Under The Guidance of Arun Arora Sir

ECONOMICS
Macro Economics
BASIC

1. Who is called the 'Father of Economics'? 9. A closed economy is one which–

(a) JM Keynes (b) Malthus (a) Does not trade with other countries
(c) Ricardo (d) Adam Smith (b) Does not possess any means of international
Ans. (d) [SSC MTS Exam, 2001] transport
(c) Does not have a coastal line
2. The concept of mixed economy means– (d) Is not a member of the UNO
(a) To have balanced development in the agricultural Ans. (a) [SSC CPO Exam, 2006]
and industrial sector
(b) Simultaneous development of the rural and urban 10. The interest in infrastructure is less because.
sector (a) There is large invest in it
(c) To have equal distribution of wealth among the rural (b) There needs a desired project
and the urban poor (c) Time to finish the infrastructure is more
(d) Simultaneous existence of the private and public
(d) Profit is gained after long time.
sector
Ans. (d) [S.S.C Matric level Exam, 2006]
Ans. (d) [SSC Matric Level Exam, 2002]

3. The basic infrastructure facilities in economics 11. With which form of economy is the term ‘Laissez-
are known as– Faire’ associated?
(a) Human Capital (b) Physical Capital (a) Capitalist Economy (b) Socialist Economy
(c) Social Overheads Capital (d) Working Capital (c) Mixed Economy (d) Command Economy
Ans. (c) [SSC SO Exam, 2003] Ans. (a) [SSC Tax Asst. Exam, 2007]

4. Which of the following concepts are most closely 12. “Interest is a reward for parting with liquidity” is
associated with JM Keynes? according to–
(a) Control of money supply (a) Keynes (b) Marshall
(b) Marginal utility theory (c) Haberler (d) Ohlin
(c) Indifference curve analysis Ans. (a) [SSC Tax Asst. Exam, 2008]
(d) Marginal efficiency of capital
Ans. (d) [SSC SO Exam, 2003] 13. Who said, “Economics is the Science of Wealth”?
(a) Robbins (b) JS Mill
5. Amartya Sen was awarded the Noble Prize for (c) Adam Smith (d) Keynes
his contribution to– Ans. (c) [SSC MTS Exam, 2008]
(a) Monetary Economics(b) Welfare Economics
(c) Econometrics (d) Development Economics 14. Who among the following is not a classical
Ans. (b) [SSC CPO Exam, 2006] economist?
(a) David Ricardo (b) John Stuart Mill
6. Core industries are– (c) Thomas Malthus (d) Joh Maynard Keynes
(a) Basic Industries Ans. (d) [SSC Tax Asst. Exam, 2008]
(b) Consumer Goods Industries
(c) Capital Goods Industries
15. Labour Intensive Technique would get chosen in
(d) Government Industries
a–
Ans. (a) [SSC MTS Exam, 2006]
(a) Labour Surplus Economy
(b) Capital Surplus Economy
7. The Capital formation in an economy depends
on– (c) Developed Economy
(a) Total Income (b) Total Demand (d) Developing Economy
(c) Total Savings (d) Total Production Ans. (a) [SSC CPO Exam, 2009]
Ans. (c) [SSC SO Exam, 2006]
16. India is called a mixed economy because of the
8. A mixed economy works primarily through the– existence of–
(a) Market mechanism 1. Public Sector 2. Private Sector
(b) Central allocative machinery 3. Joint Sector 4. Cooperative Sector
(c) Market mechanism regulated by government policy Codes
(d) Market mechanism guided by government (a) 1 and 2 (b) 1 and 3
participation and planning (c) 3 and 4 (d) 2 and 4
Ans. (d) [SSC SO Exam, 2006] Ans. (b) [SSC Tax Asst. Exam, 2009]

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 Under The Guidance of Arun Arora Sir

17. In an economy, the sectors are classified into 27. The Production of a commodity mostly through
public and private on the basis of– the natural process is an activity of–
(a) Employment conditions (a) Primary Sector
(b) Nature of economic activities (b) Secondary Sector
(c) Ownership of enterprises (c) Tertiary Sector
(d) Use of raw materials (d) Technology Sector
Ans. (c) [SSC DEO Exam, 2009] Ans. (a)[SSC 10+2 Exam,2013]

18. The term “Micro Economics” and “Macro 28. Preparing butter and ghee for household
Economics” was coined by– consumption of own family is a part of –
(a) Alfred Marshal (b) Ragner Nurkse (a) Household investment production
(c) Ragner Frisch (d) J.M. Keynes (b) Industrial production
Ans. (c)[SSC CGL Exam, 2010] (c) Consumption
(d) Own Account Production
19. Globalisation means– Ans. (d) [S.S.C (CGL) Exam, 2014]
(a) Integration of economy
(b) Integration of financial market 29. In a economy “Development Stage” means-
(c) Integration of the domestic economy with the world (a) Starting of steadily increasing economy
economy (b) Bad economy
(d) Integration of the various sectors of economy (c) Economy is on the verge of destroying
Ans. (c) [SSC (10+2) Exam, 2011] (d) All tariff to be removed.
Ans. (a) [S.S.C (10+2) Exam, 2014]
20. ‘Hire and Fire’ is the policy of–
(a) Capitalism (b) Socialism 30. According to Kenz, consumption function shows
(c) Economy (d) Traditional economy relation between.
Ans. (a) [SSC MTS Exam, 2011] (a) Total Consumption and Total Population
(b) Total Consumption and Normal Price Rate
21. The Economic development depends on– (c) Total Consumption and Total Income
(a) Natural resources (b) Capital formation (d) Total Consumption and Rate of Interest
(c) Size of the market (d) All of these Ans. (c) [S.S.C (CGL) Exam, 2014]
Ans. (d) [SSC (10+2) Exam, 2011]
31. Rent is a cost paid for–
22. Multinational firm is– (a) Land (b) Restaurant
(a) A company started by foreign governments (c) Building (d) Factory
(b) A single company established in different countries Ans. (a)[SSC Multitasking Exam, 2014]
(c) A company in India started by U.S. government
(d) A company started jointly by India and U.S. 32. The Relationship between rate of interest and
Ans. (b) [ S.S.C 10+2 Exam, 2011] consumption level was firstly estimated by–
(a) Amartya Sen (b) Milton Friedman
23. The Price mechanism is a feature of– (c) Irwing Fischer (d) James Duezan Berry
(a) Capitalist Economy Ans. (c) [SSC 10+2 Exam,2014]
(b) Barter Economy
(c) Mixed Economy 33. Who among the following promotes social
(d) Socialist Economy justice?
Ans. (a) [SSC FCI Exam, 2012] (a) Herald Laski (b) John Keynes
(c) John Rowles (d) All of the above
Ans. (c)[SSC Multitasking Exam, 2014]
24. Socialism is successful in achieving because of–
(a) Excess socialistic approach in society 34. Who defined ‘Rent’ as that portion or produce of
(b) To increase standard of living the Earth, which is paid to the landlord for the
(c) Equal distribution of income use of original and indestructible power of the
(d) None of the above soil?
Ans. (a)[SSC CGL Exam, 2012] (a) Ricardo (b) Marshall
(c) Keynes (d) Pigou
25. Economics is a– Ans. (a) [SSC (10+2) Nov. Exam, 2014]
(a) Computer Science (b) Physical Science
(c) Social Science (d) Natural Science 35. The word ‘Oikonomia’ means–
Ans. (c) [SSC MTS Exam, 2013] (a) Household Management
(b) Individual Management
26. Economic problem arises because of– (c) Political Management
(a) Scarcity of means (b) Multiplicity of resources (d) Fiscal Management
(c) Scarcity of wants (d) Over Population Ans. (a) [SSC CGL Aug Exam, 2014]
Ans. (a) [SSC MTS Exam, 2013]

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36. Which of the following is not an economic 45. Name the first Indian to get Nobel Prize in
problem? economics.
(a) Deciding between paid work and leisure (a) Amartya Sen (b) C V Raman
(b) Deciding between expenditure on one good and the (c) Mihir Sen (d) Arun Shourie
other Ans. (a) (SSC CHSL-2016)
(c) Deciding between alternative methods of personal
saving 46. Who wrote the book -"The Argumentative
(d) Deciding between different ways of spending leisure Indian"?
time (a) Amartya Sen (b) Anita Desai
Ans. (d) [SSC (10+2) Nov. Exam, 2014] (c) Arun Shouric (d) Arundhati Ro
Ans. (a) (SSC CHSL-2016)
37. The famous economist Thomas Robert Malthus,
in his views regarding population, is– 47. Macro economics deals with
(a) Optimistic (a) the circular flow of income
(b) Partly optimistic and partly pessimistic (b) the decision making of a single economic variable
(c) Pessimistic like demand
(d) None of the above (c) resource allocation at firm level
Ans. (c) [SSC CGL Aug. Exam, 2014] (d) equilibrium prices and quantities
Ans. (a) (SSC CHSL-2016)
38. When there is affect on economic activity of an
specific country due to import and export, then 48. Which of the following will not be traded in a
such economy are called- commodity market?
(a) Closed economy (b) Open economy (a) Crude oil
(c) Agricultural economy (d) Industrial economy (b) Silver
Ans. (b) [S.S.C LDC Exam, 2015] (c) Currency
(d) Gold
39. Internal profit– Ans. (c) (SSC CHSL-2016)
(a) Happens when internal trade expands
(b) Happens when business expands 49. Amartya Sen won Nobel Prize for?
(c) Happens in economy when they increase (a) Literature (b) Physics
(d) Happens in firms when they expand their product (c) Peace (d) Economic Science
Ans. (d) [S.S.C (CGL) Exam, 2015] Ans. (d) (SSC CHSL-2016)

40. Arthashastra by “Kautilya” is related with– 50. The term 'Macro Economics' was used by
(a) Military Phase (b) Political Reign (a) J.M. Keynes (b) Ragner Frisch
(c) Social Phase (d) Economic Postulates (c) RagnerNurkse (d) Prof. Knight
Ans. (b) [SSC CGL Exam, 2015] Ans. (b) [SSC CGL 2016 ]

41. Due to worldwide great depression, ‘New Deal’ 51. Special Drawing Rights were created by
was declared by? (a) IBRD (b) ADB
(c) IMF (d) WTO
(a) Abhraham Lincon (b) Benzamin Frankllin
Ans. (c) [SSC CGL 2016 ]
(c) J.F. Kennedy (d) Roozwelt
Ans. (d) [SSC 10+2 Exam, 2015] 52. Which of the following is a tertiary activity?
(a) Farming
42. The Arthshastra was written by (b) Manufacturing
(a) Chankya (b) Kalidas (c) Dairying
(c) Harsha Vardhan (d) Vatsyayana (d) Trading
Ans. (a) (SSC CHSL-2016) Ans. (d) [SSC CGL 2016 ]

43. Which among the following is a characteristic of 53. Malthusian theory is associated with which of the
Laissez-faire system?. following ?
(a) No government intervention (a) Poverty
(b) Market forces are highly regulated (b) Employment
(c) Ii is a socialist system (c) Diseases
(d) Maximum government intervention (d) Population
Ans. (a) (SSC CHSL-2016) Ans. (d) [SSC CGL 2016 ]

44. Chanakya was known as _______. 54. A 'Market Economy' is one which
(a) Rajasekhara (b) Tejasvi (a) is controlled by the Government
(c) Kautilya (d) Vatsyayana (b) is free from the Government control
Ans. (c) (SSC CHSL-2016) (c) in influenced by international market forces
(d) All of these
Ans. (b) [SSC CGL 2016 ]

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 Under The Guidance of Arun Arora Sir

NATIONAL INCOME

1. In calculating National Income, which of the 10. Net National Product in National Income
following is included? accounting refers to–
(a) Services of housewives (a) Gross Domestic Product— Depreciation
(b) Pensions (b) Gross Domestic Product + Subsidies
(c) Income of smugglers (c) Gross National Product—Depreciation
(d) Income of watchmen (d) Gross National Product + Subsidies
Ans. (d) [SSC Tax Asst. Exam, 2005, (10+2) Exam, 2000] Ans. (c) [SSC (10 +2) Exam, 2002]

2. National Income accounting is the study of the 11. A very high rise in National Income at current
income and expenditure of the entire– market prices and a low rise at constant prices
(a) Family (b) State reveals–
(c) Economy (d) Organisation (a) The high rate of growth in the economy at the
Ans. (c) [SSC (10+2) Exam, 2001] current period
(b) The increased production in the current period
3. In a highly developed country the relative (c) The improper growth of the economy
contribution of agriculture to GDP is– (d) The high rate of inflation prevailing in the economy
(a) Relative high (b) Relatively low Ans. (d) [SSC (10+2) Exam, 2002]
(c) Same as that of other sectors (d) Zero
Ans. (b) [SSC Matric Level Exam, 2001] 12. The self-employed in a developing country who
are engaged in small scale labour intensive work
4. Gross Profit means– belong to the–
(a) Total investment over total savings (a) Informal Sector (b) Primary Sector
(b) Changes in methods of production (c) Secondary Sector (d) Tertiary Sector
(c) Changes in the form of business organisation Ans. (b) [SSC Matric Level Exam, 2002]
(d) Total receipts over total expenditure.
Ans. (d) [SSC MTS Exam, 2002] 13. The standard of living in a country is represented
by its–
5. National Income at factor cost is equal to– (a) Poverty ratio (b) Per capita income
(a) Net National Product - Indirect Taxes + Subsidies (c) National income (d) Unemployment rate
(b) Net National Product - Direct Taxes + Subsidies Ans. (b) [SSC CGL Exam, 2002]
(c) Gross National Product - Depreciation Charges
(d) Net National Product + Net Income from Abroad 14. The National Income of a country is–
Ans. (a) [SSC (10+2) Exam, 2002] (a) Government annual revenue
(b) Total productive income
6. While estimating National Income which of the (c) Surplus of the public sector enterprise
following is not taken into account? (d) Export and Import
(a) Services of a teacher Ans. (b) [SSC SO Exam, 2003]
(b) Services of a doctor
(c) Services of a housewife 15. The method of calculating the National Income
(d) Services of a maid servant by the product method is otherwise known as–
Ans. (c) [SSC (10+2) Exam, 2002] (a) Income method (b) Value added method
(c) Expenditure method (d) Net output method
7. Gross National Product is the money measure of– Ans. (b) [SSC SO Exam, 2003]
(a) All tangible goods produced in a country
(b) Final goods and services produced in the economy 16. What is ‘book-building’?
(c) Services generated annually in the economy (a) Preparing the income and expenditure ledgers of a
(d) All tangible goods available in the economy company (book-keeping)
Ans. (b) [SSC (10+2) Exam, 2002] (b) Manipulating the profit and loss statements of a
8. Gross National Product means– company
(a) Gross value of finished goods (c) A process of inviting subscriptions to a public offer
(b) Money values of the total national production for of securities, essentially through a tendering process
any given period (d) Publishers activity
(c) Gross value of raw materials Ans. (c) [SSC SO Exam, 2003]
(d) Money value of inputs and outputs
Ans. (b) [SSC (10+2) Exam, 2002] 17. To achieve high rates of growth of national
output, the economy has to–
9. Aggregate net value of the output in 1 year is the– (a) reduce the rate of growth of population
(a) National Income at factor cost (b) borrow foreign capital
(b) Gross Domestic Product at market prices (c) step up the rate of savings
(c) Net National Product at market prices (d) increase the rate of investment and reduce the capital
output ratio
(d) Gross National Product at market prices
Ans. (d) [SSC CPO Exam, 2003]
Ans. (c) [SSC (10+2) Exam, 2002]

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 Under The Guidance of Arun Arora Sir

18. Which of the following is not true when the 26. Who among the following Indian economists has
interest rate in the economy goes up? done pioneering work on National Income?
(a) Savings increases (a) Jagdish Bhagwati (b) ML Seth
(b) Lending decreases (c) Amartya Sen (d) VKRV Rao
(c) Cost of production increases Ans. (d) [SSC (10 +2) Exam, 2006]
(d) Return on capital increases
Ans. (d) [SSC CGL Exam, 2004] 27. Which organisation collects data for the
unorganised sector?
19. The difference between the GNP and the NNP is (a) NSSO (b) CSO
equal to the– (c) ASI (d) RBI
(a) Consumer expenditure on durable goods Ans. (a) [SSC CPO Exam, 2006]
(b) Direct tax revenue
(c) Indirect tax revenue 28. Economic growth is dependent mainly on–
(d) Capital depreciation (a) Level of consumption(b) Price stability
Ans. (d) [SSC Tax Asst. Exam, 2004] (c) Level of investment (d) Population growth
Ans. (c) [SSC Matric Level Exam, 2006]
20. What is the main function of Central Statistical
Office (CSO)? 29. If a country produces consumer goods only and
(a) Determination of money supply nothing else, then-
(b) Collection of estimates of national income (a) Standard of living will be highest
(c) Collection of detail data regarding employment (b) The country have certain amount of good
(d) Price determination (c) The country will soon become poor if external trade
Ans. (b) [SSC SO Exam, 2005] will not happen
(d) The country will gradually become rich if external
21. Which of the following is not required while trade will not happen
computing Gross National Product (GNP)? Ans. (c) [S.S.C Matric level Exam, 2006]
(a) Net foreign investment
(b) Private investment 30. The Census of Indian agriculture is done by–
(c) Per Capita Income of citizens (a) Production Method (b) Income Method
(d) Purchase of goods by government (c) Expenditure Method (d) Consumption Method
Ans. (c) [SSC SO Exam, 2005] Ans. (a)[SSC CGL Exam, 2006]

22. Which of the following results by dividing 31. Compared to rich the poors saving is–
National Income by size of population? (a) A larger part of their income
(a) Per Capita Income (b) Subsistence level (b) An equal part of their income
(c) Subsistence expenditure (d) Per capita production (c) A small part of their income
Ans. (a) [SSC SO Exam, 2005] (d) All of their incomes
Ans. (c)[SSC CPO Exam, 2007]
23. What does National Income mean?
(a) The total value of all goods and services produced in 32. One of the main factors that led to rapid
the country during a period of 1 year expansion of Indian exports is–
(b) The total value of all stocks and shares in the (a) Imposition of export duty
country during a period of 1 year (b) Liberalization of the economy
(c) The total value of all capital goods produced in the (c) Recession in other countries
country during a period of 1 year (d) Diversification of exports
(d) The total value of all consumer goods produced in Ans. (b) [SSC CPO Exam, 2007]
the country during a period of 1 year
Ans. (a) [SSC SO Exam, 2005] 33. Which of the statements is correct about India’s
National Income?
24. Which of the following is not viewed as national debt? (a) Percentage share of agriculture is higher than
(a) Life Insurance Policies services
(b) Long-term Government Bonds (b) Percentage share of industry is higher than
(c) National Savings Certificates agriculture
(d) Provident Fund (c) Percentage share of services is higher than industry
Ans. (a) [SSC CPO Exam, 2006] (d) Percentage share of services is higher than
agriculture and industry put together
25. The term ‘Green GNP’ emphasises– Ans. (d) [SSC CPO Exam, 2007]
(a) Rapid growth of GNP 34. India’s biggest nationalised enterprise today is–
(b) Increase in Per Capita Income (a) The Indian Railways
(c) Economic Development (b) The Indian Commercial Banking System
(d) Sustainable Development (c) The Indian Power Sector
Ans. (d) [SSC Tax Asst. Exam, 2006] (d) The Indian Telecommunication System
Ans. (a) [SSC SO Exam, 2007]

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44. Net National Product (NNP) of a country is–

