SSC CGL Previous Year Questions (2023-20): Economics - 1 | SSC CGL General Awareness Previous Year Papers (Topic-wise) PDF Download

 Page 1


 Pinnacle  Economics 
 Economics 
 Basics of Economy 
 Q.1.  Which  of  the  following  is  NOT  a  part 
 of the infrastructure sector ? 
 SSC Stenographer 13/10/2023 (Morning) 
 (a) Agriculture          (b) Dams 
 (c) Highways            (d) Power 
 Sol.1.(a)  Agriculture.  Infrastructure  is 
 de?ned  as  the  basic  physical  systems  of 
 a  business,  region,  or  nation  and  often 
 involves  the  production  of  public  goods 
 or  production  processes.  Examples  - 
 transportation  systems,  communication 
 networks,  sewage,  water,  and  school 
 systems etc. 
 Q.2.  The  shares  of  the  public  sector  and 
 the  private  sector  in  the  production  of 
 steel  during  1990-91  were  __________, 
 respectively. 
 SSC Stenographer 13/10/2023 (Afternoon) 
 (a) 40% and 60%        (b) 46% and 54% 
 (c) 49% and 51%        (d) 55% and 45% 
 Sol.2.(b)  46%  and  54%.  During  the 
 1950-60  and  1960-70,  the  average  annual 
 growth  rate  of  steel  production  exceeded 
 8%.  During  1970-80,  the  growth  rate  in 
 steel  production  came  down  to  5.7%  per 
 annum  and  increased  to  6.65%  per 
 annum  during  1990-2000.  During 
 2000-01,  the  shares  of  the  public  sector 
 and  the  private  sector  in  the  production 
 of steel was 32% and 68% respectively. 
 Q.3.  Which  of  the  following  is  NOT  true 
 about  the  circular  ?ow  of  income  in  a 
 two-sector economy? 
 SSC Stenographer 13/10/2023 (Evening) 
 (a) Total production is equal to total 
 consumption. 
 (b) Factor payment is equal to factor 
 income. 
 (c) Real Flow is more than money ?ow. 
 (d) Consumption expenditure is equal to 
 factor income. 
 Sol.3.(c)  Circular  ?ow  of  income  -  A 
 model  of  the  economy  that  shows  how 
 money  ?ows  through  the  different 
 sectors  of  the  economy.  A  simple 
 economy  assumes  that  there  exist  only 
 two sectors, i.e., Households and Firms. 
 Q.4.  During  the  year  1991-92,  the 
 industrial  production  recorded  a 
 ______growth of ______. 
 SSC CPO 03/10/2023 (Evening) 
 (a) negative; 1.1 Percent 
 (b) positive; 1.1 Percent 
 (c) negative; 0.9 Percent 
 (d) positive; 0.6 Percent 
 Sol.4.(d)  positive;  0.6  Percent.  India’s 
 Industrial  reforms  of  1991  :  Wide-scale 
 reduction  in  the  scope  of  industrial 
 licensing,  simpli?cation  of  procedural 
 rules  and  regulations,  reduction  of  areas 
 reserved  exclusively  for  the  public  sector, 
 disinvestment  of  equity  of  selected 
 public  sector  undertakings,  enhancing 
 the  limits  of  foreign  equity  participation 
 in  domestic  industrial  undertakings, 
 liberalisation  of  trade  and  exchange  rate 
 policies,  rationalisation  and  reduction  of 
 customs  and  excise  duties  and  personal 
 and corporate income-tax etc. 
 Q.5.  Which  of  the  following  is  NOT  an 
 example of manufacturing activity ? 
 SSC CPO 04/10/2023 (Afternoon) 
 (a) Paper made from wood 
 (b) Mutual fund products made by 
 combining debt and equity funds 
 (c) Yarn made from cotton 
 (d) Sugar made from sugarcane 
 Sol.5.(b)  Mutual  fund  products  made  by 
 combining  debt  and  equity  funds  come 
 under  the  Tertiary  sector  of  Economy. 
 Tertiary  sectors  itself  do  not  produce 
 goods  but  they  are  an  aid  or  a  support  to 
 the primary and secondary sectors. 
 Q.6.  Which  of  these  is  related  to  public 
 goods? 
 SSC CHSL 02/08/2023 (2nd shift) 
 (a) The principle of excludability is 
 applicable to its consumption. 
 (b) There is a clear link between the 
 producer and consumer which occurs 
 through the payment process. 
 (c) Its consumption is rivalrous in nature. 
 (d) There is a possibility of free ridership 
 in its consumption. 
 Sol.6.(d)  Public  goods  -  A  commodity  or 
 service  that  is  provided  without  pro?t  to 
 all  members  of  a  society,  either  by  the 
 government  or  by  a  private  individual  or 
 an  organization.  National  defense, 
 effective  policing,  and  public  education 
 are  all  examples  of  public  goods.  Private 
 good  -  A  product  that  must  be  purchased 
 to  be  consumed,  and  consumption  by 
 one  individual  prevents  another  individual 
 from  consuming  it.  Examples  -  Houses, 
 cars, clothing, food, movie tickets etc. 
 Q.7.  Which  of  these  is  not  the  reason 
 why ‘?nal’ goods are called so? 
 SSC CHSL 03/08/2023 (3rd shift) 
 (a) They are meant for ?nal use. 
 (b) They are the last to be consumed. 
 (c) They will not pass through any more 
 stages of production. 
 (d) They are not processed or 
 transformed further. 
 Sol.7.(b)  Final  Goods  -  An  item  that  is 
 meant  for  ?nal  use  and  will  not  pass 
 through  any  more  stages  of  production 
 or  transformations.  Types  of  ?nal  goods  : 
 consumption  goods  and  capital  goods. 
 Examples  :  television,  ready-to-eat  foods, 
 medicines.  Intermediate  goods  -  Raw 
 materials  that  a  ?rm  buys  from  another 
 ?rm  which  are  completely  used  up  in  the 
 process  of  production.  Examples:  wheat, 
 soil, crude oil, steel etc. 
 Q.8.  What  was  the  percentage  of  women 
 working  in  the  primary  sector  of  India  as 
 of 2011 - 2012 ? 
 SSC CHSL 04/08/2023 (1st shift) 
 (a) 61%  (b) 63.08%  (c) 64.5%  (d) 62.8% 
 Sol.8.(d)  62.8%.  Distribution  of 
 workforce  in  different  sectors,  as  per 
 2011-12  data  :  Primary  sector  -  48.9 
 percent  (Men  -  43.6  percent),  Secondary 
 Sector  :-  24.3  percent  (Men  -  25.9 
 percent,  women  -  20  percent), 
 Tertiary/service  Sector  -  26.8  percent 
 (Men - 30.5 percent). 
 Q.9.  Final goods are divided into: 
 SSC CHSL 08/08/2023 (2nd shift) 
 (a) raw materials and semi-?nished 
 goods 
 (b) single goods and composite goods 
 (c) consumption goods and capital 
 goods 
 (d) War goods and civilian goods 
 Sol.9.(c)  Consumption  goods  -  Directly 
 used  for  the  satisfaction  of  human  wants 
 and  not  used  later  to  produce  another 
 consumer  good.  Example  -  Food, 
 Beverages,  Clothing,  Vehicles.  Capital 
 goods  -  Assets  used  by  businesses  in  the 
 course  of  producing  products  and 
 services  for  consumers.  Example  - 
 Buildings, Machinery, Vehicles. 
 Q.10.  Which  of  these  is  NOT  a 
 characteristic of durable goods? 
 SSC CHSL 08/08/2023 (4th shift) 
 (a) They are capable of repetitive use. 
 (b) They are not extinguished by 
 immediate consumption. 
 (c) They are meant for repetitive 
 purchases. 
 (d) They have a relatively long life. 
 Sol.10.(c)  Durable  goods  (Consumer 
 durables)  :  Those  products  that  are  used 
 repeatedly  over  a  period  of  time.  The  life 
 of  these  products  is  high  and  the  price 
 paid  to  possess  these  products  are  also 
 high.  Example  -  Refrigerators,  air 
 conditioners,  tools,  computers, 
 www.ssccglpinnacle.com                                                 Download Pinnacle Exam Preparation App 366
Page 2


 Pinnacle  Economics 
 Economics 
 Basics of Economy 
 Q.1.  Which  of  the  following  is  NOT  a  part 
 of the infrastructure sector ? 
 SSC Stenographer 13/10/2023 (Morning) 
 (a) Agriculture          (b) Dams 
 (c) Highways            (d) Power 
 Sol.1.(a)  Agriculture.  Infrastructure  is 
 de?ned  as  the  basic  physical  systems  of 
 a  business,  region,  or  nation  and  often 
 involves  the  production  of  public  goods 
 or  production  processes.  Examples  - 
 transportation  systems,  communication 
 networks,  sewage,  water,  and  school 
 systems etc. 
 Q.2.  The  shares  of  the  public  sector  and 
 the  private  sector  in  the  production  of 
 steel  during  1990-91  were  __________, 
 respectively. 
 SSC Stenographer 13/10/2023 (Afternoon) 
 (a) 40% and 60%        (b) 46% and 54% 
 (c) 49% and 51%        (d) 55% and 45% 
 Sol.2.(b)  46%  and  54%.  During  the 
 1950-60  and  1960-70,  the  average  annual 
 growth  rate  of  steel  production  exceeded 
 8%.  During  1970-80,  the  growth  rate  in 
 steel  production  came  down  to  5.7%  per 
 annum  and  increased  to  6.65%  per 
 annum  during  1990-2000.  During 
 2000-01,  the  shares  of  the  public  sector 
 and  the  private  sector  in  the  production 
 of steel was 32% and 68% respectively. 
 Q.3.  Which  of  the  following  is  NOT  true 
 about  the  circular  ?ow  of  income  in  a 
 two-sector economy? 
 SSC Stenographer 13/10/2023 (Evening) 
 (a) Total production is equal to total 
 consumption. 
 (b) Factor payment is equal to factor 
 income. 
 (c) Real Flow is more than money ?ow. 
 (d) Consumption expenditure is equal to 
 factor income. 
 Sol.3.(c)  Circular  ?ow  of  income  -  A 
 model  of  the  economy  that  shows  how 
 money  ?ows  through  the  different 
 sectors  of  the  economy.  A  simple 
 economy  assumes  that  there  exist  only 
 two sectors, i.e., Households and Firms. 
 Q.4.  During  the  year  1991-92,  the 
 industrial  production  recorded  a 
 ______growth of ______. 
 SSC CPO 03/10/2023 (Evening) 
 (a) negative; 1.1 Percent 
 (b) positive; 1.1 Percent 
 (c) negative; 0.9 Percent 
 (d) positive; 0.6 Percent 
 Sol.4.(d)  positive;  0.6  Percent.  India’s 
 Industrial  reforms  of  1991  :  Wide-scale 
 reduction  in  the  scope  of  industrial 
 licensing,  simpli?cation  of  procedural 
 rules  and  regulations,  reduction  of  areas 
 reserved  exclusively  for  the  public  sector, 
 disinvestment  of  equity  of  selected 
 public  sector  undertakings,  enhancing 
 the  limits  of  foreign  equity  participation 
 in  domestic  industrial  undertakings, 
 liberalisation  of  trade  and  exchange  rate 
 policies,  rationalisation  and  reduction  of 
 customs  and  excise  duties  and  personal 
 and corporate income-tax etc. 
