SSC CGL Previous Year Questions: Economics - 3 - SSC CGL MCQ

Foreign exchange reserves are the foreign currencies held by Reserve Bank of India (RBI). They are also called foreign currency reserves or foreign reserves. Foreign exchange reserves assets can comprise banknotes, deposits, bonds, treasury bills and other government securities of the reserve currency.

The market system in which there are only two buyers facing a large number of sellers is called duopoly

Theory of intervening opportunities attempts to describe the likelihood of migration. Its hypothesis is that this likelihood is influenced most by the opportunities to settle at the destination, less by distance or population pressure at the starting point. It was proposed by S. A. Stouffer.

The Bretton Woods Institutions are the World Bank, and theInternational Monetary Fund (IMF). They were set up at a meeting of 43 countries in Bretton Woods, New Hampshire, USA in July 1944.

The price and output under monopoly are determined by equality between marginal cost and marginal revenue and not by the intersection of demand and supply curves.

Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and decisionmaking of an economy as a whole, rather than individual markets. Macroeconomists develop models that explain the relationship between such factors as national income, output, consumption, unemployment, inflation etc

Internal economies arise within the firm because of the expansion of the size of a particular firm. They are called the economies of scale.

In a free market economy there is a freedom of choice for the consumers to buy goods and services which suit their tastes and preferences. This is generally called the principle of consumer sovereignty. This means in a market economy the consumers are just like a king or sovereign who dictate what goods and services and what quantities of them are produced.

Net national product (NNP) refers to gross national product (GNP), i.e. the total market value of all final goods and servicesproduced by the factors of production of a country or other polity during a given time period, minus depreciation.

NNP = GNP – Depreciation

Zilla Parishad is the apex body of the PR(Panchayati Raj) system located at the district level. Chairpersons/ Presidents of Panchayat Samitis come within its jurisdiction.

The one rupee note bears the signature of secretary Ministry of Finance

NABARD is set up as an apex Development Bank with a mandate for facilitating credit flow for promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts and other rural crafts. It was established on 12 July 1982 by a special act by the parliament

Surplus budget is the order of the economies in boom time.

Normal profit or Economic profit is an economic condition occurring when the difference between a firm's total revenue and total cost is equal to zero.

As a Banker to Banks, the Reserve Bank of India acts as the “lender of the last resort”.

When the price elasticity of demand for a good is perfectly inelastic i.e. E_d = 0.

It is because demand for goods which have substitutes is more elastic because when price of a substitute falls in relation to its commodity, the demand for the commodity also falls.

Mixed economy means an economic system in which both the private enterprise and a degree of state monopoly (usually in public services, defense, infrastructure, and basic industries) coexist

Schumpeter's Theory of Innovation is in line with the other investment theories of the business cycle, which asserts that the change in investment accompanied by monetary expansion are the major factors behind the business fluctuations.

A demand curve is a graph depicting the relationship between the price of a certain commodity and the quantity of that commodity that is demanded at that price. A demand curve will not shift when there is a change in advertisement expenditure.

Alfred Marshall Propounded the theory that price is determined by both demand and supply and also gave great importance to the time element in the determination of price.

Cheap Money policy is a monetary policy through which a bank sets low interest rates so that credit is easily achievable.

Market equilibrium is a market state where the supply in the market is equal to the demand in the market.

Economies of a firm are a reduction in its selling expenses.

Regarding money supply situation in India it can be said that the currency with the public is less than the deposits with the banks

An equilibrium market price is the price at which there is no tendency for it to change. When price is lower than the equilibrium price, quantity demanded will be greater than quantity supplied. There will be tendency for the price to increase when price is higher than the equilibrium price, quantity supplied will be greater than quantity demanded. There will be a tendency for the price to decrease.

Milton Friedman (July 31, 1912 - November 16, 2006) was an American economist, statistician, and writer who taught at the University of Chicago for more than three decades. He was a recipient of the 1976 Nobel Prize in Economic Sciences, and is known for his research on consumption analysis, monetary history and theory, and the complexity of stabilization policy

The qualitative or selective methods of credit control are adopted by the Reserve Bank in its pursuit of economic stabilization and as part of credit management. The four important methods are Margin Requirements, Credit Rationing, Regulation of Consumer Credit, Moral Suasion.

A segment of the financial market in which financial instruments with high liquidity and very short maturities are traded. The money market is used by participants as a means for borrowing and lending in the short term, from several days to just under a year.

In economics, diminishing returns is the decrease in the marginal (incremental) output of a production process as the amount of a single factor of production is incrementally increased, while the amounts of all other factors of production stay constant.