35. Which of the following is a better measurement of (a) GDP minus Depreciation allowances
economic development? (b) GDP plus Net Income from abroad
(a) GDP (b) Disposable Income (c) GNP minus Net Income from abroad
(c) NNP (d) Per Capita Income (d) GNP minus Depreciation allowances
Ans. (d) [SSC SO Exam, 2007] Ans. (d) [SSC CPO Exam, 2009]

36. "The national income consists of a collection of 45. The best index of economic development is provided
goods and services reduced to common basis by by–
being measured in terms of money" who says (a) Growth in per capita real income from year to year
this? (b) Growth in national income at current prices
(a) Samuelson (b) Kuznets (c) Growth in savings ratio
(c) Hicks (d) Pigou
(d) Improvement in the balance of payments position
Ans. (c) [SSC CGL Exam, 2007]
Ans. (a) [SSC (10+2) Exam, 2010]
37. The First Income Committee was established in–
46. National Income include–
(a) 1948 (b) 1949
(a) Financial help to earthquake victims
(c) 1950 (d) 1951
(b) Poket money of a child
Ans. (b) [SSC Metric level Exam, 2008]
(c) Winning of a lottery Prize
(d) Construction of a new House
38. GDP at factor cost equals–
Ans. (d) [SSC 10+2 Exam,2010]
(a) GDP – Indirect Tax + Subsidy
(b) GNP – depreciation
(c) NNP + depreciation 47. Which one of the following is not a method of
measurement of National Income?
(d) GDP – subsidy + indirect tax.
(a) Value Added Method(b) Income Method
Ans. (a)[SSC Tax Asst. Exam, 2008]
(c) Investment Method (d) Expenditure Method
39. Personal Disposable income is– Ans. (c) [SSC CPO Exam, 2010]
(a) Always equal to Personal Income
(b) Always more than Personal Income 48. Per Capita Income is equal to–
(c) Equal to Personal Income minus Indirect Taxes National Income
(a)
(d) Equal to Personal Income minus Direct Taxes Total population of the country
Ans. (d) [SSC CGL Exam, 2008]
(b) National Income + Population
40. Which of the following is not included in the (c) National Income - Population
National Income? (d) National Income x Population
(a) Imputed rent of owner-occupied houses Ans. (a)[SSC 10+2 Exam,2010]
(b) Government expenditure on making new bridges
(c) Winning a lottery
49. Fish catch by indian fishermen in the
(d) Commission paid to an agent for sale of house
international waters are part of the GDP of–
Ans. (c) [SSC CGL Exam, 2008]
(a) Sri Lanka (b) India and Sri Lanka
41. Depreciation is equal to– (c) India (d) India and Indonesia
(a) GNP – NNP (b) NNP – GNP Ans. (c) [SSC (10+2) Exam, 2011]
(c) GNP – Personal Income
(d) Personal Income – Personal Taxes 50. The best example of a capital intensive industry
Ans. (a)[SSC DEO Exam, 2009] in India is–
(a) Textile industry (b) Steel industry
42. A ‘Transfer Income’ is as – (c) Tourism industry (d) Sports goods industry
(a) Income which is not produced by as production Ans. (b) [SSC (10+2) Exam, 2011]
process.
(b) Income taken away from one person given over to
51. Income and consumption are–
another.
(c) Unearned Income (a) Inversely Related (b) Directly Related
(d) Earned Income (c) Partially Related (d) Unrelated
Ans. (a)[SSC 10+2 Exam,2009] Ans. (b) [SSC (10+2) Exam, 2011]
43. Personal Income produced in a country is not 52. Which of the following would not constitute an
included in– economic activity in Economics?
(a) Production income from NDP (a) A teacher teaching students in his college
(b) Net Production Income from foreign. (b) A teacher teaching students in a coaching institute
(c) Transfer Income from government (c) A teacher teaching his own daughter at home
(d) Current Payment on Foreign loans. (d) A teacher teaching students under Sarva Shiksha
Ans. (d) [SSC CPO Exam, 2009] Abhiyan Scheme
Ans. (c) [SSC (10+2) Exam, 2011]

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53. Which of the following is deducted from NNP to 61. A rising Per Capita Income will indicate a better
arrive at NI? welfare, if it is accompanied by–
(a) Indirect tax (a) unchanged income distribution overall
(b) Capital consumption allowance (b) changed income distribution in favour of rich
(c) Subsidy (c) changed income distribution in favour of poor
(d) Interest (d) changed income distribution in favour of industrial
Ans. (a) [SSC (10+2) Exam, 2011] labour
Ans. (c) [SSC Stenographer Exam, 2011]
54. Which one of the following is not included while
estimating National Income through income 62. Which one of the following is not method of
method? estimating Nations Income?
(a) Rent (a) Expenditure method (b) Product method
(b) Mixed Income (c) Matrix method (d) Income method
Ans. (c) [SSC CGL Exam, 2011]
(c) Pension
(d) Undistributed Profits
63. Other name of Net National Product at market
Ans. (d) [SSC (10+2) Exam, 2011]
price?
(a) National Income
55. While computing National Income estimates, (b) Gross Domestic Production
which of the following is required to be observed? (c) Personal Income
(a) The value of exports to be added and the value of (d) Per Capital Income
imports to be subtracted Ans. (a)[SSC 10+2 Exam,2012]
(b) The value of exports to be subtracted and the value
of imports to be added 64. A rising per Capita Income will indicate a better
(c) The value of both exports and imports to be added welfare if it is accompanied by –
(d) The value of both exports and imports to be (a) Unchanged Income distribution overall.
subtracted (b) Changed Income distribution in favour of rich.
Ans. (a) [SSC (10+2) Exam, 2011] (c) Changed Income distribution in favour of poor.
(d) Changed Income distribution in favour of Industrial
56. Who estimated the National Income for the first Ans. (d) [SSC (10+2) Exam, 2012]
time in India?
(a) Mahalanobis 65. Which one of the following is the most
(b) Dadabhai Naoroji appropriate reason for inequalities in income?
(c) VKRV Rao (a) Racial factors
(d) Sardar Patel
(b) Lack of opportunities
Ans. (b) [SSC MTS Exam, 2011]
(c) Inheritance from family environment
(d) Differences in ability
57. National Income is generated from–
(a) any money-making activity Ans. (b) [SSC (10+2) Exam, 2012]
(b) any labourious activity
(c) any profit-making activity 66. Forced saving refers to-
(d) any productive activity (a) Compulsory deposits imposed on income tax payers
Ans. (d) [SSC MTS Exam, 2011] (b) Provident fund contribution of private sector
employees
58. Which of the following is deducted from GNP to (c) Reduction of consumption consequent to a rise in
arrive at NNP? price
(a) Depreciation (b) Interest
(d) Taxes on individual income and wealth
(c) Tax (d) Subsidy
Ans. (c) [S.S.C (CGL)-2013]
Ans. (a) [SSC (10+2) Exam, 2011]

59. The total value of goods and services produced in 67. The Expenditure on advertisement and public
a country during a given period is– relation by an enterprise is a part of its-
(a) Consumption of fined capital
(a) Disposable Income
(b) Final consumption Expenditure
(b) National Income (c)Per Capita Income
(c) Intermediate Consumption
(d) Net National Income
(d) Fined Capital
Ans. (b) [SSC CPO Exam, 2011]
Ans. (c) [S.S.C (CGL) Exam, 2013]
68. Which of the following represents the saving of
60. An individual’s actual standard of living can be the Private Corporate Sector?
assessed by– (a) Undistributed profits
(a) Gross National Income (b) Excess of income over expenditure
(b) Net National Income (c) Dividends paid to shareholders
(c) Per Capita Income (d) Total profit of a company
(d) Disposable Personal Income Ans. (a) [S.S.C (CGL) Exam, 2013]
Ans. (c) [SSC CGL Exam, 2011]

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 Under The Guidance of Arun Arora Sir

69. The Income of Indians working abroad is- 74. Which Indian State has the highest GDP?
(a) Domestic Income of India (a) Gujarat
(b) Income earned from abroad (b) Maharashtra
(c) Net domestic product of India (c) Karnataka
(d) Grave domestic product of India. (d) Andhra Pradesh
Ans. (b) [S.S.C 10+2 Exam,2013]
Ans. (b) (SSC CHSL-2016)
70. The Central Statistical Organisation (CSO)
provides data under a new revised series in which 75. Depreciation is loss in value of ________
the base year is taken as– (a) Final goods
(a) 1960-61 (b) 1970-71 (b) Machinery
(c) 2011-12 (d) 1990-91 (c) Capital stock
Ans. (c)[SSC Multitasking Exam, 2013] (d) Stock of inventory
Ans. (b) [SSC CGL 2016 ]
71. The Effect of ‘Investment Multiplier’ is shows on–
(a) Employment (b) Savings 76. Which of the following areas make the largest
(c) Income (d) Consumption contribution to national income in India?
Ans. (c)[SSC CGL Exam, 2013] (a) Industry
(b) Services
72. When increase in income the increase in ratio
(c) Agriculture
between income & expenditure changes–
(a) In same ratio (b) Ratio less than 1 (d) Mining
(c) Ratio more than one (d) None Ans. (b) [SSC CGL 2016 ]
Ans. (b) [S.S.C CGL Exam, 2015]
77. National Income of India is compiled by
73. Value of Total Goods and Services produced in a (a) Finance Commission
country is its- (b) Indian Statistical Institute
(a) Gross Domestic Product (c) National Development Council
(b) Gross Revenue Income (d) Central Statistical Organization
(c) Total Goods Revenue Ans. (d) [SSC CGL 2016 ]
(d) Total Income
Ans. (a) (SSC CHSL-2016)

INDIAN BANKING SYSTEM

1. The demand for money, according to Keynes is 6. The symbol of Reserve Bank of India is–
for– (a) Capital of Asokan Pillar
(a) Speculative Motive (b) Transaction Motive (b) Kuber with a purse of money
(c) Precautionary Motive(d) All of the above (c) Ttiger before a palm tree
Ans. (c) [SSC MTS Exam, 2001] (d) A dog sitting in a defensive state
Ans. (c) [SSC CGL Exam, 2002]
2. The Reserve Bank of India–
(a) Provides direct finance to agriculture 7. Funds which flow into a country to take
(b) Provides finance to primary cooperative societies advantage of atavourable rates of interest in that
(c) Provides finance to state cooperative banks country is called–
(d) Does not provide finance to agriculture (a) Cold Money (b) Black Money
Ans. (d) [SSC MTS Exam, 2001] (c) Hot Money (d) White Money
Ans. (c) [SSC MTS Exam, 2002]
3. Commercial Banking System in India is–
(a) Mixed Banking (b) Unit Banking 8. Speculative demand for cash is determined by–
(c) Branch Banking (d) None of the above (a) The rate of interest
Ans. (c) [SSC MTS Exam, 2001] (b) The level of income
(c) The general price level
4. Ways and means advances refers to– (d) The market conditions
(a) Industries getting temporary loans from commercial Ans. (a) [SSC MTS Exam, 2002]
banks 9. Legal tender money is–
(b) Farmers getting loans from NABARD (a) Accepted only by government
(c) Government getting temporary loans from RBI (b) Accepted by people and government as per the law
(d) Government getting loans from international (c) Not accepted for business purposes by law
financial institutions (d) Not accepted by government
Ans. (c) [SSC MTS Exam, 2002] Ans. (b) [SSC MTS Exam, 2002]
5. Which amidst the following banks was recently
converted to a ‘Universal Bank’? 10. Which of the following is not a industrial finance
(a) Corporation Bank (b) Bank of Baroda institution?
(c) IDBI Bank (d) Canara Bank (a) UTI (b) ICICI
Ans. (c) [SSC CGL Exam, 2002] (c) NABARD (d) SFC
Ans. (c)[SSC Metric Level Exam, 2002]

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11. A currency having a falling exchange rate due to 20. The Maximum branches of Indian Bank is in–
continuing balance of payments deficit is called a– (a) Bangladesh (b) Sri Lanka
(a) Soft Currency (b) Hard Currency (c) UK (d) USA
(c) Scarce Currency (d) Surplus Currency Ans. (c)[SSC 10+2 Exam,2003]
Ans. (a) [SSC Matric Level Exam, 2002]
21. Under the minimum Reserve System, the Reserve
12. What is known as the open market operation of
Bank of India as the sole authority of note issue is
the RBI?
required to maintain assets worth not less than–
(a) Buying and selling of stocks
(a) `115 crores (b) `85 crores
(b) Auctioning of foreign exchange
(c) Trading in securities (c) `200 crores (d) `210 crores
(d) Transactions in gold Ans. (c) [SSC CGL Exam, 2004]
Ans. (c) [Tax Asst. Exam, 2004, SO Exam, 2003]
22. The ratio of a bank’s cash holdings to its total
13. The best way, a bank can avoid loss is to– deposit liabilities is called the–
(a) Lend only to individuals known to the bank (a) Variable Reserve Ratio(b)Cash Reserve Ratio
(b) Accept sound collateral (c) Statutory Liquidity Ratio (d) Minimum Reserve
(c) Give only short-term loans Ratio
(d) Lend only to bank’s old customers Ans. (b) [SSC Tax Asst. Exam, 2004]
Ans. (b) [SSC CPO Exam, 2003]
23. Bank rate is the rate of interest–
14. Which of the following Mahatma Gandhi series
(a) At which public borrow money from commercial
of currency notes Issued by the RBI has a
Banks
drawing of the ‘Parliament House’ depicted on
it– (b) At which public borrows money from RBI
(a) `500 (b) `100 (c) At which commercial Banks borrow money from
(c) `50 (d) `0 RBI
Ans. (c) [SSC CGL Exam, 2003] (d) At which commercial Banks borrows money from
the public
15. Which of the following Mahatma Gandhi series Ans. (c)[SSC CPO Exam, 2005]
of currency notes issued by the RBI has ‘Ecology’
depicted on it?
(a) `500 (b) `100 24. Which of the following is Apex bank for
(c) `50 (d) `5 industrial loans?
Ans. (b) [SSC CGL Exam, 2003] (a) RBI (b) NABARD
(c) ICICI (d) IDBI
16. A Scheduled Bank is one which is included in
Ans. (d) [SSC SO Exam, 2005]
the–
(a) II Schedule of Banking Regulation Act
(b) II Schedule of Constitution 25. The basic regulatory authority for mutual funds and
(c) II Schedule of Reserve Bank of India Act stock markets lies with the–
(d) None of the above (a) Government of India(b) Reserve Bank of India
Ans. (c) [SSC CPO Exam, 2003] (c) SEBI (d) Stock Exchange
Ans. (c) [SSC SO Exam, 2005]
17. Which of the following is not an objective of the
Monetary Policy of the RBI?
26. ‘Dear Money’ means–
(a) Boost economic development
(a) Low rate of interest (b) High rate of interest
(b) Direct credit in desirable direction
(c) Depression (d) Inflation
(c) Control inflationary pressure
Ans. (b) [SSC Investigator Exam, 2005]
(d) Ensure social justice
Ans. (d) [SSC SO Exam, 2003]
27. A Commercial Bank law creates credit only if it
has–
18. Merchant Banking is an Institution which
(a) Cash in the vault
provides finances–
(b) Excess reserves
(a) Domestic whole sale trade
(c) Permission of Reserve Bank of India
(b) International trade among countries
(d) Cooperation of other banks
(c) Domestic retail trade among
Ans. (a) [SSC SO Exam, 2005]
(d) International aid agencies
Ans. (b) [SSC SO Exam, 2003]
28. The rate of interest is determined by–
(a) The rate of return on the capital invested
19. A seller or buyer protects his business or holdings
from changing prices and takes action against it. (b) Central Government
It is known as– (c) Liquidity preference
(a) Defense (b) Betting (d) Commercial banks
(c) Inter-trading (d) Mortgage Ans. (c) [SSC CGL Exam, 2005]
Ans. (a) [SSC SO Exam, 2003]

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29. Which among of the following is open Bank for 39. If the Central Bank wants to encourage an
small industries. increase in the supply of money and decrease in
(a) IDBI (b) SIDBI the cost of borrowing money, it should–
(c) IFCI (d) NABARD (a) Lower Cash Reserve Ratio
Ans. (b) [SSC Metric level Exam, 2006] (b) Raise Discount Rates
(c) Sell Government Securities
30. Which among of the following bank was earlier (d) All of the above
known as ‘Imperial Bank of India’? Ans. (a) [SSC CPO Exam, 2006]
(a) RBI (b) SBI
(c) UBI (d) PNB 40. In India, one-rupee coins, notes and subsidiary
Ans. (b) [SSC CGL Exam, 2006] coins are issued by–
(a) The Reserve Bank of India
31. Which among the following is public sector (b) The Central Government
undertaking?
(c) The State Bank of India
(a) HSBC Bank (b) Syndicate Bank
(d) The Unit Trust of India
(c) South Indian Bank (d) Bank of Punjab
Ans. (b) [SSC SO 2006]
Ans. (b) SSC Metric level Exam, 2006

32. ‘NABARD’ Stands for– 41. What is the name of the electronic
communication network of the Reserve Bank of
(a) National Bank for Agricultural Refinance &
India ?
Development
(b) National Board of Agricultural Research & (a) BOLT (b) RBISAT
Development (c) RBINET (d) RBIDOT
(c) National Academy of Banking and Agricultural Ans. (c) [SSC Investigator Exam, 2006]
Research and Development
(d) National Bank for Agriculture and Rural 42. RBI does not transact the business of which state
Development. government?
Ans. (d) [SSC CGL Exam, 2006] (a) Nagaland
(b) Jammu and Kashmir
33. What is referred to as ‘Depository Services’? (c) Punjab
(a) A new scheme of fixed deposits (d) Assam
(b) A method for regulating stock exchanges Ans. (b) [SSC Tax Asst. Exam, 2007]
(c) An agency for safe keeping of securities.
(d) An advisory service to investors 43. Cheap money means–
Ans. (c) [SSC Tax Asst. Exam, 2006] (a) low rates of interest
(b) low level of saving
34. “Bad money will drive out good money from (c) low level of income
circulation.” This is known as– (d) low level of standard of living
(a) Engle’ Law (b) Gresham’s Law
Ans. (a) [SSC CPO Exam, 2007]
(c) Say Law (d) Wagner’s Law
Ans. (b) [SSC MTS Exam, 2006]
44. Under the rules of the IMF, each member is
required to declare the par value of its legal
35. The ‘Interest Rate Policy’ is a component of–
tender money in terms of US Dollars and –
(a) Fiscal Policy (b) Monetary Policy
(a) Silver (b) Gold
(c) Trade Policy (d) Direct control
(c) Pound, sterling (d) Diamond
Ans. (b) [SSC SO Exam, 2006]
Ans. (c)[SSC CPO Exam, 2007]
36. Bank deposits that can be withdrawn without
notice are called–
(a) Account Payee Deposits (b) Fixed Deposits 45. Which of the following has the sole right of
(c) Variable Deposits (d) Demand Deposits issuing currency (except one rupee coins and
Ans. (d) [SSC SO Exam, 2006] notes) in India?
(a) The Government of India
37. Regional Rural Banks are sponsored by– (b) The Planning Commission
(a) Nationalised Commercial Bank (c) The State Bank of India
(b) Reserve Bank of India (d) The Reserve Bank of India
(c) State Bank of India Ans. (d) [SSC SO Exam, 2007, 2005]
(d) Government of India
Ans. (a) [SSC MTS Exam, 2006] 46. The permission given to a bank customer to draw
cheques in excess of his current account balance
38. Interest paid by the government on the loans is called–
raised is called– (a) A personal loan
(a) Debt Servicing (b) Deficit Financing (b) An ordinary loan
(c) Discounted Budgeting (d) Bridge Loan (c) Discounting a bill of exchange
Ans. (a) [SSC MTS Exam, 2006] (d) An overdraft
Ans. (d) [SSC Tax Asst. Exam, 2007]