 Q.5.  Which  of  the  following  is  NOT  an 
 example of manufacturing activity ? 
 SSC CPO 04/10/2023 (Afternoon) 
 (a) Paper made from wood 
 (b) Mutual fund products made by 
 combining debt and equity funds 
 (c) Yarn made from cotton 
 (d) Sugar made from sugarcane 
 Sol.5.(b)  Mutual  fund  products  made  by 
 combining  debt  and  equity  funds  come 
 under  the  Tertiary  sector  of  Economy. 
 Tertiary  sectors  itself  do  not  produce 
 goods  but  they  are  an  aid  or  a  support  to 
 the primary and secondary sectors. 
 Q.6.  Which  of  these  is  related  to  public 
 goods? 
 SSC CHSL 02/08/2023 (2nd shift) 
 (a) The principle of excludability is 
 applicable to its consumption. 
 (b) There is a clear link between the 
 producer and consumer which occurs 
 through the payment process. 
 (c) Its consumption is rivalrous in nature. 
 (d) There is a possibility of free ridership 
 in its consumption. 
 Sol.6.(d)  Public  goods  -  A  commodity  or 
 service  that  is  provided  without  pro?t  to 
 all  members  of  a  society,  either  by  the 
 government  or  by  a  private  individual  or 
 an  organization.  National  defense, 
 effective  policing,  and  public  education 
 are  all  examples  of  public  goods.  Private 
 good  -  A  product  that  must  be  purchased 
 to  be  consumed,  and  consumption  by 
 one  individual  prevents  another  individual 
 from  consuming  it.  Examples  -  Houses, 
 cars, clothing, food, movie tickets etc. 
 Q.7.  Which  of  these  is  not  the  reason 
 why ‘?nal’ goods are called so? 
 SSC CHSL 03/08/2023 (3rd shift) 
 (a) They are meant for ?nal use. 
 (b) They are the last to be consumed. 
 (c) They will not pass through any more 
 stages of production. 
 (d) They are not processed or 
 transformed further. 
 Sol.7.(b)  Final  Goods  -  An  item  that  is 
 meant  for  ?nal  use  and  will  not  pass 
 through  any  more  stages  of  production 
 or  transformations.  Types  of  ?nal  goods  : 
 consumption  goods  and  capital  goods. 
 Examples  :  television,  ready-to-eat  foods, 
 medicines.  Intermediate  goods  -  Raw 
 materials  that  a  ?rm  buys  from  another 
 ?rm  which  are  completely  used  up  in  the 
 process  of  production.  Examples:  wheat, 
 soil, crude oil, steel etc. 
 Q.8.  What  was  the  percentage  of  women 
 working  in  the  primary  sector  of  India  as 
 of 2011 - 2012 ? 
 SSC CHSL 04/08/2023 (1st shift) 
 (a) 61%  (b) 63.08%  (c) 64.5%  (d) 62.8% 
 Sol.8.(d)  62.8%.  Distribution  of 
 workforce  in  different  sectors,  as  per 
 2011-12  data  :  Primary  sector  -  48.9 
 percent  (Men  -  43.6  percent),  Secondary 
 Sector  :-  24.3  percent  (Men  -  25.9 
 percent,  women  -  20  percent), 
 Tertiary/service  Sector  -  26.8  percent 
 (Men - 30.5 percent). 
 Q.9.  Final goods are divided into: 
 SSC CHSL 08/08/2023 (2nd shift) 
 (a) raw materials and semi-?nished 
 goods 
 (b) single goods and composite goods 
 (c) consumption goods and capital 
 goods 
 (d) War goods and civilian goods 
 Sol.9.(c)  Consumption  goods  -  Directly 
 used  for  the  satisfaction  of  human  wants 
 and  not  used  later  to  produce  another 
 consumer  good.  Example  -  Food, 
 Beverages,  Clothing,  Vehicles.  Capital 
 goods  -  Assets  used  by  businesses  in  the 
 course  of  producing  products  and 
 services  for  consumers.  Example  - 
 Buildings, Machinery, Vehicles. 
 Q.10.  Which  of  these  is  NOT  a 
 characteristic of durable goods? 
 SSC CHSL 08/08/2023 (4th shift) 
 (a) They are capable of repetitive use. 
 (b) They are not extinguished by 
 immediate consumption. 
 (c) They are meant for repetitive 
 purchases. 
 (d) They have a relatively long life. 
 Sol.10.(c)  Durable  goods  (Consumer 
 durables)  :  Those  products  that  are  used 
 repeatedly  over  a  period  of  time.  The  life 
 of  these  products  is  high  and  the  price 
 paid  to  possess  these  products  are  also 
 high.  Example  -  Refrigerators,  air 
 conditioners,  tools,  computers, 
 www.ssccglpinnacle.com                                                 Download Pinnacle Exam Preparation App 366
 Pinnacle  Economics 
 televisions,  jewellery,  home  and  o?ce 
 furnishings.  Non  -  Durable  goods  :  These 
 goods  have  a  shelf  life  of  less  than  three 
 years  and  many  can  be  recycled. 
 Example  -  Milk,  vegetables,  meat,  fruit, 
 paperboard, magazines. 
 Q.11.  Which  of  these  is  a  component  of 
 the tertiary sector of an economy? 
 SSC CHSL 11/08/2023 (1st shift) 
 (a) Mining and quarrying 
 (b) Water supply 
 (c) Electricity 
 (d) Hotels and restaurants 
 Sol.11.(d)  Hotels  and  restaurants. 
 Sectors  of  Indian  Economy:  The  primary 
 sector  depends  on  natural  resources  like 
 minerals,  land,  and  water  to  carry  out 
 essential  activities  like  agriculture, 
 mining,  and  forestry.  Secondary  sector  - 
 The  sector  of  the  economy  that  revolves 
 around  manufacturing.  Examples  - 
 Construction,  fabrication,  assembly, 
 distillation,  and  puri?cation.  Tertiary 
 Sector  (service  sector)  -  Tertiary  Sector, 
 also  known  as  the  service  sector,  is 
 responsible  for  providing  services  to  both 
 the  primary  and  secondary  sector. 
 Examples  -  Trade,  transport, 
 communication,  banking,  education, 
 health, tourism, insurance, etc. 
 Q.12.  Which  of  the  following  can  be 
 considered a part of a parallel economy? 
 SSC CHSL 11/08/2023 (2nd shift) 
 (a) Under declared income. 
 (b) Value of domestic work done by the 
 housewife. 
 (c) Payments made to domestic helpers 
 or housekeepers. 
 (d) Payments for private tuition. 
 Sol.12.(a)  Under  declared  Income. 
 Parallel  Economy  -  The  functioning  of  an 
 unsanctioned  sector  in  the  economy 
 whose  objectives  run  in  opposite  to  the 
 objectives  of  the  o?cial,  sanctioned  or 
 legitimate  sector.  Types  of  Economic 
 systems  : Capitalist, Socialist and Mixed. 
 Q.13.  Which  of  the  following  statements 
 is/are  FALSE  with  respect  to  simple 
 model of the circular ?ow of economy ? 
 i.  The  aggregate  consumption  is  more 
 than the aggregate expenditure. 
 ii.  There is government intervention. 
 iii.  There  are  no  trade  activities  with  the 
 rest of the world. 
 SSC CHSL 17/08/2023 (3rd shift) 
 (a) Only i and iii             (b) Only i 
 (c) Only iii                       (d) Only ii and iii 
 Sol.13.(b)  Only  i.  Circular  Flow  in  a 
 Two-sector Economy (with Financial 
 Market)  -  households  and  ?rms. 
 Three-sector  Economy  -  Between 
 Households  and  Government,  Between 
 Firms  and  Government.  Four-sector 
 Economy  -  Households,  Firms, 
 Government, Foreign Sector. 
 Q.14.  In  which  industrial  policy  was  the 
 investment  limit  for  a  tiny  industry/unit 
 increased to ?2 lakh ? 
 SSC CGL 14/07/2023 (1st shift) 
 (a) 1977  (b) 1991  (c) 1980  (d) 1956 
 Sol.14.(c)  1980.  Industrial  Policy  1980  : 
 This  Policy  focused  on  the  promotion  of 
 economic  federation  and  restoration  of 
 the  Monopolies  and  Restrictive  Trade 
 Practices  (MRTP)  Act.  Some  other 
 Industrial  policies  (IPs):  IP ,  1948  -  It 
 ushered  in  a  mixed  economic  model  in 
 the  country.  IP ,  1956  -  Three  schedules 
 were  laid  out  for  the  classi?cation  of 
 industries.  IP ,  1977  -  The  Policy’s  main 
 emphasis  had  been  the  propagation  of 
 cottage  and  small  industries.  IP ,  1991  - 
 Foreign  Direct  investment  allowed, 
 Amendment  of  the  Monopolies  and 
 Restrictive  Trade  Practices  (MRTP)  Act. 
 The  main  goals  of  the  New  Industrial 
 Policy  (1991)  were:  L  -  Liberalisation,  P  - 
 Privatisation, G - Globalisation. 
 Q.15.  Machines,  tools  and  implements, 
 and  buildings  are  examples  of  which  type 
 of goods? 
 SSC CGL 17/07/2023 (1st shift) 
 (a) Consumer goods      (b) Inferior goods 
 (c) Intermediate goods  (d) Capital goods 
 Sol.15.(d)  Capital  goods  -  Physical 
 assets  which  a  company  uses  to  produce 
 goods  and  services  for  consumers. 
 Inferior  goods  :  An  item  that  is  often  a 
 substitute  product  whose  demand  drops 
 when  people's  income  increases. 
 Example  -  instant  noodles,  frozen 
 dinners, and canned goods. 
 Q.16.  How  many  industries  were  listed  in 
 Schedule A of Industrial Policy, 1956? 
 SSC CGL 18/07/2023 (1st shift) 
 (a) 16  (b) 17  (c) 10  (d) 12 
 Sol.16.(b)  17  .  The  1956  policy  divided 
 the  industries  into  3  categories  based  on 
 management.  Schedule  A  Industries  :  It 
 consisted  of  17  industrial  areas  which 
 were  under  the  Central  Government. 
 Schedule  B  Industries  :  It  consisted  of  12 
 industries  that  were  left  to  the  state 
 government  to  follow  up  with  the  private 
 sector  that  includes  compulsory 
 licensing  provisions.  Schedule  C 
 Industries  :  It  consisted  of  those 
 industries  which  were  left  out  of 
 Schedule  A  and  B  and  were  with  the 
 private  sectors  and  subject  to  licensing 
 and regulation under the IDR Act. 
 Q.17.  Which  of  the  following  can  be 
 considered  as  an  example  of  ?ow 
 variable? 
 (i) Production of rice 
 (ii) Import of cloth 
 (iii) Change in capital 
 SSC CGL 21/07/2023 (1st shift) 
 (a) None of (i), (ii) and (iii) 
 (b) Only (iii) 
 (c) All of (i), (ii) and (iii) 
 (d) Only (i) and (ii) 
 Sol.17.(c)  All  of  (i),  (ii)  and  (iii).  Flow 
 variable  -  A  quanti?ed  variable  that  is 
 measured  over  a  speci?ed  period  of 
 time.  It  is  time  bounded  and  expressed 
 as  per  unit  of  time.  Examples  -  Income, 
 expenditure,  depreciation,  production, 
 consumption,  exports,  rent,  pro?t, 
 interest.  Stock  variable  -  A  quantity 
 which  is  measurable  at  a  particular  point 
 of  time.  Examples  -  Capital,  wealth, 
 foreign debts, loan. 
