Economics (Part – II) - Mock Test 365

Total Questions: 50

31. Who among the following economists coined the terminology 'Hindu Rate of Growth"? [S.S.C. Online CGL (T-I) 13.08.2021 (Shift-III)]

(a) Bimal Jalan
(b) Amiya Kumar Bagchi
(c) Raj Krishna
(d) Vijay Kelkar

Correct Answer: (c) Raj Krishna

Solution:The term was coined by Indian economist Raj Krishna. It suggests that the low growth rate of India, a country with a mostly Hindu population, was in sharp contrast to high growth rates in other Asian countries, especially the East Asian Tigers, which were also newly independent.

32. he term 'Macro Economics' was used by______. [S.S.C. Online C.G.L.(T-I) 31.08.2016 (Shift-III)]

(a) J.M. Keynes
(b) Ragner Frisch
(c) Ragner Nurkse
(d) Prof. Knight

Correct Answer: (b) Ragner Frisch

Solution:Ragnar Frisch is a Norwegian economist who created the terms 'microeconomics' and 'macroeconomics' for the first time in 1993.

33. Income and Employment Theory' is the other name for which branch of Economics? [S.S.C. Online CHSL (T-I) 16.10.2020 (Shift-II)]

(a) Macroeconomics
(b) Public finance
(c) Microeconomics
(d) International economics

Correct Answer: (a) Macroeconomics

Solution:Theory of income and employment explains how aggregate demand and supply decide the level of income and employment in an economy as a whole. Thus, it is a part of macro economics.

34. Macroeconomics deals with________. [S.S.C. Online CHSL (T-I) 24.01.2017(Shift-III)]

(a) the circular flow of income
(b) the decision making of a single economic variable like demand
(c) resource allocation at the firm level
(d) equilibrium prices and quantities

Correct Answer: (a) the circular flow of income

Solution:Macroeconomics is that part of economics that aims to study the structure of the economy as a whole, their priorities or policies formulated by the government. Some of the economic issues of macroeconomics are economic growth, business cycle, unemployment, inflation, international economy and macroeconomic policy.

35. Which branch of economics deals with the depletion of natural resources stock and pollution, which are a result of rapid economic development? [S.S.C. Online CGL (T-I) 23.08.2021 (Shift-II)]

(a) Public Economics
(a) Public Economics
(c) International Economics
(d) Environmental Economics

Correct Answer: (d) Environmental Economics

Solution:Environmental economics is a subfield of economics concerned with environmental issues. It is related to the depletion and pollution of natural resource reserves as a result of rapid economic development.

36. What is Gini coefficient used for? [S.S.C. Online CHSL (T-I) 15.10.2020 (Shift-III)]

(a) To measure income equality
(b) To measure income inequality
(c) To measure distribution of income
(d) To measure profit and loss

Correct Answer: (b) To measure income inequality

Solution:

The Gini coefficient compares the income or wealth distribution of a population to a perfectly equal distribution in which every citizen of a city or country has equal wealth. To compute the Gini coefficient, economists first find the Lorenz curve for the population.

37. A higher index represents inequality in income distribution. [Online CHSL (T-I) 16.10.2020 (Shift-I)]

(a) Gini
(b) NDP
(c) CPI
(d) GDPS.S.C.

Correct Answer: (a) Gini

Solution:The Gini coefficient compares the income or wealth distribution of a population to a perfectly equal distribution in which every citizen of a city or country has equal wealth. To compute the Gini coefficient, economists first find the Lorenz curve for the population.

38. Short term contractions and expansions in economic activities are called_______. [S.S.C. Online C.G.L.(T-I) 31.08.2016 (Shift-II)]

(a) Expansions
(b) Recession
(c) Deficits
(d) The business cycle

Correct Answer: (d) The business cycle

Solution:Short term contractions and expansions in economic activities are called the business cycle. It is defined in terms of periods of expansion or recession.

39. During 1850's, Britain came to be known as_______. [S.S.C. Online MTS (T-I) 20.09.2017 (Shift-I)]

(a) Mini continent
(b) Workshop of the world
(c) Labor king
(d) Factory owner

Correct Answer: (b) Workshop of the world

Solution:During the 1850's, Britain came to be known as the workshop of the world since it became the leading industrial nation in the 19th century because of its mechanized manufacturing of cotton textiles and also the growth of its iron and steel industries in the 1850s.

40. Which theory is used to make long-run predictions about exchange rates in a flexible exchange rate system? [S.S.C. Online C.G.L. (T-I) 13.06.2019(Shift-II)]

(a) Purchasing Power Parity Theory
(b) Balance of Payment Theory
(c) Interest Rate Approach
(d) Portfolio Balance Approach

Correct Answer: (a) Purchasing Power Parity Theory

Solution:The Purchasing Power Parity (PPP) Theory can make long term predictions about exchange rates in a flexible exchange rate system. Basically, PPP compares the economic productivity and standards of living of countries to predict exchange rates between different currencies.

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Economics (Part – II)