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 Under The Guidance of Arun Arora Sir

47. Foreign currency which has a tendency of quick 56. The RBI issues currency notes under the–
migration is called– (a) Fixed Fiduciary System
(a) Scarce Currency (b) Soft Currency (b) Maximum Fiduciary System
(c) Gold Currency (d) Hot Currency (c) Fixed Minimum Reserve System
Ans. (d) [SSC SO Exam, 2007] (d) Proportional Reserve System
Ans. (c) [SSC DEO Exam, 2009. CGL Exam, 2004]
48. Purchasing power parity theory is related with–
(a) Interest Rate (b) Bank Rate 57. The present Indian Monetary System is based
(c) Wage Rate (d) Exchange Rate on–
Ans. (d) [SSC SO Exam, 2007] (a) Gold Reserve System
(b) Proportional Reserve System
49. What does ECS in banking transactions stand
(c) Convertible Currency System
for?
(d) Minimum Reserve System
(a) Excess Credit Supervisor
Ans. (d) [SSC Tax Asst. Exam, 2009]
(b) Extra Cash Status
(c) Exchange Clearing Standard
(d) Electronic Clearing Service 58. The relationship between the value of money and
Ans. (d) [SSC CGL Exam, 2007] the price level in an economy is–
(a) Direct
50. ICI is related with– (b) Inverse
(a) Multinational company for manufacture of (c) Proportional
chemicals (d) Stable
(b) Indian Cannot Industry. Ans. (b) [SSC DEO Exam, 2009]
(c) Chamber of Commerce and Industry
(d) Private Sector Bank 59. Which from the following is not true when the
Ans. (a)[SSC CPO Exam, 2008] interest rate in the economy goes up?
(a) Saving increases
51. Which among of the following statement is (b) Lending decreases
correct? (c) Cost of production increases
(a) Good money drives bad money out of circulation. (d) Return on capital increases
(b) Bad money drives out good money from circulation Ans. (d) [SSC CPO Exam, 2009]
(c) Good and bad money Cannot circulate together.
(d) Can’t say 60. ‘Jeevan Aastha’ — a scheme relating to
Ans. (b) [SSC CPO Exam, 2008] investment and saving, was launched during
2008-09, by–
52. Which of the following is not considered as (a) Tata AIG (b) ICICI Prudential
National Debt? (c) Bajaj Allianz (d) LIC
(a) National saving Certificate Ans. (d) [SSC Tax Asst. Exam, 2009]
(b) Long-term Government Bond
(c) Insurance Policies
61. Monetary Policy is maintained by–
(d) Provident Fund
(a) Central Government
Ans. (c)[SSC CGL Exam, 2008]
(b) RBI
(c) Industrial Finance Corporation
53. The Narasimham Committee (1991) on financial
reforms proposed for establishment of a– (d) IDBI
(a) Four Tier hierarchy of the banking structure Ans. (b) [SSC CGL Exam, 2010]
(b) Three Tier hierarchy of the banking structure 62. Which among of the following is a Example of
(c) Two Tier hierarchy of the banking structure optional money?
(d) Unified control by the apex institutions (a) Currency Notes (b) Coins
Ans. (a) [SSC SO Exam, 2008] (c) Cheques (d) Bonds
Ans. (c)[SSC 10+2 Exam,2010]
54. Which of the following Indian banks became the
first to touch a market capitalisation of `100000 63. Insurance sector in India is regulated by–
crore in India? (a) MRBI (b) CII
(a) ICICI (b) HDFC (c) IRDA (d) SEBI
(c) SBI (d) PNB Ans. (c) [SSC Investigator Exam, 2010]
Ans. (c) [SSC CGL Exam, 2008]
55. Long-term funds in the capital market can be 64. The existence of a parallel economy or black
raised either by borrowing from certain money–
institutions or through– (a) Makes the economy more competitive
(a) Issue of note (b) Makes the monetary policies less effective
(b) Taking loan from government (c) Ensures a better distribution of income and wealth
(c) Issue of securities
(d) Ensures increasing productive investment
(d) Taking loan from foreign institutions
Ans. (b) [SSC SAS Exam, 2010]
Ans. (c) [SSC SO Exam, 2008]

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 Under The Guidance of Arun Arora Sir

65. Consequent upon the recommendations of the 74. Which one of the following is not a function of the
working group on rural banks, 5 Rural Regional Central Bank in an economy?
Banks were initially set-up in the year– (a) Dealing with foreign exchange
(a) 1973 (b) 1974 (b) Controlling Monetary Policy
(c) 1975 (d) 1976 (c) Controlling government spending
Ans. (c) [SSC CPO Exam, 2010] (d) Acting as a banker’s bank
Ans. (c) [SSC CPO Exam, 2011]
66. Money supply is governed by the–
(a) Planning Commission 75. The bank cheques are processed by using of–
(a) OCR (b) MICR (
(b) Finance Commission
(c) OMR (d) PMR
(c) Reserve Bank of India
Ans. (b) [SSC SAS Exam, 2011]
(d) Commercial Banks
* MICR- Magnetic Ink character Recognition
Ans. (c) [SSC MTS Exam, 2011]
76. Which among the following is true?
67. The rate of interest is determined by– (a) Money is a good servant
(a) The rate of return on the capital invested (b) Money is a good servant but bad master
(b) Central Government (c) Money is a good master but bad servant
(c) Liquidity Preference (d) Money is a good master and servant too
(d) Central Bank Ans. (b) [SSC FCI Exam, 2012]
Ans. (d) [SSC CGL Exam, 2011]
77. Which among the following is Known as “Hot
68. Minimum to Maximum reserved deposits in RBI Money”?
by Commercial Banks in called– (a) FII (b) FDI
(a) Cash Deposits (b) Deposit Reserve (c) ADR (d) GDR
(c) Excess Reserve (d) None of the above Ans. (a)[SSC CGL Exam, 2012]
Ans. (c)[SSC CGL Exam, 2011]
78. Which among of the following are related to
banking reform.
69. Which one of the following is not a quantitative
(a) L.C. Gupta Committee(b) Narasimhan Committee
credit control measure of a Central Bank?
(c) Chakravarti Committee(d)Kelkar Committee
(a) Bank Rate Policy
Ans. (b) [SSC CGL Exam, 2012]
(b) Open Market Operations
(c) Cash reserve Ratio 79. Cash Reserve Ratio and open Market Operation
(d) Moral Suasion (Pressure) are the tools of–
Ans. (d) [SSC 10+2 Exam,2011] (a) Monetary Policy (b) Budget Policy
(c) Trade Policy (d) Fiscal policy
70. ‘Hard Currency’ is– Ans. (a)[SSC 10+2 Exam, 2013]
(a) A currency which is paid for loan
(b) A currency which is paid for gold 80. A part of National Debt known as External Dept
(c) A currency which is easy to access is the amount.
(d) A currency not easy to access (a) Borrowed by its citizen from abroad
Ans. (d) [SSC Multitasking Exam, 2011] (b) Lent by into citizens to foreign governments
(c) Borrowed by its government from abroad
71. The Financial Year of RBI is from – (d) Lent by its government to foreign government
Ans. (c)[SSC 10+2 Exam,2013]
(a) April to March
81. Which among of the following is not a
(b) July to June
government organization?
(c) January to December (a) National Residence Bank (b) SIDBI
(d) August to July (c) ICICI (d) NABARD
Ans. (b) [SSC Multitasking Exam, 2011] Ans. (c)[SSC Steno Exam, 2014]

72. The Largest Commercial Bank of India is – 82. Liquidity preference means–
(a) Central Bank of India (a) Showing preference to hold bonds and securities
(b) SBI (b) Refraining from consumption
(c) Indian Overseas Bank (c) Desire of the public to hold cash
(d) Bank of India (d) Showing preference to hold capital assets
Ans. (b) [SSC 10+2 Exam,2011] Ans. (c) [SSC CGL April Exam, 2014]

73. Who is authorised to issue coins in India? 83. Increase in cash reserve ratio leads to–
(a) Reserve Bank of India (a) increase in bank credit
(b) decrease in bank credit
(b) Ministry of Finance
(c) constant bank credit
(c) State Bank of India
(d) excess bank credit
(d) Indian Overseas Bank
Ans. (b) [SSC CGL July Exam, 2014]
Ans. (b) [SSC CGL Exam, 2011]

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84. ‘Gold Bullion Standard’ refers to– 94. SBI was earlier known as –
(a) gold coin as an unlimited legal tender (a) Cooperative Bank of India
(b) gold as the measure of value (b) Imperial Bank of India
(c) free coinage of gold (c) Syndicate Bank
(d) no restriction on import and export of gold (d) Canara Bank
Ans. (b) [SSC CGL Aug. Exam, 2014] Ans. (b) [SSC CGL Exam, 2015]

95. Whose signature is done on one rupee note?

85. In E-banking, ‘E’ Stands for–
(a) Finance Secretary
(a) Economics Banking
(b) Governor of RBI
(b) Environment Banking (c) Finance Minister
(c) Electronic Banking (d) None of these
(d) Expand Banking Ans. (a)[SSC CGL Exam, 2015]
Ans. (c)[SSC CGL Exam, 2014]
96. Remedy Finance is done by–
86. Which of the following is a measure to check (a) National Development Council
money supply in market? (b) NABARD
(a) Free Market Policy (c) SBI
(b) CRR (d) RBI
(c) Bank Rate Ans. (d) [SSC 10+2 Exam, 2015]
(d) Change in marginal necessities
Ans. (a) [SSC CGL Exam, 2014] 97. Which among the following is correct about
money supply in India?
87. Decimal Money System was started in? (a) Money Possessed by public is not exchangeable
(a) 1955 (b) 1956 (b) Amount of money deposit in banks is greater than
(c) 1957 (d) 1958 public holds
Ans. (c)[SSC 10+2 Exam,2014] (c) Amount of money possessed by public is more than
bank deposits
88. The Interest on saving deposits in all nationalized (d) Amount of money possessed by public is equal to
banks of India is determined by– bank deposits
(a) Finance Minister Ans. (b) [SSC CPO Exam, 2015]
(b) Finance Commission
(c) Indian Cooperative Bank 98. If cash reserve ratio decreases, credit creation
will
(d) Commercial Banks
(a) increase
Ans. (d) [SSC CGL Exam, 2014] (b) decrease
(c) does not change
89. The total Number of nationalized bank in India. (d) first decreases than increases
(a) 14 (b) 21 Ans. (a) (SSC CHSL-2016)
(c) 20 (d) 22
Ans. (b) [SSC CGL Exam, 2014] 99. ATM stands for
(a) Any Time Money
90. When were Fourteen India Banks nationalized (b) Auto Technology Money
in? (c) Automated Teller Machine
(a) 1967 (b) 1968 (d) Automatic Transaction Machinery
(c) 1969 (d) 1971 Ans. (c) (SSC CHSL-2016)
Ans. (c)[SSC 10+2 Exam, 2014]
100. The SLR is determined by the RBI. SLR stands
91. ‘NABARD’ is related to development of – for
(a) States Leverage Return (b) Savings Lease Rate
(a) Agriculture and Rural Areas (b) Heavy Industries
(c) Statutory Liquidity Ratio (d) Safe Legal Range
(c) Banking Sector (d) None of the above
Ans. (c) (SSC CHSL-2016)
Ans. (a)[SSC CGL Exam, 2014]
101. is an Indian Government Savings Bond,
primarily used small savings and income tax
92. By which law it has been said that with continue saving investment in India.
increase in income, expenses on food product (a) Provident Fund
decreases-
(b) Life Insurance Policies
(a) Gresham’s Law (b) Griffin Law
(c) National Saving Certificate
(c) Say's Law (d) Angel Law
(d) long term government bonds
Ans. (d) [S.S.C 10+2 Exam,2015]
Ans. (c) (SSC CHSL-2016)
93. IDBI was established on–
102. Which institution in India acts as 'lender of last
(a) July, 1964 (b) July, 1966 resort?
(c) July, 1962 (d) July, 1968 (a) Finance Ministry (c) Reserve Bank of India
Ans. (a)[SSC 10+2 Exam,2015] (c) Treasury (d) Currency Printing Presses
Ans. (b) (SSC CHSL-2016)

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103. What does IMF stands for? 113.Securities and Exchange Board of India is a
(a) International Monetary Fund (a) Quasi-Judicial body
(b) Indian Money Fund
(b) Regulatory Body
(C) International Machine Federation
(d) Institute of Monetary Finance (c) Advisory Body
Ans. (a) (SSC CHSL-2016) (d) Constitutional Body
Ans. (b) [SSC CGL 2016 ]
104. In which year, RBI was nationalized?
(a) 1919 (b) 1949 114."Smart Money" term is used for
(c) 1959 (d) 1969 (a) Credit Card
Ans. (b) (SSC CHSL-2016) (b) Internet Banking
(c) e-Banking
105. Which of these is not an Indian Bank?
(d) Cash with Public
(a) Axis Bank (b) HDFC Bank
(c) ICICI Bank (d) HSBC Bank Ans. (a) [SSC CGL 2016 ]
Ans. (d) (SSC CHSL-2016)
115.Money market is a market for _______________
106. Credit Rationing in India is done by (a) Short term fund
(a) RBI (b) Long term fund
(b) SBI (c) Negotiable instruments
(c) LIC (d) Sale of shares
(d) Finance Ministry Ans. (a) [SSC CGL 2016 ]
Ans. (a) [SSC CGL 2016 ]
116. Rate can be changed by
107. One of the following is also called as World Bank
(a) IMF (a) RBI (b) SEBI
(b) IBRD (c) Ministry of Finance (d) FIPB
(c) WTO Ans. (a) [SSC CGL 2016 ]
(d) IDA
Ans. (b) [SSC CGL 2016 ]
117.Which institution is known as 'Soft Loan Window'
108. What are gilt-edged securities? of World Bank?
(a) Securities issued by the multinational companies. (a) IDBI (b) IDA
(b) Securities issued by the Government (c) IMF (d) RBI
(c) Securities issued by the private sector Ans. (b) [SSC CGL 2016 ]
(d) Securities issued by the joint venture companies
Ans. (b) [SSC CGL 2016 ]
118.Open Market Operations refer to __________?
109. The major objective of monetary policy is to (a) Borrowings by Scheduled banks from RBI
(a) Increase government's tax revenue (b) Lending by Commercial banks to industry
(b) Revamp the Public Distribution System (c) Purchase and sale of Government securities by RBI
(c) Promote economic growth with price stability (d) Deposit mobilisation
(d) Weed out corruption in the economy Ans. (c)
Ans. (c) [SSC CGL 2016 ]
119.What is a bank rate?
110.Banks earn interest on
(a) Deposits (b) Loans (a) Rate at which Central bank of a country advances
(c) Demand Drafts (d) Bills of Exchange loans to other banks in the country
Ans. (b) [SSC CGL 2016 ] (b) Rate at which banks advance loans to the customers
(c) Rate at which banks lend among themselves
111.Where are coins minted in India? (d) Rate at which banks lend to money lenders
(a) Delhi, Mumbai, Kolkata Ans. (a) [SSC CGL 2016 ]
(b) Delhi, Kolkata, Hyderabad 120. ‘Green Banking’ means:
(c) Mumbai, Delhi, Bangalore (a) Banks financing agriculture
(d) Mumbai, Kolkata, Hyderabad, NOIDA (b) Banks financing irrigation projects
Ans. (d) [SSC CGL 2016 ] (c) Banks financing farmers
(d) Banks financing pro-environmental projects
112.Commercial banks lend to which of the following Ans. (d) [SSC CGL 2016 ]
Priority sectors? 121.Scheduled bank is a bank which is ….
(a) Heavy Industries (a) Nationalised
(b) Not Nationalised
(b) Agriculture, Small scale industries
(c) Based in foreign Country
(c) Foreign Companies
(d) Included in the second schedule of RBI
(d) State government in emergency situation
Ans. (d) [SSC CGL 2016 ]
Ans. (b) [SSC CGL 2016 ]

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122.Which one of the following institutions is also called 124.Which one is not included in Non-Banking Financial
"World Bank”? Institutions (NBFIs)?
(a) International Bank of Reconstruction and (a) EXIM (b) SIDBI
Development (c) NABARD (d) BOI
(b) International Monetary Fund Ans. (d) [SSC CGL 2016 ]
(c) UNICEF
(d) IFC Development 125.What is MUDRA?
Ans. (a) [SSC CGL 2016 ] (a) Development and Refinance Agency
123."World Economic Outlook" report is published by (b) Scheme for Agricultural Insurance
which of the following ? (c) New Planet Discovered
(a) IMF (b) World Bank (d) Development and Regulatory Authority for Urban
(c) RBI (d) UNCTAD Township
Ans. (a) [SSC CGL 2016 ] Ans. (a) [SSC CGL 2016 ]

SHARE M ARKET

1. The first state owned company from India to be 8. New capital issue is placed in–
listed on the New York Stock Exchange is– (a) Secondary market
(a) Videsh Sanchar Nigam Limited (b) Grey market
(b) Mahanagar Telephone Nigam Limited (c) Primary market
(c) Tata Iron and Steel Company (d) Black market
(d) Wipro Ans. (c) [SSC SO Exam, 2006]
Ans. (a) [SSC MTS Exam, 2002]
9. A short-term government security paper is
2. A speculator who sells stocks, in order to buy called–
back when price falls, for gain is a–
(a) Share (b) Debenture
(a) Bull (b) Bear
(c) Mutual Fund (d) Treasury Bill
(c) Boar (d) Bison
Ans. (d) [SSC CGL Exam, 2010]
Ans. (b) [SSC MTS Exam, 2002]

3. What is the purpose of the India Brand Equity 10. The degree of monopoly power is to be measured
Fund? in terms of the firm’s–
(a) To promote in-bound tourism (a) Normal profit
(b) To make ‘Made in India’ a label of quality (b) Supernormal profit
(c) To organise trade fairs (c) Both normal and supernormal profit
(d) To provide venture capital to IT sector (d) Selling price
Ans. (b) [SSC CGL Exam, 2003] Ans. (d) [SSC (10+2) Exam, 2010]

4. Which amidst the following is not a credit rating 11. In the context of the stock market, IPO stands
agency? for–
(a) CRISIL (b) CARE (a) Immediate Payment Order
(c) ICRA (d) IFCI (b) Internal Policy Obligation
Ans. (d) [SSC Tax Asst. Exam, 2004] (c) Initial Public Offer
(d) International Payment Obligation
5. NIFTY is associated with– Ans. (c) [SSC Investigator Exam, 2010]
(a) Cloth Market Price Index
(b) Consumer Price Index 12. Capital market regulator is–
(c) BSE Index (a) NSE (b) RBI
(d) NSE Index (c) SEBI (d) IRDA
Ans. (d) [SSC Tax Asst. Exam, 2005] Ans. (c) [SSC DEO, (10+2) Exam, 2012]
6. Bull and Bear are related to which commercial
13. _______________is the first Indian company to
activity?
list on NASDAQ.
(a) Banking (b) E-commerce
(a) Industries Limited (b) Infosys
(c) International trade (d) Stock market
(c) TCS (d) Bharti Airtel
Ans. (d) [SSC SO Exam, 2005]
Ans. (b) (SSC CHSL-2016)
7. The share broker who sells shares in the
apprehension of falling prices of shares is called– 14. BSE SENSEX Constitutes _________ number of
(a) Bull (b) Dog companies.
(c) Bear (d) Stag (a) 30 (b) 40
Ans. (c) [SSC SO Exam, 2005] (c) 50 (d) 60
Ans. (a) (SSC CHSL-2016)

