SSC CGL Previous Year Questions: Economics - 7 - SSC CGL MCQ

Social forestry means the management and protection of forests and afforestation on barren lands with the purpose of helping in the environmental, social and rural development. This scheme was introduced in Sixth Five Year Plan.

At present all important steel plants except TISCO (Tata Iron and Steel co. Ltd) which is located in Jamshedpur are under public sector.

When there is an official change in the exchange rate of domestic currency, than it is called revaluation.

Inflation redistributes income and wealth in favour of rich.

Fringe Benefit Tax (FBT) is fundamentally a tax that an employer has to pay in lieu of the benefits that are given to his/her employees. This is separate to income tax and is calculated on the taxable value of the fringe benefits provided. Fringe Benefit Tax was introduced in the budget of 2005-06.

Investment in securities, funds, by FII is Foreign Indirect Investment.

Gold is mainly related to the international market as of all the precious metals, it is the most popular as an investment. Gold has been used throughout history as money and has been a relative standard for currency equivalents specifc to economic regions or countries, until recent times. Gold price has shown a long term correlation with the price of crude oil.

A trade block is a type of intergovernmental agreement, often part of a regional intergovermental organization, where regional barriers to trade, (tariffs and non-tariff barriers) are reduced or eliminated among the participating states.

The national income of a country can be measured by three alternative methods:

(i) Product Method: In this method, national income is measured as a flow of goods and services. We calculate money value of all final goods and services produced in an economy during a year.

(ii) Income Method: Under this method, national income is measured as a flow of factor incomes. There are generally four factors of production labour, capital, land and entrepreneurship.

(iii) Expenditure Method: In this method, national income is measured as a flow of expenditure. GDP is sum-total of private consumption expenditure. Government consumption expenditure, gross capital formation (Government and private) and net exports (Export-Import).

The Reserve Bank of India is India’s central banking institution, which controls the monetary policy of the indian rupee. It commenced its operations on 1 April 1935 during the British Rule in accordance with the provisions of the Reserve Bank of India Act, 1934.

T- bills are issued to meet short-term mismatches in receipts and expenditure. Bonds of longer maturity are called dated securities

The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. The WTO has many roles: it operates a global system of trade rules, it acts as a forum for negotiating trade agreements, it settles trade disputes between its members and it supports the needs of developing countries.

Under the Monopolistic Competition, there are a large number of firms that produce differentiated products which are close substitutes for each other. In the presence of coercive government, monopolistic competition will fall into government-granted monopoly

Price theory is also known as Micro Economics. Microeconomics is the study of individuals, households and firms' behavior in decision making and allocation of resources. It generally applies to markets of goods and services and deals with individual and economic issues.

A floating exchange rate is a regime where the currency price of a nation is set by the forex market based on supply and demand relative to other currencies. A currency that uses a floating exchange rate is known as a floating currency.

National income is the total value a country’s final output of all new goods and services produced in one year.

Economic Advisory Council to the Prime Minister (PMEAC) is a non–constitutional, non–permanent and independent body constituted to give economic advice to the Government of India, specifically the Prime Minister. The council serves to highlight key economic issues facing the country to the government of India from a neutral viewpoint.

India and U.S. have decided to finalise agreements related to trade and investment, intellectual property, traditional knowledge.

A bilateral trade is the exchange of goods between two countries that facilitates trade and investment by reducing or eliminating tariffs, import quotas, export restraints and other trade barriers

A want becomes a demand only when it is backed by the utility of the product.

Ragnar Anton Kittil Frisch was a Norwegian economist and the co-recipient of the first Nobel Memorial Prize in Economic Sciences in 1969 (with Jan Tinbergen). He is known for having founded the discipline of econometrics, and for coining the widely used term pair macroeconomics /microeconomics in 1933.

Inflation refers to an increase in the price level that goes on for a long period of time months or even years on end. Inflation increases your cost of living. Inflation reduces the purchasing power of each unit of currency.

Industrial Sector is the biggest tax paying sector in India.

Normative economics (as opposed to positive economics) is a part of economics that expresses value or normative judgments about economic fairness or what the outcome of the economy or goals of public policy ought to be.

The excess of price a person is to pay rather than forego the consumption of the commodity is called producer’s surplus.