c) Public debt in the form of capital expenditure
1. The Great Depression was observed in which duration?
(d) Non-plan Expenditure
(a) 1914-18 (b) 1929-34
r
(c) 1939-45 (d) 1922-36
18. In the budget figures of the Government of India the
i
difference between total expenditure and total receipts is Ans. (b) [S.S.C Multitasking Exam, 2013]
called– 2. The process of organizing business-pact between group
S
(a) Fiscal Deficit of countries is called as –
(b) Budget Deficit (a) Trading Block (b) Trade venture
ww
(c) Revenue Deficit (c) Trade Partner (d) Trade organizer
v
(d) Current Deficit Ans. (a) [S.S.C (CGL) Exam, 2010]
Ans. (a)
w.E [SSC SO Exam, 2007] 3. “Price Index” is measured by change in which of the
a
following-
19. In the budget figures of the Government of India, fiscal
(a) Living Standard
r
deficit is–
(a) Total Expenditure - Total Receipts
asy (b) Purchasing power of money
u
(b) Revenue Expenditure - Revenue Receipts (c) Balance of Payment
En
(c) Capital Expenditure - Capital Receipts + Market (d) Balance of Trade
a
Borrowings
gin
(d) Sum of budget deficit and government’s market
borrowings and liabilities
Ans. (b)
4. ‘Gold’ is mainly related to-
[S.S.C Steno Exam, 2015]
ee (a) Local Market
G
(b) National Market
20. Which of the following is the most important domestic
source of planned finance?
rin
(c) International Market
(a) Balance of Current Revenue

(b) Profit from Public Sector Units
(d) Regional Market.
Ans. (c)
g.n [S.S.C (CGL) Exam, 2013]
(c) Domestic Private Savings

(d) Additional Taxation
5. "Barter – System" means–
et
(a) Exchange of goods with coins
(b) Exchange of goods with goods
21. Government securities are considered liquid because (c) Money exchange
they are– (d) Exchange of goods with gold coins
(a) backed by the government treasure Ans. (b) [SSC 10+2 Exam,2015]
(b) convertible into other types of saving deposits, 6. Which is the feature of “Free Market”–
(c) quickly and easily marketable (a) Strong intervention of state
(d) stable in value (b) Superiority of Consumer
Ans. (c) [SSC SO Exam, 2003] (c) Rationing and price control
22. Deficit financing is an instrument of– (d) None of the above
(a) Monetary Policy (b) Credit Policy Ans. (b) [SSC CGL Exam, 2015]
(c) Fiscal Policy (d) Tax Policy 7. World Trade Organization was established in–
Ans. (c) [SSC CPO Exam, 2005] (a) 1991 (b) 1995

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(c) 1997 (d) 1999 (c) Rajeev Gandhi (1985)

Ans. (b) [SSC Metric Level Exam, 2008] (d) Janta Party (1977)
8. WTO was earlier known as– Ans. (a) [SSC CPO Exam, 2008]
(a) GATT (b) UNICEI 16. Oilseeds production Programme (OPP) was started in–
(c) UNCTAD (d) FAO (a) 1986 (b) 1987
Ans. (a) [SSC Tax Asst. Exam, 2006] (c) 1988 (d) 1990
9. The practice of selling goods in a foreign country at a Ans. (d) [SSC CGL Exam, 2014]
price below their domestic selling price is called. 17. TRIMs Stands for–
(a) Diplomacy (b) Discriminator (a) Trade Related Industrial Measures.
r
(c) Dumping (d) Double pricing (b) Trade Related Innovation Measures.
i
Ans. (c) [SSC Setc off Exam, 2006] (c) Trade Related Investment Measures.
10. For any product, balance of market is decided by– (d) Trade Related information Measures.
S
(a) Market supply of product. Ans. (c) [SSC CPO Exam, 2008]
(b) Various forces operating between demand and supply. 18. FAO means–
ww
(c) Intervention of government. (a) Fiber and Agricultural Organization
v
(d) Market demand of product (b) Factory Evaluation Organization
Ans. (b)
w.E [SSC CPO Exam, 2015] (c) Free Orbitration organization
a
11. Which among of the following organization is oldest? (d) Food and Agriculture Organization
r
(a) IMF
(c) ILO
(b) WHO
(d) FAO
asy Ans. (d)
19. GEF Nands for–
u
Ans. (c) [SSC Tax Asst Exam, 2007]
12. "Full convertibility of a rupee" means–
En (a) Global Environment fund.
(b) Global Economic fund.
a
(b) Payment for imports in terms of rupees gin
(a) Purchase of foreign exchange for rupees only (c) Global Education Fund.
(d) Global Energy Fund.
ee Ans. (a) [SSC SEC OFF Exam 2008]
G
(c) Repayment of loans in terms of rupees
(d) Determination of rate of exchange between rupee
and foreign currencies freely by the market forces of (a) Five rin
20. The Number of stages in trade cycle is?
(b) Six
Ans. (d)
demand and supply.
(c) Three
Ans. (d) g.n (d) Four
13. The system of “Memorandum of Understandings” (MoU)
was introduced in–
(a) 1989-90 (b) 1990-91
et
21. "Closed Economy" is a economy in which–
(a) Business of a country with other country is Zero.
(b) A country having no any mean of transportation
(c) 1987-88 (d) 1988-89 (c) A country having no coastline.
Ans. (c) [SSC Multitasking Exam, 2013] (d) A country is not a member of United Nation Council.
14. The Full form of SDR is– Ans. (a) [SSC CPO Exam, 2005]
(a) Special Dollar Rights 22. Buying of shares and bonds of Indian companies by
(b) Special Drawing Rights foreign institutions is called.
(c) State Drawing Rights (a) Foreign Direct Investment
(d) Specific Dollar Right (b) Portfolio Investment
Ans. (b) [SSC CPO Exam, 2008] (c) Institutional Investment
15. In Post-Independence Period first economic reform was (d) Foreign Indirect Investment
started in the government of –
Ans. (b) [SSC CGL Exam, 2011
(a) P.V. Narasimha Rao (1990)
23. Private investment is otherwise called as–
(b) Indira Gandhi (1980)
(a) Autonomous investment
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(b) Foreign institutional investment (c) Pegged up exchange Rate