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15. Name India's oldest credit information bureau 16. Which type of foreign investment is considered as
(a) RBI unsafe?
(b) CIBIL (a) Foreign Direct Investment (FDI)
(c) NABARD (b) Portfolio investment
(d) UTI (c) NRI deposits
Ans. (b) (SSC CHSL-2016) (d) External commercial borrowing
Ans. (b) [SSC CGL 2016 ]

BUDGET (Fiscal Policy)

1. The single largest item of expenditure of the 8. In the budget figures of the Government of India
Central Government in India in recent years is– the difference between total expenditure and total
(a) Defence (b) Subsidies receipts is called–
(c) Interest Payment (d) General services (a) Fiscal Deficit (b) Budget Deficit
Ans. (c) [SSC Matric Level Exam, 2002] (c) Revenue Deficit (d) Current Deficit
Ans. (a) [SSC SO Exam, 2007]
2. Government securities are considered liquid because
9. Which one of the following is a development
they are–
expenditure?
(a) backed by the government treasure (a) Irrigation Expenditure
(b) convertible into other types of saving deposits, (b) Civil Administration
(c) quickly and easily marketable (c) Debt Services
(d) stable in value (d) Grant-in-Aid
Ans. (c) [SSC SO Exam, 2003] Ans. (a) [SSC CPO Exam, 2008]

10. Disinvestements is–

3. Which of the following is the most important
(a) off loading of shares of privates companies to
domestic source of planned finance?
government
(a) Balance of Current Revenue (b) off loading of government shares to private
(b) Profit from Public Sector Units companies
(c) Domestic Private Savings (c) increase in investment
(d) Additional Taxation (d) closing down of business concerns
Ans. (c) [SSC SO Exam, 2005] Ans. (b) [SSC CPO Exam, 2008]

11. For which fund can the unanticipated

4. Deficit financing is an instrument of–
expenditure be met without the prior approval of
(a) Monetary Policy (b) Credit Policy the parliament?
(c) Fiscal Policy (d) Tax Policy (a) Consolidated Fund of India
Ans. (c) [SSC CPO Exam, 2005] (b) Contingency Fund of India
(c) Vote on Account
5. In the budget figures of the Government of India, (d) From the Treasury
fiscal deficit is– Ans. (b) [SSC 10+2 Exam, 2010]
(a) Total Expenditure - Total Receipts
(b) Revenue Expenditure - Revenue Receipts 12. Disinvestment in Public Sector is called–
(c) Capital Expenditure - Capital Receipts + Market (a) Liberalization (b) Globalization
Borrowings (c) Industrialization (d) Privatization
(d) Sum of budget deficit and government’s market Ans. (d) [SSC CGL Exam, 2011]
borrowings and liabilities 13. Which one of the following is not an objective of
Ans. (d) [SSC SO Exam, 2006] Fiscal Policy in India?
(a) Full Employment
6. Fiscal policy is related to – (b) Price Stability
(a) Monetary Policy (c) Equitable distribution of wealth and incomes
(b) Banking System (d) Regulation of international trade
(c) Economic Progress Planning Ans. (d) [SSC (10+2) Exam, 2011]
(d) Receiving and Expenditure of Govt.
Ans. (d) [S.S.C (CGL) Exam, 2006] 14. The Economic Survey of India is published by–
(a) Statistical Department
7. Government takes “Ways and Means advances” (b) CSO
from (c) Ministry of Finance
(a) RBI (b) IDBI (d) Department of Economic Affairs
(c) SBI (d) ICICI Ans. (c)[SSC CPO Exam, 2012]
Ans. (a)[SSC CPO Exam, 2007]

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15. Subsidy by government of India is given to– 22. Customs duty is an instrument of which of the
(a) Consumer Unit (b) Productive Unit following government policies?
(c) Banking Unit (d) Government Employee (a) Fiscal (b) Monetary
Ans. (b) [SSC 10+2 Exam, 2014] (c) Sales (d) Production
Ans. (a) (SSC CHSL-2016)
16. The Prominent factor responsible for division of
contingency fund. 23.Which one is not the main objective of fiscal policy in
(a) Death (b) Harm India?
(c) Accident (d) Vulnerability (a) To increase liquidity in the economy
Ans. (d) [SSC 10+2 Exam, 2014] (b) To promote price stability
(c) To minimize the inequalities of income & wealth
17. The Maximum Part of revenue of Indian railway (d) To promote employment opportunity
comes from. Ans. (a) [SSC CGL 2016 ]
(a) Coaches (b) Transport of goods
(c) Tickets (d) Other sources 24.Who appoints the Finance Commission in India?
Ans. (b) [SSC Steno Exam, 2014] (a) Governor, R.B.I.
(b) CAG of India
18. From national point of view, which of the (c) President of India
following represent micro approach. (d) Central Finance Minister
(a) Study of selling of Tisco Ans. (c)
(b) Educated unemployment in India
(c) Per capital income in India 25.Which one of the following is not an instrument of
(d) Money inflation in India. Fiscal policy?
Ans. (a) [S.S.C (CGL) Exam, 2015] (a) Open Market Operations
(b) Taxation
19. Which among the following does not count in the (c) Public borrowing
development expenditure of government? (d) Public expenditure
(a) Expenditure on economic service (b) Ans. (a) [SSC CGL 2016 ]
Expenditure on social services
(c) Grant to states (d) Defense expenditure 26. What situation would result if Government
Ans. (d) (SSC CHSL-2016) expenditure exceeds the Government revenue on
Current Account?
20. Which bill cannot or originate in Rajya Sabha? (a) Deficit budgeting
(a) Constitutional Amendment Bill (b) (b) Zero-based budgeting
Ordinary Bill (c) Performance-based budgeting
(c) Fundamental Bill (d) Money Bill (d) Surplus budgeting
Ans. (d) (SSC CHSL-2016) Ans. (a) [SSC CGL 2016 ]

21. Which of following is true if the Government 27. Fiscal policy in India is formulated by
monetized part of its deficit? (a) Reserve Bank of India
(a) Money supply in the economy will increase (b) Planning Commission
(b) Interest rate will increase (c) Finance Ministry
(c) Government revenue will decrease (d) SEBI
(d) Government revenue will increase Ans. (c) [SSC CGL 2016 ]
Ans. (a) (SSC CHSL-2016)

INDIAN TAX SYSTEM

1. Which one of the following is not an Example of Indirect 3. Taxation is a tool of–
tax? (a) Monetary Policy (b) Fiscal Policy
(a) Sales Tax (c) Price Policy (d) Wage Policy
(b) Excise Duty Ans. (b) [SSC Matric Level Exam, 2000]
(c) Customs Duty
(d) Expenditure Tax 4. A tax is characterised by horizontal equity if its
Ans. (d) [SSC CGL Exam, 2000] liability is–
(a) Proportional to the income of tax payers
2. ‘Quota’ is– (b) Similar for tax payers in similar circumstances
(a) Tax levied on imports (c) Proportional to the expenditure of tax payers
(b) Imports of capital goods (d) The same for every tax payer
(c) Limit on the quantity of imports Ans. (a) [SSC SO Exam, 2001]
(d) Limit on the quantity of exports
Ans. (c) [SSC Matric Level Exam, 2000]

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5. Which authority recommends the principles 14. The proceeds of Income tax go to–
governing the grants in aid of the revenues of the (a) Central Government (b) State Government
states out of the Consolidated Fund of India? (c) Centre and States (d) Corporation Authorities
(a) Public Accounts Committee Ans. (c) [SSC CPO Exam, 2003]
(b) Union Ministry of Finance
(c) Finance Commission 15. How does the consumer benefit with VAT?
(d) Inter-State Council (a) It removes tax on tax and thus reduces price rise
Ans. (c) [SSC SO Exam, 2001] (b) Reduces the cost of production
(c) With the abolition of the sales tax
6. Buoyancy of a tax is defined as– (d) Due to the exemption of small businesses from the
(a) Percentage increase in tax revenue/percentage increase tax within certain limits prescribed by the state
in tax base Ans. (a) [SSC CPO Exam, 2003]
(b) Increase in tax revenue/percentage increase in tax
coverage 16. The receipts of which of the following taxes/duties
(c) Increase in tax revenue/increase in tax base are not shared with the states?
(d) Percentage increase in tax revenue/increase in tax (a) Tax on income except agriculture
coverage (b) Corporation tax
Ans. (c) [SSC SO Exam, 2001] (c) Surcharge on Income tax
(d) Capital gain tax
7. The incidence of tax refers to,– Ans. (a) [SSC SO Exam, 2003]
(a) Who pays the tax ?
(b) Who bears the burden of tax? 17. Which amidst the following taxes collected by the
(c) How taxes can be shifted ? Union is not mandated to be assigned to the
(d) Who transfers the tax burden? states?
Ans. (b) [SSC MTS Exam, 2002] (a) Terminal taxes on goods or passengers carried by
railway, sea or air.
(b) Taxes on railway fares and freights
8. Ad Valorem tax is levied–
(c) Taxes on consignment of goods
(a) According to value added by the government.
(d) Service Tax
(b) According to value addition to a commodity
Ans. (d) [SSC CGL Exam, 2004]
(c) According to value given by producers
(d) According to value added by the Finance ministry
18. Which among of the following is not direct tax?
Ans. (c) [SSC MTS Exam, 2002]
(a) Income Tax (b) Property Tax
(c) Gift Tax (d) Sales Tax
9. The most important source of revenue for the Ans. (d) [S.S.C Stenographer Exam, 2005]
states in India is–
(a) Corporation Tax (b) Income Tax
19. Which of the following sets belong to Central tax?
(c) Excise Duties (d) Sales Tax (a) Excise Duty, Sales Tax and Customs Duty
Ans. (d) [SSC Matric Level Exam, 2002] (b) Excise Duty, Customs Duty and Income Tax.
(c) Income Tax, Customs Duty and House Tax
10. Parallel economy emerges due to– (d) Customs Duty, Entertainment tax and Income Tax
(a) Tax Avoidance (b) Tax Evasion Ans. (b) [SSC Tax Asst. Exam, 2005]
(c) Tax Compliance (d) Tax Estimation
Ans. (b) [SSC Matric Level Exam, 2002] 20. Which of the following taxes is not shared
between the union and the states?
11. The tax levied on gross sales revenue from business (a) Income Tax (b) Excise Duty
transactions is called– (c) Corporation Tax (d) Sales Tax
(a) Turnover Tax (b) Sales Tax Ans. (d) [SSC SO Exam, 2005]
(c) Capital Gains Tax (d) Corporation Tax
Ans. (a) [SSC Matric Level Exam, 2002] 21. Which of the following taxes is levied by the
Union and appropriated and planned by the
12. Corporation tax is a tax imposed on– states?
(a) The net incomes of the companies (a) Service Tax
(b) The corporate properties (b) Stamp Duty
(c) The utilities provided by the corporation (c) Property Tax
(d) Tax imposed by the corporation on individual (d) Passenger and Freight Duty
properties Ans. (b) [SSC SO Exam, 2005]
Ans. (a) [SSC Matric Level Exam, 2002]
22. Interest on public debt is part of–
13. The duties levied on alcoholic liquors, narcotic (a) Transfer payments by the enterprises
drugs and opium come under– (b) Transfer payments by the government
(a) Central Excise Duty (b) Land Revenue (c) National income
(c) State Excise Duty (d) General Sales Tax (d) Interest payments by households
Ans. (a) [SSC Matric Level Exam, 2002] Ans. (b) [SSC SO Exam, 2005]

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23. Which of the following taxes is such which does 32. The Report of Vijay Kelkar Committee relates
not cause rise in price? to–
(a) Import Duty (b) Income Tax (a) Trade reforms
(c) Octoroi (d) Sales Tax (b) Centre-state financial relations
Ans. (b) [SSC SO Exam, 2005] (c) Disinvestment in public sector enterprises
(d) Tax reforms
24. Who among the following has suggested tax on Ans. (d) [SSC CPO Exam, 2008]
expenditure?
(a) Dalton (b) Kaldor 33. Which among of the following is largest source of
(c) Musgrave (d) Gautam Mathur income for central govt.?
Ans. (b) [SSC Tax Asst. Exam, 2005] (a) Direct Taxes (b) Custom Duty
(c) Excise Duty (d) Entertainment Tax
25. What is Value Added Tax (VAT) ? Ans. (a) [S.S.C Matric level Exam, 2008]
(a) A simple, transparent, easy to pay tax imposed on
consumers 34. Finance Commission is organised.
(b) A new initiative taken by the government to increase (a) Every year. (b) After every four year
the tax-burden of high income groups (c) After every two year(d) After every five year
(c) A single tax that replaces state taxes like, surcharge, Ans. (d) [SSC Tax Asst. Exam,2008]
turnover tax etc
(d) A new tax to be imposed on the producers of capital 35. Which of the following taxes are levied and
goods collected by the central but their net proceeds are
Ans. (c) [SSC Tax Asst. Exam, 2006] wholly transferred to states?
(a) Expenditure Tax and Gift Tax
26. If the tax rate increases with the higher level of (b) Additional duties of excise in lieu of sales tax
income, it shall be called– (c) Stamps and Registration
(a) Proportional Tax (b) Progressive Tax (d) Taxes on Advertisement
(c) Lump sum Tax (d) Regressive Tax Ans. (d) [SSC SAS 2010]
Ans. (b) [SSC SO Exam, 2006]
36. Which is the biggest tax paying sector in India?
27. Which of the following tax is imposed by state (a) Agriculture sector (b) Industrial sector
govt.? (c) Transport sector (d) Banking sector
(a) Entertainment Tax Ans. (b) [SSC CGL Exam, 2010]
(b) Property Tax
(c) Income Tax 37. Value of output and value added can be
(d) Corporate Tax distinguished if we know–
Ans. (a) [S.S.C Matric level Exam, 2006] (a) The value of intermediate consumption
(b) The value of net indirect taxes
28. Which authority decides about the states’ share (c) The value of the sales
in central taxes? (d) The value of consumption of fixed capital
(a) Finance Commission Ans. (a) [SSC (10+2) Exam, 2010]
(b) Planning Commission
(c) Election Commission 38. For becoming chairman of finance commission
(d) Finance Ministry which one is necessary?
Ans. (a) [SSC SO Exam, 2006] (a) He should be from Finance and Banking sector
(b) He should be high level economist
29. Which of the following taxes is not collected by (c) He should be specialist of Jurisdiction matters
the Central Government? (d) In case of public matters, he should be a man of
perfection
(a) Income Tax (b) Customs Duty Ans. (d) [SSC 10+2 Exam,2010]
(c) Professional Tax (d) Excise Duty
Ans. (c) [SSC Tax Asst. Exam, 2007] 39. Which among of the following is not a ‘canon of
taxation’ according to Adam Smith?
30. Excise duty on a commodity is payable with (a) Canon of certainty
reference to its– (b) Canon of simplicity
(a) Production (c) Canon of convenience
(b) Production and Sale (d) Canon of economy inefficiency
(c) Production and Transportation Ans. (b) [SSC 10+2 Exam,2010]
(d) Production, Transportation and Sale
Ans. (a) [SSC SO Exam, 2007] 40. In Centre – State financial relation in India,
Gadgil formula is used in–
31. Which of the following is not the source of the (a) Division of tax revenue
revenue of Central Government? (b) Formulation of the policy for fresh borrowings
(a) Income Tax (b) Corporate Tax (c) Writing off state’s indebtedness to the centre
(c) Agricultural Income Tax (d) Excise Duty (d) Allocating Central Plan assistance between States
Ans. (c) [SSC DEO Exam, 2008] Ans. (a)[SSC 10+2 Exam,2011]

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41. Indirect taxes by nature are– 51. First country to impose carbon tax is
(a) Degressive (b) Regressive ______________
(c) Progressive (d) Proportional (a) Australia (b) Iceland
Ans. (b) [SSC Stenographer Exam, 2011] (c) USA (d) New Zealand
Ans. (d) (SSC CHSL-2016)
42. The government set-up a committee headed by the
Chairman. Central Board of Direct Taxes 52. Ad Valorem tax is levied on?
sometime back to go into– (a) Value (b) Volume
(a) Modification of tax laws (c) Production (d) Export
(b) The entire structure of tax laws including the Ans. (a) (SSC CHSL-2016)
question of imposition of bank tax
(c) The concerns of the foreign investors in India with
53. Which of the following is Direct tax?
regards to taxation matters
(d) Aspects of generation of black money, its transfer (a) Excise Duty (b) Customs Duty
abroad and bringing back such money into India’s (c) Service Tax (d) Wealth Tax
Legitimate Financial System. Ans. (d) (SSC CHSL-2016)
Ans. (d) [SSC CPO Exam, 2011]
54.The main effect of Direct Taxes is on
43. Who was the Chairman of 13th Finance (a) Food prices
Commission? (b) Consumer goods
(a) Dr. Vijay L Kelkar (b) Dr. C Rangrajan (c) Capital goods
(c) Dr. A.M. Khusro (d) Dr. C. Subbarao (d) Income
Ans. (a)[SSC Steno Exam, 2011, 14] Ans. (d) [SSC CGL 2016 ]

44. VAT was firstly implemented in– 55.Which of the following taxes is levied by the State
(a) Germany (b) Spain Government only?
(c) France (d) Russia (a) Wealth tax
Ans. (c) [SSC 10+2 Exam,2012] (b) Entertainment tax
(c) Income tax
45. The Example of Sales tax is- (d) Gift tax
(a) Coorporate Tax (b) Direct Tax Ans. (b) [SSC CGL 2016 ]
(c) Indirect Tax (d) Welfare Tax
Ans. (c) [S.S.C (FCI) Exam, 2012]
56.Which of the following sets of taxes belongs to
Central Government?
46. Which among of the following is direct tax?
(a) Excise duty, Sales tax and Custom duty
(a) Sales Tax (b) Excise Tax
(b) Income tax, Custom duty and House tax
(c) Wealth Tax (d) Entertainment Tax
(c) Excise duty, Custom duty and Income tax
Ans. (c) [S.S.C Multitasking Exam, 2013]
(d) Custom duty, Entertainment tax and Income tax
47. ‘Value - added’ is equal to– Ans. (c) [SSC CGL 2016 ]
(a) Output Minus the Inputs (b) Reconstruction profit
(c) Gross profit (d) Investment profit 57.What is an octroi ?
Ans. (a)[SSC 10+2 Exam,2013] (a) Tax
(b) Tax collection centre
48. In case of direct tax, impact of tax & incidence of (c) Tax processing centre
tax is– (d) Tax information centre
(a) On two different person Ans. (a) [SSC CGL 2016 ]
(b) On same person
(c) Any other person 58. In India which of the following taxes is levied by the
(d) On that department which called tax. State governments?
Ans. (b) [S.S.C (CGL) Exam, 2014] (a) Excise duty on liquor
(b) Capital gains tax
49. Taxes are called as Regressive when- (c) Customs tax
(a) None of these (d) Corporation tax
(b) It causes same burden on rich and poor Ans. (a) [SSC CGL 2016 ]
(c) Less burden on poor as compared to rich
(d) More burden on poor as compared to rich 59.What will you call a system of taxation under which
Ans. (d) [S.S.C (CPO) Exam, 2015] the poorer sections are taxed at higher rates than
the richer sections?
50. This tax is entirely borne by the entity it is levied (a) Progressive tax
upon and cannot be passed. (b) Proportional tax
(a) Direct tax (b) Indirect tax
(c) Regressive tax
(c) Straight tax (d) Advance tax
(d) Degressive tax
Ans. (a) (SSC CHSL-2016)
Ans. (c) [SSC CGL 2016 ]