 Q.18.  Hindustan  Aeronautics  Limited 
 comes under which sector? 
 SSC MTS 03/05/2023 (Evening) 
 (a) Co - operative sector (b) Private sector 
 (c) Foreign sector            (d) Public sector 
 Sol.18.(d)  Public  sector.  Hindustan 
 Aeronautics  Limited  (HAL)  is  an  Indian 
 ‘Navratna’  aerospace  and  defence 
 company,  headquartered  in  Bangalore. 
 Co-operative  sector  industries  are 
 operated  and  owned  by  the  suppliers  or 
 producers  of  raw  materials,  workers  or 
 both.  Foreign  secto  r  is  the  part  of  a 
 country's  economy  that  is  concerned 
 with  external  trade  (imports  and  exports) 
 and capital ?ows (inward and outward). 
 Q.19.  In  migration  the  factors  which 
 cause  people  to  leave  their  place  of 
 residence or origin are called ________. 
 SSC MTS 10/05/2023 (Evening) 
 (a) Pull factors  (b) Regular factors 
 (c) Push factors  (d) Irregular factors 
 Sol.19.(c)  Push  factors  .  These  are  the 
 factors  that  drive  people  away  from  their 
 place  of  origin,  such  as  war,  political 
 instability,  or  economic  hardship  .  Pull 
 factors  are  the  factors  that  attract  people 
 to  a  new  place,  such  as  better  economic 
 opportunities,  better  education,  or  a  more 
 favourable climate. 
 Q.20.  What  is  the  ?scal  year  period  in 
 India? 
 SSC MTS 10/05/2023 (Evening) 
 (a) 1st April of a year to 31st March of 
 www.ssccglpinnacle.com                                                 Download Pinnacle Exam Preparation App 367
Page 3


 Pinnacle  Economics 
 Economics 
 Basics of Economy 
 Q.1.  Which  of  the  following  is  NOT  a  part 
 of the infrastructure sector ? 
 SSC Stenographer 13/10/2023 (Morning) 
 (a) Agriculture          (b) Dams 
 (c) Highways            (d) Power 
 Sol.1.(a)  Agriculture.  Infrastructure  is 
 de?ned  as  the  basic  physical  systems  of 
 a  business,  region,  or  nation  and  often 
 involves  the  production  of  public  goods 
 or  production  processes.  Examples  - 
 transportation  systems,  communication 
 networks,  sewage,  water,  and  school 
 systems etc. 
 Q.2.  The  shares  of  the  public  sector  and 
 the  private  sector  in  the  production  of 
 steel  during  1990-91  were  __________, 
 respectively. 
 SSC Stenographer 13/10/2023 (Afternoon) 
 (a) 40% and 60%        (b) 46% and 54% 
 (c) 49% and 51%        (d) 55% and 45% 
 Sol.2.(b)  46%  and  54%.  During  the 
 1950-60  and  1960-70,  the  average  annual 
 growth  rate  of  steel  production  exceeded 
 8%.  During  1970-80,  the  growth  rate  in 
 steel  production  came  down  to  5.7%  per 
 annum  and  increased  to  6.65%  per 
 annum  during  1990-2000.  During 
 2000-01,  the  shares  of  the  public  sector 
 and  the  private  sector  in  the  production 
 of steel was 32% and 68% respectively. 
 Q.3.  Which  of  the  following  is  NOT  true 
 about  the  circular  ?ow  of  income  in  a 
 two-sector economy? 
 SSC Stenographer 13/10/2023 (Evening) 
 (a) Total production is equal to total 
 consumption. 
 (b) Factor payment is equal to factor 
 income. 
 (c) Real Flow is more than money ?ow. 
 (d) Consumption expenditure is equal to 
 factor income. 
 Sol.3.(c)  Circular  ?ow  of  income  -  A 
 model  of  the  economy  that  shows  how 
 money  ?ows  through  the  different 
 sectors  of  the  economy.  A  simple 
 economy  assumes  that  there  exist  only 
 two sectors, i.e., Households and Firms. 
 Q.4.  During  the  year  1991-92,  the 
 industrial  production  recorded  a 
 ______growth of ______. 
 SSC CPO 03/10/2023 (Evening) 
 (a) negative; 1.1 Percent 
 (b) positive; 1.1 Percent 
 (c) negative; 0.9 Percent 
 (d) positive; 0.6 Percent 
 Sol.4.(d)  positive;  0.6  Percent.  India’s 
 Industrial  reforms  of  1991  :  Wide-scale 
 reduction  in  the  scope  of  industrial 
 licensing,  simpli?cation  of  procedural 
 rules  and  regulations,  reduction  of  areas 
 reserved  exclusively  for  the  public  sector, 
 disinvestment  of  equity  of  selected 
 public  sector  undertakings,  enhancing 
 the  limits  of  foreign  equity  participation 
 in  domestic  industrial  undertakings, 
 liberalisation  of  trade  and  exchange  rate 
 policies,  rationalisation  and  reduction  of 
 customs  and  excise  duties  and  personal 
 and corporate income-tax etc. 
 Q.5.  Which  of  the  following  is  NOT  an 
 example of manufacturing activity ? 
 SSC CPO 04/10/2023 (Afternoon) 
 (a) Paper made from wood 
 (b) Mutual fund products made by 
 combining debt and equity funds 
 (c) Yarn made from cotton 
 (d) Sugar made from sugarcane 
 Sol.5.(b)  Mutual  fund  products  made  by 
 combining  debt  and  equity  funds  come 
 under  the  Tertiary  sector  of  Economy. 
 Tertiary  sectors  itself  do  not  produce 
 goods  but  they  are  an  aid  or  a  support  to 
 the primary and secondary sectors. 
 Q.6.  Which  of  these  is  related  to  public 
 goods? 
 SSC CHSL 02/08/2023 (2nd shift) 
 (a) The principle of excludability is 
 applicable to its consumption. 
 (b) There is a clear link between the 
 producer and consumer which occurs 
 through the payment process. 
 (c) Its consumption is rivalrous in nature. 
 (d) There is a possibility of free ridership 
 in its consumption. 
 Sol.6.(d)  Public  goods  -  A  commodity  or 
 service  that  is  provided  without  pro?t  to 
 all  members  of  a  society,  either  by  the 
 government  or  by  a  private  individual  or 
 an  organization.  National  defense, 
 effective  policing,  and  public  education 
 are  all  examples  of  public  goods.  Private 
 good  -  A  product  that  must  be  purchased 
 to  be  consumed,  and  consumption  by 
 one  individual  prevents  another  individual 
 from  consuming  it.  Examples  -  Houses, 
 cars, clothing, food, movie tickets etc. 
 Q.7.  Which  of  these  is  not  the  reason 
 why ‘?nal’ goods are called so? 
 SSC CHSL 03/08/2023 (3rd shift) 
 (a) They are meant for ?nal use. 
 (b) They are the last to be consumed. 
 (c) They will not pass through any more 
 stages of production. 
 (d) They are not processed or 
 transformed further. 
 Sol.7.(b)  Final  Goods  -  An  item  that  is 
 meant  for  ?nal  use  and  will  not  pass 
 through  any  more  stages  of  production 
 or  transformations.  Types  of  ?nal  goods  : 
 consumption  goods  and  capital  goods. 
 Examples  :  television,  ready-to-eat  foods, 
 medicines.  Intermediate  goods  -  Raw 
 materials  that  a  ?rm  buys  from  another 
 ?rm  which  are  completely  used  up  in  the 
 process  of  production.  Examples:  wheat, 
 soil, crude oil, steel etc. 
 Q.8.  What  was  the  percentage  of  women 
 working  in  the  primary  sector  of  India  as 
 of 2011 - 2012 ? 
 SSC CHSL 04/08/2023 (1st shift) 
 (a) 61%  (b) 63.08%  (c) 64.5%  (d) 62.8% 
 Sol.8.(d)  62.8%.  Distribution  of 
 workforce  in  different  sectors,  as  per 
 2011-12  data  :  Primary  sector  -  48.9 
 percent  (Men  -  43.6  percent),  Secondary 
 Sector  :-  24.3  percent  (Men  -  25.9 
 percent,  women  -  20  percent), 
 Tertiary/service  Sector  -  26.8  percent 
 (Men - 30.5 percent). 
 Q.9.  Final goods are divided into: 
 SSC CHSL 08/08/2023 (2nd shift) 
 (a) raw materials and semi-?nished 
 goods 
 (b) single goods and composite goods 
 (c) consumption goods and capital 
 goods 
 (d) War goods and civilian goods 
 Sol.9.(c)  Consumption  goods  -  Directly 
 used  for  the  satisfaction  of  human  wants 
 and  not  used  later  to  produce  another 
 consumer  good.  Example  -  Food, 
 Beverages,  Clothing,  Vehicles.  Capital 
 goods  -  Assets  used  by  businesses  in  the 
 course  of  producing  products  and 
 services  for  consumers.  Example  - 
 Buildings, Machinery, Vehicles. 
 Q.10.  Which  of  these  is  NOT  a 
 characteristic of durable goods? 
 SSC CHSL 08/08/2023 (4th shift) 
 (a) They are capable of repetitive use. 
 (b) They are not extinguished by 
 immediate consumption. 
 (c) They are meant for repetitive 
 purchases. 
 (d) They have a relatively long life. 
 Sol.10.(c)  Durable  goods  (Consumer 
 durables)  :  Those  products  that  are  used 
 repeatedly  over  a  period  of  time.  The  life 
 of  these  products  is  high  and  the  price 
 paid  to  possess  these  products  are  also 
 high.  Example  -  Refrigerators,  air 
 conditioners,  tools,  computers, 
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 televisions,  jewellery,  home  and  o?ce 
 furnishings.  Non  -  Durable  goods  :  These 
 goods  have  a  shelf  life  of  less  than  three 
 years  and  many  can  be  recycled. 
 Example  -  Milk,  vegetables,  meat,  fruit, 
 paperboard, magazines. 
 Q.11.  Which  of  these  is  a  component  of 
 the tertiary sector of an economy? 
 SSC CHSL 11/08/2023 (1st shift) 
 (a) Mining and quarrying 
 (b) Water supply 
 (c) Electricity 
 (d) Hotels and restaurants 
 Sol.11.(d)  Hotels  and  restaurants. 
 Sectors  of  Indian  Economy:  The  primary 
 sector  depends  on  natural  resources  like 
 minerals,  land,  and  water  to  carry  out 
 essential  activities  like  agriculture, 
 mining,  and  forestry.  Secondary  sector  - 
 The  sector  of  the  economy  that  revolves 
 around  manufacturing.  Examples  - 
 Construction,  fabrication,  assembly, 
 distillation,  and  puri?cation.  Tertiary 
 Sector  (service  sector)  -  Tertiary  Sector, 
 also  known  as  the  service  sector,  is 
 responsible  for  providing  services  to  both 
 the  primary  and  secondary  sector. 
 Examples  -  Trade,  transport, 
 communication,  banking,  education, 
 health, tourism, insurance, etc. 
 Q.12.  Which  of  the  following  can  be 
 considered a part of a parallel economy? 
 SSC CHSL 11/08/2023 (2nd shift) 
 (a) Under declared income. 
 (b) Value of domestic work done by the 
 housewife. 