(c) Foreign direct investment (d) Pegged down exchange Rate
(d) Induced investment Ans. (b) [SSC CGL Exam, 2010]
Ans. (d) [SSC CGL April Exam, 2014] 31. The outcome of ‘devaluation of currency’ is–
24. The annual record for all the monetary transactions of a (a) Increased export and improvement in balance of
country with other countries of the world is known as– payment
(a) Balance of Trade (b) Increased export and foreign reserve deficiency
(b) Balance of Monetary-Receipts (c) Increased import and improvement in balance of
(c) Balance of Payments payment
(d) Balance Sheet (d) Increased export and import
r
Ans. (c) [SSC lax Asst. Exam, 2005] Ans. (a) [SSC Tax Asst. Exam, 2006, SO Exam, 2003]
i
25. The profits of Indian-banks operating in foreign countries 32. The Government resorts to devaluation of its currency in
are a part of– order to promote–
S
(a) Income from entrepreneurship earned from abroad
(a) National Income (b) International Goodwill
(b) Domestic factor income of India
ww
(c) Profits of the enterprises working in domestic territory
of India
(c) Exports
Ans. (c)
(d) Savings
v
(d) Operating surplus of the banks located in India 33. Devaluation makes import–
Ans. (a)
w.E [SSC (10+2) Nov. Exam, 2014] (a) Competitive (b) Inelastic
a
26. India’s Balance of Payments can be corrected through– (c) Cheaper (d) Dearer
r
(a) Devaluation of currency
(b) Vigorous export promotion asy Ans. (d) [SSC SO Exam, 2005]
34. When did the rupee become a freely convertible currency
u
(c) Import substitution
(d) All of the above En on Current Account in India?
(a) 2000 (b) 2001
a
Ans. (d)
gin
[SSC (10+2) Exam, 2011]
27. Which one of the following items is not included in the
(c) 1994
Ans. (c)
(d) 1999
current account of India’s Balance of Payments?
ee 35. Devaluation usually causes the internal prices to–
G
(a) Short-Term Commercial Borrowings
(b) Non-Monetary Gold Movements
(c) Investment Income
(a) Fall
(b) Rise
rin
(d) Transfer Payments
(c) Remain unchanged
(d) None of the above g.n
28. Investment is equal to–
(a) Gross total of all types of physical capital assets
(b) Gross total of all capital assets minus wear and tear
Ans. (c)
et [SSC CGL Exam, 2004]
36. Floating Exchange Rate is also referred to as–
(a) Flexible Exchange Rate
(c) Stock of plants, machines and equipments (b) Fixed Exchange Rate
(d) None of the above (c) Real Exchange Rate
Ans. (b) [SSC CGL Exam, 2000] (d) Controlled Exchange Rate
29. When there is an official change in the exchange rate of Ans. (a) [SSC MTS Exam, 2002]
domestic currency, then it is called–
37. The ‘3 B’s’ brokers, bankers and businessmen were
(a) Appreciation (b) Depreciation responsible for–
(c) Revaluation (d) Deflation (a) The Great Depression
Ans. (c) [SSC CGL Exam, 2011] (b) Russian Revolution
30. At present, India is following. (c) French Revolution
(a) Fixed exchange Rate (d) First World War
(b) Floating exchange Rate Ans. (a) [SSC Stenographer Sep. Exam, 2014]

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38. A favourable Balance of Trade of a country implies (d) Gems and Jewellery
that– Ans. (c) [SSC MTS Exam, 2006]
(a) Import are greater than exports 46. The difference between visible exports and visible
(b) Exports are greater than imports imports is defined as–
(c) Both imports and exports are equal (a) Balance of Trade
(d) Rising imports and falling exports (b) Balance of Payment
(c) Balanced Terms of Trade
Ans. (b) [SSC FCI Exam, 2012]
(d) Gains from Trade
39. Special Economic Zone (SEZ) concept was first
introduced in– Ans. (a) [SSC Tax Asst. Exam, 2006]
(a) China (b) Japan 47. A country’s balance of trade is unfavourable when–
r
(c) India (d) Pakistan (a) exports exceed imports
i
Ans. (a) [SSC Stenographer Exam, 2011] (b) imports exceed exports
40. Which one of the following does not deal with export (c) terms of trade become unfavourable
S
promotion? (d) None of the above
ww
(a) Trade Development Authority
(b) Minerals and Metals Trading Corporation
Ans. (b) [SSC Investigator Exam, 2006]
48. Industrial Exit Policy means–
v
(c) Cooperative Marketing Societies (a) forcing foreign companies to leave India
w.E
(d) State Trading Corporation of India (b) forcing business units to move out of congested
a
Ans. (c) [SSC CGL Exam, 2008] localities
r
41. A trade policy consists of–
(a) Export-Import Policy asy (c) allowing manufactures to shift their line of products
(d) following business units to close down
u
(b) Licencing Policy
(c) Foreign Exchange Policy En Ans. (d) [SSC SO Exam, 2006]
49. Theoretically trade between two countries takes place on
a
(d) Balance of Payment Policy
Ans. (a) gin
account of–
(a) Difference in Costs
ee (b) Scarcity of Goods
G
42. How far does the exclusive economic zone of a country
(c) Comparative Differences in Costs
extend from her coast?
(a) 120 km (b) 220 km
rin
(d) Need for Exports
(c) 320 km
Ans. (c)
(d) 420 km
[SSC SO Exam, 2008]
Ans. (c)
g.n
50. The major aim of devaluation is to–
43. Where is the Indian Institute of foreign trade located?

(a) New Delhi
(c) Mumbai
(b) Hyderabad
(d) Ahmedabad
(a) encourage Imports
(b) encourage Exports et
(c) encourage both Exports and Imports
Ans. (a) [SSC SO Exam, 2008] (d) discourage both Exports and Imports
44. The definition of ‘small-scale industry’ in India is based Ans. (b) [SSC CGL Exam, 2000]
on– 51. FERA in India has been replaced by–
(a) Sales by the unit (a) FEPA (b) FEMA
(b) Investment in machines and equipments (c) FENA (d) FETA
(c) Market coverage Ans. (b) [SSC Tax Asst. Exam, 2008]
(d) Export capacity 52. One of the main factors that led to rapid expansion of
Ans. (a) [SSC Tax Asst. Exam, 2007] Indian exports is–
45. The biggest item of India’s imports is– (a) imposition of import duties
(a) Iron ore (b) liberalisation of the economy
(b) Mica (c) recession in other countries
(c) Petroleum products (d) diversification of exports

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Ans. (d) [SSC CPO Exam, 2007] (b) Demand – Pull Inflation
(c) Disinflation
Inflation
(d) Reflection
Ans. (c) [SSC Sec off. Exam, 2007]
1. The main determinant of real wage is –
9. Real wage is–
(a) Extra earning (b) Nature of work
(c) Promotion Prospect (d) Purchasing power of money. Profit Rent
(a) (b)
Ans. (d) [S.S.C (CGL) Exam, 2008] Price level Price level
2. The term stagflation refers to a situation where – Interest Money wage
(a) Growth has no relation with the change in price (c) (d)
r
Price level Price level
(b) Rate of growth and prices both are decreasing
i
Ans. (d) [SSC (10+2) Exam, 2012]
(c) Rate of growth is faster than the rate of price increase
10. State which of the following is correct? The consumer
(d) Rate of growth is slower than the rate of price increase price index reflects–
S
Ans. (d) [SSC Tax Asst. Exam, 2009] (a) The standard of living
3.
ww
The Presence of both higher rate of inflation and
unemployment is called –
(b) The extent of inflation in the prices of consumer goods
(c) The increasing per capita income
v
(a) Recovery (b) Stagflation (d) The growth of the economy
w.E
(c) Recession (d) Deflation Ans. (b) [SSC SO Exam, 2003]
a
Ans. (b) [SSC Multitasking Exam, 2011] 11. During periods of inflation, tax rates should–
r
4. Stagflation is a situation of–
(a) Stagnation and Deflation asy (a) Increase
(c) Remain constant
(b) Decrease
(d) Fluctuate
u
(b) Stagnation and Recession
(c) Stagnation and Inflation
En Ans. (a) [SSC CGL Exam, 2010]
12. When too much money is chasing too few goods, the
a
(d) Stagnation and Recovery
Ans. (c)
gin
situation is–
(a) Deflation (b) Inflation
5. The relationship between the value of money and the
ee (c) Recession (d) Stagflation
G
price level is an economy is– Ans. (b) [SSC SO Exam, 2001]
(a) Direct
(c) Proportional
(b) Inverse
(d) Stable rin
13. Inflation redistributes income and wealth in favour of–
Ans. (b)
6. The Result of cost push inflation is–
(a) Pensioners
(c) Middle Class
g.n(b) Poor
(d) Rich
(a) Hindrances in economic development increases

