Economics (Part – V)

Total Questions: 50

21. Which of the following statements is incorrect, if resources were unlimited? [S.S.C.OnlineCHSL (T-I) 20.01.2017(Shift-I)]

Correct Answer: (c) there would be no scarcity, but there would be opportunity costs
Solution:The concept of the opportunity cost of a resource is based on the fact that it has many uses. If only one use of a resource is possible, then its opportunity cost will be zero and if it has many possible uses, then it must have an opportunity cost. The limitation or limitlessness of the resource does not determine the opportunity cost. The Staff Selection Commission has accepted the answer as (c) to this question.

22. Who is known as the 'Father of Green Revolution' in India? [S.S.C. Online C.G.L. (T-I) 3.09.2016 (Shift-I]

Correct Answer: (e) MS Swaminathan
Solution:Norman Borlaug is considered the father of the Green Revolution globally. Norman Borlaug, the father of the Green Revolution and Nobel Prize winning agronomist, belongs to the United States of America. After completing his Ph.D. in Plant Pathology from the University of Minnesota, USA in 1942, he developed high yielding and disease resistant dwarf varieties of wheat in agricultural research in Mexico. MS Swaminathan is considered to be the father of the Green Revolution in India.

23. In which year was the Foreign Exchange Management Act (FEMA) enacted to replace the Foreign Exchange Regulation Act (FERA)? [S.S.C. Online MTS (T-I) 18.10.2021 (Shift-III)]

Correct Answer: (c) 1999
Solution:On 29 December 1999, the Foreign Exchange Man-agement Act (FEMA) was enacted to replace the For-eign Exchange Regulation Act (FERA). The Foreign Exchange Management Act (FEMA), is an Act of the Parliament of India "to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India".

24. Securities and Exchange Board of India (SEBI) was established in the year_______ . [S.S.C. Online C.G.L. (T-I) 19.06.2019(Shift-III)]

Correct Answer: (b) 1988
Solution:SEBI was established in the year 1988, while it was given statutory status in the year 1992.

25. Community market is regulated by which of the following organizations? [S.S.C. Online Constable GD 2.03.2019 (Shift-I)]

Correct Answer: (d) SEBI
Solution:The Securities and Exchange Board of India (SEBI) is the regulator of markets in India. It was first established in the year 1988 as a non-statutory body for regulating the securities market. It became an autonomous body by The Government of India on 12 May 1992 and was given statutory powers in 1992 under the SEBI Act 1992.

26. Who among the following founded the Bombay Stock Exchange? [S.S.C. Online C.G.L. (T-I) 5.03.2020 (Shift-III)]

Correct Answer: (c) Premchand Roychand
Solution:In 1875, eminent businessman Premchand Roychand officially founded the Native Share and Stock Brokers Association which was later renamed the Bombay Stock Exchange. With a market capitalization of over USD 2.3 trillion, currently, it is the world's 10th-largest stock exchange.

27. If tea companies start using mechanised tea leave pickers: [S.S.C. Online CHSL (T-I) 23.01.2017 (Shift-I)]

Correct Answer: (d) then wages for manual tea leave pickers will fall
Solution:If tea companies start using the mechanized method of picking tea leaf, the demand for manual tea leaf pickers will decrease, resulting in a reduction in their wages.

28. Which of the following will cause an increase in the demand for coffee? [S.S.C. Online CHSL (T-I) 25.01.2017(Shift-II)]

Correct Answer: (d) Increase in price of tea
Solution:An increase in the demand for coffee will result in an increase in the price of tea, as coffee and tea are substitutes for each other. With respect to substitute goods, when the price of the commodity increases (decreases), the demand for other goods also increases (decreases), that is, there is a positive relationship between price and demand in relation to substitute goods. Conversely, if the price of a commodity increases (decreases) and the demand for another commodity also decreases (increases), then the goods are said to be complementary to each other. There is a negative relationship between the price of a commodity and the demand for its complementary goods.

29. If goods A and Z are complements, an increase in the price of goods Z will______ . [S.S.C. Online CHSL (T-I) 24.01.2017(Shift-I)]

Correct Answer: (b) decrease demand for goods AA
Solution:If goods A and Z are complements, an increase in the price of goods Z will decrease demand for goods A.

30. If goods A and B are substitutes, a decrease in the price of good B will [S.S.C. Online CHSL (T-I) 21.01.2017(Shift-II)]

Correct Answer: (d) decrease demand for good A
Solution:If goods A and B are substitutes, a decrease in the price of good B will decrease demand for good A.