# SSC CGL Tier II Economics Quiz for the post of AAO

Q1. “Treasury bills” means?
(a) salary bills drawn by Government officials on the treasury
(b) bills drawn by the Government contractors and other suppliers on the treasury for the dues owed to them by the     Government
(c) obligations of the Government of India issued by the Reserve Bank of India and payable normally ninety-one days after issue
(d) None of the above

Q2. A vertical supply curve parallel to Y axis implies that the elasticity of supply is:
(a) Zero
(b) Infinity
(c) Equal to one
(d) Greater than zero but less than infinity.

Q3. The supply of a good refers to:
(a) actual production of the good.
(b) total existing stock of the good.
(c) stock available for sale.
(d) amount of the good offered for sale at a particular price per unit of time.

Q4. An increase in the supply of a good is caused by:
(a) improvements in its technology.
(b) fall in the prices of other goods.
(c) fall in the prices of factors of production.
(d) all of the above.

Q5. What is the total output when 2 hours of labour are employed?
(a) 180
(b) 330
(c) 280
(d) 200

Q6. What is the marginal product of the third hour of labour?
(a) 160
(b) 180
(c) 120
(d) 240

Q7. What is the average product of the first three hours of labour?
(a) 60
(b) 80
(c) 100
(d) 150

Q8. Elasticity of supply refers to the degree of responsiveness of supply of a good to changes in its:
(a) demand.
(b) price.
(c) cost of production.
(d) state of technology.

Q9. Which of the following rates/ratios is not covered under the RBI monetary and credit policy?
(a) Bank rate
(b) Exchange rate of foreign currencies
(c) Repo rate
(d) Reverse repo rate

Q10. A horizontal supply curve parallel to the quantity axis implies that the elasticity of supply is:
(a) zero.
(b) infinite.
(c) equal to one.
(d) greater than zero but less than one.

Q11. The central banking functions in India are performed by the………..?
1. Central Bank of India
2. Reserve Bank of India
3. State Bank of India
4. Punjab National Bank
(a) 1, 2 and 3
(b) 2
(c) 1
(d) 2 and 4

Q12. Contraction of supply is the result of:
(a) decrease in the number of producers.
(b) decrease in the price of the good concern.
(c) increase in the prices of other goods.
(d) decrease in the outlay of sellers.

Q13. Which of the following organisation release World Economic Outlook report?
(a) World Bank
(b) IMF
(c) UNDP
(d) WTO

Q14. “Primary Deficit”refers to?
(a) Fiscal Deficit minus Interest Payments
(b) Budget Deficit minus Interest Payments
(c) Monetary Deficit minus Interest Payments
(d) Deficit financing by 91 day ad hoc treasury bills

Q15. Open market operations are mainly used as ______?
(a) A fiscal device which assists Government borrowing
(b) A monetary measure to regulate quantity of money in circulation and the cash reserves of the commercial banks
(c) A measure to counteract extreme trends in business
(d) A measure to influence the balance of payments position

SOLUTIONS

S1. Ans.(c)
Sol.

S2. Ans.(a)
Sol.

S3. Ans.(d)
Sol.

S4. Ans.(d)
Sol.

S5. Ans.(b)
Sol.

S6. Ans.(c)
Sol.

S7. Ans.(d)
Sol.

S8. Ans.(b)
Sol.

S9. Ans.(b)
Sol.

S10. Ans.(b)
Sol.

S11. Ans.(b)
Sol.

S12. Ans.(b)
Sol.

S13. Ans.(b)
Sol.

S14. Ans.(a)
Sol.

S15. Ans.(b)
Sol.

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