SSC CGL Tier II Economics Quiz for the post of AAO

Q1. Which of the following efforts fall under Financial Inclusion Plan (FIP) of RBI / government? 
(a) Nationalization of banks
(b) Priority Sector Lending (PSL) targets
(c) Zero balance accounts, like BSBDA, Jan-Dhan Account, Small Account, etc.
(d) All of the above

Q2. In the case of a Giffen good, the demand curve will be:
(a) horizontal.
(b) downward-sloping to the right.
(c) vertical.
(d) upward-sloping to the right.

Q3. By consumer surplus, economists mean
(a) the area inside the budget line.
(b) the area between the average revenue and marginal revenue curves.
(c) the different between the maximum amount a person is willing to pay for a good and its market price.
(d) None of the above.

Q4. What is “Stagflation”?
(a) inflation with growth
(b) deflation with growth
(c)  persistent high inflation  with high level of unemployment
(d) inflation with depression

Q5. What do you mean by “Outcome Budget”?
(a) It denotes reaction of the media after Budget Papers are approved in the Parliament
(b) It aims to measure performance of the Government in various departments
(c) It is a report submitted by the Government of India indicating made in different projects by ministries and  departments   as a first step towards converting outlays into income
(d) None of the above

Q6. Which of the following is a property of an indifference curve
(a) it is convex to the origin.
(b) the marginal rate of substitution is constant as you move along an indifference curve.
(c) marginal utility is constant as you move along an indifference curve.
(d) total utility is greatest where the 45 degree line cuts the indifference curve.

Q7. When economists speak of the utility of a certain good, they are referring to 
(a) the demand for the good.
(b) the usefulness of the good in consumption.
(c) the satisfaction derived from consuming the good.
(d) the rate at which consumers are willing to exchange one good for another.

Q8.With reference to Ryotwari Settlement, consider the following statements
1. The rent was paid directly by the peasants to the Government.
2. The Government gave Pattas to the Ryots.
3. The lands were surveyed and assessed before being taxed.
Which of the statements given above is/are correct?
(a) Only 1
(b) 1 and 2
(c) 1, 2 and 3
(d) None of these

Q9. Which cost increases continuously with the increase in production?
(a) Average cost.
(b) Marginal cost.
(c) Fixed cost.
(d) Variable cost.

Q10. Which of the following cost curves is never ‘U’ shaped?
(a) Average cost curve.
(b) Marginal cost curve.
(c) Average variable cost curve.
(d) Average fixed cost curve.

Q11. Which of the following is true regarding SHG? 
(a) A small voluntary group of poor people, generally from the same economic background, that promotes small savings among the members and make a common fund to help themselves
(b) Government / RBI has introduced several SHG – bank linkage program for Financial Inclusion
(c) Full form of SHG is Self Help Group
(d) All of the above

Q12. Total cost in the short run is classified into fixed costs and variable costs. Which one of the following is a variable cost?
(a) Cost of raw materials.
(b) Cost of equipment.
(c) Interest payment on past borrowings.
(d) Payment of rent on building.

Q13. In the short run, when the output of a firm increases, its average fixed cost:
(a) increases.
(b) decreases.
(c) remains constant.
(d) first declines and then rises.

Q14. Who is a Banking / Business Correspondent Agent (BCA)? 
(a) An authorized representative of a bank, who offer banking services where the bank doesn’t have a branch
(b) Any person who provides banking services in rural area
(c) An authorized representative of a bank, who makes profit for banks, by making business
(d) All of the above

Q15. Under which of the following methods of depreciation, amount of depreciation varies every year? 
(a) Written Down Value Method
(b) Straight Line Method
(c) Amount of depreciation does not very on year to year basis
(d) All of the above

S1. Ans.(d)

S2. Ans.(d)

S3. Ans.(c)

S4. Ans.(c)

S5. Ans.(b)

S6. Ans.(a)

S7. Ans.(c)

S8. Ans.(c)

S9. Ans.(d)

S10. Ans.(d)

S11. Ans.(d)

S12. Ans.(a)

S13. Ans.(b)

S14. Ans.(a)

S15. Ans.(a)


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