 (c) Payments made to domestic helpers 
 or housekeepers. 
 (d) Payments for private tuition. 
 Sol.12.(a)  Under  declared  Income. 
 Parallel  Economy  -  The  functioning  of  an 
 unsanctioned  sector  in  the  economy 
 whose  objectives  run  in  opposite  to  the 
 objectives  of  the  o?cial,  sanctioned  or 
 legitimate  sector.  Types  of  Economic 
 systems  : Capitalist, Socialist and Mixed. 
 Q.13.  Which  of  the  following  statements 
 is/are  FALSE  with  respect  to  simple 
 model of the circular ?ow of economy ? 
 i.  The  aggregate  consumption  is  more 
 than the aggregate expenditure. 
 ii.  There is government intervention. 
 iii.  There  are  no  trade  activities  with  the 
 rest of the world. 
 SSC CHSL 17/08/2023 (3rd shift) 
 (a) Only i and iii             (b) Only i 
 (c) Only iii                       (d) Only ii and iii 
 Sol.13.(b)  Only  i.  Circular  Flow  in  a 
 Two-sector Economy (with Financial 
 Market)  -  households  and  ?rms. 
 Three-sector  Economy  -  Between 
 Households  and  Government,  Between 
 Firms  and  Government.  Four-sector 
 Economy  -  Households,  Firms, 
 Government, Foreign Sector. 
 Q.14.  In  which  industrial  policy  was  the 
 investment  limit  for  a  tiny  industry/unit 
 increased to ?2 lakh ? 
 SSC CGL 14/07/2023 (1st shift) 
 (a) 1977  (b) 1991  (c) 1980  (d) 1956 
 Sol.14.(c)  1980.  Industrial  Policy  1980  : 
 This  Policy  focused  on  the  promotion  of 
 economic  federation  and  restoration  of 
 the  Monopolies  and  Restrictive  Trade 
 Practices  (MRTP)  Act.  Some  other 
 Industrial  policies  (IPs):  IP ,  1948  -  It 
 ushered  in  a  mixed  economic  model  in 
 the  country.  IP ,  1956  -  Three  schedules 
 were  laid  out  for  the  classi?cation  of 
 industries.  IP ,  1977  -  The  Policy’s  main 
 emphasis  had  been  the  propagation  of 
 cottage  and  small  industries.  IP ,  1991  - 
 Foreign  Direct  investment  allowed, 
 Amendment  of  the  Monopolies  and 
 Restrictive  Trade  Practices  (MRTP)  Act. 
 The  main  goals  of  the  New  Industrial 
 Policy  (1991)  were:  L  -  Liberalisation,  P  - 
 Privatisation, G - Globalisation. 
 Q.15.  Machines,  tools  and  implements, 
 and  buildings  are  examples  of  which  type 
 of goods? 
 SSC CGL 17/07/2023 (1st shift) 
 (a) Consumer goods      (b) Inferior goods 
 (c) Intermediate goods  (d) Capital goods 
 Sol.15.(d)  Capital  goods  -  Physical 
 assets  which  a  company  uses  to  produce 
 goods  and  services  for  consumers. 
 Inferior  goods  :  An  item  that  is  often  a 
 substitute  product  whose  demand  drops 
 when  people's  income  increases. 
 Example  -  instant  noodles,  frozen 
 dinners, and canned goods. 
 Q.16.  How  many  industries  were  listed  in 
 Schedule A of Industrial Policy, 1956? 
 SSC CGL 18/07/2023 (1st shift) 
 (a) 16  (b) 17  (c) 10  (d) 12 
 Sol.16.(b)  17  .  The  1956  policy  divided 
 the  industries  into  3  categories  based  on 
 management.  Schedule  A  Industries  :  It 
 consisted  of  17  industrial  areas  which 
 were  under  the  Central  Government. 
 Schedule  B  Industries  :  It  consisted  of  12 
 industries  that  were  left  to  the  state 
 government  to  follow  up  with  the  private 
 sector  that  includes  compulsory 
 licensing  provisions.  Schedule  C 
 Industries  :  It  consisted  of  those 
 industries  which  were  left  out  of 
 Schedule  A  and  B  and  were  with  the 
 private  sectors  and  subject  to  licensing 
 and regulation under the IDR Act. 
 Q.17.  Which  of  the  following  can  be 
 considered  as  an  example  of  ?ow 
 variable? 
 (i) Production of rice 
 (ii) Import of cloth 
 (iii) Change in capital 
 SSC CGL 21/07/2023 (1st shift) 
 (a) None of (i), (ii) and (iii) 
 (b) Only (iii) 
 (c) All of (i), (ii) and (iii) 
 (d) Only (i) and (ii) 
 Sol.17.(c)  All  of  (i),  (ii)  and  (iii).  Flow 
 variable  -  A  quanti?ed  variable  that  is 
 measured  over  a  speci?ed  period  of 
 time.  It  is  time  bounded  and  expressed 
 as  per  unit  of  time.  Examples  -  Income, 
 expenditure,  depreciation,  production, 
 consumption,  exports,  rent,  pro?t, 
 interest.  Stock  variable  -  A  quantity 
 which  is  measurable  at  a  particular  point 
 of  time.  Examples  -  Capital,  wealth, 
 foreign debts, loan. 
 Q.18.  Hindustan  Aeronautics  Limited 
 comes under which sector? 
 SSC MTS 03/05/2023 (Evening) 
 (a) Co - operative sector (b) Private sector 
 (c) Foreign sector            (d) Public sector 
 Sol.18.(d)  Public  sector.  Hindustan 
 Aeronautics  Limited  (HAL)  is  an  Indian 
 ‘Navratna’  aerospace  and  defence 
 company,  headquartered  in  Bangalore. 
 Co-operative  sector  industries  are 
 operated  and  owned  by  the  suppliers  or 
 producers  of  raw  materials,  workers  or 
 both.  Foreign  secto  r  is  the  part  of  a 
 country's  economy  that  is  concerned 
 with  external  trade  (imports  and  exports) 
 and capital ?ows (inward and outward). 
 Q.19.  In  migration  the  factors  which 
 cause  people  to  leave  their  place  of 
 residence or origin are called ________. 
 SSC MTS 10/05/2023 (Evening) 
 (a) Pull factors  (b) Regular factors 
 (c) Push factors  (d) Irregular factors 
 Sol.19.(c)  Push  factors  .  These  are  the 
 factors  that  drive  people  away  from  their 
 place  of  origin,  such  as  war,  political 
 instability,  or  economic  hardship  .  Pull 
 factors  are  the  factors  that  attract  people 
 to  a  new  place,  such  as  better  economic 
 opportunities,  better  education,  or  a  more 
 favourable climate. 
 Q.20.  What  is  the  ?scal  year  period  in 
 India? 
 SSC MTS 10/05/2023 (Evening) 
 (a) 1st April of a year to 31st March of 
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 the next upcoming year 
 (b) 1st April to 31st December of the 
 same year 
 (c) 1st January to 31st December of the 
 same year 
 (d) 1st January of a year to 31st 
 December of the next upcoming year 
 Sol.20.(a)  Financial  Year  .  Assessment 
 yea  r  -  The  year  in  which  the  income  is 
 assessed  to  tax  and  all  taxes  are  paid 
 and tax returns ?led. 
 Q.21.  Change  in  the  inventory  of  a  ?rm  is 
 treated as _________. 
 SSC MTS 18/05/2023 (Afternoon) 
 (a) Disinvestment  (b) Investment 
 (c) Liability  (d) Asset 
 Sol.21.(b)  Investment  -  It  refers  to  the 
 allocation  of  money  or  resources  with 
 the  expectation  of  generating  a  return  or 
 pro?t  over  time.  Disinvestment  is  when 
 governments  or  organisations  sell  or 
 liquidate assets or subsidiaries. 
 Q.22.  Which  of  the  following  is  an 
 example of joint sector Industry? 
 SSC MTS 13/06/2023 (Afternoon) 
 (a) Steel Authority of India Limited 
 (b) Hindustan Aeronautics Limited 
 (c) Maruti Udyog Limited 
 (d) Anand Milk Union Limited 
 Sol.22.(c)  Maruti  Udyog  Limited.  The 
 Joint  Sector  Enterprise  is  an  industry 
 wherein  private  entrepreneurs  and  a 
 Government  jointly  participate  in 
 ownership,  control,  and  management. 
 Economic  activities,  such  as  the 
 production  and  distribution  of  goods  and 
 services,  take  place  broadly  in  4  sectors, 
 namely  public  sector,  private  sector,  joint 
 sector,  and  cooperative  sector.  Examples 
 of  some  joint  sector  industries  -  Oil  India 
 Limited,  Cochin  Re?neries,  Tamil  Nadu 
 Fluorine & Allied Chemicals Limited. 
 Q.23.  Which  among  the  following 
 statements is incorrect? 
 SSC CHSL 09/03/2023 (1st Shift) 
 (a) Industrial Securities Market is also 
 known as the gilt-edged market. 
 (b) The secondary market is the market 
 for the sale and purchase of 
 previously  issued securities. 
 (c) RBI plays a dominant role in the 
 gilt-edged market through its 'Open 
 Market Operations'. 
 (d) The primary market is also known as 
 the new issue market 
 Sol.23.(a) Gilt-edged market  is known as 
 the government securities market.  The 
 Industrial  Securities  Market  is  divided 
 into  two  categories  -  Primary  Market  ( 
 New  company  shares  issued  (IPO)  and 
 Secondary  Market  (Stock  Exchange).  The 
 secondary  market  is  the  market  for  the 
 sale  and  purchase  of  previously  issued 
 securities. 
 Q.24.  Which  of  the  following  statements 
 is  correct  regarding  the  socialist  society 
 in the economy? 
 I.  The  government  decides  what  goods 
 are to be produced. 
 II.  Distribution  of  goods  under  socialism 
 is  supposed  to  be  based  on  what  people 
 need. 
 SSC CHSL 10/03/2023 (4th Shift) 
 (a) Only I  (b) Neither I nor II 
 (c) Both I and II  (d) Only II 
 Sol.24.(c)  Both  I  and  II  .  Socialist 
 Economy  decides  on  the  products  and 
 services  manufactured  in  line  with 
 society’s  requirements.  It  also  have 
 complete  control  over  the  factors  of 
 production.  The  main  motive  for 
 producing  goods  and  services  in  this 
 economy  is  social  welfare  and  not  pro?t. 
 Example  -  China  and  Cuba.  In  India  -Mix 
 Economy. 
 Q.25.  Macroeconomics deals with which 
 of the following studies? 
 I.  Reasons behind the unemployment of 
 resources 
 Il.  Determination of total output 
 SSC CHSL 17/03/2023 (3rd Shift) 
 (a) Only l  (b) Only ll 
 (c) Neither I nor II      (d) Both l and Il 
 Sol.25.(d)  Both  I  and  II. 
 Macroeconomics  looks  at  the  economy 
 as  a  whole  and  studies  aggregate 
 phenomena  such  as  overall  economic 
 output  (eg.  GDP),  unemployment  rates, 
 in?ation, and national income. 
 Q.26.  A  free  -  market  economy  is  a 
 crucial aspect of _______ . 
