Economics (Part – I) - Mock Test 365

Total Questions: 50

21. The demand for a commodity or service which is a consequence of the demand for something else is called _______. [S.S.C. Online C.G.L. (T-I) 11.06.2019 (Shift-I)]

(a) Income Demand
(b) Derived Demand
(c) Composite Demand
(d) Direct Demand

Correct Answer: (b) Derived Demand

Solution:The demand for a commodity or service which is a consequence of the demand for something else is called derived demand. Derived demand can be broken down into three types-raw materials, processed materials, and labor.

22. Which among the following is a characteristic of Laissez faire system? [S.S.C.OnlineCHSL (T-I) 7.01.2017 (Shift-III)]

(a) No government intervention
(b) Market forces are highly regulated
(c) It is a socialist system
(d) Maximum government intervention

Correct Answer: (a) No government intervention

Solution:Laissez-faire is an economic theory that became popular in the 18th century. The driving principle behind laissez-faire, a French term that means "leave alone" is that the less the government is involved in the economy, the better of business will be - and by extension, society as a whole. Laissez-faire economics is a key part of free-market capitalism. The theory of Laissez-faire was given by Adam Smith.

23. Demand in Economics means _______. [S.S.C. Online MTS (T-I) 3.10.2017 (Shift-I)]

(a) Aggregate demand
(b) Market demand
(c) Individual demand
(d) Demand backed by purchasing power

Correct Answer: (d) Demand backed by purchasing power

Solution:Demand in economics means demand backed by purchasing power. The concept of demand refers to "the quantity of a commodity which the consumer is ready to buy at a given time and a fixed price". The essential elements for demand are fixed price, fixed time, income and ability to buy etc. The 'law of demand' is considered an important law of economics.

24. Which economist gave the Theory of Opportunity Cost? [S.S.C. Online C.G.L. (T-I) 11.06.2019 (Shift-I)]

(a) Gottfried Haberler
(b) Adam Smith
(c) Milton Friedman
(d) John KeynesS.S.C.

Correct Answer: (a) Gottfried Haberler

Solution:Gottfried Haberler gave the theory of Opportunity Cost. Opportunity cost is the value of the most valuable choice from those which were not taken. It expresses the basic relation between choice and scarcity.

25. When the income of the consumer increases, what will be the effect on small goods? [C.P.O. S.I. 11.06.2016 (Shift-I)]

(a) negative effect
(b) positive effect
(c) no effect
(d) first increases then decreases.

Correct Answer: (a) negative effect

Solution:The goods which the consumer buys less, as income increases, are called 'inferior' goods. There is a negative effect of income on inferior goods, that is, when the income of the consumer increases, he starts consuming good quality items in place of inferior items. This is called Giffen's Paradox.

26. The aim of Differentiated Interest Scheme was to provide concessional loans to _______. [S.S.C. Online C.G.L.(T-I) 31.08.2016 (Shift-III)]

(a) Weaker section of the society
(b) Public Sector Industries
(c) Public Limited Companies
(d) Big exports

Correct Answer: (a) Weaker section of the society

Solution:The aim of the Differentiated Interest Scheme is to provide bank finance at a concessional rate of interest of 4 per cent p.a. to the weaker sections of the community for engage in productive and gainful activities so that they could improve their economic conditions.

27. John Maynard Keynes, best known for his economic theories (Keynesian economics), hailed from which country? [S.S.C. Online C.G.L. (T-I) 4.03.2020 (Shift-II)]

(a) Sweden
(b) Australia
(c) Denmark
(d) England

Correct Answer: (d) England

Solution:John Maynard Keynes was a famous economist from England, who is known for his economic theories (Keynesian economics). John Maynard Keynes's book 'General Theory of Employment, Interest and Money' is an important book of economics.

28. Saving is that portion of money income that is _______. [S.S.C. Online C.G.L.(T-I) 8.09.2016 (Shift-II)]

(a) spent for the development of Industries
(b) not spent on consumption
(c) spent on health and education
(d) spent for consumer durables

Correct Answer: (b) not spent on consumption

Solution:Saving is that part of income that is not spent on consumption. It is the amount left over after spending on consumption.

29. When the output is equal to zero, the variable cost is _______. [S.S.C. Online C.G.L. (T-1) 11.06.2019 (Shift-II)]

(a) constant
(b) maximum
(c) zero
(d) minimum

Correct Answer: (c) zero

Solution:When the output is equal to zero, the variable cost is zero.

30. As per Mankiw's Principles of Economics, the standard of living of a country depends on the country's ________. [S.S.C. Online C.G.L. (T-I) 11.06.2019 (Shift-II)]

(a) average wages
(b) ability to produce goods and services
(c) nominal wages
(d) government policy

Correct Answer: (b) ability to produce goods and services

Solution:As per Mankiw's Principles of Economics, the standard of living of a country depends on the country's ability to produce goods and services.

« Previous 1 234 5 Next »

Economics (Part – I)