(b) Adverse effect on Balance on Payment
(c) Hindrance in development
Ans. (d)
et [SSC CGL Exam, 2011]

14. The term stagflation refers to a situation where–
(a) Growth has no relation with the change in prices
(b) Rate of growth and prices both are decreasing
(c) Rate of growth is faster than the rate of price increase
(d) Rate of growth is slower than the rate of price increase
7. Who gets Maximum profit during inflation?
(a) Shareholder
15. Inflation occurs when aggregate supply is–
(b) Entrepreneurs
(a) more than aggregate demand
(c) Government Employee (b) less than aggregate demand
(d) Corporate Employee (c) equal to aggregate demand
Ans. (b) [SSC CGL Exam, 2014] (d) None of the above
8. The process of curing inflation by reducing money supply Ans. (b) [SSC SO Exam, 2006]
is called. 16. Inflation is caused by–
(a) Cost – Push Inflation (a) Increase in supply of goods

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(b) Increase in cash with the government 7. The share broker who sells shares in the apprehension of
(c) Decrease in money supply falling prices of shares is called–
(d) Increase in money supply (a) Bull (b) Dog
Ans. (d) [SSC CGL Exam, 2004] (c) Bear (d) Stag
17. Which of the following groups suffer the most from Ans. (c) [SSC SO Exam, 2005]
inflation? 8. Which amidst the following is not a credit rating
(a) Debtors (b) Creditors agency?
(c) Business Class (d) Holders of Real Assets (a) CRISIL (b) CARE
Ans. (b) [SSC CPO Exam, 2003] (c) ICRA (d) IFCI
18. Inflation can be checked by– Ans. (d) [SSC Tax Asst. Exam, 2004]
r
(a) Increasing exports 9. The first state owned company from India to be listed on
i
(b) Increasing money supply the New York Stock Exchange is–
(c) Increasing government expenditure (a) Videsh Sanchar Nigam Limited
S
(d) Decreasing money supply (b) Mahanagar Telephone Nigam Limited
Ans. (d) [SSC MTS Exam, 2002] (c) Tata Iron and Steel Company
ww Share Market
(d) Wipro
v
Ans. (a) [SSC MTS Exam, 2002]
1.
w.E
Capital market regulator is–
10. For channelising the unaccounted money for productive
a
purposes the government introduced the scheme of–
(a) NSE (b) RBI
r
(a) Special Bearer Bonds
(c) SEBI
Ans. (c)
(d) IRDA
asy
[SSC DEO, (10+2) Exam, 2012]
(b) Resurgent India Bonds
u
(c) Provident Funds
2.
(a) Share (b) Debenture En
A short-term government security paper is called–
(d) Market Loans
a
(c) Mutual Fund
Ans. (d)
(d) Treasury Bill
gin
11. A speculator who sells stocks, in order to buy back when
price falls, for gain is a–
3.
ee
In the context of the stock market, IPO stands for–
G
(a) Immediate Payment Order (a) Bull (b) Bear
(b) Internal Policy Obligation
(c) Initial Public Offer
(c) Boar
Ans. (b) rin (d) Bison
(d) International Payment Obligation
Ans. (c) [SSC Investigator Exam, 2010] g.n
12. What is the purpose of the India Brand Equity Fund?
(a) To promote in-bound tourism
4. New capital issue is placed in–
(a) Secondary market (b) Grey market
(c) Primary market (d) Black market
et
(b) To make ‘Made in India’ a label of quality
(c) To organise trade fairs
(d) To provide venture capital to IT sector
Ans. (c) [SSC SO Exam, 2006] Ans. (b) [SSC CGL Exam, 2003]
5. NIFTY is associated with–
(a) Cloth Market Price Index Micro Economics
(b) Consumer Price Index
(c) BSE Index Demand and Supply
(d) NSE Index
Ans. (d) [SSC Tax Asst. Exam, 2005] 1. The Consumption of inferior goods decreases when-
6. Bull and Bear are related to which commercial activity? (a) Market Price increases
(b) Income increases
(a) Banking (b) E-commerce
(c) Market Price decreases
(c) International trade (d) Stock market
(d) Income decreases
Ans. (b) [S.S.C LDC Exam, 2011]
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2. For a goods --------negative income elasticity and positive 10. When there is no change in demand, with large change in
price elasticity of demand, then the good is- price then such type of demands are called.
(a) An inferior goods (b) Normal goods (a) Elastic (b) Inelastic
(c) Superior goods (d) Giffen goods (c) Perfectly inelastic (d) Relatively elastic
Ans. (d) [S.S.C (CGL) Exam, 2013] Ans. (c) [S.S.C Matric level Exam, 2008]
3. The Goods which are either for consumption or for 11. With other factor Constant, the demand of any product
investment are called- is decreased by.
(a) Intermediate goods (b) Final goods (a) Increase in price of that product
(c) Giffen goods (d) Inferior goods (b) Increase in income of customer.
Ans. (b) [S.S.C (10+2) Exam, 2013] (c) Decrease in price of that product
r
4. The Price discrimination is helpful when. (d) Decrease in income of customer
i
(a) Demand elasticity for two market is different Ans. (a) [SSC. 10+2 Exam,2014]
(b) Demand elasticity for two market is same 12. There will be increase in price of tomato in domestic
S
(c) Supply elasticity for two market is different market, if.
Ans. (a)
ww
(d) Supply elasticity for two market is same.
[S.S.C (LDC) Exam, 2005]
(a) There is enormous production of tomato
(b) Export of fresh tomatoes to other countries
v
5. In capitalist economy, price value is determined by. (c) Production cost of tomato is less
w.E
(a) Demand & Supply (b) Government (d) All of the above
a
(c) Buyers (d) Sellers Ans. (b) [SSC Metric level Exam, 2006]
r
Ans. (a)
6. asy
Discuss about giffen and inferior good.
13. Which of the following is not the direct deciding factor of
demand.
u
(a) Inferior goods are also giffen
(b) Giffen goods are also inferior goods En (a) Saving
(c) Price
(b) Income
(d) Taste
a
(c) Inferior good should not be giffen
(d) Giffen good should not be inferior. gin Ans. (a) [SSC 10+2 Exam,2012]
14. Which of the following goods has elastic demand.
ee (a) Electricity (b) Medicines
G
Ans. (b) [S.S.C Matric level Exam, 2006]
7. The Price elasticity of demand is –
(a) Elasticity = %change in demand ÷ %change in price
(c) Rice
Ans. (a)
rin (d) Match box
[SSC 10+2 Exam,2011]
(b) Elasticity = %change in price ÷ %change in demand

(c) Elasticity = %change in demand ÷ %change in supply g.n
15. Which of the following statement is true?
(a) Price of any good depends upon its cost.
(d) Elasticity = %change in supply ÷ %change in Price.

