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Economics (Part – IX)

📆 April 4, 2025

Total Questions: 50

1. __________ are receipts of the government which are non-redeemable. [SSC Online Constable GD 12.02.2019 I]

Correct Answer: (a) Revenue receipts
Solution:Revenue receipts are receipts of the government which are non-redeemable. Revenue receipts are classified into tax and non-tax revenues. The Tax receipt is an acknowledgment received when the tax payment is done as a reference and record. Non-tax receipts are government revenue not generated from taxes.

2. __________ capital refers to the variety of raw material and money in hand during the production. [SSC Online Constable GD 12.02.2019 ]

Correct Answer: (c) Working
Solution:Working capital refers to the variety of raw materials and money in hand during production. Working capital is the difference between current assets and current liabilities. It represents the funds available to the enterprise to finance regular operations. Working capital is calculated using the equation:

⇒ Working Capital = Current Assets - Current Liabilities.

3. CENVAT is related to which of the following? [S.S.C. Online C.G.L. (T-I) 8.09.2016 (Shift-I)]

Correct Answer: (b) Excise Duty
Solution:CENVAT means Central Value Added Tax. CENVAT credit is a credit in respect of central excise on inputs purchased for the manufacture or duty paid in relation to the manufacture of the final product.

4. When we pay an extra amount of price for the goods and services we consume or buy, what is that extra amount of money called? [C.P.O. S.I. 4.06.2016 (Shift-I)]

Correct Answer: (b) VAT
Solution:VAT (Value Added Tax) is the additional amount paid for the purchase and consumption of goods and services. The term 'value addition' means the increase in the value of goods and services at each stage of production and transfer of goods and services. GST is the tax levied on goods and services with effect from 1st July, 2017.

5. To whom is Value Added Tax applicable? [S.S.C. Online CHSL (T-I) 22.01.2017(Shift-I)]

Correct Answer: (a) value
Solution:VAT (Value Added Tax) is the additional amount paid for the purchase and consumption of goods and services. The term 'value addition' means the increase in the value of goods and services at each stage of production and transfer of goods and services. GST is the tax levied on goods and services with effect from 1st July, 2017.

6. To combat inflation, what is the usual monetary policy stance adopted? [S.S.C. Online CHSL (T-I) 03.06.2022 (Shift-II)]

Correct Answer: (a) Hawkish
Solution:Hawkish policies and policymakers are primarily concerned about inflation risk. Accordingly, they try to keep a lid on rising prices and wages by increasing interest rates, reducing the money supply and limit-ing the economy's growth.

Dovis policy and policymakers will attempt to encourage rather than restrain economic growth. This is done through a looser monetary policy, which tends to increase the money supply instead of restricting it.

7. The financial resources of an economy cannot be mobilized by_________. [S.S.C. Online MTS (T-I) 20.08.2019 (Shift-II)]

Correct Answer: (d) Inflation
Solution:The financial resources of an economy cannot be mobilized by inflation. Inflation is a situation of rise in prices in an economy. Taxation is the imposition of compulsory levies on entities or individuals by governments. Public saving or national saving is defined as the sum of public and private savings.

8. A sustained rise in the general price level in an economy is called_______. [S.S.C. Online C.G.L. (T-I) 6.06.2019(Shift-II)]

Correct Answer: (b) Inflation
Solution:A sustained rise in the general price level in an economy is called inflation.

9. Inflation is a situation characterised by- [S.S.C. Online C.G.L.(T-I) 2.09.2016 (Shift-II)]

Correct Answer: (a) Too much money chasing too few goods
Solution:In case of inflation, more money has to be spent on fewer goods. Inflation is defined as a situation when there is a continuous sharp, cumulative and permanent increase in the price level due to excess demand in the economy as a result of a greater increase in the supply of money than in the supply of goods.

10. The ________ rate measures rising prices in everything except food and energy. [S.S.C. Online C.G.L. (T-I) 16.08.2021 (Shift-II)]

Correct Answer: (c) core inflation
Solution:The core inflation rate measures rising prices in everything except food and energy.
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