 SSC CHSL 21/03/2023 (2nd Shift) 
 (a) Socialism  (b) Capitalism 
 (c) Feudalism  (d) Functionalist 
 Sol.26.(b)  Capitalism  refers  to  an 
 economic  system  where  private 
 businesses  can  have  ownership  of 
 capital  goods.  Functionalism  is  de?ned 
 as  the  perspective  that  society  is 
 constructed  of  several  interconnected 
 parts  designed  to  meet  biological  and 
 social  needs.  Feudalism  is  a  type  of 
 social  and  political  system  in  which 
 landholders  provide  land  and  protection 
 to people in exchange for their loyalty 
 and service. 
 Q.27.  Which  of  the  given  sectors  is 
 largely driven by considerations of social 
 welfare? 
 SSC CGL 01/12/2022 (2nd Shift) 
 (a) Foreign  (b) Co-operative 
 (c) Public  (d) Private 
 Sol.27.(c)  Public  sector  (completely 
 owned  and  operated  by  the  government 
 of  the  country)  promotes  social  welfare 
 by  providing  basic  amenities  to  citizens 
 of the country. 
 Q.28.  Name  the  two  states  in  which  land 
 reform was successful ? 
 SSC CGL 08/12/2022 (4th Shift) 
 (a) Uttar Pradesh and Bihar 
 (b) West Bengal and Kerala 
 (c) Maharashtra and Tamil Nadu 
 (d) Karnataka and West Bengal 
 Sol.28.(b)  West  Bengal  and  Kerala.  The 
 Kumarappan  committee  (1949)  was 
 appointed  to  study  and  recommend 
 comprehensive  land  reform  measures  for 
 independent  India.  Land  Reforms 
 consisted  of  four  elements:  The  Abolition 
 of  the  Intermediaries,  Tenancy  Reforms, 
 Fixing  Ceilings  on  Landholdings  and 
 Consolidation of Landholdings. 
 Q.29.  Aid  or  auxiliary  to  trade  includes 
 which of the following? 
 SSC CGL 09/12/2022 (1st Shift) 
 (a) Production  (b) Selling 
 (c) Buying  (d) Warehousing 
 Sol.29.(d)  Warehousing.  Auxiliaries  to 
 trade  are  essential  services  and 
 functions  that  assist  the  business  which 
 include  transport,  banking,  warehousing, 
 insurance,  advertising  etc.  Five  distinct 
 examples  of  economic  activities  are 
 producing,  supplying,  buying,  selling,  and 
 the consumption of goods and services. 
 Q.30.  In  the  Industrial  Policy  Resolution 
 of  1948,  which  of  the  following  was  NOT 
 the  monopoly  of  the  Central 
 Government? 
 SSC CGL 12/12/2022 (4th Shift) 
 (a) Iron and Steel 
 (b) Atomic energy 
 (c) Railway 
 (d) Arms and ammunition 
 Sol.30.(a)  Iron  and  Steel.  Industrial 
 Policy  Resolution  (1948)  declared  the 
 Indian  economy  as  a  Mixed  Economy. 
 Four  categories:  The  exclusive  monopoly 
 of  central  government  (arms  and 
 ammunitions,  production  of  atomic 
 energy,  and  management  of  railways), 
 New  undertakings  were  undertaken  only 
 by  the  state  (coal,  iron  and  steel,  aircraft 
 manufacturing,  shipbuilding,  telegraph, 
 telephone,  etc.),  Industries  to  be 
 regulated  by  the  government  (Industries 
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Page 4


 Pinnacle  Economics 
 Economics 
 Basics of Economy 
 Q.1.  Which  of  the  following  is  NOT  a  part 
 of the infrastructure sector ? 
 SSC Stenographer 13/10/2023 (Morning) 
 (a) Agriculture          (b) Dams 
 (c) Highways            (d) Power 
 Sol.1.(a)  Agriculture.  Infrastructure  is 
 de?ned  as  the  basic  physical  systems  of 
 a  business,  region,  or  nation  and  often 
 involves  the  production  of  public  goods 
 or  production  processes.  Examples  - 
 transportation  systems,  communication 
 networks,  sewage,  water,  and  school 
 systems etc. 
 Q.2.  The  shares  of  the  public  sector  and 
 the  private  sector  in  the  production  of 
 steel  during  1990-91  were  __________, 
 respectively. 
 SSC Stenographer 13/10/2023 (Afternoon) 
 (a) 40% and 60%        (b) 46% and 54% 
 (c) 49% and 51%        (d) 55% and 45% 
 Sol.2.(b)  46%  and  54%.  During  the 
 1950-60  and  1960-70,  the  average  annual 
 growth  rate  of  steel  production  exceeded 
 8%.  During  1970-80,  the  growth  rate  in 
 steel  production  came  down  to  5.7%  per 
 annum  and  increased  to  6.65%  per 
 annum  during  1990-2000.  During 
 2000-01,  the  shares  of  the  public  sector 
 and  the  private  sector  in  the  production 
 of steel was 32% and 68% respectively. 
 Q.3.  Which  of  the  following  is  NOT  true 
 about  the  circular  ?ow  of  income  in  a 
 two-sector economy? 
 SSC Stenographer 13/10/2023 (Evening) 
 (a) Total production is equal to total 
 consumption. 
 (b) Factor payment is equal to factor 
 income. 
 (c) Real Flow is more than money ?ow. 
 (d) Consumption expenditure is equal to 
 factor income. 
 Sol.3.(c)  Circular  ?ow  of  income  -  A 
 model  of  the  economy  that  shows  how 
 money  ?ows  through  the  different 
 sectors  of  the  economy.  A  simple 
 economy  assumes  that  there  exist  only 
 two sectors, i.e., Households and Firms. 
 Q.4.  During  the  year  1991-92,  the 
 industrial  production  recorded  a 
 ______growth of ______. 
 SSC CPO 03/10/2023 (Evening) 
 (a) negative; 1.1 Percent 
 (b) positive; 1.1 Percent 
 (c) negative; 0.9 Percent 
 (d) positive; 0.6 Percent 
 Sol.4.(d)  positive;  0.6  Percent.  India’s 
 Industrial  reforms  of  1991  :  Wide-scale 
 reduction  in  the  scope  of  industrial 
 licensing,  simpli?cation  of  procedural 
 rules  and  regulations,  reduction  of  areas 
 reserved  exclusively  for  the  public  sector, 
 disinvestment  of  equity  of  selected 
 public  sector  undertakings,  enhancing 
 the  limits  of  foreign  equity  participation 
 in  domestic  industrial  undertakings, 
 liberalisation  of  trade  and  exchange  rate 
 policies,  rationalisation  and  reduction  of 
 customs  and  excise  duties  and  personal 
 and corporate income-tax etc. 
 Q.5.  Which  of  the  following  is  NOT  an 
 example of manufacturing activity ? 
 SSC CPO 04/10/2023 (Afternoon) 
 (a) Paper made from wood 
 (b) Mutual fund products made by 
 combining debt and equity funds 
 (c) Yarn made from cotton 
 (d) Sugar made from sugarcane 
 Sol.5.(b)  Mutual  fund  products  made  by 
 combining  debt  and  equity  funds  come 
 under  the  Tertiary  sector  of  Economy. 
 Tertiary  sectors  itself  do  not  produce 
 goods  but  they  are  an  aid  or  a  support  to 
 the primary and secondary sectors. 
 Q.6.  Which  of  these  is  related  to  public 
 goods? 
 SSC CHSL 02/08/2023 (2nd shift) 
 (a) The principle of excludability is 
 applicable to its consumption. 
 (b) There is a clear link between the 
 producer and consumer which occurs 
 through the payment process. 
 (c) Its consumption is rivalrous in nature. 
 (d) There is a possibility of free ridership 
 in its consumption. 
 Sol.6.(d)  Public  goods  -  A  commodity  or 
 service  that  is  provided  without  pro?t  to 
 all  members  of  a  society,  either  by  the 
 government  or  by  a  private  individual  or 
 an  organization.  National  defense, 
 effective  policing,  and  public  education 
 are  all  examples  of  public  goods.  Private 
 good  -  A  product  that  must  be  purchased 
 to  be  consumed,  and  consumption  by 
 one  individual  prevents  another  individual 
 from  consuming  it.  Examples  -  Houses, 
 cars, clothing, food, movie tickets etc. 
 Q.7.  Which  of  these  is  not  the  reason 
 why ‘?nal’ goods are called so? 
 SSC CHSL 03/08/2023 (3rd shift) 
 (a) They are meant for ?nal use. 
 (b) They are the last to be consumed. 
 (c) They will not pass through any more 
 stages of production. 
 (d) They are not processed or 
 transformed further. 
 Sol.7.(b)  Final  Goods  -  An  item  that  is 
 meant  for  ?nal  use  and  will  not  pass 
 through  any  more  stages  of  production 
 or  transformations.  Types  of  ?nal  goods  : 
 consumption  goods  and  capital  goods. 
 Examples  :  television,  ready-to-eat  foods, 
 medicines.  Intermediate  goods  -  Raw 
 materials  that  a  ?rm  buys  from  another 
 ?rm  which  are  completely  used  up  in  the 
 process  of  production.  Examples:  wheat, 
 soil, crude oil, steel etc. 
 Q.8.  What  was  the  percentage  of  women 
 working  in  the  primary  sector  of  India  as 
 of 2011 - 2012 ? 
 SSC CHSL 04/08/2023 (1st shift) 
 (a) 61%  (b) 63.08%  (c) 64.5%  (d) 62.8% 
 Sol.8.(d)  62.8%.  Distribution  of 
 workforce  in  different  sectors,  as  per 
 2011-12  data  :  Primary  sector  -  48.9 
 percent  (Men  -  43.6  percent),  Secondary 
 Sector  :-  24.3  percent  (Men  -  25.9 
 percent,  women  -  20  percent), 
 Tertiary/service  Sector  -  26.8  percent 
 (Men - 30.5 percent). 
 Q.9.  Final goods are divided into: 
 SSC CHSL 08/08/2023 (2nd shift) 
 (a) raw materials and semi-?nished 
 goods 
 (b) single goods and composite goods 
 (c) consumption goods and capital 
 goods 
 (d) War goods and civilian goods 
 Sol.9.(c)  Consumption  goods  -  Directly 
 used  for  the  satisfaction  of  human  wants 
 and  not  used  later  to  produce  another 
 consumer  good.  Example  -  Food, 
 Beverages,  Clothing,  Vehicles.  Capital 
 goods  -  Assets  used  by  businesses  in  the 
 course  of  producing  products  and 
 services  for  consumers.  Example  - 
 Buildings, Machinery, Vehicles. 
 Q.10.  Which  of  these  is  NOT  a 
 characteristic of durable goods? 
 SSC CHSL 08/08/2023 (4th shift) 
 (a) They are capable of repetitive use. 
 (b) They are not extinguished by 
 immediate consumption. 
 (c) They are meant for repetitive 
 purchases. 
 (d) They have a relatively long life. 
 Sol.10.(c)  Durable  goods  (Consumer 
 durables)  :  Those  products  that  are  used 
 repeatedly  over  a  period  of  time.  The  life 
 of  these  products  is  high  and  the  price 
 paid  to  possess  these  products  are  also 
 high.  Example  -  Refrigerators,  air 
 conditioners,  tools,  computers, 
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 televisions,  jewellery,  home  and  o?ce 
 furnishings.  Non  -  Durable  goods  :  These 
 goods  have  a  shelf  life  of  less  than  three 
 years  and  many  can  be  recycled. 
 Example  -  Milk,  vegetables,  meat,  fruit, 
 paperboard, magazines. 
 Q.11.  Which  of  these  is  a  component  of 
 the tertiary sector of an economy? 