Ans. (a)
8.
[S.S.C (10+2) Exam, 2013]
Elasticity expressed by formula 1>e>o is –
desire to buy it. et
(b) Any good has valuable price in anyone which has
(c) Price of any good depend upon place value.

(d) Any good has its price if its supply is less than
(a) Perfectly elastic demand.
(b) Relatively elastic Ans. (d) [SSC. CPO Exam, 2012]
(c) Perfectly inelastic 16. The “Law of market” was propounded by –
(d) Relatively inelastic (a) Adam Smith (b) J.B. Say
Ans. (d) [S.S.C Multitasking Exam, 2013] (c) T.P. Malths (d) David Recordo
9. When percent change in demand for a commodity is less Ans. (b) [SSC Sect off Exam, 2006]
than percentage change in its price, then demand is said
to be– 17. The “Law of Market” propounded by J.B. Say was not
acceptable to –
(a) Highly elastic (b) Inelastic
(a) Adam Smith (b) Marshall
(c) Relatively elastic (d) Perfectly inelastic.
(c) David Recordo (d) Malthus
Ans. (b) [S.S.C Multitasking Exam, 2013]
Ans. (d) [SSC 10+2 Exam,2016]
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18. Which of the following is an Example of derived 26. Collective consumption means–
demand.
(a) Household consumption
(a) Rice (b) Cloths
(b) Individual consumption
(c) Beauty Products (d) Cement
Ans. (d) [SSC CPO Exam, 2012] (c) Self-consumption
19. Demand of Labour is called– (d) Consumption by the citizens of the country
(a) Derived demand (b) Factory demand Ans. (a) [SSC (10+2) Nov. Exam, 2014]
(c) Market demand (d) Direct demand 27. The Phillip’s curve is the schedule showing the
relationship between–
(a) Aggregate supply and demand
r
20. Perfectly inelastic demand is equal to–
(b) Total saving and investment
i
(a) Unity (b) Zero
(c) The rate of unemployment and rate of inflation
(c) Infinity (d) Greater than unity
(d) Demand for and supply of loanable funds
Ans. (b) [SSC 10+2 Exam, 2015]
S
Ans. (c) [SSC CGL July Exam, 2014]
21. Which among the following are close substitutes?
ww
(a) Milk and Sugar (b) Sugar and Tea
28. Goods which are meant either for consumption or for
investment are called–
v
(c) Tea and Coffee (d) Coffee and Biscuits
(a) Inferior goods (b) Intermediate goods
Ans. (c)
w.E (c) Final goods (d) Giffen goods
a
22. If there is decrease in price of X, then demand of Y is also
Ans. (c) [SSC (10+2) Exam, 2013]
decreased, then X & Y are.
r
(a) Substitute goods
(b) Complementary goods asy 29. A supply function expresses the relationship between–
(a) Price and demand (b) Price and consumption
u
(c) X is inferior to Y
En (c) Price and output
Ans. (c)
(d) Price and selling cost
[SSC (10+2) Exam, 2013]
a
(d) Y is inferior to X
Ans. (a)
gin
[SSC LDC Exam, 2005]
30. Demand for complementary goods is known as–
(a) Joint demand (b) Derived demand
ee
23. For Successful Price discrimination between two market,
(c) Direct demand (d) Cross demand
G
demand elasticity of production should be.
(a) Same
(c) Constant
(b) Different
(d) Zero
Ans. (a)
rin [SSC (10+2) 2012]

31. Name the curve which shows the quantity of products a
24. Other things being equal, a decrease in quantity
(a) Demand curve g.n
seller wishes to sell at a given price level.
(b) Cost curve
demanded of a commodity can be caused by–
(a) A rise in the price of the commodity
(b) A rise in the income of the consumer
(c) Supply curve
Ans. (c) et
[SSC Constable (GD) Exam, 2012]
32. In a capitalistic economy the prices are determined by–
(a) Demand and supply (b) Government authorities
(c) A fall in the price of a commodity
(c) Buyers in the market (d) Sellers in the market
(d) A fall in the income of the consumer Ans. (a) [SSC FCI Exam, 2012]
Ans. (a) [SSC (10+2) Nov. Exam, 2014] 33. Consumer’s surplus is the highest in the case of–
25. Which of the following are consumer semi-durable (a) Durable goods (b) Luxuries
goods?
(c) Comforts (d) Necessities
(a) Cars and Television sets
Ans. (c) [SSC (10+2) Exam, 2012]
(b) Milk and Milk products
34. Which one of the following pairs of goods is an Example
(c) Foodgrains and other food products for joint supply?
(d) Electrical appliance like fans and electric irons (a) Coffee and Tea
Ans. (c) [SSC (10+2) Nov. Exam, 2014] (b) Ink and Pen

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(c) Tooth brush and Paste (c) Perfectly elastic (d) Of unitary elasticity
(d) Wool and Mutton Ans. (c) [SSC (10+2) Exam, 2010]
Ans. (d) [SSC (10+2) Exam, 2011] 43. Demand curve of a firm under perfect competition is–
35. For an inferior good, demand falls when– (a) Horizontal to x-axis
(a) Price rises (b) Income rise (b) Negatively sloped
(c) Price falls (d) Income falls (c) Positively sloped
Ans. (b) [SSC (10+2) Exam, 2011] (d) U-shaped
36. Equilibrium price is the price when– Ans. (a) [SSC (10+2) Exam, 2010]
(a) Supply is greater than demand 44. If two commodities are complements, then their cross-
r
(b) Supply is less than demand price elasticity is–
i
(c) Demand is very high (a) Zero (b) Positive
(d) Supply is equal to demand (c) Negative (d) Imaginary number

Ans. (c)
S
37. Which one of the following is having elastic demand? 45. An exceptional demand curve is one that moves–
ww
(a) Electricity (b) Medicines (a) Upward to the right (b) Downward to the right
v
(c) Rice (d) Match boxes (c) Horizontally (d) Vertically
Ans. (c)
w.E [SSC (10+2) Exam, 2011] Ans. (a) [SSC Tax Asst. Exam, 2009]
a
38. A 'want' becomes a demand only when it is backed by 46. Extension or contraction of quantity demanded of a
commodity is a result of a change in the–
r
the–
asy
(a) Ability to purchase (b) Ncessity to buy (a) Unit price of the commodity
(b) Income of the consumer
u
(c) Desire to buy (d) Utility of the product
Ans. (a)
En
[SSC CGL Exam, 20101] (c) Taste of the consumer
a
39. Under increasing returns the supply curve is–
(a) Positively sloped from left to right gin (d) Climate of the region
Ans. (a) [SSC Tax Asst. Exam, 2008]
(b) Negatively sloped from left to right

ee 47. A fall in demand or rise in supply of a commodity–
G
(c) Parallel to the quantity-axis (a) increases the price of that commodity
(d) Parallel to the price-axis

rin
(b) decreases the price of that commodity
(c) neutralises the changes in the price
Ans. (a) [SSC (10+2) Exam, 2010]
40. When the price of a commodity falls, we can expect– g.n
(d) determines the price elasticity
(a) The supply of it to increase