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60.The GST (Goods and Services Tax), recently passed 62. ‘Capital gains’ refers to goods which
by Government will be levied on which of the (a) Serve as a source of raising further capital
following products? (b) Help in the further production of goods
(a) Petroleum Crude (c) Directly go into the satisfaction of human wants
(b) Tobacco (d) Find multiple uses
(c) Natural Gas Ans. (b) [SSC CGL 2016 ]
(d) Aviation Turbine Fuel
Ans. (b) [SSC CGL 2016 ] 63.Tax on inheritance is called __________ ?
(a) Excise duty
61. The rate of tax increase as the amount of the tax (b) Estate duty
base increases is called (c) Gift tax
(a) Proportional tax (b) Progressive tax (d) Sales tax
(c) Regressive tax (d) Degressive tax Ans. (b)
Ans. (b) [SSC CGL 2016 ]

PLANNING IN INDIA

1. What was the objective of Command Area 7. During which Five Year Plan India lay down
Development Programme ? objective the need to ensure environmental
(a) To ensure that land is given to the tillers sustainability of the development strategy?
(b) To ensure better utilisation of irrigation potential (a) Sixth Five Year Plan
(c) To develop the areas under the command of Army (b) Seventh Five Year Plan
(d) Poverty alleviation in selected areas (c) Eighth Five Year Plan
Ans. (b) [SSC Matric Level Exam, 2000] (d) Ninth Five Year Plan
Ans. (d) [SSC SO Exam, 2003]
2. The economic problem arises mainly due to–
(a) Overpopulation 8. One of the objectives of Industrial Licensing
(b) Unemployment Policy in India was to ensure–
(c) Scarcity of resources (a) creation of adequate employment opportunities
(d) Lack of industries (b) free flow of foreign capital in Indian industries
Ans. (c) [SSC Matric Level Exam, 2001] (c) use of modern technology
(d) balanced indsutrial development across regions
3. India adopted the Five Year Plans from– Ans. (d) [SSC CGL Exam, 2004]
(a) France (b) Former USSR
(c) America (d) England
Ans. (b) [SSC Matric Level Exam, 2001] 9. Blue revolution is related to –
(a) Fish production (b) Milk production
4. To achieve economic self-reliance was the main (c) Oilseed production (d) Fertilizer production.
objective of which Five Year Plan? Ans. (a) [S.S.C Steno Exam, 2005]
(a) First Five Year Plan
(b) Second Five Year Plan 10. Planning and control are so related that–
(c) Third Five Year Plan (a) Planning initiates control
(d) Fourth Five Year Plan (b) Control initiates planning
Ans. (d) [SSC Matric Level Exam, 2001] (c) Both are equivalent
(d) Both go on simultaneously in cycle
5. India’s First Five Year Plan gave priority to– Ans. (d) [SSC SO Exam, 2005]
(a) Industry
(b) Trade 11. Antyodaya programe is associated with–
(c) Transportation (a) liberation of bonded labour
(d) Agriculture (b) bringing up cultural revolution in India
Ans. (d) [SSC Matric Level Exam, 2002] (c) demands of textile labourers
(d) upliftment of the poorest of the poor
6. Malthusian theory of population explored the Ans. (d) [SSC CPO Exam, 2005]
relationship between–
(a) Food supply and technology 12. Which among the following is not a positive sign
(b) Food supply and population growth for any industry.
(c) Population growth and development (a) Decrease in profit
(d) Optimum growth and resources (b) Labour instability
Ans. (b) [SSC Matric Level Exam, 2002] (c) Decrease in market
(d) Decrease in demand
Ans. (a)[SSC CGL Exam, 2006]

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13. Second five year plan was based on– 22. Mahalanobis Model has been associated with
(a) Mohalanobis Model which Five Year Plan?
(b) Wakil and Brahmanand Model (a) First Five Year Plan
(c) Herald-Domar Growth model (b) Second Five Year Plan
(d) Salo growth model (c) Third Five Year Plan
Ans. (a)[SSC CGL Exam, 2006] (d) Fourth Five Year Plan
Ans. (b) [SSC Matric Level Exam, 2008]
14. Which among of the following is not among basic
aims of 10th five year plan? 23. NREGP is the abbreviated form of–
(a) Decrease in poverty ratio (a) National Rural Employment Guarantee Programme
(b) Drinking water to all villages till 2012. (b) National Rural Educational Guarantee Programme
(c) Decrease in infant mortality rate. (c) National Rapid Educational, Guarantee Programme
(d) Decrease is import. (d) National Rapid Employment Guarantee Programme
Ans. (d) [SSC CGL Exam, 2006] Ans. (a) [SSC Tax Asst. Exam, 2008]

15. In which matter green revolution has achieved 24. The commission in India dealing with minimum
maximum success. support price, procurement price etc, in
(a) Sugarcane (b) Pulses connection with agricultural goods is the–
(c) Wheat (d) Rice (a) Planning Commission
Ans. (c)[SSC CPO Exam, 2006] (b) Agricultural Costs and Prices Commission
(c) Agricultural Price Commission
16. The famous slogan ‘Garibi Hatao’ (remove poverty) (d) National Marketing Commission
was launched during the– Ans. (a) [SSC CPO Exam, 2008]
(a) First Five Year Plan (1951-56)
(b) Third Five Year Plan (1961-66)
25. Who coined the term ‘Hindu rate of growth’ for
(c) Fourth Five Year Plan (1969-74) Indian economy?
(d) Fifth Five Year Plan (1974-79) (a) AK Sen (b) Kirit S Parikh
Ans. (d) [SSC SO Exam, 2007]
(c) Raj Krishna (d) Montek Singh Ahluwalia
Ans. (c) [SSC SO Exam, 2008]
17. The highest body which approves the Five Year
Plan in India is the–
26. The Census of 2011 was.
(a) Planning Commission(b) National Development
Council (a) 13th Census (b) 14th Census
(c) Finance Ministry (d) Union Cabinet (c) 15th Census (d) 16th Census
Ans. (b) [SSC SO Exam, 2007] Ans. (c)[SSC Tax Asst Exam, 2008]

18. The gradation and standardisation of 27. Which among of the following is not a feature of
agricultural products are conducted through– population of developed countries?
(a) Food Corporation of India (a) Low birth rate and low death rate.
(b) Directorate of Marketing and Inspection (b) High birth rate and high death rate.
(c) Indian Standards Institution (c) High ratio of urban population
(d) Central Statistical Organisation (d) Low growth rate of population
Ans. (c) [SSC CPO Exam, 2007] Ans. (b) [SSC Tax Asst. Exam, 2008]

19. Which is not correct– 28. The Planning Commission of India was
(a) First Five Year Plan 1951-56 constituted in the year–
(b) Second Five Year Plan 1956-61 (a) 1942 (b) 1947
(c) Third Five Year Plan 1961-66 (c) 1950 (d) 1955
(d) Fourth Five Year Plan 1966-71 Ans. (c) [SSC SO Exam, 2008]
Ans. (d) [SSC CPO Exam, 2008]
29. The Minimum Wages Act was first passed in
20. Poverty alleviation was the aim of which Five India in the year.
Year Plan. (a) 1947 (b) 1948
(a) Fourth (b) Fifth (c) 1950 (d) 1951
(c) Sixth (d) Seventh Ans. (b) [SSC MTS Exam, 2011, Tax Asst. Exam, 2008]
Ans. (b) [SSC Tax Asst. Exam, 2008]
30. The government has renamed NREGA scheme and
21. Indian agriculture is typically characterised as– the name associated with the scheme is that of–
(a) Land surplus, Labour Scarce Economy (a) Rajiv Gandhi (b) Jawahar Lal Nehru
(b) Land surplus, Labour Surplus Economy (c) Mahatma Gandhi (d) Indira Gandhi
(c) Land scarce, Labour Surplus Economy Ans. (c) [SSC DEO Exam, 2009]
(d) Land scarce, Labour Scarce Economy
Ans. (c) [SSC SO Exam, 2008]

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 Under The Guidance of Arun Arora Sir

31. The implementation of 'Jawahar Rojgar Yojana'

rests with–
(a) Gram Panchayats (b) District Collectors 40. The Annapurna Scheme was implemented in the
(c) State Governments (d) Union Government year–
Ans. (d) [SSC Tax Asst. Exam, 2009] (a) 1998 (b) 1996
(c) 1999 (d) 2000
32. The nature of unemployment in agriculture in Ans. (d) [SSC FCI Exam, 2012]
India is–
(a) Only seasonal (b) Only disguised 41. The objective of ‘Jawahar Rojgar Yojana’ is to–
(c) All of the above (d) None of the above (a) Provide employment to youth in rural areas
Ans. (c) [SSC Tax Asst. Exam, 2009] (b) Create employment opportunities for unemployed
persons
33. Who is the ex-officio Chairman of the Planning (c) Strengthen the rural economic and social structure
Commission? (d) All of the above
(a) Minister for Planning and Development Ans. (d) [SSC Constable (GD) Exam, 2012]
(b) Finance Minister
(c) Prime Minister 42. "The Social Forestry scheme" was started in–
(d) Minister for Rural and Community Development (a) Second five year plan
Ans. (c) [SSC CPO Exam, 2009] (b) Sixth five year plan
(c) Fifth five year plan
34. The draft of the Five Year Plans in India is approved (d) Eight five year plan
by the– Ans. (c)[SSC CPO Exam, 2012]
(a) National Development Council
(b) Planning Commission 43. Without insurance or uncertainty problem is –
(c) National Productivity Council (a) Fire
(d) Ministry of Finance (b) Flood
Ans. (a) [SSC Tax Asst. Exam, 2009] (c) Change in price of product
(d) Change in fashion.
35. The food stocks that are built up during the years Ans. (d) [S.S.C (CGL) Exam, 2014]
of bumper harvest are called–
(a) Capital stock 44. Verghese Kurien is related to –
(b) Buffer stock (a) Blue Revolution (b) White Revolution
(c) Production stock (c) Yellow Revolution (d) Green Revolution
(d) Grain stock Ans. (b) [S.S.C Steno Exam, 2014]
Ans. (b) [SC CGL Exam, 2011, CPO Exam, 2010]
45. Blue and White Revolution is related with –
36. The achievement in agriculture by India has not (a) Fish and Fertilizer (b) Milk
reached upto a greater level due to– (c) Fish and Milk (d) Fish and Agriculture.
(a) Small holdings (b) Shortage of Tractors Ans. (c) [S.S.C Steno Exam, 2014]
(c) Poor Farmers (d) Liberalty of People
Ans. (a) [SSC CPO Exam, 2011] 46. “Plan Holiday” was declared after–
(a) First Five Year Plan
37. Brown Revolution is called as – (b) Second Five Year Plan
(a) Fodder revolution (c) Third Five Year Plan
(b) Increase in sea products (d) Fourth Five Year Plan
(c) Increase in fertilizer production Ans. (c)[SSC CGL Exam, 2014]
(d) Increase in milk production.
Ans. (c) [S.S.C (CPO) Exam, 2011] 47. Which five year plan’s duration was only four
38. Which three year is said as “Planning Holiday” year?
for our country? (a) Third (b) Fourth
(a) 1965-68 (b) 1966-69 (c) Fifth (d) Seventh
(c) 1968-71 (d) 1969-72 Ans. (c)[SSC Multitasking Exam, 2014
Ans. (b) [SSC Steno Exam, 2011]
48. Which is odd.
39. Who advocated the adoption of PURA’ model to (a) S.G.S.Y. — Swarna Jayanti Gram Swarazgar Yojana
eradicate rural poverty?
(b) S.J.S.R.Y. — Swarnajayanti Shahri RozagarYojana
(a) MS Swaminathan
(c) N.O.A.P.S. —National Old Age Pension Scheme.
(b) Maulana Abul Kalam Azad
(d) N.R.E.G.S.—National Rural Employment Guarantee
(c) Dr APJ Abdul Kalam Scheme.
(d) AM Khusro Ans. (c)[SSC Steno Exam, 2014]
Ans. (c) [SSC FCI Exam, 2012]

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 Under The Guidance of Arun Arora Sir

49. The Cattle rearing along with farming is called. 53. Sex-ratio means–
(a) Mixed Farming (a) Number of females per thousand males.
(b) Mixed Agriculture (b) Number males per thousand females.
(c) Dairy Farming (c) Number of child per thousands males.
(d) Truck Agriculture (d) Number of males per thousands child.
Ans. (a)[SSC CGL Exam, 2014 Ans. (a) [SSC 10+2 Exam, 2015]

50. Which of the following plans had actual growth 54. Which year was the First Five Year Plan
rate higher than the targetted growth rate? launched in India?
(a) Eighth Five Year Plan(b) Fourth Five Year Plan (a) 1921 (b) 1931
(c) Fifth Five Year Plan (d) Seventh Five Year Plan (c) 1941 (d) 1951
Ans. (a) [SSC CGL April Exam, 2014] Ans. (d) (SSC CHSL-2016)

51. IRDP was introduced during the– 55. Who among the following is also the chairman of
(a) Third Five Year Plan(b) Sixth Five Year Plan the Planning Commission?
(c) Fifth Five Year Plan (d) Fourth Five Year Plan (a) Defence Minister (b) Attorney General
Ans. (b) [SSC CGL April Exam, 2014] (c) Prime Minister (d) Finance Minister
Ans. (c) (SSC CHSL-2016)
52. The Slogan “Poverty Alleviation” was added to
which Five Year Plan. 56. Who is the Chairman of NITI Aayog?
(a) First (b) Second (a) President (b) RBI governor
(c) Fifth (d) Fourth (c) Finance Secretary (d) Prime Minister
Ans. (c) [SSC 10+2 Exam, 2015] Ans. (d) (SSC CHSL-2016)

MONEY & INFLATION

1. When too much money is chasing too few goods, 6. Inflation is caused by–
the situation is– (a) Increase in supply of goods
(a) Deflation (b) Inflation (b) Increase in cash with the government
(c) Recession (d) Stagflation (c) Decrease in money supply
Ans. (b) [SSC SO Exam, 2001]
(d) Increase in money supply
Ans. (d) [SSC CGL Exam, 2004]
2. Inflation can be checked by–
(a) Increasing exports
(b) Increasing money supply 7. ‘Legal Tender Money’ refers to–
(c) Increasing government expenditure (a) Cheques (b) Drafts
(d) Decreasing money supply (c) Bill of Exchange (d) Currency Notes
Ans. (d) [SSC MTS Exam, 2002] Ans. (d) [SSC Investigator Exam, 2005]

3. What is ‘Narrow Money’?

(a) The sum of currency in circulation and the demand 8. Inflation occurs when aggregate supply is–
deposits in banks (a) more than aggregate demand
(b) The sum of Ml money and the time deposits (b) less than aggregate demand
(c) The sum of currency in circulation with the public (c) equal to aggregate demand
and the cash reserves held by banks
(d) None of the above
(d) The market value of the stocks held by all the
holders excluding the promoters Ans. (b) [SSC SO Exam, 2006]
Ans. (a) [SSC SO Exam, 2003]
9. The process of curing inflation by reducing
4. State which of the following is correct? The money supply is called.
consumer price index reflects– (a) Cost – Push Inflation
(a) The standard of living (b) Demand – Pull Inflation
(b) The extent of inflation in the prices of consumer (c) Disinflation
goods (d) Reflection
(c) The increasing per capita income Ans. (c) [SSC Sec off. Exam, 2007]
(d) The growth of the economy
Ans. (b) [SSC SO Exam, 2003] 10. The main determinant of real wage is –
(a) Extra earning
5. Which of the following groups suffer the most
(b) Nature of work
from inflation?
(a) Debtors (b) Creditors (c) Promotion Prospect
(c) Business Class (d) Holders of Real Assets (d) Purchasing power of money.
Ans. (b) [SSC CPO Exam, 2003] Ans. (d) [S.S.C (CGL) Exam, 2008]

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11. Stagflation is a situation of– 20. Lowering of value of currency relative to a

(a) Stagnation and Deflation foreign reference currency is called
(b) Stagnation and Recession (a) Devaluation (b) Revaluation
(c) Stagnation and Inflation (c) Down valuation (d) Negative valuation
(d) Stagnation and Recovery Ans. (a) (SSC CHSL-2016)
Ans. (c)[SSC DEO Exam, 2009]
21. Stagflation is defined as
12. The relationship between the value of money and (a) low inflation, low growth, low unemployment
the price level is an economy is– (b) high inflation, low growth, high unemployment
(a) Direct (b) Inverse (c) high inflation, high growth, high unemployment
(c) Proportional (d) Stable (d) low inflation, high growth, low unemployment
Ans. (b) [SSC DEO Exam, 2009] Ans. (b) (SSC CHSL-2016)

13. The term stagflation refers to a situation where – 22. Which law states that bad money drives good
(a) Growth has no relation with the change in price money out of circulation?
(b) Rate of growth and prices both are decreasing (a) Wagner's law (b) Grimm's law
(c) Rate of growth is faster than the rate of price (c) Gresham's law (d) Keynes law
increase Ans. (c) (SSC CHSL-2016)
(d) Rate of growth is slower than the rate of price
increase 23. An increase in the growth rate of the nominal
Ans. (d) [SSC Tax Asst. Exam, 2009] money supply results in
(a) Lower rate of inflation(b) Higher rate of inflation
14. During periods of inflation, tax rates should– (c) Lower interest rates (d) Currency appreciation
(a) Increase (b) Decrease Ans. (b) (SSC CHSL-2016)
(c) Remain constant (d) Fluctuate
Ans. (a) [SSC CGL Exam, 2010] 24. If money supply growth is faster than real GDP
growth, it results in ____________
15. The Presence of both higher rate of inflation and (a) Inflation (b) Deflation
unemployment is called – (c) budget surplus (d) budget deficit
(a) Recovery (b) Stagflation Ans. (a) (SSC CHSL-2016)
(c) Recession (d) Deflation
Ans. (b) [SSC Multitasking Exam, 2011] 25. In which stage of the business cycle the inventory
stock trill be the highest?
16. Inflation redistributes income and wealth in (a) Boom (b) Depression
favour of– (c) Recession (d) Recovery
(a) Pensioners (b) Poor Ans. (b) (SSC CHSL-2016)
(c) Middle Class (d) Rich
Ans. (d) [SSC CGL Exam, 2011] 26. Inflation exists when
(a) there is general increase in the prices over time
17. Real wage is– (b) there are periodic decreases in the price level
Profit Rent (c) there are continuous increases int he output level
(a) (b)
Price Level Price Level over time.
(d) there is rise in the purchasing value of money?
Interest Money Wage Ans. (a) (SSC CHSL-2016)
(c) (d)
Price Level Price Level
27. Which curve shows the inverse relationship between
Ans. (d) [SSC (10+2) Exam, 2012] unemployment and inflation rates
(a) Supply curve
18. Who gets Maximum profit during inflation? (b) Indifference curve
(a) Shareholder (c) IS curve
(b) Entrepreneurs (d) Phillips curve
(c) Government Employee Ans. (d) [SSC CGL 2016 ]
(d) Corporate Employee
Ans. (b) [SSC CGL Exam, 2014] 28. Inflation is a situation characterised by
(a) Too much money chasing too few goods
19. The Result of cost push inflation is– (b) Too few money chasing too much goods
(a) Hindrances in economic development increases (c) Too many people chasing too few goods
(b) Adverse effect on Balance on Payment (d) Too many people chasing too little money
(c) Hindrance in development Ans. (a)
(d) All of the above
Ans. (d) [SSC CPO Exam, 2015]

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29. Which of the following brings out the 'Consumer 30. Lorenz curve shows
Price Index Number' for Industrial workers? (a) Inflation
(a) RBI (b) Unemployment
(b) TheLabour Bureau (c) Income distribution
(c) Commerce Department (d) Poverty
(d) NITI Ayog Ans. (c) [SSC CGL 2016 ]
Ans. (d) [SSC CGL 2016 ]

