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

Q1.
What does the term ‘Green shoots’ represent in an Economy?
(a)
signs of growth of agriculture sector in a growing economy
(b)
signs of economic recovery during an economy downturn
(c)
signs of growth of agriculture sector in a declining economy
(d)
signs of economic decline in a developed economy
Q2.
Consider the following statement in regard to reserve currency :
(1)
Reserve currency acts as the international pricing currency in the global
market for
commodities
like oil and gold.
(2)
The country whose local currency is accepted as reserve currency gets an added
advantage in terms of lower commodity rates in the international market.
Which
of the statements given above is/are correct
(a)
1 only
(b)
2 only
(c)
Both 1 and 2
(d)
Neither 1 nor 2

Q3.
Which of the following is considered production in Economics?
(a) Tilling
of soil.
(b) Singing
a song before friends.
(c)
Preventing a child from falling into a manhole on the road.
(d) Painting
a picture for pleasure.
Q4. Identify
the correct statement:
(a) The
average product is at its maximum when marginal product is equal to average
product.
(b) The law
of  increasing returns to scale relates
to the effect of changes in factor proportions.
(c) Economies
of scale arise only because of indivisibilities of factor proportions.
(d) Internal
economies of scale can accrue only to the exporting sector.
Q5. Which of
the following is not a characteristic of land?
(a) Its
supply for the economy is limited.
(b) It is
immobile.
(c) Its
usefulness depends on human efforts.
(d) It is
produced by our forefathers.
Q6. What do
you understand by ‘regressive taxation’?
(a) Tax that
takes a larger perentage from lowincome people than from high income people.
(b) Taxation
where the tax rate increases irrespective of fall or rise in taxable incomes.
(c) Taxation
where the tax rate increase with the increase of taxable income
(d)
None of the above            
Q7. Which of
the following statements is true?
(a)
Accumulation of capital depends solely on income.
(b) Savings
can also be affected by the State.
(c) External
economies go with size and internal economies with location.
(d) The
supply curve of labour is an upward slopping curve.
 Q8.
Which of the following Acts was framed specially to deal more effectively with
the problem of Non- Performing Assets in Banking system?
(a)
SARFAESI Act
(b)
Banking Regulation Act
(c)
Foreign Exchange Management Act
(d)
Industrial Disputes Act
Q9. In the
production of wheat, all of the following are variable factors that are used by
the farmer except:
(a) the seed
and fertilizer used when the crop is planted.
(b) the
field that has been cleared of trees and in which the crop is planted.
(c) the
tractor used by the farmer in planting and cultivating not only wheat but also
corn and barley.
(d) the
number of hours that the farmer spends in cultivating the wheat fields.
Q10. In
the context of Indian economy; which of the following is/are the
purpose/purposes of ‘Statutory Reserve Requirements’?
1. To
enable the Central Bank to control the amount of advances the banks can create
2. To
make the people’s deposits with banks safe and liquid
3. To
prevent the commercial banks from making excessive profits
4. To
force the banks to have sufficient vault cash to meet their day-to-day
requirements Select the correct answer using the code given below.
(a) 1
only
(b) 1
and 2 only
(c) 2
and 3 only
(d) 1,
2, 3 and 4
Q11. Deficit
financing leads to inflation in general, but it can be checked if:
(a)
government expenditure leads to increase in the aggregate supply in ratio of
aggregate demand
(b) only
aggregate demand is increased
(c) all
the expenditure is denoted national debt payment only
(d) All
of the above
Q12. The
marginal product of a variable input is best described as:
(a) total
product divided by the number of units of variable input.
(b) the
additional output resulting from a one unit increase in  the variable input.
(c) the
additional output resulting from a one unit increase in both the variable and
fixed inputs.
(d) the
ratio of the amount of the variable input that is being used to the amount of
the fixed input that is being used.
Q13.
Diminishing marginal returns implies:
(a)
decreasing average variable costs.
(b) decreasing
marginal costs.
(c) increasing
marginal costs.
(d) decreasing
average fixed costs.
Q14. Banking and financial services all over the world are
regulated usually by the Monetary Authority of the land. Who controls this
function in India?
(a) Ministry of Finance
(b) SEBI
(c) RBI
(d) None of these
Q15. Ten-rupee notes contain the signature
of…………….?
(a) Finance Secretary, GOI
(b) Chairman, State Bank of India
(c) Governor, Reserve Bank of India
(d) Finance Minister, GOI
                                 SOLUTIONS
S1. Ans.(b)
Sol.
S2. Ans.(c)
Sol.

S3. Ans.(a)
Sol.
S4. Ans.(a)
Sol.

S5. Ans.(d)
Sol.

S6. Ans.(a)
Sol.
S7. Ans.(b)
Sol.

S8. Ans.(a)
Sol.

S9. Ans.(b)
Sol.

S10. Ans.(b)
Sol.

S11. Ans.(d)
Sol.

S12. Ans.(b)
Sol.

S13. Ans.(c)
Sol.

S14. Ans.(b)
Sol.

S15. Ans.(c)
Sol.





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