 SSC CHSL 11/08/2023 (1st shift) 
 (a) Mining and quarrying 
 (b) Water supply 
 (c) Electricity 
 (d) Hotels and restaurants 
 Sol.11.(d)  Hotels  and  restaurants. 
 Sectors  of  Indian  Economy:  The  primary 
 sector  depends  on  natural  resources  like 
 minerals,  land,  and  water  to  carry  out 
 essential  activities  like  agriculture, 
 mining,  and  forestry.  Secondary  sector  - 
 The  sector  of  the  economy  that  revolves 
 around  manufacturing.  Examples  - 
 Construction,  fabrication,  assembly, 
 distillation,  and  puri?cation.  Tertiary 
 Sector  (service  sector)  -  Tertiary  Sector, 
 also  known  as  the  service  sector,  is 
 responsible  for  providing  services  to  both 
 the  primary  and  secondary  sector. 
 Examples  -  Trade,  transport, 
 communication,  banking,  education, 
 health, tourism, insurance, etc. 
 Q.12.  Which  of  the  following  can  be 
 considered a part of a parallel economy? 
 SSC CHSL 11/08/2023 (2nd shift) 
 (a) Under declared income. 
 (b) Value of domestic work done by the 
 housewife. 
 (c) Payments made to domestic helpers 
 or housekeepers. 
 (d) Payments for private tuition. 
 Sol.12.(a)  Under  declared  Income. 
 Parallel  Economy  -  The  functioning  of  an 
 unsanctioned  sector  in  the  economy 
 whose  objectives  run  in  opposite  to  the 
 objectives  of  the  o?cial,  sanctioned  or 
 legitimate  sector.  Types  of  Economic 
 systems  : Capitalist, Socialist and Mixed. 
 Q.13.  Which  of  the  following  statements 
 is/are  FALSE  with  respect  to  simple 
 model of the circular ?ow of economy ? 
 i.  The  aggregate  consumption  is  more 
 than the aggregate expenditure. 
 ii.  There is government intervention. 
 iii.  There  are  no  trade  activities  with  the 
 rest of the world. 
 SSC CHSL 17/08/2023 (3rd shift) 
 (a) Only i and iii             (b) Only i 
 (c) Only iii                       (d) Only ii and iii 
 Sol.13.(b)  Only  i.  Circular  Flow  in  a 
 Two-sector Economy (with Financial 
 Market)  -  households  and  ?rms. 
 Three-sector  Economy  -  Between 
 Households  and  Government,  Between 
 Firms  and  Government.  Four-sector 
 Economy  -  Households,  Firms, 
 Government, Foreign Sector. 
 Q.14.  In  which  industrial  policy  was  the 
 investment  limit  for  a  tiny  industry/unit 
 increased to ?2 lakh ? 
 SSC CGL 14/07/2023 (1st shift) 
 (a) 1977  (b) 1991  (c) 1980  (d) 1956 
 Sol.14.(c)  1980.  Industrial  Policy  1980  : 
 This  Policy  focused  on  the  promotion  of 
 economic  federation  and  restoration  of 
 the  Monopolies  and  Restrictive  Trade 
 Practices  (MRTP)  Act.  Some  other 
 Industrial  policies  (IPs):  IP ,  1948  -  It 
 ushered  in  a  mixed  economic  model  in 
 the  country.  IP ,  1956  -  Three  schedules 
 were  laid  out  for  the  classi?cation  of 
 industries.  IP ,  1977  -  The  Policy’s  main 
 emphasis  had  been  the  propagation  of 
 cottage  and  small  industries.  IP ,  1991  - 
 Foreign  Direct  investment  allowed, 
 Amendment  of  the  Monopolies  and 
 Restrictive  Trade  Practices  (MRTP)  Act. 
 The  main  goals  of  the  New  Industrial 
 Policy  (1991)  were:  L  -  Liberalisation,  P  - 
 Privatisation, G - Globalisation. 
 Q.15.  Machines,  tools  and  implements, 
 and  buildings  are  examples  of  which  type 
 of goods? 
 SSC CGL 17/07/2023 (1st shift) 
 (a) Consumer goods      (b) Inferior goods 
 (c) Intermediate goods  (d) Capital goods 
 Sol.15.(d)  Capital  goods  -  Physical 
 assets  which  a  company  uses  to  produce 
 goods  and  services  for  consumers. 
 Inferior  goods  :  An  item  that  is  often  a 
 substitute  product  whose  demand  drops 
 when  people's  income  increases. 
 Example  -  instant  noodles,  frozen 
 dinners, and canned goods. 
 Q.16.  How  many  industries  were  listed  in 
 Schedule A of Industrial Policy, 1956? 
 SSC CGL 18/07/2023 (1st shift) 
 (a) 16  (b) 17  (c) 10  (d) 12 
 Sol.16.(b)  17  .  The  1956  policy  divided 
 the  industries  into  3  categories  based  on 
 management.  Schedule  A  Industries  :  It 
 consisted  of  17  industrial  areas  which 
 were  under  the  Central  Government. 
 Schedule  B  Industries  :  It  consisted  of  12 
 industries  that  were  left  to  the  state 
 government  to  follow  up  with  the  private 
 sector  that  includes  compulsory 
 licensing  provisions.  Schedule  C 
 Industries  :  It  consisted  of  those 
 industries  which  were  left  out  of 
 Schedule  A  and  B  and  were  with  the 
 private  sectors  and  subject  to  licensing 
 and regulation under the IDR Act. 
 Q.17.  Which  of  the  following  can  be 
 considered  as  an  example  of  ?ow 
 variable? 
 (i) Production of rice 
 (ii) Import of cloth 
 (iii) Change in capital 
 SSC CGL 21/07/2023 (1st shift) 
 (a) None of (i), (ii) and (iii) 
 (b) Only (iii) 
 (c) All of (i), (ii) and (iii) 
 (d) Only (i) and (ii) 
 Sol.17.(c)  All  of  (i),  (ii)  and  (iii).  Flow 
 variable  -  A  quanti?ed  variable  that  is 
 measured  over  a  speci?ed  period  of 
 time.  It  is  time  bounded  and  expressed 
 as  per  unit  of  time.  Examples  -  Income, 
 expenditure,  depreciation,  production, 
 consumption,  exports,  rent,  pro?t, 
 interest.  Stock  variable  -  A  quantity 
 which  is  measurable  at  a  particular  point 
 of  time.  Examples  -  Capital,  wealth, 
 foreign debts, loan. 
 Q.18.  Hindustan  Aeronautics  Limited 
 comes under which sector? 
 SSC MTS 03/05/2023 (Evening) 
 (a) Co - operative sector (b) Private sector 
 (c) Foreign sector            (d) Public sector 
 Sol.18.(d)  Public  sector.  Hindustan 
 Aeronautics  Limited  (HAL)  is  an  Indian 
 ‘Navratna’  aerospace  and  defence 
 company,  headquartered  in  Bangalore. 
 Co-operative  sector  industries  are 
 operated  and  owned  by  the  suppliers  or 
 producers  of  raw  materials,  workers  or 
 both.  Foreign  secto  r  is  the  part  of  a 
 country's  economy  that  is  concerned 
 with  external  trade  (imports  and  exports) 
 and capital ?ows (inward and outward). 
 Q.19.  In  migration  the  factors  which 
 cause  people  to  leave  their  place  of 
 residence or origin are called ________. 
 SSC MTS 10/05/2023 (Evening) 
 (a) Pull factors  (b) Regular factors 
 (c) Push factors  (d) Irregular factors 
 Sol.19.(c)  Push  factors  .  These  are  the 
 factors  that  drive  people  away  from  their 
 place  of  origin,  such  as  war,  political 
 instability,  or  economic  hardship  .  Pull 
 factors  are  the  factors  that  attract  people 
 to  a  new  place,  such  as  better  economic 
 opportunities,  better  education,  or  a  more 
 favourable climate. 
 Q.20.  What  is  the  ?scal  year  period  in 
 India? 
 SSC MTS 10/05/2023 (Evening) 
 (a) 1st April of a year to 31st March of 
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 the next upcoming year 
 (b) 1st April to 31st December of the 
 same year 
 (c) 1st January to 31st December of the 
 same year 
 (d) 1st January of a year to 31st 
 December of the next upcoming year 
 Sol.20.(a)  Financial  Year  .  Assessment 
 yea  r  -  The  year  in  which  the  income  is 
 assessed  to  tax  and  all  taxes  are  paid 
 and tax returns ?led. 
 Q.21.  Change  in  the  inventory  of  a  ?rm  is 
 treated as _________. 
 SSC MTS 18/05/2023 (Afternoon) 
 (a) Disinvestment  (b) Investment 
 (c) Liability  (d) Asset 
 Sol.21.(b)  Investment  -  It  refers  to  the 
 allocation  of  money  or  resources  with 
 the  expectation  of  generating  a  return  or 
 pro?t  over  time.  Disinvestment  is  when 
 governments  or  organisations  sell  or 
 liquidate assets or subsidiaries. 
 Q.22.  Which  of  the  following  is  an 
 example of joint sector Industry? 
 SSC MTS 13/06/2023 (Afternoon) 
 (a) Steel Authority of India Limited 
 (b) Hindustan Aeronautics Limited 
 (c) Maruti Udyog Limited 
 (d) Anand Milk Union Limited 
 Sol.22.(c)  Maruti  Udyog  Limited.  The 
 Joint  Sector  Enterprise  is  an  industry 
 wherein  private  entrepreneurs  and  a 
 Government  jointly  participate  in 
 ownership,  control,  and  management. 
 Economic  activities,  such  as  the 
 production  and  distribution  of  goods  and 
 services,  take  place  broadly  in  4  sectors, 
 namely  public  sector,  private  sector,  joint 
 sector,  and  cooperative  sector.  Examples 
 of  some  joint  sector  industries  -  Oil  India 
 Limited,  Cochin  Re?neries,  Tamil  Nadu 
 Fluorine & Allied Chemicals Limited. 
 Q.23.  Which  among  the  following 
 statements is incorrect? 
 SSC CHSL 09/03/2023 (1st Shift) 
 (a) Industrial Securities Market is also 
 known as the gilt-edged market. 
 (b) The secondary market is the market 
 for the sale and purchase of 
 previously  issued securities. 
 (c) RBI plays a dominant role in the 
 gilt-edged market through its 'Open 
 Market Operations'. 
 (d) The primary market is also known as 
 the new issue market 
 Sol.23.(a) Gilt-edged market  is known as 
 the government securities market.  The 
 Industrial  Securities  Market  is  divided 
 into  two  categories  -  Primary  Market  ( 
 New  company  shares  issued  (IPO)  and 
 Secondary  Market  (Stock  Exchange).  The 
 secondary  market  is  the  market  for  the 
 sale  and  purchase  of  previously  issued 
 securities. 
 Q.24.  Which  of  the  following  statements 
 is  correct  regarding  the  socialist  society 
 in the economy? 
 I.  The  government  decides  what  goods 
 are to be produced. 
 II.  Distribution  of  goods  under  socialism 
 is  supposed  to  be  based  on  what  people 
 need. 
 SSC CHSL 10/03/2023 (4th Shift) 
 (a) Only I  (b) Neither I nor II 
 (c) Both I and II  (d) Only II 
 Sol.24.(c)  Both  I  and  II  .  Socialist 
 Economy  decides  on  the  products  and 
 services  manufactured  in  line  with 
 society’s  requirements.  It  also  have 
 complete  control  over  the  factors  of 
 production.  The  main  motive  for 
 producing  goods  and  services  in  this 
 economy  is  social  welfare  and  not  pro?t. 