BALANCE OF PAYMENT

1. Investment is equal to– (c) A country having no coastline.

(a) Gross total of all types of physical capital assets (d) A country is not a member of United Nation
(b) Gross total of all capital assets minus wear and tear Council.
(c) Stock of plants, machines and equipments Ans. (a) [SSC CPO Exam, 2005]
(d) None of the above
Ans. (b) [SSC CGL Exam, 2000] 9. The annual record for all the monetary
transactions of a country with other countries of
2. The major aim of devaluation is to– the world is known as–
(a) encourage Imports (a) Balance of Trade
(b) encourage Exports (b) Balance of Monetary-Receipts
(c) encourage both Exports and Imports (c) Balance of Payments
(d) discourage both Exports and Imports (d) Balance Sheet
Ans. (b) [SSC CGL Exam, 2000] Ans. (c) [SSC lax Asst. Exam, 2005]

3. Floating Exchange Rate is also referred to as– 10. The Government resorts to devaluation of its
(a) Flexible Exchange Rate currency in order to promote–
(b) Fixed Exchange Rate (a) National Income (b) International Goodwill
(c) Real Exchange Rate (c) Exports (d) Savings
(d) Controlled Exchange Rate Ans. (c) [SSC CPO Exam, 2005]
Ans. (a) [SSC MTS Exam, 2002]
11. Devaluation makes import–
4. How far does the exclusive economic zone of a (a) Competitive (b) Inelastic
country extend from her coast? (c) Cheaper (d) Dearer
(a) 120 km (b) 220 km Ans. (d) [SSC SO Exam, 2005]
(c) 320 km (d) 420 km
Ans. (c)[SSC MTS Exam, 2002] 12. The biggest item of India’s imports is–
(a) Iron ore (b) Mica
5. The outcome of ‘devaluation of currency’ is– (c) Petroleum products (d) Gems and Jewellery
(a) Increased export and improvement in balance of Ans. (c) [SSC MTS Exam, 2006]
payment
(b) Increased export and foreign reserve deficiency 13. The difference between visible exports and visible
(c) Increased import and improvement in balance of imports is defined as–
payment (a) Balance of Trade (b) Balance of Payment
(d) Increased export and import (c) Balanced Terms of Trade (d) Gains from Trade
Ans. (a) [SSC Tax Asst. Exam, 2006, SO Exam, 2003] Ans. (a) [SSC Tax Asst. Exam, 2006]

6. When did the rupee become a freely convertible 14. A country’s balance of trade is unfavourable
currency on Current Account in India? when–
(a) 2000 (b) 200 (a) exports exceed imports
(c) 1994 (d) 1999 (b) imports exceed exports
Ans. (c) [SSC Tax Asst. Exam, 2004] (c) terms of trade become unfavourable
(d) None of the above
7. Devaluation usually causes the internal prices to– Ans. (b) [SSC Investigator Exam, 2006]
(a) Fall (b) Rise
(c) Remain unchanged (d) None of the above 15. Industrial Exit Policy means–
Ans. (c) [SSC CGL Exam, 2004] (a) forcing foreign companies to leave India
(b) forcing business units to move out of congested
8. "Closed Economy" is a economy in which– localities
(a) Business of a country with other country is Zero. (c) allowing manufactures to shift their line of products
(b) A country having no any mean of transportation (d) following business units to close down
Ans. (d) [SSC SO Exam, 2006]

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16. WTO was earlier known as– 25. Theoretically trade between two countries takes
(a) GATT (b) UNICEI place on account of–
(c) UNCTAD (d) FAO (a) Difference in Costs
Ans. (a) [SSC Tax Asst. Exam, 2006] (b) Scarcity of Goods
(c) Comparative Differences in Costs
17. The practice of selling goods in a foreign country (d) Need for Exports
at a price below their domestic selling price is Ans. (c) [SSC SO Exam, 2008]
called.
(a) Diplomacy (b) Discriminator 26. FERA in India has been replaced by–
(c) Dumping (d) Double pricing (a) FEPA (b) FEMA
Ans. (c)[SSC Setc off Exam, 2006] (c) FENA (d) FETA
Ans. (b) [SSC Tax Asst. Exam, 2008]
18. Which among of the following organization is
oldest? 27. World Trade Organization was established in–
(a) IMF (b) WHO
(a) 1991 (b) 1995
(c) ILO (d) FAO
(c) 1997 (d) 1999
Ans. (c)[SSC Tax Asst Exam, 2007]
Ans. (b) [SSC Metric Level Exam, 2008]
19. Which one of the following items is not included
28. The Full form of SDR is–
in the current account of India’s Balance of
Payments? (a) Special Dollar Rights
(a) Short-Term Commercial Borrowings (b) Special Drawing Rights
(b) Non-Monetary Gold Movements (c) State Drawing Rights
(c) Investment Income (d) Specific Dollar Right
(d) Transfer Payments Ans. (b) [SSC CPO Exam, 2008]
Ans. (b) [SSC CGL Exam, 2007]
29. In Post-Independence Period first economic
20. The definition of ‘small-scale industry’ in India is reform was started in the government of –
based on– (a) P.V. Narasimha Rao (1990)
(a) Sales by the unit (b) Indira Gandhi (1980)
(b) Investment in machines and equipments (c) Rajeev Gandhi (1985)
(c) Market coverage (d) Janta Party (1977)
(d) Export capacity Ans. (a) [SSC CPO Exam, 2008]
Ans. (a) [SSC Tax Asst. Exam, 2007]
30. TRIMs Stands for–
21. One of the main factors that led to rapid (a) Trade Related Industrial Measures.
expansion of Indian exports is– (b) Trade Related Innovation Measures.
(a) imposition of import duties (c) Trade Related Investment Measures.
(b) liberalisation of the economy (d) Trade Related information Measures.
(c) recession in other countries Ans. (c)[SSC CPO Exam, 2008]
(d) diversification of exports
Ans. (b) [SSC CPO Exam, 2007] 31. FAO means–
(a) Fiber and Agricultural Organization
22. Which one of the following does not deal with (b) Factory Evaluation Organization
export promotion? (c) Free Orbitration organization
(a) Trade Development Authority (d) Food and Agriculture Organization
(b) Minerals and Metals Trading Corporation Ans. (d) [SSC Steno Exam, 2008]
(c) Cooperative Marketing Societies
(d) State Trading Corporation of India 32. GEF means for–
Ans. (c) [SSC CGL Exam, 2008] (a) Global Environment fund.
(b) Global Economic fund.
23. A trade policy consists of–
(c) Global Education Fund.
(a) Export-Import Policy
(d) Global Energy Fund.
(b) Licencing Policy
Ans. (a) [SSC SEC OFF Exam 2008]
(c) Foreign Exchange Policy
(d) Balance of Payment Policy
33. "Full convertibility of a rupee" means–
Ans. (a) [SSC MTS Exam, 2008]
(a) Purchase of foreign exchange for rupees only
(b) Payment for imports in terms of rupees
24. Where is the Indian Institute of foreign trade
located? (c) Repayment of loans in terms of rupees
(a) New Delhi (b) Hyderabad (d) Determination of rate of exchange between rupee
and foreign currencies freely by the market forces of
(c) Mumbai (d) Ahmedabad
demand and supply.
Ans. (a) [SSC SO Exam, 2008]
Ans. (d) [SSC Tax Asst. Exam, 2009]

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 Under The Guidance of Arun Arora Sir

34. At present, India is following. 43. ‘Gold’ is mainly related to-

(a) Fixed exchange Rate (a) Local Market (b) National Market
(b) Floating exchange Rate (c) International Market (d) Regional Market.
(c) Pegged up exchange Rate Ans. (c) [S.S.C (CGL) Exam, 2013]
(d) Pegged down exchange Rate
Ans. (b) [SSC CGL Exam, 2010] 44. The system of “Memorandum of
Understandings” (MoU) was introduced in–
35. The process of organizing business-pact between (a) 1989-90 (b) 1990-91
group of countries is called as – (c) 1987-88 (d) 1988-89
(a) Trading Block (b) Trade venture Ans. (c )[SSC Multitasking Exam, 2013]
(c) Trade Partner (d) Trade organizer
Ans. (a) [S.S.C (CGL) Exam, 2010] 45. Oilseeds production Programme (OPP) was
started in–
36. Buying of shares and bonds of Indian companies (a) 1986 (b) 1989
by foreign institutions is called. (c) 1988 (d) 1990
(a) Foreign Direct Investment Ans. (a) [SSC CGL Exam, 2014]
(b) Portfolio Investment
(c) Institutional Investment 46. Private investment is otherwise called as–
(d) Foreign Indirect Investment (a) Autonomous investment
Ans. (b) [SSC CGL Exam, 2011] (b) Foreign institutional investment
(c) Foreign direct investment
37. India’s Balance of Payments can be corrected (d) Induced investment
through– Ans. (d) [SSC CGL April Exam, 2014]
(a) Devaluation of currency
(b) Vigorous export promotion 47. The profits of Indian-banks operating in foreign
(c) Import substitution countries are a part of–
(d) All of the above (a) Income from entrepreneurship earned from abroad
Ans. (d) [SSC (10+2) Exam, 2011] (b) Domestic factor income of India
(c) Profits of the enterprises working in domestic
38. When there is an official change in the exchange territory of India
rate of domestic currency, then it is called– (d) Operating surplus of the banks located in India
(a) Appreciation (b) Depreciation Ans. (a) [SSC (10+2) Nov. Exam, 2014]
(c) Revaluation (d) Deflation
Ans. (c) [SSC CGL Exam, 2011] 48. The ‘3 B’s’ brokers, bankers and businessmen
were responsible for–
39. Special Economic Zone (SEZ) concept was first (a) The Great Depression
introduced in– (b) Russian Revolution
(a) China (b) Japan (c) French Revolution
(c) India (d) Pakistan (d) First World War
Ans. (a) [SSC Stenographer Exam, 2011] Ans. (a) [SSC Stenographer Sep. Exam, 2014]

40. A favourable Balance of Trade of a country 49. “Price Index” is measured by change in which of
implies that– the following-
(a) Import are greater than exports (a) Living Standard (b) Purchasing power of
(b) Exports are greater than imports money
(c) Both imports and exports are equal (c) Balance of Payment (d) Balance of Trade
(d) Rising imports and falling exports Ans. (b) [S.S.C Steno Exam, 2015]
Ans. (b) [SSC FCI Exam, 2012]
50. "Barter – System" means–
41. The Number of stages in trade cycle is? (a) Exchange of goods with coins
(a) Five (b) Six (b) Exchange of goods with goods
(c) Three (d) Four (c) Money exchange
Ans. (d) [SSC Steno Exam, 2012] (d) Exchange of goods with gold coins
Ans. (b) [SSC 10+2 Exam,2015]
42. The Great Depression was observed in which
duration? 51. Which is the feature of “Free Market”–
(a) 1914-18 (a) Strong intervention of state
(b) 1929-34 (b) Superiority of Consumer
(c) 1939-45 (c) Rationing and price control
(d) 1922-36 (d) None of the above
Ans. (b) [S.S.C Multitasking Exam, 2013] Ans. (b) [SSC CGL Exam, 2015]

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 Under The Guidance of Arun Arora Sir

52. For any product, balance of market is decided 53. Balance of Trade is the difference between
by– (a) Country’s Income and Exemse
(a) Market supply of product. (b) Country’s Exports and Imports
(b) Various forces operating between demand and (c) Country’s tax Revenues and Expense
supply. (d) Country’s capital inflow and outflow
(c) Intervention of government. Ans. (b) (SSC CHSL-2016)
(d) Market demand of product
Ans. (b) [SSC CPO Exam, 2015]

POVERTY & UNEMPLOYMENT

1. Structural unemployment arises due to 9. Poverty in less developed countries is largely due
(a) Deflationary conditions to–
(b) Heavy industry bais (a) Voluntary idleness
(c) Shortage of raw materials (b) Income inequality
(d) Inadequate productive capacity (c) Lack of cultural activities
Ans. (b) [SSC CGL.2000] (d) Lack of intelligence of the people
Ans. (b) [SSC CISF Exam, 2010]
2. The Standard of living in a country is
represented by its: 10. Disguised unemployment means–
(A) Poverty ratio (a) Willing to work and not getting the work
(B) Per capita income (b) Not getting work on all days throughout the year
(C) National income
(c) Insufficiency of capital structure to absorb the large
(D) Unemployment Rate labour force
Ans. (b) [SSC CGL.2001]
(d) More people working, than required
Ans. (d) [SSC Stenographer Sep. Exam, 2014]
3. Disguised employment refers to
(a) persons with no job
(b) unemployment among housewives 11. The Phillip’s curve is the schedule showing the
relationship between–
(c) unemployment among people above 65 years of age
(a) Aggregate supply and demand
(d) employment of more persons in a job which lesser
number of persons can accomplish. (b) Total saving and investment
Ans. (d) [SSC CGL.2004] (c) The rate of unemployment and rate of inflation
(d) Demand for and supply of loanable funds
4. when was jawahar Rojgar Yojana launched? Ans. (c) [SSC CGL July Exam, 2014]
(a) 1985 (b) 1987
(c) 1989 (d) 1991 12. Unemployment that when there is a general
Ans. (c) [SSC Sec Off. 2008] downturn in business is known as
(a) Structural Unemployment
5. A situation where we have people whose level of (b) Frictional Unemployment
income is not sufficient to meet the minimum (c) Cyclical Unemployment
consumption expenditure is considered as– (d) Disguised Unemployment
(a) Absolute poverty (b) Relative poverty Ans. (c) (SSC CHSL-2016)
(c) Urban poverty (d) Rural poverty
Ans. (a) [SSC Tax Asst. Exam, 2009] 13. The unemployment created at certain times of the
year, when the demand for goods and services are
6. Nature of unemployment in agriculture in India is: lower than normal, is __________
(a) Seasonal (b) Disguised (a) Cyclical unemployment
(c) both 'a' and 'b' (d) None of these (b) Frictional unemployment
Ans. (c) [SSC Tax Asst. 2009] (c) Seasonal unemployment
(d) Structural unemployment
7. Which one of the following types of unemployment is Ans. (c) (SSC CHSL-2016)
common in Indian agriculture?
(a) Seasonal (b) Disguised
14. Full employment is the level at which there is
(c) Frictional (d) structural
_______
Ans. (a) [SSC Tax Asst. 2009]
(a) no frictional unemployment
(b) no cyclical unemployment
8. The implementation of Jawahar Rojgar Yojna rests
with: (c) no structural unemployment
(a) Gram Panchayat (b) District collector (d) no unemployment
(c) State Government (d) Union Government Ans. (b) (SSC CHSL-2016)
Ans. (a) [SSC DEO 2009]

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15. Unemployment resulting from industrial (b) is set at a price below the equilibrium wage
reorganization, typically due to technological (c) creates a price ceiling below which the wage cannot
change, rather than fluctuations in supply legally go
demand is called (d) decreases unemployment
(a) Structural unemployment Ans. (a) (SSC CHSL-2016)
(b) Frictional unemployment
(c) Seasonal unemployment 17.Disguised unemployment in India is mainly related to
(d) Cyclical unemployment (a) Agricultural sector
Ans. (a) (SSC CHSL-2016) (b) Rural Area
(c) Factory sector
16. A minimum wage _________ (d) Urban Area
(a) is the price floor below which workers may not sell Ans. (a) [SSC CGL 2016 ]
their labor

AGRICULTURE

1. What is‘AGMARK’ ? 5. In which matter green revolution has achieved

(a) It is a marketing seal issued on the agricultural minimum success.
commodity. (a) Sugarcane (b) Pulses
(b) It stands for agricultural marketing. (c) Wheat (d) Rice
(c) It represents agricultural management and regulation Ans. (c) (S.S.C CPO Exam, 2006)
(d) None of the above
Ans. (b) [SSC Matric level Exam, 2002] 6. Which type of product does CACP recommend
minimum support price for?
2. Commercialisation of agriculture implies (a) Industrial Products (b) Agricultural products
(a) Cultivation of timbers (c) Pharmaceutics Products (d) None of the above
(b) Plantation Ans. (b) [SSC 10+2 Exam,2010
(c) Production of crops for sale
(d) Production of crops like wheat or rice 7. The food stocks that are built up during the years of
Ans. (c) [SSC Matric Level Exam, 2002) bumper harvest are called
3. Malthusian theory of population explored the (a) Capital stock (b) Buffer stock
relationship between (c) Production stock (d) Grain stock
(a) Food supply and technology Ans. (b) (SSC CGL Exam, 2011, CPO Exam, 2010)
(b) Food supply and population growth
(c) Population growth and Development 8. Golden Revolution is related with -
(d) Optimum growth and resources (a) Rearing oflagoons (b) Agricultureof flowers
Ans. (b) [SSCCGL Exam, 2002] (c) Beekeeping (d) Grapes production
Ans. (b) (S.S.C CPO Exam, 2011)
4. Kisaan Credit Card Scheme was introduced in- 9. What percentage of India's population is
(a) 1991 employed in agriculture?
(b) 1996 (a) 85 % (b) 70%"
(c) 1998 (c) 55% (d) 40%
(d) 2000 Ans. (b) (SSC CHSL-2016)
Ans. (c) (SSC CPO Exam, 2004)

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Micro Economics

MARKET

1. Say’s Law of market holds that– 9. Monopoly means–

(a) Supply is not equal to demand (a) Single buyer (b) Many sellers
(b) Supply creates its own demand (c) Single seller (d) Many buyers
(c) Demand creates its own supply Ans. (c) [SSC MTS Exam, 2006]
(d) Supply is greater than demand
Ans. (b) [SSC SO Exam, 2001] 10. The New firms are not allowed in market with.
(a) Perfect competition
2. Same price prevails throughout the market (b) Oligopoly
under– (c) Monopolic competition
(a) Perfect Competition (d) Monopoly.
(b) Monopoly Ans. (d) [S.S.C (CGL) Exam, 2006]
(c) Monopolistic Competition
(d) Oligopoly 11. Perfect competition means–
Ans. (a) [SSC MTS Exam, 2002] (a) large number of buyers and less sellers
(b) large number of buyers and sellers
3. Different firms constituting the industry, produce (c) large number of sellers and less buyers
homogeneous goods under– (d) None of the above
(a) Monopoly (b) Monopolistic Competition Ans. (b) [SSC CGL Exam, 2007]
(c) Oligopoly (d) Perfect Competition
Ans. (d) [SSC MTS Exam, 2002] 12. Which of the following is an Example of
Monopoly-
4. A situation of large number of firms producing (a) Spic (b) Indian railway
similar goods is termed as– (c) H.M.T. (d) Hindustan Unilever Ltd.
(a) Perfect competition Ans. (b) [SSC Tax Asst. Exam, 2008]
(b) Monopolistic competition
(c) Pure competition 13. Under Perfect Competition who is Price Taker.
(d) Oligopoly (a) Buyer (b) Business
Ans. (a) [SSC MTS Exam, 2002] (c) Government (d) Firm.
Ans. (d) [SSC CPO Exam, 2008]
5. Under Perfect Competition–
(a) Marginal Revenue is less than the Average Revenue 14. The marginal revenue of monopolist is –
(b) Average Revenue is less than the Marginal Revenue (a) More than price (b) Equal to price
(c) Average Revenue is equal to the Marginal Revenue (c) Less than price (d) Less than marginal cost
(d) Average Revenue is more than the Marginal Ans. (c)[SSC 10+2 Exam,2010]
Revenue
Ans. (c) [SSC MTS Exam, 2002] 15. The most distinguishing feature of oligopoly is–
(a) Number of firms
6. A specular who enters into a purchase transaction (b) Interdependence
with a view to sell in the near future when the (c) Negligible influence on price
price would have risen is called a–
(d) Price leadership
(a) Bear (b) Bull
Ans. (b) [SSC Investigator Exam, 2010]
(c) Bison (d) Boar
Ans. (b) [SSC MTS Exam, 2002]
16. Under which market condition do firms have
excess capacity?
7. One of the essential conditions of monopolistic (a) Perfect competition
competition is–
(b) Monopolistic competition
(a) Many buyers but one seller
(c) Duopoly
(b) Price discrimination
(d) Oligopoly
(c) Product differentiation
Ans. (b) [SSC CGL Exam, 2010]
(d) Homogeneous product
Ans. (c) [SSC Tax Asst. Exam, 2005]
17. The situation in which total revenues equals total,
cost is known as–
8. Who propounded the market law? (a) Monopolistic competition
(a) Adam Smith (b) JB Say (b) Equilibrium level of output
(c) TR Malthus (d) David Recardo (c) Break even point
Ans. (b) [SSC MTS Exam, 2006] (d) Perfect competition
Ans. (c) [SSC (10+2) Exam, 2010]