(b) The demand for it to fall
(c) The demand for it to stay constant
Ans. (b)
to–
(a) Professor JB Say
et [SSC DEO Exam, 2008]
48. Supply creates its own demand. This statement is related
(b) John Robinson

(d) The demand for it to increase
(c) Adam Smith (d) JS Mill
Ans. (d) [SSC SAS Exam, 2010]
41. Law of demand implies that when there is excess demand
for a commodity, then– 49. Cross elasticity of demand between petrol and car is–
(a) Price of the commodity falls (a) Infinite (b) Positive
(b) Price of the commodity remains same (c) Zero (d) Negative
(c) Price of the commodity rises Ans. (d) [SSC Tax Asst. Exam, 2008]
(d) Quantity demanded of the commodity falls 50. The Law of Demand expresses–
Ans. (c) [SSC (10+2) Exam, 2012] (a) Effect of change in price of a commodity on its
demand
42. A horizontal demand curve is–
(b) Effect of change in demand of a commodity on its
(a) Relatively elastic (b) Perfectly inelastic price

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(c) Effect of change in demand of a commodity over the (c) Low elasticity of demand
supply of its substitute (d) High income elasticity of demand
(d) None of the above Ans. (c) [SSC MTS Exam, 2006]
Ans. (a) [SSC Tax Asst. Exam, 2008] 59. Bread and butter, car and petrol are Examples of goods
51. The demand curve for a Giffen good is– which have–
(a) Upward rising (a) Composite demand
(b) Downward falling (b) Joint demand
(c) Parallel to the quantity axis (c) Derived demand
(d) Parallel to the price axis (d) Autonomous demand
r
Ans. (a) [SSC CGL Exam, 2007] Ans. (b) [SSC MTS Exam, 2006]
i
52. Imputed gross rent of owner occupied buildings is a part 60. In the law of demand, the statement “Other things remain
of– constant” means–
(a) Capital formation (a) Income of consumer should not change
S
(b) Final consumption (b) Price of other goods should not change
ww
(c) Intermediate consumption
(d) Consumer durable
(c) Taste of consumer should not change
v
Ans. (b)
w.E [SSC Tax Asst. Exam, 2007] Ans. (d) [SSC CPO Exam, 2006]
a
53. The supply of agricultural products is generally– 61. The functional relationship between income and
(a) Elastic (b) Inelastic consumption expenditure is-explained by–
r
(c) Perfectly elastic
Ans. (b) asy
(d) Perfectly inelastic
(a) Consumer surplus
(b) Law of demand
u
En
54. All of the goods which are scarce and limited in supply
are called–
(c) Law of supply
(d) Keynes’s psychological law of consumption
a
(a) Luxury goods
(c) Capital goods gin
(b) Expensive goods
(d) Economic goods
Ans. (d)
62. Equilibrium price means–
ee (a) Price determined by Demand and Supply
G
(b) Price determined by Cost and Profit
55. Engel’s Law states the relationship between–
(a) Quantity demanded and price of a commodity rin
(c) Price determined by Cost and Production
(b) Quantity demanded and price of substitutes

(c) Quantity demanded and tastes of the consumers
Ans. (a)
g.n
(d) Caprice determined to maximise profit
(d) Quantity demanded and income of the consumers

56. Seawater, fresh, air etc are regarded in economics as–
(a) Unemployment falls
(b) Prices rise
et
63. When aggregated supply exceeds aggregate demand–
(c) Inventories accumulate

(a) Giffen goods (b) Inferior goods (d) Unemployment develops
(c) Free goods (d) Normal goods Ans. (c) [SSC CPO Exam, 2004]
Ans. (c) [SSC CPO Exam, 2006] 64. According to Keynesian theory of income determination,
at full employment a fall in aggregate demand causes–
57. If the price of tea falls, demand for coffee will–
(a) A fall in prices of output and resources
(a) Increase (b) Decrease
(b) A fail in real gross National product and employment
(c) Remain same (d) None of these
(c) A rise in real gross National product and investment
(d) A rise in prices of output and resources
58. If the main objective of the government is to raise
revenue, it should tax commodities with– Ans. (a) [SSC CPO Exam, 2004]
(a) High elasticity of demand 65. If the price of an inferior good falls its demand–
(b) Low elasticity of supply (a) Rises (b) Falls

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(c) Remains constant (d) Can be any of the above (d) Change in the price of that commodity
Ans. (a) [SSC CPO Exam, 2003] Ans. (c) [SSC CGL Aug. Exam, 2014]
66. Demand of commodity mainly depends upon– 74. Which one of the following is an Example of joint
(a) Purchasing will (b) Purchasing power supply?
(c) Tax policy (d) Advertisement (a) Petrol and Bus (b) Ink and Fountain pen
Ans. (b) [SSC SO Exam, 2003] (c) Sugar and Coffee (d) Wool and Cotton
67. When there is a change in demand leading to a shift of Ans. (b) [SSC Stenographer Sep. Exam, 2014]
the demand curve to the right at the same price as before, 75. A refrigerator operating in a chemist’s shop is an Example
the quantity demanded will– of–
(a) Decrease (b) Increase (a) Free good (b) Final good
r
(c) Remain the same (d) Contract (c) Producer’s good (d) Consumer’s good
i
Ans. (b) [SSC SO Exam, 2001] Ans. (b) [SSC CPO Exam, 2008]
68. Movement along the same demand curve is known as–
S
(a) Extension and contraction of demand Production
ww
(b) Increase and decrease of demand
(c) Contraction of supply
1. Which among of the following is a factor of production.
v
(a) Coal (b) Entrepreneur
(d) Increase of supply
Ans. (a)
w.E [SSC SO Exam, 2001]
(c) Energy (d) Industry
a
Ans (b) [SSC Multitasking Exam, 2014]
69. The income elasticity of demand being greater than one,
r
the commodity must be–
(a) A necessity asy
(b) A luxury
2. Which among of the following is necessary for demand.
(a) Production (b) Cost
u
(c) An inferior good
Ans. (b) En
[SSC SO Exam, 2001]
(c) Income
Ans (c)
(d) Import
[SSC Metric Level Exam, 2008]
a
gin
70. If the change in demand for a commodity is at a faster
rate than change in the price of the commodity, the
demand is–
3. According to the unit of measurement, internal return
is.
ee (a) A concept of long term production
G
(a) Perfectly inelastic (b) Elastic (b) A concept of seasonal production
(c) Perlectly elastic
Ans. (c)
(d) Inelastic
[SSC MTS Exam, 2001] rin
(c) A concept of short duration production
71. The demand for which of the following commodity will

not rise in spite of a fall in its price?
Ans. (a)
g.n [SSC Multitasking Exam, 2014]
(a) Television
(c) Salt
Ans. (c)
(b) Refrigerator
(d) Meat
4.
et
The Rate of internal return should be.
(a) Less than interest rate
(b) Its cost of production and profit equal.
(c) Decrease, when internal interact increase.
72. If the price of Pepsi decreases relative to the price of
Coke and 7-Up, the demand for– (d) None of these
(a) Coke will decrease Ans. (b) [SSC 10+2 Exam, 2014]
(b) 7-Up will decrease 5. Increasing internal return means–