 Example  -  China  and  Cuba.  In  India  -Mix 
 Economy. 
 Q.25.  Macroeconomics deals with which 
 of the following studies? 
 I.  Reasons behind the unemployment of 
 resources 
 Il.  Determination of total output 
 SSC CHSL 17/03/2023 (3rd Shift) 
 (a) Only l  (b) Only ll 
 (c) Neither I nor II      (d) Both l and Il 
 Sol.25.(d)  Both  I  and  II. 
 Macroeconomics  looks  at  the  economy 
 as  a  whole  and  studies  aggregate 
 phenomena  such  as  overall  economic 
 output  (eg.  GDP),  unemployment  rates, 
 in?ation, and national income. 
 Q.26.  A  free  -  market  economy  is  a 
 crucial aspect of _______ . 
 SSC CHSL 21/03/2023 (2nd Shift) 
 (a) Socialism  (b) Capitalism 
 (c) Feudalism  (d) Functionalist 
 Sol.26.(b)  Capitalism  refers  to  an 
 economic  system  where  private 
 businesses  can  have  ownership  of 
 capital  goods.  Functionalism  is  de?ned 
 as  the  perspective  that  society  is 
 constructed  of  several  interconnected 
 parts  designed  to  meet  biological  and 
 social  needs.  Feudalism  is  a  type  of 
 social  and  political  system  in  which 
 landholders  provide  land  and  protection 
 to people in exchange for their loyalty 
 and service. 
 Q.27.  Which  of  the  given  sectors  is 
 largely driven by considerations of social 
 welfare? 
 SSC CGL 01/12/2022 (2nd Shift) 
 (a) Foreign  (b) Co-operative 
 (c) Public  (d) Private 
 Sol.27.(c)  Public  sector  (completely 
 owned  and  operated  by  the  government 
 of  the  country)  promotes  social  welfare 
 by  providing  basic  amenities  to  citizens 
 of the country. 
 Q.28.  Name  the  two  states  in  which  land 
 reform was successful ? 
 SSC CGL 08/12/2022 (4th Shift) 
 (a) Uttar Pradesh and Bihar 
 (b) West Bengal and Kerala 
 (c) Maharashtra and Tamil Nadu 
 (d) Karnataka and West Bengal 
 Sol.28.(b)  West  Bengal  and  Kerala.  The 
 Kumarappan  committee  (1949)  was 
 appointed  to  study  and  recommend 
 comprehensive  land  reform  measures  for 
 independent  India.  Land  Reforms 
 consisted  of  four  elements:  The  Abolition 
 of  the  Intermediaries,  Tenancy  Reforms, 
 Fixing  Ceilings  on  Landholdings  and 
 Consolidation of Landholdings. 
 Q.29.  Aid  or  auxiliary  to  trade  includes 
 which of the following? 
 SSC CGL 09/12/2022 (1st Shift) 
 (a) Production  (b) Selling 
 (c) Buying  (d) Warehousing 
 Sol.29.(d)  Warehousing.  Auxiliaries  to 
 trade  are  essential  services  and 
 functions  that  assist  the  business  which 
 include  transport,  banking,  warehousing, 
 insurance,  advertising  etc.  Five  distinct 
 examples  of  economic  activities  are 
 producing,  supplying,  buying,  selling,  and 
 the consumption of goods and services. 
 Q.30.  In  the  Industrial  Policy  Resolution 
 of  1948,  which  of  the  following  was  NOT 
 the  monopoly  of  the  Central 
 Government? 
 SSC CGL 12/12/2022 (4th Shift) 
 (a) Iron and Steel 
 (b) Atomic energy 
 (c) Railway 
 (d) Arms and ammunition 
 Sol.30.(a)  Iron  and  Steel.  Industrial 
 Policy  Resolution  (1948)  declared  the 
 Indian  economy  as  a  Mixed  Economy. 
 Four  categories:  The  exclusive  monopoly 
 of  central  government  (arms  and 
 ammunitions,  production  of  atomic 
 energy,  and  management  of  railways), 
 New  undertakings  were  undertaken  only 
 by  the  state  (coal,  iron  and  steel,  aircraft 
 manufacturing,  shipbuilding,  telegraph, 
 telephone,  etc.),  Industries  to  be 
 regulated  by  the  government  (Industries 
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 of  basic  importance),  Open  to  private 
 enterprises, individuals, and cooperatives 
 (remaining). 
 Q.31.  What  is  the  emigration  of  a 
 signi?cant  proportion  of  a  country’s 
 highly  skilled,  highly  educated 
 professional  population  to  other 
 countries  offering  better  economic  and 
 social opportunities called ? 
 SSC CGL 12/04/2022 (Afternoon) 
 (a) Carrying capacity 
 (b) Brain drain 
 (c) Demographic transition 
 (d) Closed population 
 Sol.31.(b)  Brain  Drain  is  the  movement 
 of  highly  skilled  and  educated  people  to 
 a  country  where  they  can  work  in  better 
 conditions  and  earn  more  money. 
 Economic  carrying  capacity  takes  the 
 form  of  maximum  global  economic 
 welfare  derivable  from  the  sustainable 
 throughput  ?ows  of  the  ecosphere. 
 Demographic  transition  is  a  long-term 
 trend  of  declining  birth  and  death  rates, 
 resulting  in  substantive  change  in  the 
 age distribution of a population. 
 Q.32.  In the context of Economics, what 
 does P stand for in EPF? 
 SSC MTS 12/10/2021 (Afternoon) 
 (a) Planning  (b) Pro?t 
 (c) Promotion  (d) Provident 
 Sol.32.(d)  Employees  Provident  Fund 
 (EPF)  is  a  retirement  bene?ts  scheme 
 provided  by  the  Employees’  Provident 
 Fund  Organization  (EPFO).  The 
 contribution  of  the  employer  to  the  EPF  is 
 12%  of  the  salary  of  the  employee  on  a 
 monthly  basis.  The  contribution  of  the 
 employee  is  12%  of  his  salary  on  a 
 monthly  basis  (contribution  to  EPF  is 
 3.67%  of  the  salary  and  contribution  to 
 EPS is 8.33% of the salary). 
 Q.33.  Which  of  the  following  is  NOT 
 important for individual health? 
 SSC MTS 18/10/2021 (Morning) 
 (a) Social equality   (b) Public cleanliness 
 (c) Harmony            (d) Public transport 
 Sol.33.(d)  Public  transport  is  not 
 important  for  individual  health.  Living  a 
 healthy  lifestyle  can  help  prevent  chronic 
 diseases and long-term illnesses. 
 Q.34.  Which  of  the  following  statements 
 is related to positive economics ? 
 SSC CGL 17/08/2021 (Evening) 
 (a) In?ation is better than de?ation. 
 (b) Inequalities in the distribution of 
 wealth and incomes should be 
 reduced. 
 (c) More production of luxury goods is 
 not good for a less developed 
 country. 
 (d) An increase in money supply implies 
 a price rise in an economy. 
 Sol.34.(d)  Positive  economics  is 
 objective  and  based  on  statistics,  with 
 descriptive,  speci?c,  and  measurable 
 statements.  There  are  no  instances  of 
 approval-disapproval  in  it.  Examples  -  the 
 in?ation  rate,  the  unemployment  rate, 
 housing  market  statistics,  and  consumer 
 spending. 
 Q.35.  Which  branch  of  economics  deals 
 with  the  depletion  of  natural  resources 
 stock  and  pollution,  which  are  a  result  of 
 rapid economic development ? 
 SSC CGL 23/08/2021 (Afternoon) 
 (a) Environmental Economics 
 (b) Developmental Economics 
 (c) International Economics 
 (d) Public Economics 
 Sol.35.(a)  Environmental  Economics. 
 Development  economics  deals  with  the 
 economic  aspects  of  the  development 
 process  in  low-income  countries.  Public 
 economics  is  the  study  of  government 
 policy  through  the  lens  of  economic 
 e?ciency and equity. 
 Q.36.  All  monetary  transfers  or  kinds 
 sent  by  migrants  to  their  place  of  origin 
 are called ______. 
 SSC CGL 24/08/2021 (Evening) 
 (a) bills  (b) drafts 
 (c) remittances  (d) payments 
 Sol.36.(c)  Remittances.  In  remittance, 
 money  can  be  transferred  from  one 
 country  to  another  country  by  migrants  to 
 their families and communities. 
 Q.37.  People  like  small  farmers  and 
 seasonal  workers  who  regularly  move  in 
 and  out  of  poverty  are  categorised  as 
 ________. 
 SSC CPO 24/11/2020 (Evening) 
 (a) occasionally poor  (b) churning poor 
 (c) always poor  (d) usually poor 
 Sol.37.(b)  Churning  poor  are  those 
 people  who  regularly  move  in  or  out  of 
 poverty.  When  they  get  employed  or  their 
 harvest  is  good  they  are  above  the 
 poverty  line  but  when  they  are 
 unemployed  or  in  bad  climatic  years  they 
 are  below  the  poverty  line.  Example 
 seasonal workers or small farmers . 
 Q.38.  An  unexpected  rise  in  sales  of  a 
 product leads to ______. 
 SSC CPO 25/11/2020 (Evening) 
 (a) Planned accumulation of inventory 
 (b) Planned decumulation of inventory 
 (c) Unplanned decumulation of 
 inventory 
 (d) Unplanned accumulation of 
 inventory 
 Sol.38.(c)  Unplanned  decumulation  of 
 inventory  refers  to  the  unexpected 
 decrease  in  the  stock  of  goods  due  to  the 
 rise  in  sales.  Unplanned  accumulation  of 
 inventory  refers  to  the  unexpected 
 increase  in  the  stock  of  goods  due  to  the 
 fall  in  sales.  Inventory  is  the  stock  of 
 unsold  ?nished  goods,  or  semi-?nished 
 goods,  or  raw  materials  which  a  ?rm 
 carries from one year to the next. 
 Q.39.  An  industrial  economy  is  best 
 de?ned  as  an  economy  whose  50%  or 
 more  produce  value  comes  from  the 
 _______ sector. 
 SSC CHSL 14/10/2020 (Evening) 
 (a) banking  (b) secondary 
 (c) tertiary  (d) primary 
 Sol.39.(b) Secondary. 
 Q.40.  'Income  and  employment  theory'  is 
 the  other  name  for  which  branch  of 
 Economics? 
 SSC CHSL 16/10/2020 (Afternoon) 
 (a) International economics 
 (b) Public ?nance 
 (c) Microeconomics 
 (d) Macroeconomics 
 Sol.40.(d)  Macroeconomics  is  the 
 branch  of  economics  that  studies  the 
 behaviour  and  performance  of  an 
 economy  as  a  whole.  It  focuses  on  the 
 aggregate  changes  in  the  economy  such 
 as unemployment, growth rate, gross 
 domestic product, and in?ation. 
 Q.41.  ______  is  de?ned  as  the  study  of 
 behaviour  of  individual  decision-making 
 units,  such  as  consumers,  resource 
 owners and ?rms. 
