Economics (Part – VII)

Total Questions: 50

21. __________ by the Government of the country makes money acceptable as a medium of exchange. [S.S.C. Online MTS (T-I) 17.09.2017 (Shift-III)]

(a) Permission
(b) instruction
(c) Authorisation
(d) Ownership

Correct Answer: (c) Authorisation

Solution:Authorisation is official permission given by a body of power. For the exchange of goods and services, the seller should receive something of equal value as the goods sold. Money is the entity that is used for this purpose. While it is the Reserve Bank of India that issues the currency in India, it is done under the authorisation of the Central Government.

22. When does the problem of unfavourable balance of payments arise? [S.S.C. Online Stenographer, 14.09.2017 (Shift-I)]

(a) Import Export
(b) Export = Import
(c) inflation decreases
(d) no option is correct.

Correct Answer: (a) Import Export

Solution:In case of an unfavorable balance of payments problem (also known as BOP deficit) of the country, imports are more than exports. i.e. unfavorable balance of payment = import > export

23. Which of the following items does not directly affect the current account balance of India? [S.S.C. Online MTS (T-I) 11.10.2021 (Shift-III)]

(a) Foreign aid
(b) Revenue income
(c) Net Foreign Income
(d) Trade Gap

Correct Answer: (b) Revenue income

Solution:The current account balance of payments is a record of a country's international transactions with the rest of the world. Net foreign income, foreign aid, and trade gap are all concerned with a country's interna-tional transactions with the rest of the world. Since the revenue income is not a country's international transaction, therefore, it does not directly affect the current account balance of India.

24. What is the record of all economic transactions of a country in a particular period called? [S.S.C. Online MTS (T-I) 6.10.2017 (Shift-I)]

(a) Balance of Payment
(b) Fiscal Deficit
(c) Current Account Deficit
(d) Balance of trade

Correct Answer: (a) Balance of Payment

Solution:The balance of payments (BOP), also known as the balance of international payments, is a statement of all transactions made between entities in one country and the rest of the world over a defined period, such as a quarter or a year.

25. The Competition (Amendment) Bill, 2022 proposes to reduce the timeline for the CCI to pass an order on transactions from 210 days to________ days. [S.S.C. Online CGL (T-I) 02.12.2022 (Shift-II)]

(a) 140
(b) 180
(c) 150
(d) 190

Correct Answer: (c) 150

Solution:The Competition (Amendment) Bill, 2022 regulates mergers and acquisitions based on the value of trans-actions. Deals over Rs 2,000 crore transaction val-ue will require CCI's approval. The Bill reduces the timeline for the CCI to pass an order on such transac-tions from 210 days to 150 days.

26. Globalisation does NOT provide us with: [S.S.C. JE Mechanical Exams 27.10.2020 (Shift-I)]

(a) Integration of markets
(b) Interconnectedness of countries
(c) Economic equality
(d) Choices of commodities

Correct Answer: (c) Economic equality

Solution:Globalisation does not provide us with economic equality. Globalisation refers to the integration of the economy of the nation with the world economy.

27. Which of the following does NOT come under the category of Public Goods? [S.S.C. Online CGL (T-I) 18.04.2022 (Shift-III)]

(a) Government administration
(b) Food items
(c) National defence
(d) Roads

Correct Answer: (b) Food items

Solution:A public good is a good possessing two characteristics:

a) Once the good is provided it is difficult to exclude or prevent others from consuming the good, even if they do not pay for it.

b) Consumption of the good by one individual does not reduce the amount available for others to con-sume.

Clean air and national defense both satisfy the char-acteristics of a public good. Once these goods are made available to one person, it is not possible to prevent another from consuming the goods.

A loaf of bread (Food items) would not be classified as a public good. If an individual is unwilling to pay the bakery for a loaf of bread, the bakery can prevent the individual from consuming it. Further, if a few slices of a loaf of bread are consumed, the quanti-ty of bread that is available for others to consume is decreased.

28. Which of the following is NOT a factor of production? [S.S.C. JE Mechanical Exams 27.10.2020 (Shift-I)]

(a) Labour
(b) Revenue generated after production
(c) Land
(d) Material inputs

Correct Answer: (b) Revenue generated after production

Solution:According to economic theory, there are four main factors of production land, labour, capital, and entrepreneurship. Land, labor, and capital as factors of production were originally identified by early political economists such as Adam Smith, David Ricardo, and Karl Marx. From the given option Revenue generated after production is not a factor of production.

29. Tax on imports is an example of which among the following? [S.S.C. Online MTS (T-I) 17.09.2017 (Shift-III)]

(a) Foreign trade
(b) Trade barrier
(c) Economic growth
(d) Globalization

Correct Answer: (b) Trade barrier

Solution:

Tax on import is an example of a Trade Barrier. Trade barriers are restrictions induced by the government on international trade. The barriers can take many forms, including the following: Tariffs, Import quotas, Import licenses, etc.

30. Depreciation is loss in value of_________ . [S.S.C. Online C.G.L. (T-I) 2.09.2016 (Shift-III)]

(a) Final goods
(b) Machinery
(c) Capital stock
(d) Stock of inventory

Correct Answer: (b) Machinery

Solution:Depreciation is a loss in value of Machinery.

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