Economics (Part – II) - Mock Test 365

Total Questions: 50

41. What effect will a decrease in demand and an increase in supply have on equilibrium price? [S.S.C. Online C.G.L. (T-I) 12.06.2019 (Shift-I)]

(a) Equilibrium price will fall
(b) Sometimes price will rise and sometimes it will fall
(c) Equilibrium price will rise
(d) Equilibrium price will be constant

Correct Answer: (a) Equilibrium price will fall

Solution:A decrease in demand and an increase in supply will decrease the equilibrium price.

42. What is the value of all tangible resources such as raw materials and labour that are used in the production process called? [S.S.C. Online C.G.L. (T-I) 12.06.2019(Shift-II)]

(a) Real Cost
(b) Fixed Cost
(c) Opportunity Cost
(d) Variable Cost

Correct Answer: (a) Real Cost

Solution:Real cost is the value of all tangible resources such as raw materials and labor that are used in the production process.

43. A marketplace in which a final goods or service is bought and is called______. [S.S.C. Online C.G.L. (T-I) 12.06.2019 (Shift-III)]

(a) Commodity Market
(b) Equity Market
(c) Factor Market
(d) Product Market

Correct Answer: (d) Product Market

Solution:

A marketplace in which a final goods or service is bought and is called a product market.

44. Balance of Trade is the difference between________. [S.S.C. Online CHSL (T-I) 10.01.2017(Shift-III)]

(a) Income and expenditure of the country
(b) country's exports and imports
(c) Tax revenue and expenditure of the country
(d) Capital inflow and outflow of the country

Correct Answer: (b) country's exports and imports

Solution:The balance of trade (BOT) is the difference between a country's imports and its exports for a given time period. The balance of trade is the largest component of the country's balance of payments (BOP).

45. What are the basic problems of the economy? [C.P.O. S.I. 5.06.2016 (Shift-I)]

(a) Providing social security and employment to all
(b) Elimination of poverty and reducing inequalities of income and wealth
(c) Providing basic necessities of life to all
(d) Deciding what, how and for whom to produce

Correct Answer: (d) Deciding what, how and for whom to produce

Solution:The basic problems of the economy are: making decisions about what, how and for whom to produce.

46. What is the economic impact of increase in productivity of firms? [S.S.C. Online C.G.L. (T-I) 13.06.2019(Shift-I)]

(a) Decrease in Gross Domestic Product
(b) No change in Gross Domestic Product
(c) The impact may vary among nations and their economic conditions
(d) Increase in Gross Domestic Product

Correct Answer: (d) Increase in Gross Domestic Product

Solution:The increase in the productivity of companies leads to an increase in GDP.

47. The sectors are classified into public and private sectors on the basis of: [S.S.C. Online C.P.O.S.I. (T-I) 1.07.2017 (Shift-II)]

(a) Ownership of enterprises
(b) use of raw materials
(c) The nature of the economic activity
(d) Employment conditions

Correct Answer: (a) Ownership of enterprises

Solution:The public and private sectors in the Indian economy are classified on the basis of ownership of enterprises. Public sectors refer to government-owned organizations and private sectors are not government-owned. The Indian economy is a mixed economy, in which the public and private sectors co-exist.

48. Disguised unemployment in India is mainly related to- [S.S.C. Online C.G.L.(T-I) 29.08.2016 (Shift-I)]

(a) Agriculture sector
(b) Rural Area
(c) Factory secto
(d) Urban Area

Correct Answer: (a) Agriculture sector

Solution:Often more people are engaged in agriculture than are required to achieve the optimum level of production in agriculture. These are people who, if they are excluded from the agricultural sector, there will be no reduction in the total production obtained from agriculture. Seeing this, they are engaged in labour but are not actually employed, because the marginal productivity of their labour is zero. Therefore, such labour is called disguised or hidden unemployment. This is the most severe and bizarre problem in the Indian agriculture sector.

49. Generally people engaged in which activity face seasonal and disguised unemployment? [S.S.C. Online MTS (T-I) 14.10.2017 (Shift-II)]

(a) Service
(b) Agriculture
(c) Manufacturing
(d) Construction

Correct Answer: (b) Agriculture

50. In which type of unemployment people appear to be employed, i.e. even if they are removed productivity will not be affected? [S.S.C. Online MTS (T-I) 20.09.2017(Shift-III)]

(a) Seasonal unemployment
(b) Educated unemployment
(c) Uneducated unemployment
(d) Disguised unemployment

Correct Answer: (d) Disguised unemployment

Solution:Disguised unemployment occurs in situations where there are more workers assigned to a given task than needed. In such situations, some people do not get any work to do. This is called disguised unemployment because while these people are not officially unemployed, they don't have any work to do.

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Economics (Part – II)