SSC CGL Previous Year Questions: Economics - 5 - SSC CGL MCQ

Functional finance is an economic theory proposed by Abba P. Lerner, based on effective demand principles and chartalism. It states that government should finance itself to meet explicit goals, such as taming the business cycle, achieving full employment, ensuring growth, and low inflation.

A special economic zone (SEZ) is an area in which the business and trade laws are different from the rest of the country. The category 'SEZ' covers a broad range of more specific zone types, including free-trade zones (FTZ), export processing zones (EPZ), free zones (FZ), industrial estates (IE), free ports, urban enterprise zones and others.

Geographical Indication (GI) means the name of a region or a locality, a specific place, or, in exceptional cases, a country, used to describe a product originating in that region, locality, specific place or country, which possesses a specific quality, reputation or other characteristics attributable to that geographical origin, and the production and/or processing and or preparation of which take place in the defined geographical area.

The demand for labour is “derived” from the production and demand for the product being demanded. If the demand for the product increases, either the price will increase or the demand for production labour will increase until the equilibrium price and production numbers are met.

Investment expenditure refers to the expenditure incurred either by an individual or a firm or the government for the creation of new capital assets like machinery, building etc. The purchase of house cannot be considered as investment exienditure as it may be for personal use.

For private corporate sector, retained profits adjusted for non operating surplus/ deficit is considered as its Net Saving. Retained profits are those which are ploughed back into business after making commitments to depreciation provision for various fixed assets, debts, government and to share-holders.

place a value on the impact on society of its operations. One social accounting system primarily attempts to measure National Income, final product, consumption and accumulation of capital

Forced saving is unlike when someone decides to put some of their income into a savings account or other form of investment

Bank's reserves at Central Bank

Hardening interest rate is a term used to describe a price of commodity or futures contracts that is gradually stabilizing.

Sells a commodity at lower price in the world market and charges a higher price in the domestic market

The correct option with regards to the contribution towards GDP from Agriculture is:
Option A: During 1950–51 (GDP 51-88%) and 2011–12 (GDP 14-01%)

• The contribution of agriculture to India's GDP has decreased over the years.
• In 1950-51, agriculture's share in GDP was 51.88%, which means that agriculture contributed more than half of the country's GDP at that time.
• By 2011-12, the share of agriculture in GDP had reduced to 14.01%, indicating a significant shift in the Indian economy towards other sectors like industry and services.
• This decline in the share of agriculture in GDP can be attributed to factors like diversification of the economy, growth in the industrial and service sectors, and increased productivity in agriculture with the help of modern techniques and technologies.

The principle of maximum social advantage is the basic principle of Fiscal Economics

The duration of the 4th Five Year Plan is 1969-1974.

Economic Theory provides an outlet for research in all areas of economics based on rigorous theoretical reasoning and on topics in mathematics that are supported by the analysis of economic problems.

Indian Special Economic Rules amendment came in the year 2006.

Marx gave to the “labor theory of value,” which in his case was rather a value theory of labor. The issue is how relations of production and circulation are affected by the fact that labor takes the capitalist social form of producing value and surplus value embedded in “things,” in commodities

Post Independence, the first major development programme launched in India was Community Development Programme, 1952. This programme was formulated to provide an administrative framework through which the government might reach to the district, tehsil / taluka and village level

The basic object of all production is to satisfy human wants. In terms of Economics, satisfaction of human wants comes first, second comes the provision of employment, third comes the profit motive and at last comes the increase of physical outputs

Inflation is caused by increase in money supply and decrease in production. In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. It can be defined as too much money chasing too few goods. When the general price level rises, each unit of currency buys fewer goods and services.

Dumping is a form of price discrimination at the international level.In economics, "dumping" is a kind of predatory pricing, especially in the context of international trade. It occurs when manufacturers export a product to another country at a price either below the price charged in its home market or below its cost of production

The equilibrium of a firm under perfect competition will be determined when marginal revenue equals marginal cost. In the short run, perfectly-competitive markets are not productively efficient as output will not occur where marginal cost is equal to average cost (MC = AC). They are allocatively efficient, as output will always occur where marginal cost is equal to marginal revenue (MC = MR).

Expenditure on advertisement and public relation by an enterprise is a part of its intermediate consumption. Visibility through advertising and promotion builds an enterprise' reputation with the customer. Although most advertising is through word of mouth, that word of mouth starts with awareness that customers have gained about the enterprise through their advertising and promotions.

The situation when a firm is operating at loss in the short period in perfect competition arises when the price is so low that total revenue is not even enough to cover the variable cost of production. Shut down point is that point at which the price is equal to average variable costs or the firm covers its variable costs. So it should operate as long as it covers even the variable costs.

Some examples of indirect taxes include value added tax, excise duty, sales tax, stamp duty and custom duty levied on imports. These are taxes levied by the state on expenditure and consumption, but not on property or income.

In India, the professional tax is imposed at the state level. However, not all the states impose this tax. Business owners, working individuals, merchants and people carrying out various occupations comes under the purview of this tax. Professional tax is levied by particular Municipal Corporations.

Generally, economists have defined four types of functions of money which are as follows: (i) Medium of exchange (transfer of value) (ii) Measurement of value. (iii) Standard of deferred payments. and (iv) Store of value. Price stabilization is a function of monetary policy

Closed economy is an economy in which no activity is conducted with outside economies. A closed economy is self-sufficient, meaning that no imports are brought in and no exports are sent out. The goal is to provide consumers with everything that they need from within the economy's borders.

The break-even point (BEP) is the point at which cost or expenses and revenue are equal: there is no net loss or gain, and one has "broken even." For businesses, reaching the break-even point is the first major step towards profitability

All economic goods are considered as materials in economics.