Economic Capsule Set 8

Economic Questions are very important for SSC CGL 2017. We are here with Economic Capsule set 8 comprising of 15 questions to improve your preparedness for the exam. The more you achieve in General Knowledge section better chances you will have to attain your desired post.

Q1. Who among the following is not a classical economist?
(a) David Ricardo
(b) John Stuart Mill
(c) Thomas Malthus
(d) John Maynard Keynes

Q2. When Average Cost Production (ACP) falls, marginal cost of production must be
(a) Rising
(b) Falling
(c) Greater than the average cost
(d) Less than the average cost

Q3. The Law of Demand expresses
(a) Effect of change in price of a commodity on its demand
(b) Effect of change in demand of a commodity on its price
(c) Effect of change in demand of a commodity over the supply of its substitute
(d) None of the above

Q4. Disinvestments is
(a) Offloading of shares of privates companies to government
(b) Offloading of government shares to private companies
(c) Increase in investment
(d) Closing down of business concerns

Q5. The demand curve for a Giffen good is
(a) Upward rising
(b) Downward falling
(c) Parallel to the quantity axis
(d) Parallel to the price axis

Answers (1-5)
1. D 2. D 3. A 4.B 5. A

Q6. Imputed gross rent of owner occupied buildings is a part of
(a) Capital formation
(b) Final consumption
(c) Intermediate consumption
(d) Consumer durable

Q7. The national income consists of a collection of goods and services reduced to common basis by being measured in terms of money who says this?
(a) Samuelson
(b) Kuznets
(c) Hicks
(d) Pigou

Q8. The supply of agricultural products is generally
(a) Elastic
(b) Inelastic
(c) Perfectly elastic
(d) Perfectly inelastic

Q9. When the total product rises, at an increasing rate, the
(a) Marginal product is zero
(b) Marginal product is rising
(c) Marginal product is falling
(d) Marginal product remains constant

Q10. Economies of Scale means reduction in
(a) Unit cost of production
(b) Unit cost of distribution
(c) Total cost of production
(d) Total cost of distribution

Answers (6-10)
6. B 7. C 8. B 9. B 10. A

Q11. All of the goods which are scarce and limited in supply are called
(a) Luxury goods
(b) Expensive goods
(c) Capital goods
(d) Economic goods

Q12. Engel’s Law states the relationship between
(a) Quantity demanded and price of a commodity
(b) Quantity demanded and price of substitutes
(c) Quantity demanded and tastes of the consumers
(d) Quantity demanded and income of the consumers

Q13. Capital : Output Ratio of a measures
(a) Its per unit cost of production
(b) The amount of capital invested per unit of output
(c) The ratio of capital depreciation to quantity of output
(d) The ratio of working capital employed to quantity of output

Q14. Perfect competition means
(a) Large number of buyers and less sellers
(b) Large number of buyers and sellers
(c) Large number of sellers and less buyers
(d) None of the above

Q15. Core industries are
(a) Basic industries
(b) Consumer goods industries
(c) Capital goods industries
(d) Government industries

Answers (11-15)
11. D 12. D 13. B 14. B 15. A