SSC CGL Tier II Economics(Micro) Quiz for the post of AAO

Q1. In
pursuance with the recommendations of Narsimhan Committee, the RBI has framed
new guidelines
(a) to
govern entry of new private sector banks to make the banking sector more
(b) to reduce
the freedom given to banks to rationalize their existing branch network
(c) to setup
more foreign exchange banks
(d) to lend
more easily for industrial development
Q2. Which of
the following is not a condition of perfect competition?
(a) A large
number of firms.
(b) Perfect
mobility of factors.
(c) Informative
advertising to ensure that consumers have good information.
(d) Freedom
of entry and exit into and out of the market.
Q3. Which of
the following is not a characteristic of a perfectly competitive market?
(a) Large
number of firms in the industry.
(b) Outputs
of the firms are perfect substitutes for one another.
(c) Firms
face downward-sloping demand curves.
(d) Resources
are very mobile.
Q4. Which of
the following is not a characteristic of monopolistic competition?
(a) Ease of
entry into the industry.
(b) Product differentiation.
(c) A
relatively large number of sellers.
(d) A
homogenous product.
Q5. Consider
the following statements :
1. Inflation
benefits the debtors.
2. Inflation
benefits the bond-holders.
Which of the
statements given above is/are correct?
(a) 2 only
(b) 1 only
(c) Both 1
and 2
(d) Neither
1 nor 2
Disguised unemployment generally means:
1. large
number of people remain unemployed
alternative employment is not available
3. marginal
productivity of labour is zero
productivity of workers is low
Find out the
correct option from the code:
(a) 1 and 4
(b) 3 and 1
(c) 2 only
(d) 3 only
Q7. All of
the following are characteristics of a monopoly except:
(a) there is
a single firm.
(b) the firm
is a price taker.
(c) the firm
produces a unique product.
(d) the
existence of some advertising.
Q8. Oligopolistic
industries are characterized by:
(a) a few
dominant firms and substantial barriers to entry.
(b) a few
large firms and no entry barriers.
(c) a large
number of small firms and no entry barriers.
(d) one
dominant firm and low entry barriers.
Q9. Price-taking
firms, i.e., firms that operate in a perfectly competitive market, are said to
be “small” relative to the market. Which of the following best describes this
(a) The
individual firm must have fewer than 10 employees.
(b) The
individual firm faces a downward-sloping demand curve.
(c) The
individual firm has assets of less than ’20 lakh.
(d) The
individual firm is unable to affect market price through its output decisions.
Q10. For price-taking
(a) marginal
revenue is less than price.
(b) marginal
revenue is equal to price.
(c) marginal
revenue is greater than price.
(d) the
relationship between marginal revenue and price is indeterminate.
Q11. Which
of the following definitions are correct?
Basis points: increase in interest rates in percentage terms.
Repo rate: rate at which commercial banks borrow from the RBI by selling their securities
or financial assets to the RBI for a long-period of time.
Reverse repo rate: rate of interest at which the central bank borrows funds
from commercial  banks for a short
Cash reserve ratio: minimum percentage of cash deposits that banks must keep
with itself to avoid liquidity issues.
(a) (i)
& (ii)
(ii), (iii) & (iv)
(c) (ii)
& (iv)
(iii) & (iv)
Q12. Monopolistic
competition differs from perfect competition primarily because
(a) in
monopolistic competition, firms can differentiate their products.
(b) in
perfect competition, firms can differentiate their products.
(c) in
monopolistic competition, entry into the industry is blocked.
(d) in
monopolistic competition, there are relatively few barriers to entry.
Q13. The
long-run equilibrium outcomes in monopolistic competition and perfect
competition are similar, because in both market structures
(a) the
efficient output level will be produced in the long run.
(b) firms
will be producing at minimum average cost.
(c) firms
will only earn a normal profit.
(d) firms
realize all economies of scale
Which of the following is true regarding Indian Economy from 2007-2008 to
2012-13 ?
Indian Economy’s growth was continuously slowing down from 2007-2008 to
2012-2013 due to many factors including Eurozone crisis as well as domestic
2. WPI
has high weightage for food and fuel than CPI.
3. In
India lack of food grain production due to continuous failure of monsoons is
the primary reason for food inflation.
(General Anti Avoidance Rule) was re-introduced in budget 2013.
(a) 1, 2
and 3
(b) 2
(c) All
the above
(d) None
of the above
Q15. A
monopolist is able to maximize his profits when:
(a) his
output is maximum.
(b) he
charges a high price.
(c) his
average cost is minimum.
(d) his
marginal cost is equal to marginal revenue.
S1. Ans.(a)
S2. Ans.(c)

S3. Ans.(c)
S4. Ans.(d)

S5. Ans.(b)

S6. Ans.(d)
S7. Ans.(b)

S8. Ans.(a)

S9. Ans.(d)

S10. Ans.(b)

S11. Ans.(b)

S12. Ans.(a)

S13. Ans.(c)

S14. Ans.(d)

S15. Ans.(d)


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