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18. “Exchange of Commodities” between two 27. Perfect Market situation will be situated when-
countries means. (a) When firms are independent
(a) Trade surplus (b) Bilateral trade (b) When large number of buyers & sellers are present
(c) Trade result (d) Multi lateral trade (c) When large number of sellers & less number of
Ans. (b) [S.S.C CGL Exam, 2010] payers are there
(d) When less number of buyer are there.
19. The Theory of “Monopolistic Competition” was Ans. (b) [S.S.C Steno Exam, 2014]
given by–
(a) John Robinson (b) Edward Chamberlin 28. Which market forms allow free entry and exit of
(c) John Bates Clarke (d) Joseph Schumpeter firms?
Ans. (b) [SSC 10+2 Exam, 2010] (a) Perfect and Monopolistic
(b) Perfect and Oligopoly
20. In which market structure is the demand curve of
(c) Oligopoly and Monopoly
the market represented by the demand curve of
(d) Monopoly and Monopolistic
the firm?
(a) Monopoly Ans. (b) [SSC Stenographer Sep. Exam, 2014]
(b) Oligopoly
(c) Duopoly 29. Which is the best for any firm?
(d) Perfect Competition (a) Increase in profit
Ans. (a) [SSC (10+2) 2011] (b) Decrease in selling
(c) Market monopoly
21. Tooth paste is a product sold under– (d) Decrease in production
(a) Monopolistic Competition Ans. (a) [S.S.C (CPO) Exam, 2015]
(b) Perfect Competition
(c) Monopoly 30. ‘Hewala’ is–
(d) Duopoly (a) Complete description of a subject
Ans. (a) [SSC FCI Exam, 2012] (b) Illegal trade of foreign currency
(c) Tax reform
22. Kinked demand curve is a feature of– (d) Illegal trade of shares
(a) Monopoly (b) Oligopoly Ans. (b) [SSC 10+2 Exam, 2015
(c) Monophony (d) Duopoly
Ans. (b) [SSC (10+2) Exam, 2012] 31. In perfect competition __________
(a) Products can be similar or different
23. The Selling cost is not included under– (b) Producer can control price by controlling production
(a) Oligopoly
(c) Demand curve is perfectly elastic
(b) Duopoly
(d) All firms make economic profit in the long run
(c) Perfect Competition
Ans. (c) (SSC CHSL-2016)
(d) Monopolistic Competition
Ans. (c) [SSC CPO Exam, 2012]
32.Selling cost have to be incurred in case of
24. The Full form of FCCB is– (a) Perfect competition
(a) Foreign Currency Convertible bonds (b) Monopoly
(b) Foreign countries Convertible bonds (c) Monopolistic Competition
(c) Foreign Companies convertible bond (d) None of the given
(d) None of the above Ans. (c)
Ans. (a) [SSC CPO Exam, 2012] 33.Bilateral monopoly situation is
(a) When there are only two sellers of a product
25. Bilateral Monopoly refers to the market situation (b) When there are only two buyers of a product
of– (c) When there is only one buyer and one seller of a
(a) Two sellers, Two buyers product
(b) One seller, Two buyers (d) When there are two buyers and two sellers of a
(c) Two sellers, One buyer product
(d) One seller, One buyer. Ans. (c) [SSC CGL 2016 ]
Ans. (d) [S.S.C (CGL) Exam, 2013]
34.In which of the following market forms, a firm does
26. The Extreme forms of market are- not exercise control over price?
(a) Perfect Competition, Monopolistic Competition (a) Monopoly
(b) Perfect Competition, Oligopoly (b) Perfect competition
(c) Oligopoly, Monopoly (c) Oligopoly
(d) Perfect Competition, Monopoly. (d) Monopolistic competition
Ans. (d) [S.S.C (10+2) Exam, 2013] Ans. (b) [SSC CGL 2016 ]

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PRODUCTION & COST

1. The four factors of production are– 9. Capital Output Ratio of a measures–

(a) Land, Labour, Capital, Entrepreneurship (a) Its per unit cost of production
(b) Land, Electricity, Water, Labour (b) The amount of capital invested per unit of output
(c) Labour, Capital, Land, Rainfall (c) The ratio of capital depreciation to quantity of output
(d) Labour, Climate, Land, Tools (d) the ratio of working capital employed to quantity of
Ans. (a) [SSC MTS Exam, 2001] output
Ans. (b) [SSC CGL Exam, 2007]
2. ‘Marginal efficient of capital’ is–
(a) Expected rate of return on new investment 10. Which among of the following is necessary for
demand.
(b) Expected rate of return of existing investment
(a) Production (b) Cost
(c) Difference between rate of profit and rate of interest
(c) Income (d) Import
(d) Value of output per unit of capital invested
Ans (c) [SSC Metric Level Exam, 2008]
Ans. (a) [SSC SO Exam, 2001]
11. The excess of the price, person is to pay rather
3. It is prudent to determine the size of the output when than forego the consumption of the commodity is
the industry is operation in the stage of– called.
(a) Increasing returns (a) Price (b) Profit
(b) Constant returns (c) Producer’s surplus (d) Consumer’s surplus
(c) Diminishing returns Ans. (c) [SSC CGL Exam, 2010]
(d) Negative returns
Ans. (c) [SSC MTS Exam, 2002] 12. The Production function marks relation between.
(a) Cost and production
4. In a business, raw materials, components, work-in- (b) Cost and internal input
progress and finished goods are jointly regarded (c) Internal input and production
as– (d) Wages and profit
(a) Capital stock (b) Inventory Ans. (c)[SSC 10+2 Exam,2010]
(c) Investment (d) Net worth
Ans. (b) [SSC Tax Asst. Exam, 2005] 13. The ‘break-even’ point is where–
(a) Marginal revenue equals marginal cost
5. Production function means– (b) Average revenue equals average cost
(a) Relation between land & rent. (c) Total revenue equals total cost
(b) Relation between initial input & ultimate output (d) None of the above
(c) Relation between demand & supply Ans. (c) [SSC (10+2) Exam, 2011]
(d) Relation between output and export
Ans. (b) [SSC LDC Exam, 2005] 14. Third situation of law of variable proportion is–
(a) Negative return (b) Positive return
(c) Proportional return (d) None of these
6. The concept that under a system of free enterprise, it
Ans. (a) [SSC 10+2 Exam,2013]
is consumers who decide what goods and services
shall be produced and in what quantities is
known as– 15. Which among of the following is a factor of
production.
(a) Consumer protection
(a) Coal (b) Entrepreneur
(b) Consumer’s decision (c) Consumer preference
(c) Energy (d) Industry
(d) Consumer’s sovereignty
Ans (b) [SSC Multitasking Exam, 2014]
Ans. (d) [SSC SO Exam, 2006]
16. If the decreasing rate of interest increase in
7. When the total product rises at an increasing marginal internal return, then total internal
rate, then the– return.
(a) Marginal product is zero (a) Increases (b) Decreases
(b) Marginal product is rising (c) Remains constant (d) Becomes zero
(c) Marginal product is falling Ans. (a) [SSC CGL Exam, 2014]
(d) Marginal product remains constant
Ans. (b) [SSC Tax asst. Exam, 2007] 17. Which is the most important factor that
determines whether advertising by
8. Economies of Scale means reduction in– manufacturing sector will lead to higher sales?
(a) Unit cost of production (a) Demand is elastic
(b) Unit cost of distribution (c) Total cost of (b) Demand is inelastic
production (c) The product can be differentiated
(d) Total cost of distribution (d) The product can be homogenous.
Ans. (a) [SSC Tax Asst. Exam, 2007] Ans. (c)

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18. Fixed cost is known as–

(a) Special cost (b) Direct cost 28. What is selling cost?
(c) Prime cost (d) Overhead cost (a) Cost incurred on transportation of commodities to
Ans. (d) [SSC MTS Exam, 2000] market
(b) Cost incurred on promoting the sale of the product
19 Which of the following are not fixed costs? (c) Cost incurred on commission and salaries personnel
(a) Rent on land (d) Cost incurred on advertisement
(b) Municipal taxes Ans. (b) [SSC MTS Exam, 2006]
(c) Wages paid to workers
(d) Insurance charges 29. Marginal cost is the–
Ans. (d) [SSC MTS Exam, 2001] (a) cost of producing a unit of output
(b) cost of producing an extra unit of output
20. Total fixed cost curve is–
(c) cost of producing the total output
(a) Vertical (b) Horizontal
(d) cost of producing a given level of output
(c) Positively sloping (d) Negatively sloping
Ans. (b) [SSC MTS Exam, 2006]
Ans. (b) [SSC MTS Exam, 2002]

21. Transfer earning or alternative cost is otherwise 30. “Extra cost” are those cost-
known as– (a) Which are taken to give wages
(a) Variable cost (b) Which are taken to Lucy raw material
(b) Implicit cost (c) Which are taken for transportation
(c) Explicit cost (d) Which are taken to Lucy machinery to fill
(d) Opportunity cost (Economic cost) depreciation
Ans. (d) [SSC SO Exam, 2003] Ans. (d) [S.S.C Matric level Exam, 2006]

22. Economic rent refers to– 31. When Average Cost Production (ACP) falls,
(a) Payment made for the use of labour marginal cost of production must be–
(b) Payment made for the use of capital (a) Rising
(c) Payment made for the use of organisation (b) Falling
(d) Payment made for the use of land (c) Greater than the average cost
Ans. (d) [SSC CPO Exam, 2003] (d) Less than the average cost
Ans. (d) [SSC Tax Asst. Exam, 2008]
23. The fixed cost on such factors of production
which are neither hired nor brought by the firm 32. Surplus earned by a factor other than land in the
is called– short period is referred to as–
(a) Social cost (b) Opportunity cost (a) Economic rent (b) Net rent
(c) Economic cost (d) Surcharged cost (c) Quasi-rent (d) Super-normal rent
Ans. (a) [SSC SO Exam, 2005] Ans. (c) [SSC CPO Exam, 2009]
24. Prime cost is equal to–
33. Opportunity cost of production of a commodity
(a) variable cost plus administrative cost is–
(b) variable cost plus fixed costs
(a) The cost that the firm could have incurred when a
(c) variable cost only different technique was adopted
(d) fixed cost only
(b) The cost that the firm could have incurred under a
Ans. (a) [SSC SO Exam, 2006] different method of production
(c) The actual cost incurred
25. An expenditure that has been made and cannot
(d) The next best alternative output
be recovered is called–
Ans. (d) [SSC CPO Exam, 2009]
(a) Variable cost (b) Opportunity cost
(c) Sunk cost (d) Operational cost
Ans. (c) [SSC SO Exam, 2006] 34. Under perfect competition, the industry does not
have any excess capacity because each firm
produces at the minimum point on its–
26. A firm is in equilibrium when its–
(a) marginal cost equals the marginal revenue (a) long-run marginal cost curve
(b) total cost is minimum (b) long-run average cost curve
(c) total revenue is maximum (c) long-run average variable cost curve
(d) average revenue and marginal revenue are equal (d) long-run average revenue curve
Ans. (a) [SSC Tax Asst. Exam, 2006] Ans. (b) [SSC (10+2) Exam, 2010]
27. Given the money wages, if the price level in an
economy increases, then the real wages will–
(a) Increase 35. Payment given to others by firms for using their
(b) Decrease goods and services are called.
(c) Remain constant (a) Actual cost (b) Economic cost
(d) Become flexible (c) Explicit cost (d) Implicit cost
Ans. (b) [SSC Tax Asst. Exam, 2006] Ans. (c) [S.S.C Steno Exam, 2011]

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36. Cost of production of the producer is given by– 43. For production minimum payment is called.
(a) Sum of wages paid to labourers (a) Rent (b) Implicit cost
(b) Sum of wages and interest paid on capital (c) Wages (d) Implicit cost
(c) Sum of wages, interest, rent and supernormal profit Ans. (a) [SSC Multitasking Exam, 2014]
(d) Sum of wages, interest, rent and normal profit
Ans. (d) [SSC (10+2) Exam, 2011] 44. In the long-run the fixed costs become–
(a) Money costs (b) Real costs
37. The additional to total cost by producing an (c) Opportunity costs (d) Variable costs
additional unit of output by a firm is called. Ans. (d) [SSC CGL July Exam, 2014]
(a) Average cost (b) Marginal Cost
(c) Total Cost (d) Variable Cost
45. A firm practicing price discrimination will be–
Ans (b) [SSC 10+2 Exam, 2012]
(a) charging different prices for different qualities of a
product
38. The expenses on advertising is called–
(b) buying in the cheapest and selling in the dearest
(a) Implicit cost (b) Surplus cost
markets
(c) Fixed cost (d) Selling cost
(c) charging different prices in different markets for a
Ans. (d) [SSC Constable (6D) Exam, 2012]
product
(d) buying only from firms selling in bulk at a distance
39. Which of the following cost curve is never ‘U’
shaped? Ans. (c) [SSC CGL July Exam, 2014]
(a) Marginal cost curve
(b) Average variable cost curve 46. Minimum payment of factor of production is
(c) Average fixed cost curve called–
(d) Average cost curve (a) Quasi Rent (b) Rent
Ans. (c) [SSC (10+2) Exam, 2012] (c) Wages (d) Transfer Payment
Ans. (c) [SSC CGL April Exam, 2014]
40. Explicit + Implicit cost =
(a) Economic cost (b) Social cost 47. Quasi rent is a ..... phenomenon.
(c) Personal cost (d) Accounting cost (a) Medium (b) Long-term
Ans. (a)[SSC Steno Exam, 2012] (c) Short-term (d) No time
Ans. (c) [SSC CGL April Exam, 2014]
41. Marginal Cost equals–
(a) total cost divided by quantity 48. Which cost has relation with lowest cost?
(b) the change in total cost divided by the change in (a) Sunk cost (b) Opportunity cost
quantity (c) Variable cost (d) Fined cost
(c) total cost minus total benefit for the last unit Ans. (c) [S.S.C (CGL) Exam, 2015]
produced
(d) total cost divided by total benefit for the last unit 49. For any product, there will be increment in balanced
produced cost when.
Ans. (b) [SSC (10+2) Exam, 2013]
(a) Demand is less than supply
(b) There is increase is both demand and supply
42. The non-expenditure costs which arise when
(c) There is decrease in both demand and supply
producing firm itself and supplies contain factors
of production are. (d) There is decrease in supply and increase is demand
(a) Explicit Cost (b) Original Cost Ans. (d) [SSC CPO Exam, 2015]
(c) Implicit Cost (d) Replacement Cost
Ans. (c) [SSC 10+2 Exam, 2013]

DEMAND AND SUPPLY

1. The demand for which of the following commodity 3. When there is a change in demand leading to a shift
will not rise inspite of a fall in its price? of the demand curve to the right at the same
(a) Television (b) Refrigerator price as before, the quantity demanded will–
(c) Salt (d) Meat (a) Decrease (b) Increase
Ans. (c) [SSC MTS Exam, 2000] (c) Remain the same (d) Contract
Ans. (b) [SSC SO Exam, 2001]
2. If the price of Pepsi decreases relative to the price
4. Movement along the same demand curve is
of Coke and 7-Up, the demand for–
known as–
(a) Coke will decrease
(a) Extension and contraction of demand
(b) 7-Up will decrease (b) Increase and decrease of demand
(c) Coke and 7-Up will increase (c) Contraction of supply
(d) Coke and 7-Up will decrease (d) Increase of supply
Ans. (d) [SSC MTS Exam, 2000] Ans. (a) [SSC SO Exam, 2001]

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 Under The Guidance of Arun Arora Sir

5. The income elasticity of demand being greater than 14. Bread and butter, car and petrol are Examples of
one, the commodity must be– goods which have–
(a) A necessity (b) A luxury (a) Composite demand (b) Joint demand
(c) An inferior good (d) None of the above (c) Derived demand (d) Autonomous demand
Ans. (b) [SSC SO Exam, 2001] Ans. (b) [SSC MTS Exam, 2006]

6. If the change in demand for a commodity is at a 15. In the law of demand, the statement “Other
faster rate than change in the price of the things remain constant” means–
commodity, the demand is– (a) Income of consumer should not change
(a) Perfectly inelastic (b) Elastic (b) Price of other goods should not change
(c) Perfectly elastic (d) Inelastic (c) Taste of consumer should not change
Ans. (c) [SSC MTS Exam, 2001] (d) All of the above
Ans. (d) [SSC CPO Exam, 2006]
7. Demand of commodity mainly depends upon–
(a) Purchasing will 16. The functional relationship between income and
(b) Purchasing power consumption expenditure is-explained by–
(c) Tax policy (a) Consumer surplus
(d) Advertisement (b) Law of demand
Ans. (b) [SSC SO Exam, 2003] (c) Law of supply
(d) Keynes’s psychological law of consumption
8. According to Keynesian theory of income Ans. (d) [SSC MTS Exam, 2006]
determination, at full employment a fall in
aggregate demand causes–
17. Discuss about giffen and inferior good.
(a) A fall in prices of output and resources
(a) Inferior goods are also giffen
(b) A fail in real gross National product and
employment (b) Giffen goods are also inferior goods
(c) A rise in real gross National product and investment (c) Inferior good should not be giffen
(d) A rise in prices of output and resources (d) Giffen good should not be inferior.
Ans. (a) [SSC CPO Exam, 2004] Ans. (b) [S.S.C Matric level Exam, 2006]

9. Equilibrium price means– 18. There will be increase in price of tomato in

(a) Price determined by Demand and Supply domestic market, if.
(b) Price determined by Cost and Profit (a) There is enormous production of tomato
(c) Price determined by Cost and Production (b) Export of fresh tomatoes to other countries
(d) Caprice determined to maximise profit (c) Production cost of tomato is less
Ans. (a) [SSC CPO Exam, 2004] (d) All of the above
Ans. (b) [SSC Metric level Exam, 2006]
10. The Price discrimination is helpful when.
(a) Demand elasticity for two market is different 19. The demand curve for a Giffen good is–
(b) Demand elasticity for two market is same (a) Upward rising
(c) Supply elasticity for two market is different (b) Downward falling
(d) Supply elasticity for two market is same. (c) Parallel to the quantity axis
Ans. (a) [S.S.C (LDC) Exam, 2005] (d) Parallel to the price axis
Ans. (a) [SSC CGL Exam, 2007]
11. If there is decrease in price of X, then demand of
Y is also decreased, then X & Y are. 20. Imputed gross rent of owner occupied buildings
(a) Substitute goods is a part of–
(b) Complementary goods (a) Capital formation
(c) X is inferior to Y (b) Final consumption
(d) Y is inferior to X (c) Intermediate consumption
Ans. (b) [SSC LDC Exam, 2005] (d) Consumer durable
12. If the price of tea falls, demand for coffee will– Ans. (b) [SSC Tax Asst. Exam, 2007]
(a) Increase (b) Decrease
(c) Remain same (d) None of these 21. The supply of agricultural products is generally–
Ans. (b) [SSC SO Exam, 2006] (a) Elastic (b) Inelastic
(c) Perfectly elastic (d) Perfectly inelastic
13. If the main objective of the government is to raise Ans. (b) [SSC Tax Asst. Exam, 2007]
revenue, it should tax commodities with–
(a) High elasticity of demand 22. All of the goods which are scarce and limited in
(b) Low elasticity of supply supply are called–
(c) Low elasticity of demand (a) Luxury goods (b) Expensive goods
(d) High income elasticity of demand (c) Capital goods (d) Economic goods
Ans. (c) [SSC MTS Exam, 2006] Ans. (d) [SSC SO Exam, 2007]

