Economics (Part – XIV)

Total Questions: 50

21. Which of the following statements is true? [S.S.C. Online CGL (T-I) 13.12.2022 (Shift-I)]

(A) Wage bill of the government is a capital expenditure.

(B) Disinvestment by the government in a company is a capital receipt.

(a) Only (A)
(b) Neither (A) nor (B)
(c) Both (A) and (B)
(d) Only (B)

Correct Answer: (d) Only (B)

Solution:Payment of salaries to government employees is a revenue expenditure as it does not create any assets of the government. Disinvestment by the government in a company is a capital receipt. Capital receipts are those receipts which either create liabilities or reduce the asset value of the government.

Therefore, only Statement B is true.

22. SIDO is related to the development of: [S.S.C. Online C.G.L.(T-I) 4.09.2016 (Shift-II)]

(a) Small industries
(b) Steel Industry
(c) Soap Industry
(d) Sugar Industry

Correct Answer: (a) Small industries

Solution:SIDO stands for Small Industries Development Organization. It is an apex body and nodal agency for formulating, coordinating and monitoring the policies and programmes for promotion and development of small-scale industries.

23. Which of the following is not a method of estimating national income? [S.S.C. Online C.G.L.(T-I) 3.09.2016 (Shift-III)]

(a) Expenditure method
(b) Output method
(c) Matrix method
(d) Income method

Correct Answer: (c) Matrix method

Solution:There are three methods of estimation of national income in India:

(1) Product method

(2) Income method

(3) Expenditure method

24. What is National Income? [S.S.C. Online MTS (T-I) 16.09.2017 (Shift-I)]

(a) It is the money value of all the goods and services produced in a country in a year.
(b) It is the money value of all the goods and services produced in a country in two years.
(c) It is the money value of all the goods and services produced in the country in five years.
(d) It is the money value of all goods and services manufactured outside the country in a year.

Correct Answer: (a) It is the money value of all the goods and services produced in a country in a year.

Solution:National income is the money value of all final goods and services produced in a country in a year. It also includes net income earned from abroad. According to Marshall, "The labor and capital of a country together with the natural resources of that country produces some physical and non-material goods every year, including services. The market value of this is called national income'.

25. What is meant by personal disposable income? [S.S.C. Online C.P.O.S.I. (T-I) 5.07.2017 (Shift-II)]

(a) Personal Income + Grants
(b) Personal Income - Grant
(c) Personal Income - Direct Taxes
(d) Personal Income - Indirect Taxes

Correct Answer: (c) Personal Income - Direct Taxes

Solution:Personal Disposable Income = Personal Income - Direct Taxes

The income which is left with a person after deducting all taxes levied by the government on his income and property is called disposable income.

26. Savings is that part of the income amount which is known as .............. [S.S.C. Online C.G.L.(T-I) 8.09.2016 (Shift-II)]

(a) Expenditure is used for the development of industries.
(b) which is not spent on consumption.
(c) Which is spent on health and education.
(d) which is spent on consumer goods (durables)

Correct Answer: (b) which is not spent on consumption.

Solution:That part of income that is not spent on consumption, is either invested or saved.

y = C + I

or y = C + S

Where y = Income

C = Consume

S = Saving

1 = Investment

27. Which of the following is false about minimum wages? [S.S.C. Online CHSL (T-I) 31.01.2017 (Shift-III)]

(a) A minimum wage law benefits all unskilled workers
(b) A minimum wage harms firms by forcing them to pay higher wages
(c) A minimum wage harms customers because the law usually leads to higher product prices.
(d) A minimum wage increases unemployment

Correct Answer: (a) A minimum wage law benefits all unskilled workers

Solution:A minimum wage is the lowest remuneration that employers can legally pay their workers. When the minimum wage forces employers to pay higher wages, they tend to substitute highly skilled and productive workers for lower skill workers, destroying job opportunities for lower-skilled workers. Researchers have proven this fact that higher minimum wages lead businesses to hire skilled workers at the expense of unskilled workers as when the wages to be paid are higher the least skilled and least productive workers are left out of the job market.

28. Vittiya Saksharata Abhiyan was launched to make people aware about________. [S.S.C. Online MTS (T-I) 13.10.2017 (Shift-II)]

(a) Mutual Funds
(b) Cashless economic system
(c) Financial inclusion
(d) investment

Correct Answer: (b) Cashless economic system

Solution:Vittiya Saksharata Abhiyan was launched to make people aware of the Cashless economic system.

29. Which of the following is NOT included in the mission of Digital India? [S.S.C. Online MTS (T-I) 12.10.2017 (Shift-III)]

(a) To create a digital infrastructure
(b) Delivering services digitally
(c) Digital literacy
(d) None of these

Correct Answer: (d) None of these

Solution:The Digital India campaign was launched by the Government of India in the year 2015. Digital India includes creating digital infrastructure to deliver services in digital form, digital literacy etc.

30. Digital India scheme was launched in which of the following years? [S.S.C. Online CPO S.I. (T-I) 11.11.2022 (Shift-III)]

(a) 2012
(b) 2019
(c) 2015
(d) 2010

Solution:Digital India is a flagship programme of the Govern-ment of India with a vision to transform India into a digitally empowered society and knowledge econo-my. The programme was launched on July 1, 2015 by Hon' Prime Minister Shri Narendra Modi.

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