SSC CGL Previous Year Questions: Economics - 6 - SSC CGL MCQ

Total demand for goods and services at various levels of employment is called as market demand. It is the sum of the individual demand for a product from buyers in the market. If more buyers enter the market and they have the ability to pay for items on sale, then market demand at each price level will rise.

Cross elasticity of demand is an economic concept that measures the responsiveness in the quantity demand of one good when a change in price takes place in another good.

The act of selling the same article, product under a single control, at different prices to different buyers is known as price discrimination. Information on the price elasticity of demand can be used by business as part of a policy of price discrimination (also known as yield management).

Economic planning is an essential feature of socialism. The most prominent example of a planned economy was the economic system of the Soviet Union.

The Government of India decide to set up the Rashtriya Barh Ayog (National Flood Commission) in 1976 to evolve a coordinated, integrated and scientific approach to the flood control problems in the country

According to Musgrave social wants are those wants which are satisfied by services that must be consumed in equal amounts by all. Low cost housing is an example for social wants.

Conspicuous consumption is the purchase of goods or services for the specific purpose of displaying one's wealth. It is a means to show ones social status

Alfred Marshall was committed to partial equilibrium models over general equilibrium on the grounds that the inherently dynamical nature of economics made the former more practically useful.

These agreements give the right of taxation in respect of the income of the nature of interest, dividend, royalty and fees for technical services to the country of residence. It promotes bilateral trade and investment.

Brain drain can be described as the process in which a country loses its most educated and talented workers to other countries through migration. The main causes include seeking employment or higher paying jobs, political instability and to seek a better quality of life.

Demography is the statistical study of human populations and sub-populations. It encompasses the study of the size, structure, and distribution of these populations, and spatial and/or temporal changes in them in response to birth, migration, aging and death.

The BSE SENSEX is a free-float market-weighted stock market index of 30 well-established and financially sound companies listed on Bombay Stock Exchange. The 30 component companies which are some of the largest and most actively traded stocks, are representative of various industrial sectors of the Indian economy.

The funds raised by the government within the country is known as domestic budgetary source

The Board for Industrial and Financial Reconstruction (BIFR) was an agency of the Government of India, part of the Department of Financial Services of the Ministry of Finance. It was set up in January 1987. Its objective was to determine sickness of industrial companies and to assist in reviving those that may be viable and shutting down the others.

A duopoly is a form of oligopoly occurring when two companies (or countries) control all or most of the market for a product or service. It was introduced by Cournot.

The model of monopolistic competition describes a common market structure in which firms have many competitors(group of firms), but each one sells a slightly different product.

Mother’s service is an example for a non-economic good.

In order to raise the standards of the banks internationally, a number of committees were appointed by RBI. Among them Narasimham committee I (1991), Narasimham Committee II (1998) and Verma Committee (1999) were influential in improving international standards, and led to banking sector reforms, globally flexible to its deregulation, norms and conditions etc.

An open market operation (OMO) is an activity by a central bank to give liquidity in its currency to a bank or a group of banks. The central bank can either buy or sell government bonds in the open market. A central bank uses OMO as the primary means of implementing monetary policy

None of the above is correct, because the duration of five year plan was 2012-17.NitiAayog was gearing up to launch the three-year action plan from April 1 after the end of 12th Five Year Plan on March 31.

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

Open Market Operation is an activity by a central bank to give liquidity in its currency to a bank or a group of banks. Open market operation refers to purchase and sale of government securities by the RBI.

• Perfect competition is a market structure characterized by a large number of small firms producing identical products, with no barriers to entry or exit, and perfect knowledge of market conditions.
• In this scenario, firms are considered as price-takers because they have no control over the market price of their product. This is due to the following reasons:
• Homogeneous products: All firms produce identical products, making it impossible for individual firms to differentiate their product and set their own prices.
• Large number of firms: There are a large number of firms in the market, each producing a small portion of the overall supply. This means that no single firm has the ability to influence the market price.
• Perfect information: All market participants have perfect knowledge of market conditions, including the prices of all goods in the market. This means that firms cannot charge higher prices than their competitors, as buyers will simply purchase from the cheaper alternative.
• Free entry and exit: New firms can enter the market easily, and existing firms can exit without significant costs. This ensures that there is constant competition, preventing any individual firm from gaining market power and influencing the market price.

As a result, under perfect competition, individual firms must accept the market price as given and adjust their production accordingly, making them price-takers.symmetric information, no transaction costs, where there are a large number of producers and consumers competing with one another.

An employment situation where the marginal productivity of agricultural labour is zero is known as disguised unemployment. It is also known as hidden unemployment, this refers to a situation where labour that is employed in a job is not actually utilized for the production of goods and services.

Sugar industry is a raw material oriented industry

A commodity will have value only if it is scarce relative to demand.

Per capita income, more simply known as income per person, is the mean income within an economic aggregate such as a country or city. It is calculated by taking a measure of all sources of income in the aggregate (such as GDP or Gross national income) and dividing it by the total population

The Central Bank can use various different methods for reducing inflation. To control inflation, central bank sells the government securities to the public through the banks. This results in transfer of a part of bank deposits to central bank account and reduces credit creation capacity of the commercial banks.

In perfect competition, there must be large number of buyers and sellers. According to Scitovsky buyers and sellers are price takers in the purely competitive market. Each seller (or firm) sells its products at the price determined by the market. Similarly, each buyer buys the commodity at the price determined by the market.

Export–Import Bank of India is a finance institution in India. Exim Bank of India has been both a catalyst and a key player in the promotion of cross border trade and investment. The important functions of the EXIM Bank are as follows: Financing of export and import of goods and services both of India and of outside India, Providing finance for joint ventures in foreign countries, Undertaking merchant banking functions of companies engaged in foreign trade, Providing technical and administrative assistance to the parties engaged in export and import business.