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 Under The Guidance of Arun Arora Sir

23. Engel’s Law states the relationship between– 32. An exceptional demand curve is one that moves–
(a) Quantity demanded and price of a commodity (a) Upward to the right (b) Downward to the right
(b) Quantity demanded and price of substitutes (c) Horizontally (d) Vertically
(c) Quantity demanded and tastes of the consumers Ans. (a) [SSC Tax Asst. Exam, 2009]
(d) Quantity demanded and income of the consumers
Ans. (d) [SSC CGL Exam, 2007] 33. A horizontal demand curve is–
(a) Relatively elastic (b) Perfectly inelastic
24. A refrigerator operating in a chemist’s shop is an (c) Perfectly elastic (d) Of unitary elasticity
Example of– Ans. (c) [SSC (10+2) Exam, 2010]
(a) Free good (b) Final good
(c) Producer’s good (d) Consumer’s good 34. Demand curve of a firm under perfect
Ans. (b) [SSC CPO Exam, 2008] competition is–
(a) Horizontal to x-axis
25. When there is no change in demand, with large (b) Negatively sloped
change in price then such type of demands are (c) Positively sloped
called. (d) U-shaped
(a) Elastic (b) Inelastic Ans. (a) [SSC (10+2) Exam, 2010]
(c) Perfectly inelastic (d) Relatively elastic
Ans. (c) [S.S.C Matric level Exam, 2008] 35. A 'want' becomes a demand only when it is
backed by the–
26. For Successful Price discrimination between two (a) Ability to purchase (b) Ncessity to buy
market, demand elasticity of production should (c) Desire to buy (d) Utility of the product
be. Ans. (d) [SSC CGL Exam, 2010]
(a) Same
(b) Different 36. Under increasing returns the supply curve is–
(c) Constant (a) Positively sloped from left to right
(d) Zero (b) Negatively sloped from left to right
Ans. (b) [SSC Tax Asst. Exam, 2008] (c) Parallel to the quantity-axis
(d) Parallel to the price-axis
27. Extension or contraction of quantity demanded of Ans. (a) [SSC (10+2) Exam, 2010]
a commodity is a result of a change in the–
(a) Unit price of the commodity 37. When the price of a commodity falls–
(b) Income of the consumer (a) The supply of it to increase
(c) Taste of the consumer (b) The demand for it to fall
(d) Climate of the region (c) The demand for it to stay constant
Ans. (a) [SSC Tax Asst. Exam, 2008] (d) The demand for it to increase
Ans. (a) [SSC SAS Exam, 2010]
28. A fall in demand or rise in supply of a
commodity–
38. The Consumption of inferior goods decreases
(a) increases the price of that commodity when-
(b) decreases the price of that commodity (a) Market Price increases
(c) neutralises the changes in the price (b) Income increases
(d) determines the price elasticity (c) Market Price decreases
Ans. (b) [SSC DEO Exam, 2008] (d) Income decreases
Ans. (b) [S.S.C LDC Exam, 2011]
29. Supply creates its own demand. This statement is 39. Which one of the following is having elastic
related to– demand?
(a) Professor JB Say (b) John Robinson (a) Electricity (b) Medicines
(c) Adam Smith (d) JS Mill (c) Rice (d) Match boxes
Ans. (a) [SSC Tax Asst. Exam, 2008] Ans. (c) [SSC (10+2) Exam, 2011]

30. Cross elasticity of demand between petrol and 40. Which of the following is not the direct deciding
car is– factor of demand.
(a) Infinite (b) Positive (a) Saving (b) Income
(c) Zero (d) Negative (c) Price (d) Taste
Ans. (d) [SSC Tax Asst. Exam, 2008] Ans. (a)[SSC 10+2 Exam,2012]

31. If two commodities are complements, then their 41. Which of the following is an Example of derived
cross- price elasticity is– demand.
(a) Zero (b) Positive (a) Rice (b) Cloths
(c) Negative (d) Imaginary number (c) Beauty Products (d) Cement
Ans. (c) [SSC CPO Exam, 2009] Ans. (d) [SSC CPO Exam, 2012]

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42. Demand for complementary goods is known as– 51. Demand of Labour is called–
(a) Joint demand (b) Derived demand (a) Derived demand
(c) Direct demand (d) Cross demand (b) Factory demand
Ans. (a) [SSC (10+2) 2012] (c) Market demand
(d) Direct demand
43. In a capitalistic economy the prices are Ans. (a)[SSC CGL Exam, 2013]
determined by–
(a) Demand and supply 52. Goods which are meant either for consumption
(b) Government authorities or for investment are called–
(c) Buyers in the market (a) Inferior goods
(d) Sellers in the market (b) Intermediate goods
Ans. (a) [SSC FCI Exam, 2012] (c) Final goods
(d) Giffen goods
44. Consumer’s surplus is the highest in the case of– Ans. (c) [SSC (10+2) Exam, 2013]
(a) Durable goods
(b) Luxuries 53. Which one of the following is an Example of joint
(c) Comforts supply?
(d) Necessities (a) Petrol and Bus (b) Ink and Fountain pen
Ans. (c) [SSC (10+2) Exam, 2012] (c) Sugar and Coffee (d) Wool and Cotton
Ans. (b) [SSC Stenographer Sep. Exam, 2014]
45. Law of demand implies that when there is excess
demand for a commodity, then– 54. With other factor Constant, the demand of any
(a) Price of the commodity falls product is decreased by.
(b) Price of the commodity remains same (a) Increase in price of that product
(c) Price of the commodity rises (b) Increase in income of customer
(d) Quantity demanded of the commodity falls (c) Decrease in price of that product
Ans. (c) [SSC (10+2) Exam, 2012] (d) Decrease in income of customer
Ans. (a)[SSC. 10+2 Exam,2014]
46. In capitalist economy, price value is determined
by. 55. Which of the following are consumer semi-
(a) Demand & Supply (b) Government durable goods?
(c) Buyers (d) Sellers (a) Cars and Television sets
Ans. (a) [S.S.C (FCI) Exam, 2012] (b) Milk and Milk products
(c) Foodgrains and other food products
47. For a goods --------negative income elasticity and (d) Electrical appliance like fans and electric irons
positive price elasticity of demand, then the good Ans. (c) [SSC (10+2) Nov. Exam, 2014]
is-
(a) An inferior goods (b) Normal goods 56. Collective consumption means–
(c) Superior goods (d) Giffen goods (a) Household consumption
Ans. (d) [S.S.C (CGL) Exam, 2013] (b) Individual consumption (c) Self-consumption
48. The Goods which are either for consumption or for (d) Consumption by the citizens of the country
investment are called- Ans. (a) [SSC (10+2) Nov. Exam, 2014]
(a) Intermediate goods
(b) Final goods 57. Perfectly inelastic demand is equal to–
(c) Giffen goods (a) Unity
(d) Inferior goods (b) Zero
Ans. (b) [S.S.C (10+2) Exam, 2013] (c) Infinity
(d) Greater than unity
49. The Price elasticity of demand is – Ans. (b) [SSC 10+2 Exam, 2015]
(a) Elasticity = %change in demand ÷ %change in price
(b) Elasticity = %change in price ÷ %change in demand 58. The “Law of Market” propounded by J.B. Say
(c) Elasticity = %change in demand ÷ %change in was not acceptable to –
supply (a) Adam Smith (b) Marshall
(d) Elasticity = %change in supply ÷ %change in Price. (c) David Recordo (d) Malthus
Ans. (a) [S.S.C (10+2) Exam, 2013] Ans. (d) [SSC 10+2 Exam,2016]

50. Elasticity expressed by formula 1>e>o is – 59. The goods which people consume more when
(a) Perfectly elastic their price rises are called
(b) Relatively elastic (a) Essential goods (b) Capital goods
(c) Perfectly inelastic (c) Veblen goods (d) Giffen goods
(d) Relatively inelastic Ans. (d) (SSC CHSL-2016)
Ans. (d) [S.S.C Multitasking Exam, 2013]

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60. At the equilibrium Price 65. Which of the following will cause an increase in
(a) quantity demanded is equal to quantity supplied (b) the demand for coffee?
quantity demanded is greater than quantity supplied (a) Price of coffer falling in foreign markets
(c) elasticity of demand equals elasticity of supply (d) (b) Coffee prices are expected to fall rapidly in domestic
price elasticity of demand is unity markets
Ans. (a) (SSC CHSL-2016) (c) Average income falls in the country
(d) Increase in price of tea
61. The demand curve facing a perfectly competitive Ans. (d) (SSC CHSL-2016)
firm is
(a) downward sloping (b) perfectly inelastic 66. An increase in price will ____________
(c) a concave curve (d) perfectly elastic (a) increase consumer surplus
Ans. (a) (SSC CHSL-2016) (b) decrease consumer surplus
(c) have no affect on consumer surplus
62. A price floor is ______________ (d) decrease producer surplus
(a) a maximum legal Price(b)a minimum legal Price Ans. (b) (SSC CHSL-2016)
(c) the price where demand equals supply (d) the
price where elasticity of demand equals elasticity of 67. As increase in the price of tomatoes will
supply cause_________
Ans. (b) (SSC CHSL-2016) (a) an increase in the supply of tomatoes
(b) an decrease in the supply of tomatoes
63. ______________is a good whose quantity (c) an increase in the supply of tomato ketchup
demanded decreases when consumer income (d) an decrease in the supply of tomato ketchup
rises. Ans. (b) (SSC CHSL-2016)
(a) Veblen good (b) normal good
(c) exclusive good (d) inferior good 68. When the demand for a good increases with an
Ans. (d) (SSC CHSL-2016) increase in income, such a good is
called___________?
64. If goods A and Z are complements, an increase in (a) Superior good
the price of good Z will ____________. (b) Giffin good
(a) increase demand for good A (b) decrease (c) Inferior good
demand for good A (d) Normal good
(c) decrease demand for good Z (d) increase Ans. (a)
demand for good Z
Ans. (a) (SSC CHSL-2016)

UTILITY

1. Average revenue means– 4. The term utility means–

(a) The revenue per unit of commodity sold (a) usefulness of a commodity
(b) The revenue from all commodities sold (b) the satisfaction in which a commodity yields
(c) The profit realised from the marginal unit sold (c) the service which a commodity is capable of
(d) The profit realised by sale of all commodities rendering
Ans. (a) [SSC CPO Exam, 2003] (d) None of the above
Ans. (b) [SSC MTS Exam, 2011]
5. Micro economics deals with
2. When marginal utility is zero, the total utility is– (a) the circular flow of income
(a) Minimum (b) Increasing (b) the decision making of a single economic variable
(c) Maximum (d) Decreasing like demand
Ans. (c) [SSC CPO Exam, 2004] (c) understanding unemployment
(d) economic growth
3. In economics, ‘Utility’ and ‘Usefulness’ words Ans. (b) (SSC CHSL-2016)
has. 6. In economic equilibrium ____________
(a) Same meaning (a) supply is equal to the demand.
(b) Different meaning (b) the surplus is larger than the shortage.
(c) Opposite meaning (c) elasticity of demand equals elasticity of supply.
(d) None of the above (d) price elasticity of demand is unity
Ans. (b) [SSC Tax Asst. Exam, 2009] Ans. (a) (SSC CHSL-2016)

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MISCELLANEOUS

1. In the long-run equilibrium a competitive firm 9. ‘Golden Handshake Scheme’ is associated with–
earns. (a) Inviting foreign companies
(a) Super-normal profit (b) Private investment in public enterprises
(b) Profits equal to other firms (c) Establishing joint enterprises
(c) Normal profit (d) Voluntary retirement
(d) No profit Ans. (d) [SSC SO Exam, 2006]
Ans. (c) [SSC MTS Exam, 2000]
10. The capital of IMF is made up by the
2. According to the Classical System, saving is a contribution of–
function of– (a) Credit (b) Deficit Financing
(a) Income (b) the interest rate (c) Member Nations (d) Borrowings
(c) the real wage (d) the price level Ans. (c)[SSC CGL Exam, 2008]
Ans. (a) [SSC MTS Exam, 2000]
11. The Surplus earned by a factor other thus land in
the short period is referred as –
3. In which sector of the Indian economy is
(a) Economic Rent (b) Net Rent
productivity the highest?
(c) Quasi-Rent (d) Super-Normal Rent
(a) Manufacturing
Ans. (c)[SSC CPO Exam, 2009]
(b) Transport, Communication and Commerce
(c) Agriculture 12. The Views of eminent economist Robert Malthus
(d) Other sectors on Population is–
Ans. (a) [SSC Matric Level Exam, 2001] (a) Pessimistic (b) Optimistic
(c) Both (a) and (b) (d) None of the above
4. ISI mark is not given to which of the following Ans. (a)[SSC CPO Exam, 2009]
products?
(a) Electric Goods (b) Hosiery Goods 13. Price theory is also known as–
(c) Biscuits (d) Cloth (a) Macro Economics (b) Development Economics
Ans. (c) [SSC Matric Level Exam, 2002] (c) Public Economics (d) Micro Economics
Ans. (d) [SSC CGL Exam, 2010]
5. In equilibrium, a perfectly competitive firm will
equate– 14. Who defined investment as “The construction of a
(a) Marginal social cost with marginal social benefit new capital asset like machinery or factory
(b) Market supply with market demand building”?
(c) Marginal profit with marginal cost (a) Hansen (b) JM Keynes
(d) Marginal revenue with marginal cost (c) Harrod (d) JR Hicks
Ans. (d) [SSC CPO Exam, 2003] Ans. (b) [SSC Investigator Exam, 2010]

6. IMF was established to meet which of the 15. “Economics is what it ought to be” This statement
following objectives. refers to–
(i) Promoting International Monetary Cooperation (a) Normative Economics
(b) Positive Economics
(ii) Expending International Trade
(c) Monetary Economics
(iii) Lessening the inequlibrium in trade
(d) Fiscal Economics
(iv) Avoiding competitive exchange depreciations.
Ans. (a) [SSC CGL Exam, 2010]
(a) i,ii,iii (b) i, iii, iv
(c) ii, iv (d) i, ii, iii, iv
Ans. (b) [SSC CGL Exam, 2005] 16. Which one of the following categories of workers
is termed as cultivators?
7. Which of the following does not determine supply of (a) Those who own land and cultivate
labour? (b) Those who lease in land and cultivate
(a) Size and age-structure of population (c) Those who cultivate the land of others
(b) Nature of work (d) Those who own land and lease in from others or
(c) Marginal productivity of labour institutions and cultivate
(d) Work-leisure ratio Ans. (c) [SSC Stenographer Exam, 2010]
Ans. (c) [SSC SO Exam, 2006]
17. Which of the following is a part of tertiary
8. Which among of the following is not a positive sector?
sign for any industry. (a) Power and Transportation
(a) Decrease in profit (b) Labour instability (b) Animal Husbandry
(c) Decrease in market (d) Decrease in demand (c) Cotton Manufacturing
Ans. (a)[SSC CGL Exam, 2006] (d) Cultivation of Crops.
Ans. (a) [SSC Matric Level Exam, 2010]

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18. Consumption function expresses the relationship 29. Which among the following is not the investment
between consumption and– of goods & services?
(a) Savings (b) Income (a) Cost of machinery
(c) Investment (d) Price (b) Increase in cost of raw goods
Ans. (b) [SSC (10+2) Exam, 2011] (c) Increasing deparment of company
(d) Cost of buying house.
Ans. (c) [S.S.C (CGL) Exam, 2013]
19. Human development index was development by–
(a) Amartya Sen (b) Friedman
30. The Social Accounting system in India is classified
(c) Mahbub-ul-Haq (d) Montek Singh into–
Ans. (c) [SSC Stenographer Exam, 2011] (a) Assets, Liabilities and Debt Position
(b) Public sector, Private Sector and Joint Sector
20. Disinvestment in public sector is called– (c) Income, Product and Expenditure
(a) Liberalisation (b) Globalisation (d) Enterprise, Households and Government
(c) Industrialisation (d) Privatisation Ans. (c)[SSC CGL Exam, 2013]
Ans. (d) [SSC Stenographer Exam, 2011]
31. What will happen if labour productivity is
21. The best Example of capital intensive industry in increased?
India is- (a) Balanced cash wage will decrease
(b) Competitive firms will be forced to invest more
(a) Textile industry (b) Steel industry
(c) Labour demand curve will shift towards right
(c) Tourism industry (d) Spare goods industry.
(d) None of the above.
Ans. (b) [S.S.C (10+2) Exam, 2011] Ans. (c) [S.S.C (10+2) Exam, 2014]

22. Which of the following is related to South-South 32. According to whom second chamber is
debate? unnecessary & bad?
(a) Cooperation between developing countries (a) Monkahour (b) Bentham
(b) Defence Organisation (c) Seale (d) Loosky
(c) Sitting between developed & developing countries Ans. (b) [SSC CGL Exam, 2014]
(d) All of the above.
Ans. (a) [S.S.C (CGL) Exam, 2011] 33. The labour which creates value and gets
rewarded for its services is called–
23. Which among the following is not true about the (a) Both Skilled and Unskilled Labour
work of Human Resource and Development (b) Average Labour
(HRD)– (c) Productive Labour
(a) Caste – System (b) Youth and Sport (d) Unproductive Labour
(c) Education (d) Child Development Ans. (c) [SSC CGL April Exam, 2014]
Ans. (a)[SSC Steno Exam, 2012]
34. Non-insurable or uncertainty risk is–
24. The supply of labour in the economy depends on– (a) Change in fashion
(a) Population (b) National Income
(b) Fire
(c) Per Capita Income (d) Natural Resources
Ans. (a) [SSC Constable (GD) Exam, 2012] (c) Flood
(d) Change in the price of that commodity
25. Wage Fund Theory was propounded by– Ans. (c) [SSC CGL Aug. Exam, 2014]
(a) JB Say (b) JS Mill
(c) JR Hicks (d) JM Keynes 35. According to socialism who is the greatest enemy
Ans. (b) [SSC Constable (GD) Exam, 2012] of society.
(a) Personal Property (b) Capitalist Class
26. The main feature of a capitalist economy is– (c) Religion (d) Cost
(a) Administered Prices (b) Public Ownership Ans. (a) [S.S.C (CGL) Exam, 2015]
(c) Economic Planning (d) Private Ownership
Ans. (d) [SSC Constable (GD) Exam, 2012]

27. The Removal of prohibitions and hindrance by

government is called.
(a) Globalisation (b) Privatisation
(c) Liberalisation (d) Bilateral understanding.
Ans. (c) [S.S.C (FCI) Exam, 2012]

28. The Worldwide great depression happens in

which year-
(a) 1936 (b) 1929
(c) 1928 (d) 1930
Ans. (b) [S.S.C Multitasking Exam, 2013]

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