(a) Increasing cost
(c) Coke and 7-Up will increase
(b) Decreasing cost
(d) Coke and 7-Up will decrease
(c) Increasing production
Ans. (d) [SSC MTS Exam, 2000] (d) Increasing income
73. Non-insurable or uncertainty risk is– Ans. (b) [SSC CGL Exam, 2014]
(a) Change in fashion 6. If the decreasing rate of interest increase in marginal
(b) Fire internal return, then total internal return.
(c) Flood (a) Increases (b) Decreases

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(c) Remains constant (d) Becomes zero 14. Collective consumption means.
Ans. (a) [SSC CGL Exam, 2014] (a) Household consumption
7. Third situation of law of variable proportion is– (b) Disposable consumption
(a) Negative return (c) Self consumption
(b) Positive return (d) Consumption by people of country
(c) Proportional return Ans. (a) [SSC 10+2 Exam, 2014]
(d) None of these 15. When the total product rises at an increasing rate, then
Ans. (a) [SSC 10+2 Exam,2013] the –
8. The excess of the price, person is to pay rather than (a) Marginal product is zero
r
forego the consumption of the commodity is called. (b) Marginal product is rising
i
(a) Price (b) Profit (c) Marginal product is falling
(c) Producer’s surplus (d) Consumer’s surplus (d) Marginal product remains constant
Ans. (c) Ans. (b) [SSC Tax asst. Exam, 2007]
S
9. Production function means– 16. Which of the following is not true when the interest rate
ww
(a) Relation between land & rent. in the economy goes up?
(a) Saving increases
v
(b) Relation between initial input & ultimate output
w.E
(c) Relation between demand & supply (b) Lending increases
a
(d) Relation between output and export (c) Cost of production increases
r
Ans. (b)
10. Production function shows–
asy
[SSC LDC Exam, 2005]
Ans. (d)
17. In Economics, Production means–
u
(a) Relation between initial input & ultimate output
En
(b) Fiscal relation between initial input & ultimate output (a) Manufacturing (b) Making
a
(c) Creating utility (d) Forming
(c) Relation between factors of production
(d) None of the above gin Ans. (c)
Ans. (a)
ee
[SSC Tax Asst. Exam, 2008] 18. The marginal propensity to consume lies between–
G
11. The Production function marks relation between. (a) 0 to 1 (b) 0 to oo
(a) Cost and production (c) 1 to oo

Ans. (a) rin (d) OO to oo
[SSC (10+2) Exam, 2011]
(b) Cost and internal input
(c) Internal input and production g.n
19. The production function relates to–
(d) Wages and profit

Ans. (c)
12. The Production function signifies.
[SSC 10+2 Exam,2010]
(a) Costs to outputs
(c) Inputs to outputs
Ans. (c)
et(b) Costs to inputs
(d) Wage level to profits
[SSC (10+2) Exam, 2010]
(a) Economical relation 20. Economies of Scale means reduction in–
(b) Social relation (a) Unit cost of production
(c) Industrial relation (b) Unit cost of distribution
(d) Cost relation (c) Total cost of production
Ans. (c) [SSC Metric Level Exam, 2006] (d) Total cost of distribution
13. The Production function shows relation between – Ans. (a) [SSC Tax Asst. Exam, 2007]
(a) Primary input and ultimate output 21. Capital Output Ratio of a measures–
(a) Its per unit cost of production
(b) Investment and final consumption
(b) The amount of capital invested per unit of output
(c) Production and consumption
(c) The ratio of capital depreciation to quantity of output
(d) Production and export (d) the ratio of working capital employed to quantity of
Ans. (a) [SSC Tax Asst. Exam, 2009] output

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Ans. (b) [SSC CGL Exam, 2007] (c) Variable cost (d) Fined cost
22. The concept that under a system of free enterprise, it is Ans. (c) [S.S.C (CGL) Exam, 2015]
consumers who decide what goods and services shall be 3. Payment given to others by firms for using their goods
produced and in what quantities is known as– and services are called.
(a) Consumer protection
(a) Actual cost (b) Economic cost
(b) Consumer’s decision
(c) Explicit cost (d) Implicit cost
(c) Consumer preference
(d) Consumer’s sovereignty Ans. (c) [S.S.C Steno Exam, 2011]
Ans. (d) [SSC SO Exam, 2006] 4. The additional to total cost by producing an additional
unit of output by a firm is called.
23. In a business, raw materials, components, work-in-
(a) Average cost (b) Marginal Cost
r
progress and finished goods are jointly regarded as–
(c) Total Cost (d) Variable Cost
i
(a) Capital stock (b) Inventory
(c) Investment (d) Net worth Ans (b) [SSC 10+2 Exam, 2012]
Ans. (b) [SSC Tax Asst. Exam, 2005] 5. The non-expenditure costs which arise when producing
S
firm itself and supplies contain factors of production
24. ‘Marginal efficient of capital’ is– are.
ww
(a) Expected rate of return on new investment (a) Explicit Cost (b) Original Cost
v
(b) Expected rate of return of existing investment (c) Implicit Cost (d) Replacement Cost
w.E
(c) Difference between rate of profit and rate of interest Ans. (c) [SSC 10+2 Exam, 2013]
a
(d) Value of output per unit of capital invested 6. For any product, there will be increment in balanced cost
r
Ans. (a) [SSC SO Exam, 2001] when.
asy
25. It is prudent to determine the size of the output when the
industry is operation in the stage of–
(a) Demand is less than supply
(b) There is increase is both demand and supply
u
(a) Increasing returns
En (c) There is decrease in both demand and supply
(d) There is decrease in supply and increase is demand
a
(b) Constant returns
(c) Diminishing returns
(d) Negative returns
gin Ans. (d)
7.
For production minimum payment is called.
ee (a) Rent (b) Implicit cost
G
26. The four factors of production are–
(a) Land, Labour, Capital, Organisation
(c) Wages
Ans. (a)
rin
(d) Implicit cost
(b) Land, Electricity, Water, Labour

(c) Labour, Capital, Land, Rainfall
8.
(a) Economic cost g.n
Explicit + Implicit cost =
(b) Social cost
(d) Labour, Climate, Land, Tools

