Economics (Part – IV) - Mock Test 365

Total Questions: 50

1. With which of the following is 'Operation Flood' related? [S.S.C. Online CHSL (T-I) 15.10.2020 (Shift-III)]

(a) India's Farming Industry
(b) India's Poultry Industry
(c) India's Dairy Industry
(d) India's Mining Industry

Correct Answer: (c) India's Dairy Industry

Solution:The White Revolution in India, also known as Operation Flood, was a plan of three phases by the National Dairy Development Board to revitalize India's dairy production until India became self-sufficient in milk. The program was so successful that by 1998, India was the world's largest milk producer.

2. Recently, which of the following countries has replaced Thailand as the world's largest rice exporter in 2015? [C.P.O. S.I. 5.06.2016 (Shift-I)]

(a) India
(b) Bangladesh
(c) China
(d) Indonesia

Correct Answer: (a) India

Solution:

In 2015, India overtook Thailand to become the world's largest rice exporter. India exported 10.23 million tonnes of rice during this period, while Thailand exported 9.8 million tonnes of rice. As per the forecast data released by USDA in February 2022, the top 5 rice exporters are India, Vietnam, Thailand, Pakistan and USA.

3. Which among the following neighboring countries of India is the largest producer of Opium in the World? [S.S.C. Online C.G.L. (T-I) 8.08.2017 (Shift-I)]

(a) Pakistan
(b) Afghanistan
(c) Sri Lanka
(d) Maldives

Correct Answer: (b) Afghanistan

Solution:According to the World Drug Report, 2021. Afghanistan (about 85% of the global production in 2020) accounts for the highest production of opium in India's neighboring countries.

4. Selling costs have to be incurred in case of- [S.S.C. Online C.G.L.(T-I) 1.09.2016 (Shift-II)]

(a) Perfect competition
(b) Monopoly
(c) Monopolistic Competition
(d) None of the given options

Correct Answer: (c) Monopolistic Competition

Solution:Under monopolistic competition where the product is differentiated, selling costs are essential to push up sales. They are incurred to persuade a buyer to purchase one product in preference to another. Selling costs are the expenses on advertisement, salesmanship, free sampling, free service, door-to-door canvassing, and so on. There is no selling problem under perfect competition where the product is homogeneous.

5. Which of the following does NOT have an opportunity cost? [S.S.C. Online CHSL (T-I) 15.04.2021 (Shift-II)]

(a) Soap
(b) Stylus
(c) Software
(d) Sunlight

Correct Answer: (d) Sunlight

Solution:Sunlight does NOT have an opportunity cost. Oppor-tunity cost is the loss of benefit or value that would have been derived from an option that is not chosen. In other words, it is the profit lost when one alternative is selected over another.

6. Payment made to others for the purchase of factors of production is known as______ . [S.S.C. Online CGL (T-I) 17.08.2021 (Shift-II)]

(a) explicit cost
(b) money cost
(c) real cost
(d) implicit cost

Correct Answer: (a) explicit cost

Solution:Payment made to others for the purchase of factors of production is known as explicit cost.

7. Who among the following economists formu-lated the Law of Diminishing Marginal Utility (DMU)? [S.S.C. Online CGL (T-I) 17.08.2021 (Shift-III)]

(a) David Ricardo
(b) H.H. Gossen
(c) Adam Smith
(d) Milton Friedman

Correct Answer: (b) H.H. Gossen

Solution:HH Gossen formulated the Law of Diminishing Mar-ginal Utility (DMU). He formulated this law in 1854. Law of Diminishing Marginal Utility It states that as a person consumes an item or a product, the satisfaction or utility that they derive from the product declines as they consume more and more of that product. In other words, the additional utility gained from an increase in consumption decreases with each subse-quent increase in the level of consumption.

8. Which of the following is not an assumption of perfect competition? [S.S.C. Online CHSL (T-I) 15.01.2017 (Shift-I)]

(a) There are many buyers and sellers
(b) Average total costs continually decrease
(c) The goods sold by all sellers in the market are assumed to be homogeneous.
(d) Buyers and sellers in the market are assumed to have perfect information

Correct Answer: (b) Average total costs continually decrease

Solution:Perfect competition occurs when there are many sellers, there is easy entry and exiting of firms, products are identical from one seller to another, and sellers are price takers. Many buyers are available to buy the product, and many sellers are available to sell the product. Sellers and buyers have all relevant information to make rational decisions about the product being bought and sold.

9. The amount of insurance cover provided by Indian Railways for passengers at a premium of Rs. 1 is- [S.S.C. Online C.G.L. (T-I) 1.09.2016 (Shift-II)]

(a) Rs. One lakh
(b) Rs. Fifty thousand
(c) Rs. Ten lakhs
(d) Rs. Five lakhs

Correct Answer: (c) Rs. Ten lakhs

Solution:

Indian Railways has been offering an insurance cover of Rs 10 lakh for a premium as low as Re 1 since September 2016. The insurance cover is besides the compensation given by the Railways in case of accidents to valid ticket holders. The insurance provides coverage against death, injury and disabilities caused due to accidents.

10. What are 'Best Securities'? [S.S.C. Online C.G.L. (T-I) 7.09.2016 (Shift-II)]

(a) Securities issued by multinational companies
(b) Government issued securities
(c) Securities issued by the private sector
(d) Securities issued by joint venture companies

Correct Answer: (b) Government issued securities

Solution:The securities issued by the government are said to be the best securities because government securities provide investors with opportunities for security, liquidity and attractive returns for a long period of time. With the enactment of the Government Securities Act, 2006, Government securities issued by the Government of India, including Relief/Savings Bonds, have become more convenient for investors.

12 3 4 5 Next »

Economics (Part – IV)