Economics (Part – IX) - Mock Test 365

Total Questions: 50

31. At the equilibrium price: [S.S.C. Online CHSL (T-I) 16.01.2017(Shift-I)]

(a) quantity demanded is equal to quantity supplied
(b) quantity demanded is greater than quantity supplied
(c) elasticity of demand equals elasticity of supply
(d) price elasticity of demand is unity

Correct Answer: (a) quantity demanded is equal to quantity supplied

Solution:At equilibrium price, both the quantity demanded and the quantity supplied, are equal.

32. In economic equilibrium_______. [S.S.C. Online CHSL (T-I) 19.01.2017 (Shift-I)]

(a) supply is equal to the demand.
(b) the surplus is larger than the shortage.
(c) elasticity of demand equals elasticity of supply.
(d) price elasticity of demand is unity.

Correct Answer: (a) supply is equal to the demand.

Solution:In economic equilibrium supply is equal to demand.

33. With which of the following functions of a bank would you associate the term'collateral'? [S.S.C. Online MTS (T-I) 14.10.2021 (Shift-III)]

(a) Granting loans and advances
(b) Portfolio management
(c) Collection of cheques
(d) Accepting deposits

Correct Answer: (a) Granting loans and advances

Solution:The term collateral is associated with the sanction of werk loans and advances of a bank.

34. The demand of a commodity is a direct demand but the demand for a factor of production is called a- [S.S.C. Online C.G.L.(T-I) 2.09.2016 (Shift-III)]

(a) Crossed demand
(b) Joint demand
(c) Derived demand
(d) Independent demand

Correct Answer: (c) Derived demand

Solution:The demand for a factor of production is said to be a derived demand because it arises not from the intrinsic utility provided by the factor but because of the value placed on the products it produces by consumers. For example, when a businessman requires labour to manufacture a product, his target is the final product.

35. Increase in the demand for a goods will cause the equilibrium price of the goods to__ and the equilibrium quantity to. [S.S.C. Online CHSL (T-I) 27.01.2017(Shift-II)]

(a) increase; increase
(b) decrease; decrease
(c) increase; decrease
(d) decrease; increase

Correct Answer: (a) increase; increase

Solution:Increase in the demand for a goods will cause the equilibrium price of the goods to increase and the equilibrium quantity to increase.

36. Goods whose demand is proportional to price are called- [S.S.C. Online CHSL (T-I) 1.02.2017(Shift-I)]

(a) Inferior goods
(b) Veblen goods
(c) Normal goods
(d) Exclusive goods

Correct Answer: (b) Veblen goods

Solution:Goods whose demand is proportional to price are called Veblen goods. Veblen goods are typically high-quality goods that are made well, are exclusive, and are a status symbol. Veblen goods are generally sought after by affluent consumers who place a premium on the utility of the good.

37. The law of demand states that : [S.S.C. Online CHSL (T-I) 15.01.2017(Shift-III)]

(a) if the price of a good increases, the demand for that good decreases.
(b) if the price of a good increases, the demand for that good increases.
(c) if the price of a good increases, the quantity demanded of that good decreases.
(d) if the price of a good increases, the quantity demanded of that good increases.
(e) (a&c)

Correct Answer: (e) (a&c)

Solution:The law of demand states that other factors being constant (cetris peribus), price and quantity demand of any good and service are inversely related to each other. When the price of a product increases, the demand for the same product will fall.

38. Fixed Foreign Exchange Rate can be changed by__________. [S.S.C. Online C.G.L. (T-I) 3.08.2016 (Shift-I)]

(a) Reserve Bank of India
(b) SEBI
(c) Ministry of Finance
(d) FIPB

Correct Answer: (a) Reserve Bank of India

Solution:A fixed exchange rate is a country's exchange rate regime under which the government or central bank (RESERVE BANK) ties the official exchange rate to another country's currency or to the price of gold. The purpose of a fixed exchange rate system is to maintain a country's currency value within a very narrow band.

39. Which of the following is not a small scale industry in India? [S.S.C. Online Stenographer, 14.09.2017 (Shift-II)]

(a) Sugar Industry
(b) Cotton Industry
(c) Petroleum Industry
(d) Handloom Industry

Correct Answer: (c) Petroleum Industry

Solution:

The petroleum industry is a large-scale industry as it involves extensive processes of exploration, refining, transportation, and marketing. Small scale industries are industries that are mostly spread over a small, local area and do not require large equipment or extensive manufacturing procedures in the production of a commodity.

40. What is the name of portal launched by RBI recently to check illegal money collection? [S.S.C. Online C.G.L.(T-I) 10.09.2016 (Shift-I)]

(a) Sahyog
(b) Sahayata
(c) Sampark
(d) Sachet

Correct Answer: (d) Sachet

Solution:The Reserve Bank of India (RBI) has recently launched the "Sachet" portal to curb illegal and unauthorized pooling of funds by unscrupulous firms.

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Economics (Part – IX)