Ans. (a) [SSC MTS Exam, 2001] 9.
(c) Personal cost
Ans. (a) et
(d) Accounting cost
In the long-run the fixed costs become–
(a) Money costs (b) Real costs
Cost (c) Opportunity costs (d) Variable costs
Ans. (d) [SSC CGL July Exam, 2014]
1. “Extra cost” are those cost-
10. A firm practising price discrimination will be–
(a) Which are taken to give wages
(a) charging different prices for different qualities of a
(b) Which are taken to Lucy raw material product
(c) Which are taken for transportation (b) buying in the cheapest and selling in the dearest
markets
(d) Which are taken to Lucy machinery to fill
depreciation (c) charging different prices in different markets for a
product
Ans. (d) [S.S.C Matric level Exam, 2006 ]
(d) buying only from firms selling in bulk at a distance
2. Which cost has relation with lowest cost?
Ans. (c) [SSC CGL July Exam, 2014]
(a) Sunk cost (b) Opportunity cost
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11. Minimum payment of factor of production is called– 19. Opportunity cost of production of a commodity is–
(a) Quasi Rent (b) Rent (a) The cost that the firm could have incurred when a
(c) Wages (d) Transfer Payment different technique was adopted
Ans. (c) [SSC CGL April Exam, 2014] (b) The cost that the firm could have incurred under a
12. Marginal Cost equals– different method of production
(a) total cost divided by quantity (c) The actual cost incurred
(b) the change in total cost divided by the change in (d) The next best alternative output
quantity Ans. (d) [SSC CPO Exam, 2009]
(c) total cost minus total benefit for the last unit produced 20. When Average Cost Production (ACP) falls, marginal
(d) total cost divided by total benefit for the last unit cost of production must be–
r
produced (a) Rising
i
Ans. (b) [SSC (10+2) Exam, 2013] (b) Falling
13. The expenses on advertising is called–
(c) Greater than the average cost
S
(a) Implicit cost (b) Surplus cost
(d) Less than the average cost
Ans. (d)
ww
(c) Fixed cost (d) Selling cost
[SSC Constable (6D) Exam, 2012]
v
21. When the total product rises at an increasing rate, the–
14. Which of the following cost curve is never ‘U’ shaped?
w.E
(a) Marginal cost curve (a) marginal product is zero
a
(b) Average variable cost curve (b) marginal product is rising
r
(c) Average fixed cost curve
(d) Average cost curve
asy (c) marginal product is falling
(d) marginal product remains constant
u
Ans. (c) [SSC (10+2) Exam, 2012]
En
15. Those payments which the firms make to outsiders for
Ans. (b)
22. Prime cost is equal to–
a
their goods and services are called–
(a) Real costs
(c) Explicit costs
(b) Economic costs
(d) Implicit costs
gin (a) variable cost plus administrative cost
(b) variable cost plus fixed costs
ee
G
Ans. (c) [SSC Stenographer Exam, 2011] (c) variable cost only
16. Cost of production of the producer is given by–
(a) Sum of wages paid to labourers
(d) fixed cost only
Ans. (a) rin [SSC SO Exam, 2006]
(b) Sum of wages and interest paid on capital
(c) Sum of wages, interest, rent and supernormal profit g.n
23. An expenditure that has been made and cannot be
recovered is called–
(d) Sum of wages, interest, rent and normal profit
Ans. (d) [SSC (10+2) Exam, 2011]
17. Under perfect competition, the industry does not have
(a) Variable cost
(c) Sunk cost
Ans. (c)
et
(b) Opportunity cost
(d) Operational cost
[SSC SO Exam, 2006]
any excess capacity because each firm produces at the
minimum point on its– 24. A firm is in equilibrium when its–
(a) long-run marginal cost curve (a) marginal cost equals the marginal revenue
(b) long-run average cost curve (b) total cost is minimum
(c) long-run average variable cost curve (c) total revenue is maximum
(d) long-run average revenue curve
(d) average revenue and marginal revenue are equal
Ans. (b) [SSC (10+2) Exam, 2010]
18. Surplus earned by a factor other than land in the short
25. Given the money wages, if the price level in an economy
period is referred to as–
increases, then the real wages will–
(a) Economic rent (b) Net rent
(a) Increase (b) Decrease
(c) Quasi-rent (d) Super-normal rent
(c) Remain constant (d) Become flexible
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Ans. (b) [SSC Tax Asst. Exam, 2006] Ans. (d) [SSC MTS Exam, 2000]
26. What is selling cost? 34. Quasi rent is a ..... phenomenon.
(a) Cost incurred on transportation of commodities to (a) Medium (b) Long-term
market
(c) Short-term (d) No time
(b) Cost incurred on promoting the sale of the product
Ans. (c) [SSC CGL April Exam, 2014]
(c) Cost incurred on commission and salaries personnel
(d) Cost incurred on advertisement
Revenue
27. Marginal cost is the– 1. The marginal revenue of monopolist is –
(a) cost of producing a unit of output (a) More than price (b) Equal to price
r
(b) cost of producing an extra unit of output (c) Less than price (d) Less than marginal cost
i
(c) cost of producing the total output Ans. (c) [SSC 10+2 Exam,2010]
(d) cost of producing a given level of output 2. The ‘break-even’ point is where–
S
Ans. (b) [SSC MTS Exam, 2006] (a) Marginal revenue equals marginal cost
ww
28. The fixed cost on such factors of production which are
neither hired nor brought by the firm is called–
(b) Average revenue equals average cost
(c) Total revenue equals total cost
v
(a) Social cost (b) Opportunity cost
w.E
(c) Economic cost (d) Surcharged cost
a
Ans. (c) [SSC (10+2) Exam, 2011]
3. The marginal revenue of a monopolist is–
r
as–
asy
29. Transfer earning or alternative cost is otherwise known
(a) More than price
(c) Less than price
(b) Equal to price
(d) Less than marginal cost
u
(a) Variable cost
(b) Implicit cost
En Ans. (c) [SSC (10+2) Exam, 2010]
a
4. Average revenue means–
(c) Explicit cost
(d) Opportunity cost (Economic cost) gin (a) The revenue per unit of commodity sold
(b) The revenue from all commodities sold
Ans. (d)
ee
[SSC SO Exam, 2003]
G
30. Economic rent refers to– (c) The profit realised from the marginal unit sold
(a) Payment made for the use of labour

Ans. (a) rin
(d) The profit realised by sale of all commodities
(b) Payment made for the use of capital
(c) Payment made for the use of organisation
g.n
Utility
(d) Payment made for the use of land
Ans. (d)
31. Total fixed cost curve is–
[SSC CPO Exam, 2003] 1. et
If for any product X, total utility from an units is 20 and
from 10 unit is 15, then Marginal utility is–
(a) Vertical (b) Horizontal (a) –.5 (b) 5
(c) Positively sloping (d) Negatively sloping (c) .5 (d) -5
Ans. (b) [SSC MTS Exam, 2002] Ans. (d) [SSC 10+2 Exam,2015]
32. Which of the following are not fixed costs? 2. In economics, ‘Utility’ and ‘Usefulness’ words has.
(a) Rent on land (a) Same meaning (b) Different meaning
(b) Municipal taxes
(c) Opposite meaning (d) None of the above
(c) Wages paid to workers
(d) Insurance charges
3. The Psychological law of consumption states that–
(a) Proportionate increase in consumption is less than
33. Fixed cost is known as–
proportionate increase in income
(a) Special cost (b) Direct cost
(b) Increase in income is equal to increase in consumption
(c) Prime cost (d) Overhead cost

