SSC CGL Tier II Economics Quiz for the post of AAO

Q1. Consider the following statements and select the correct code :
1. Most of the governments run unbalanced budgets.
2. In a balanced budget there could be budget surplus but no budget deficit.
Code :
(a) Only 1 
(b) Only 2
(c) Both 1 and 2 
(d) Neither 1 nor 2

Q2. Which of the following statements are not correct about ‘bond’ ?
1. It is an instrument of raising long-term capital.
2. Bond-issuing body pays interest on it which is known as ‘contango rate’.
3. It may be issued by governments and private companies both.
4. ‘Bonds’ and ‘debantures’ are different in
(a) 1 and 3 only 
(b) Neither of the above
(c) 2 only 
(d) All are true
Q3. Total revenue =   
(a) Price × quantity 
(b) Price × income 
(c) Income × quantity 
(d) None of the above 
Q4. Average revenue is the revenue earned  
(a) Per unit of input 
(b) Per unit of output 
(c) Different units of input 
(d) Different units of output 
Q5. AR can be symbolically written as:  
(a) MR/Q
(b) Price × quantity 
(c) TR/Q
(d) None of these 
Q6. AR is also known as: 
(a) Price 
(b) Income 
(c) Revenue 
(d) None of the above 
Q7. Marginal revenue can be defined as the change in total revenue resulting from the: 
(a) Purchase of an additional unit of a commodity 
(b) Sales of an additional unit of a commodity 
(c) Sale of subsequent units of a product 
(d) None of the above  
Q8. When e > 1 then MR is 
(a) Zero  
(b) Negative 
(c) Positive 
(d) One 
Q9. Gilt-edged market means :
1. bullion market
2. market of government securities
3. market of guns
4. market of pure metals
Find out the correct option from the code:
(a) 2 only 
(b) 4 and 3 only
(c) 1 and 3 only 
(d) 3 only
Q10.  Consider the following statements about ‘hidden price rise’ and select the correct code :
1. A situation of reduction in quality or amount of a product offered at an unchanged price
2. A situation of increase in indirect taxes on goods, which compromises on the quality of the goods offered for sale
Code :
(a) Only 1 
(b) Only 2
(c) 1 and 2 both 
(d) Neither 1 nor 2
Q11. When e = 1 then MR is 
(a) Positive 
(b) Zero 
(c) One 
(d) Negative 
Q12. When e < 1 then MR is 
(a) Negative 
(b) Zero 
(c) Positive 
(d) One 
Q13. The term ‘market’ refers to a: 
(a) Place where buyer and seller bargain a product or service for a price  
(b) Place where buyer does not bargain 
(c) Place where seller does not bargain 
(d) None of these 
Q14. Under perfect competition a firm is the ___________
(a) Price market and not price taker 
(b) Price taker and not price maker 
(c) Neither price maker nor price taker 
(d) None of the above 
Q15. Consider the following statements:
I. Government disinvesting its share in various public sector undertakings
II. Process of disinvestment is very fast
III. Process of disinvestment is very slow and government always falls short of target
Which of above statements is/ are true about government policy of disinvestment
(a) Only I 
(b) I and III
(c) I and II 
(d) I, II and III
S1. Ans.(a)
S2. Ans.(c)
S3. Ans.(a)
S4. Ans.(b)
S5. Ans.(c)
S6. Ans.(a)
S7. Ans.(b)
S8. Ans.(c)
S9. Ans.(a)
S10. Ans.(a)
S11. Ans.(b)
S12. Ans.(a)
S13. Ans.(a)
S14. Ans.(b)
S15. Ans.(b)


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