Economics (Part – VIII)

Total Questions: 50

41. How many 'factors of production' are there? [S.S.C. Online MTS (T-I) 20.09.2017 (Shift-I)]

(a) One
(b) Four
(c) Six
(d) Eight

Correct Answer: (b) Four

Solution:There are four factors of production, which are land, labour, capital, and entrepreneurship. In an economy, these factors are responsible for producing goods and services and are the inputs needed for supply.

42. Which of the following is a factor of production? [S.S.C. Online MTS (T-I) 17.09.2017 (Shift-I)]

1. Land

2. Labor

3. Physical Capital

(a) I only
(b) Both I and II
(c) Both II and III
(d) All I, II and III

Correct Answer: (d) All I, II and III

Solution:The inputs that are used in the production of goods or services in order to make an economic profit, are known as a factor of production. The factors of production include land, labor, capital, entrepreneurship etc.

43. Which of the following is not included in the factor of production? [S.S.C. Online MTS (T-I) 5.08.2019 (Shift-II)]

(a) land
(b) Capital
(c) tax
(d) labor

Correct Answer: (c) tax

Solution:The factors of production include land, labor, capital, entrepreneurship etc. Tax is not included in the factor of production.

44. What is an octroi? [S.S.C. Online C.G.L.(T-I) 8.09.2016 (Shift-III)]

(a) Tax
(b) Tax collection centre
(c) Tax processing centre
(d) Tax information centre

Correct Answer: (a) Tax

Solution:Octroi duty is the tax levied by local or state governments on certain categories of goods as they enter the area. It is a charge for allowing the transit of goods through the jurisdiction. As of 1 July 2017, with the introduction of GST country-wide, the octroi has been abolished.

45. Money market is a market for________. [S.S.C. Online C.G.L.(T-I) 31.08.2016 (Shift-I)]

(a) Short term fund
(b) Long term fund
(c) Negotiable instruments
(d) Sale of shares

Correct Answer: (a) Short term fund

Solution:The money market refers to trading in very short-term debt investments. At the wholesale level, it involves large-volume trades between institutions and traders. At the retail level, it includes money market mutual funds bought by individual investors and money market accounts opened by bank customers.

46. Which of the following is known as market clearing price? [S.S.C. Online Stenographer, 14.09.2017 (Shift-II)]

(a) Equilibrium Price
(b) Disequilibrium Price
(c) Ceteris Paribus
(d) No option is correct

Correct Answer: (a) Equilibrium Price

Solution:Equilibrium price is also known as market clearing price. Equilibrium price is the price at which both the price determining forces, demand and supply are in equilibrium, that is, the price at which the buyer is ready to buy the commodity and the seller is ready to sell the commodity, is called 'equilibrium price'.

47. Pump priming should be resorted to at a time of? [S.S.C. Online C.G.L. (T-I) 31.08.2016 (Shift-I)]

(a) Inflation
(b) Deflation
(c) Stagflation
(d) Reflation

Correct Answer: (b) Deflation

Solution:Pump priming refers to the collective stimulatory measures taken by the government by undertaking higher expenditure and tax cuts. On most occasions pump priming is done by making higher government expenditure in relatively small amounts, but for a considerable time period. The terminology of pump priming intends that the economy should be primed to function back to the high level. This can be possible when the government makes some extraordinary stimulatory measures.

48. In which of the following situations is it necessary to bear the selling cost? [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:In monopolistic competition, it is necessary to bear the selling cost. Selling cost refers to the cost that a monopoly firm incurs to convince the consumer that its product is better than other rival firms. In selling costs 'advertising expenses' have special importance. In monopolistic competition the goods are differentiated even though they are innate.

49. _________ are those goods whose demand decreases with an increase in the income of consumers. [S.S.C. Online CHSL (T-I) 1.01.2017(Shift-I)]

(a) Veblen object
(b) common goods
(c) exclusive commodity
(d) inferior quality

Correct Answer: (d) inferior quality

Solution:Inferior goods are those goods whose demand decreases with an increase in the income of consumers. Inferior goods include low-quality food items like coarse cereals. Inferior goods demand is inversely proportional to the income of consumers.

50. A drill machine in the hands of a plumber is what type of a good? [S.S.C. Online C.G.L. (T-I) 11.08.2017 (Shift-III) S.S.C. Online MTS (T-I) 21.09.2017(Shift-I)]

(a) Consumer
(b) Costly
(c) Cheap
(d) Intermediate

Correct Answer: (a) Consumer

Solution:A drilling machine, in the hands of a plumber, is a consumer item. Consumer goods are a type of good that is used by consumers rather than by a manufacturer who uses it to produce another good. An intermediate product is a commodity that is used in the production of another commodity, such as orange, used to make orange juice, then the orange will be called intermediate goods.

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