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(c) Increase in consumption is greater than increase in 3. The Extreme forms of market are-
income (a) Perfect Competition, Monopolistic Competition
(d) Consumption does not change with a change in (b) Perfect Competition, Oligopoly
income
(c) Oligopoly, Monopoly
Ans. (a) [SSC (10+2) Nov. Exam, 2014]
(d) Perfect Competition, Monopoly.
4. In Economics the ‘Utility’ and ‘Usefulness’ have–
Ans. (d) [S.S.C (10+2) Exam, 2013]
(a) Same meaning (b) Different meaning
4. The New firms are not allowed in market with.
(c) Opposite meaning (d) None of the above
(a) Perfect competition
(b) Oligopoly
5. When marginal utility is zero, the total utility is–
r
(c) Monopolic competition
(a) Minimum (b) Increasing
i
(d) Monopoly.
(c) Maximum (d) Decreasing
S
5. Perfect Market situation will be situated when-
6. The marginal utility curve slopes downward from left to
(a) When firms are independent
ww
right indicating–
(a) a direct relationship between marginal utility and the (b) When large number of buyers & sellers are present
v
stock of commodity (c) When large number of sellers & less number of payers
w.E
(b) a constant relationship between marginal utility and the are there
a
stock of commodity (d) When less number of buyer are there.
r
(c) a proportionate relationship between marginal utility
and the stock of commodity
asy
(d) an inverse relationship between marginal utility and the
Ans. (b)
6.
[S.S.C Steno Exam, 2014]
Under Perfect Competition who is Price Taker.
u
(a) Buyer (b) Business
Ans. (d)
stock of commodity
En
(c) Government (d) Firm.
a
7. The term utility means–
(a) usefulness of a commodity gin Ans. (d)
7.
“Exchange of Commodities” between two countries
ee means.
G
(b) the satisfaction in which a commodity yields
(a) Trade surplus (b) Bilateral trade
(c) the service which a commodity is capable of rendering
(c) Trade result
Ans. (b) rin (d) Multi lateral trade
[S.S.C CGL Exam, 2010]
8.
g.n
The Selling cost is not included under–
1.
Market
Which is the best for any firm?

(a) Oligopoly
(b) Duopoly
(c) Perfect Competition
et
(a) Increase in profit (d) Monopolistic Competition
(b) Decrease in selling Ans. (c) [SSC CPO Exam, 2012]
(c) Market monopoly 9. ‘Hewala’ is–
(d) Decrease in production (a) Complete description of a subject
Ans. (d) [S.S.C (CPO) Exam, 2015] (b) Illegal trade of foreign currency
2. Bilateral Monopoly refers to the market situation of– (c) Tax reform
(a) Two sellers, Two buyers (d) Illegal trade of shares
(b) One seller, Two buyers Ans. (b) [SSC 10+2 Exam, 2015]
(c) Two sellers, One buyer 10. The Theory of “Monopolistic Competition” was given
by–
(d) One seller, One buyer.
(a) John Robinson (b) Edward Chamberlin
(c) John Bates Clarke (d) Joseph Schumpeter

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Ans. (b) [SSC 10+2 Exam, 2010] Ans. (b) [SSC Investigator Exam, 2010]
11. Short – term government securities is called– 19. The degree of monopoly power is to be measured in terms
(a) Share (b) Debenture of the firm’s–
(a) Normal profit
(c) Mutual fund (d) Treasury bill
(b) Supernormal profit
(c) Both normal and supernormal profit
12. The Full form of FCCB is– (d) Selling price
(a) Foreign Currency Convertible bonds Ans. (d) [SSC (10+2) Exam, 2010]
(b) Foreign countries Convertible bonds 20. Under which market condition do firms have excess
(c) Foreign Companies convertible bond capacity?
r
(d) None of the above (a) Perfect competition
i
Ans. (a) [SSC CPO Exam, 2012] (b) Monopolistic competition
13. Which market forms allow free entry and exit of firms?
(c) Duopoly
S
(a) Perfect and Monopolistic
(d) Oligopoly
(b) Perfect and Oligopoly
ww
(c) Oligopoly and Monopoly
21. The situation in which total revenues equals total, cost is
v
(d) Monopoly and Monopolistic known as–
Ans. (b)
w.E [SSC Stenographer Sep. Exam, 2014] (a) Monopolistic competition
a
14. The extreme forms of market are– (b) Equilibrium level of output
r
(a) Perfect Competition, Monopolistic
asy
(b) Perfect Competition, Monopoly Competition
(c) Break even point
(d) Perfect competition
u
(c) Perfect Competition Oligopoly
(d) Oligopoly Monopoly En Ans. (c)
22. Perfect competition means–
[SSC (10+2) Exam, 2010]
a
Ans. (a)
15. Tooth paste is a product sold under– gin
[SSC (10+2) Exam, 2013] (a) large number of buyers and less sellers
(b) large number of buyers and sellers
(a) Monopolistic Competition
ee
G
(c) large number of sellers and less buyers
(b) Perfect Competition
(c) Monopoly
Ans. (b) rin [SSC CGL Exam, 2007]
(d) Duopoly
Ans. (a) [SSC FCI Exam, 2012] (a) Adam Smith g.n
23. Who propounded the market law?
(b) JB Say
16. Kinked demand curve is a feature of–
(a) Monopoly
(c) Monopsony
(b) Oligopoly
(d) Duopoly
(c) TR Malthus
Ans. (b)
24. Monopoly means–
et
(d) David Recardo
Ans. (b) [SSC (10+2) Exam, 2012] (a) Single buyer (b) Many sellers
17. In which market structure is the demand curve of the (c) Single seller (d) Many buyers
market represented by the demand curve of the firm?
(a) Monopoly (b) Oligopoly
25. One of the essential conditions of monopolistic competition
(c) Duopoly (d) Perfect Competition is–
Ans. (a) [SSC (10+2) 2011]
(a) Many buyers but one seller
18. The most distinguishing feature of oligopoly is–
(b) Price discrimination
(a) Number of firms
(c) Product differentiation
(b) Interdependence
(c) Negligible influence on price (d) Homogeneous product
(d) Price leadership Ans. (c) [SSC Tax Asst. Exam, 2005]

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26. Same price prevails throughout the market under–

(a) Perfect Competition
(b) Monopoly
(c) Monopolistic Competition
(d) Oligopoly
27. Different firms constituting the industry, produce
homogeneous goods under–
(a) Monopoly (b) Monopolistic Competition
r
(c) Oligopoly (d) Perfect Competition
i
28. A situation of large number of firms producing similar
goods is termed as–
S
(a) Perfect competition
ww
(b) Monopolistic competition
(c) Pure competition
v
w.E
(d) Oligopoly
a
29. Under Perfect Competition–
r
asy
(a) Marginal Revenue is less than the Average Revenue
u
(b) Average Revenue is less than the Marginal Revenue
En
(c) Average Revenue is equal to the Marginal Revenue
a
Ans. (c) gin
(d) Average Revenue is more than the Marginal Revenue
ee
G
30. Say’s Law of market holds that–
(a) Supply is not equal to demand
(b) Supply creates its own demand rin
(c) Demand creates its own supply
(d) Supply is greater than demand g.n
31. A specular who enters into a purchase transaction with a
view to sell in the near future when the price would have
et
risen is called a–
(a) Bear (b) Bull
(c) Bison (d) Boar
32. Which of the following is an Example of Monopoly-
(a) Spic (b) Indian railway
(c) H.M.T. (d) Hindustan Unilever Ltd.

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