SSC CGL Previous Year Questions: Economics - 1 - SSC CGL MCQ

An economic condition when there is one buyer and many sellers is called Monopsony. Monopsony refers to control of the market through which specific goods or services are purchased. The term was first introduced by Joan Robinson in her influential book, The Economics of Imperfect Competition, published in 1933.

The Budget Line shows all the combinations of two commodities that a consumer can afford at given market prices and within the particular income level. It is also called as Budget Constraint.

The so-called Heckscher-Ohlin theory basically holds that a country will export those commodities that are produced by the factor that it has in relative abundance and that it will import products whose production requires factors of production where it has relatively less abundance.

The Purchasing Power Parity (PPP) theory is used to make long-run predictions about exchange rates in a flexible exchange rate system. Its demand curve for foreign currency shifts faster than its supply curve.

John Maynard Keynes (1883-1946) is known for an economic theory of total spending in the economy and its effects on output and inflation. Keynes stated for increased government expenditures and lower taxes to stimulate demand and pull the global economy out of the depression.

Under the scheme, Pradhan Mantri Kisan Samman Nidhi an income support of `. 6000/- per year in three equal instalments will be provided to small and marginal farmer families having combined land holding/ownership of upto 2 hectares

Since independence India has been a ‘Mixed Economy’. Indian economy is basically based on the contribution of service sector (currently provides 60% share of GDP) and near about 53% of its population is dependent on the Agriculture.

Red tape is an idiom that refers to excessive regulation or rigid conformity to formal rules that is considered redundant or bureaucratic and hinders or prevents action or decision-making. Things often described as “red tape” include filling out paperwork, obtaining licenses, having multiple people or committees approve a decision and various low-level rules that make conducting one’s affairs slower, more difficult, or both.

The government of Odisha has launched the Krushak Assistance for Livelihood and Income Augmentation (KALIA) scheme, which would benefit about 92% of the farmers in the State.The scheme will provide financial, livelihood, cultivation support along with insurance support to small, marginal and the landless farmers.

India's rank in the World Bank's Ease of Doing Business 2019 survey climbed 23 places to 77 among 190 countries surveyed, making it the only country to rank among the top 10 improvers for the second consecutive year.

The New Development Bank (NDB) of the BRICS countries has approved a USD 525-million loan to Madhya Pradesh for infrastructure projects. The Board of Directors of the NDB on Wednesday approved a USD 350-million loan for the Major District Roads Project II of Madhya Pradesh and USD 175 million for building and upgrading 350 bridges. The loan will be used by the Indian government for on-lending to the Madhya Pradesh government

A geographical indication (GI) is a sign used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin. In order to function as a GI, a sign must identify a product as originating in a given place

The RBI borrows from the commercial banks as per the monetary demand & supply and to control the liquidity in the market. It borrows at an interest rate called the Reverse Repo Rate.

The movement in supply curve can be of two types - extension and contraction. Extension in a supply curve is caused when there is increase in the price or quantity supplied of the commodity while contraction is caused due to decrease in the price or quantity supplied of the commodity

There are three major components of food security; Availability (Buffer stock), Access and utilization/ consumption.

Leon Walras developed general equilibrium theory to solve a much-debated problem in economics

Credit Control Instruments used by RBI are rationing of credit, Open Market operations, Variable cost reserve ratios, Bank rate policy, Statutory Liquidity Ratio (SLR), and Selective Credit Control (SCC). Direct action is not the credit control instrument used by RBI.

An increase of 1% per annum in the rate of growth of the money supply will increase inflation in the long run by 1 %.

Hyper-Inflation is a situation in which the price increases at a very high rate.

Oligopoly is a market structure in which a small number of firms has the large majority of market share.