 SSC CHSL 09/10/2020 (Morning) 
 (a) Microeconomics 
 (b) Macroeconomics 
 (c) Health economics 
 (d) Econometrics 
 Sol.41.(a)  Microeconomics  is  a  branch 
 of  economics  that  studies  the  behaviour 
 of  individuals  and  ?rms  in  making 
 decisions  regarding  the  allocation  of 
 scarce  resources  and  the  interactions 
 among  these  individuals  and  ?rms.  The 
 concepts  of  wages,  rent,  interest  and 
 pro?t are studied under Microeconomics. 
 Q.42.  John Maynard Keynes, best known 
 for  his  economic  theories  (Keynesian 
 theories), hailed from which country? 
 SSC CGL 04/03/2020 (Afternoon) 
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 Pinnacle  Economics 
 Economics 
 Basics of Economy 
 Q.1.  Which  of  the  following  is  NOT  a  part 
 of the infrastructure sector ? 
 SSC Stenographer 13/10/2023 (Morning) 
 (a) Agriculture          (b) Dams 
 (c) Highways            (d) Power 
 Sol.1.(a)  Agriculture.  Infrastructure  is 
 de?ned  as  the  basic  physical  systems  of 
 a  business,  region,  or  nation  and  often 
 involves  the  production  of  public  goods 
 or  production  processes.  Examples  - 
 transportation  systems,  communication 
 networks,  sewage,  water,  and  school 
 systems etc. 
 Q.2.  The  shares  of  the  public  sector  and 
 the  private  sector  in  the  production  of 
 steel  during  1990-91  were  __________, 
 respectively. 
 SSC Stenographer 13/10/2023 (Afternoon) 
 (a) 40% and 60%        (b) 46% and 54% 
 (c) 49% and 51%        (d) 55% and 45% 
 Sol.2.(b)  46%  and  54%.  During  the 
 1950-60  and  1960-70,  the  average  annual 
 growth  rate  of  steel  production  exceeded 
 8%.  During  1970-80,  the  growth  rate  in 
 steel  production  came  down  to  5.7%  per 
 annum  and  increased  to  6.65%  per 
 annum  during  1990-2000.  During 
 2000-01,  the  shares  of  the  public  sector 
 and  the  private  sector  in  the  production 
 of steel was 32% and 68% respectively. 
 Q.3.  Which  of  the  following  is  NOT  true 
 about  the  circular  ?ow  of  income  in  a 
 two-sector economy? 
 SSC Stenographer 13/10/2023 (Evening) 
 (a) Total production is equal to total 
 consumption. 
 (b) Factor payment is equal to factor 
 income. 
 (c) Real Flow is more than money ?ow. 
 (d) Consumption expenditure is equal to 
 factor income. 
 Sol.3.(c)  Circular  ?ow  of  income  -  A 
 model  of  the  economy  that  shows  how 
 money  ?ows  through  the  different 
 sectors  of  the  economy.  A  simple 
 economy  assumes  that  there  exist  only 
 two sectors, i.e., Households and Firms. 
 Q.4.  During  the  year  1991-92,  the 
 industrial  production  recorded  a 
 ______growth of ______. 
 SSC CPO 03/10/2023 (Evening) 
 (a) negative; 1.1 Percent 
 (b) positive; 1.1 Percent 
 (c) negative; 0.9 Percent 
 (d) positive; 0.6 Percent 
 Sol.4.(d)  positive;  0.6  Percent.  India’s 
 Industrial  reforms  of  1991  :  Wide-scale 
 reduction  in  the  scope  of  industrial 
 licensing,  simpli?cation  of  procedural 
 rules  and  regulations,  reduction  of  areas 
 reserved  exclusively  for  the  public  sector, 
 disinvestment  of  equity  of  selected 
 public  sector  undertakings,  enhancing 
 the  limits  of  foreign  equity  participation 
 in  domestic  industrial  undertakings, 
 liberalisation  of  trade  and  exchange  rate 
 policies,  rationalisation  and  reduction  of 
 customs  and  excise  duties  and  personal 
 and corporate income-tax etc. 
 Q.5.  Which  of  the  following  is  NOT  an 
 example of manufacturing activity ? 
 SSC CPO 04/10/2023 (Afternoon) 
 (a) Paper made from wood 
 (b) Mutual fund products made by 
 combining debt and equity funds 
 (c) Yarn made from cotton 
 (d) Sugar made from sugarcane 
 Sol.5.(b)  Mutual  fund  products  made  by 
 combining  debt  and  equity  funds  come 
 under  the  Tertiary  sector  of  Economy. 
 Tertiary  sectors  itself  do  not  produce 
 goods  but  they  are  an  aid  or  a  support  to 
 the primary and secondary sectors. 
 Q.6.  Which  of  these  is  related  to  public 
 goods? 
 SSC CHSL 02/08/2023 (2nd shift) 
 (a) The principle of excludability is 
 applicable to its consumption. 
 (b) There is a clear link between the 
 producer and consumer which occurs 
 through the payment process. 
 (c) Its consumption is rivalrous in nature. 
 (d) There is a possibility of free ridership 
 in its consumption. 
 Sol.6.(d)  Public  goods  -  A  commodity  or 
 service  that  is  provided  without  pro?t  to 
 all  members  of  a  society,  either  by  the 
 government  or  by  a  private  individual  or 
 an  organization.  National  defense, 
 effective  policing,  and  public  education 
 are  all  examples  of  public  goods.  Private 
 good  -  A  product  that  must  be  purchased 
 to  be  consumed,  and  consumption  by 
 one  individual  prevents  another  individual 
 from  consuming  it.  Examples  -  Houses, 
 cars, clothing, food, movie tickets etc. 
 Q.7.  Which  of  these  is  not  the  reason 
 why ‘?nal’ goods are called so? 
 SSC CHSL 03/08/2023 (3rd shift) 
 (a) They are meant for ?nal use. 
 (b) They are the last to be consumed. 
 (c) They will not pass through any more 
 stages of production. 
 (d) They are not processed or 
 transformed further. 
 Sol.7.(b)  Final  Goods  -  An  item  that  is 
 meant  for  ?nal  use  and  will  not  pass 
 through  any  more  stages  of  production 
 or  transformations.  Types  of  ?nal  goods  : 
 consumption  goods  and  capital  goods. 
 Examples  :  television,  ready-to-eat  foods, 
 medicines.  Intermediate  goods  -  Raw 
 materials  that  a  ?rm  buys  from  another 
 ?rm  which  are  completely  used  up  in  the 
 process  of  production.  Examples:  wheat, 
 soil, crude oil, steel etc. 
 Q.8.  What  was  the  percentage  of  women 
 working  in  the  primary  sector  of  India  as 
 of 2011 - 2012 ? 
 SSC CHSL 04/08/2023 (1st shift) 
 (a) 61%  (b) 63.08%  (c) 64.5%  (d) 62.8% 
 Sol.8.(d)  62.8%.  Distribution  of 
 workforce  in  different  sectors,  as  per 
 2011-12  data  :  Primary  sector  -  48.9 
 percent  (Men  -  43.6  percent),  Secondary 
 Sector  :-  24.3  percent  (Men  -  25.9 
 percent,  women  -  20  percent), 
 Tertiary/service  Sector  -  26.8  percent 
 (Men - 30.5 percent). 
 Q.9.  Final goods are divided into: 
 SSC CHSL 08/08/2023 (2nd shift) 
 (a) raw materials and semi-?nished 
 goods 
 (b) single goods and composite goods 
 (c) consumption goods and capital 
 goods 
 (d) War goods and civilian goods 
 Sol.9.(c)  Consumption  goods  -  Directly 
 used  for  the  satisfaction  of  human  wants 
 and  not  used  later  to  produce  another 
 consumer  good.  Example  -  Food, 
 Beverages,  Clothing,  Vehicles.  Capital 
 goods  -  Assets  used  by  businesses  in  the 
 course  of  producing  products  and 
 services  for  consumers.  Example  - 
 Buildings, Machinery, Vehicles. 
 Q.10.  Which  of  these  is  NOT  a 
 characteristic of durable goods? 
 SSC CHSL 08/08/2023 (4th shift) 
 (a) They are capable of repetitive use. 
 (b) They are not extinguished by 
 immediate consumption. 
 (c) They are meant for repetitive 
 purchases. 
 (d) They have a relatively long life. 
 Sol.10.(c)  Durable  goods  (Consumer 
 durables)  :  Those  products  that  are  used 
 repeatedly  over  a  period  of  time.  The  life 
 of  these  products  is  high  and  the  price 
 paid  to  possess  these  products  are  also 
 high.  Example  -  Refrigerators,  air 
 conditioners,  tools,  computers, 
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 televisions,  jewellery,  home  and  o?ce 
 furnishings.  Non  -  Durable  goods  :  These 
 goods  have  a  shelf  life  of  less  than  three 
 years  and  many  can  be  recycled. 
 Example  -  Milk,  vegetables,  meat,  fruit, 
 paperboard, magazines. 
 Q.11.  Which  of  these  is  a  component  of 
 the tertiary sector of an economy? 
 SSC CHSL 11/08/2023 (1st shift) 
 (a) Mining and quarrying 
 (b) Water supply 
 (c) Electricity 
 (d) Hotels and restaurants 
 Sol.11.(d)  Hotels  and  restaurants. 
 Sectors  of  Indian  Economy:  The  primary 
 sector  depends  on  natural  resources  like 
 minerals,  land,  and  water  to  carry  out 
 essential  activities  like  agriculture, 
 mining,  and  forestry.  Secondary  sector  - 
 The  sector  of  the  economy  that  revolves 
 around  manufacturing.  Examples  - 
 Construction,  fabrication,  assembly, 
 distillation,  and  puri?cation.  Tertiary 
 Sector  (service  sector)  -  Tertiary  Sector, 
 also  known  as  the  service  sector,  is 
 responsible  for  providing  services  to  both 
 the  primary  and  secondary  sector. 
 Examples  -  Trade,  transport, 
 communication,  banking,  education, 
 health, tourism, insurance, etc. 
 Q.12.  Which  of  the  following  can  be 
 considered a part of a parallel economy? 
 SSC CHSL 11/08/2023 (2nd shift) 
 (a) Under declared income. 
 (b) Value of domestic work done by the 
 housewife. 
 (c) Payments made to domestic helpers 
 or housekeepers. 
 (d) Payments for private tuition. 
 Sol.12.(a)  Under  declared  Income. 
 Parallel  Economy  -  The  functioning  of  an 
 unsanctioned  sector  in  the  economy 
 whose  objectives  run  in  opposite  to  the 
 objectives  of  the  o?cial,  sanctioned  or 
 legitimate  sector.  Types  of  Economic 
 systems  : Capitalist, Socialist and Mixed. 
 Q.13.  Which  of  the  following  statements 
 is/are  FALSE  with  respect  to  simple 
 model of the circular ?ow of economy ? 
 i.  The  aggregate  consumption  is  more 
 than the aggregate expenditure. 
 ii.  There is government intervention. 
 iii.  There  are  no  trade  activities  with  the 
 rest of the world. 
 SSC CHSL 17/08/2023 (3rd shift) 
 (a) Only i and iii             (b) Only i 
 (c) Only iii                       (d) Only ii and iii 
 Sol.13.(b)  Only  i.  Circular  Flow  in  a 
 Two-sector Economy (with Financial 
 Market)  -  households  and  ?rms. 
 Three-sector  Economy  -  Between 
 Households  and  Government,  Between 
 Firms  and  Government.  Four-sector 
 Economy  -  Households,  Firms, 
 Government, Foreign Sector. 
 Q.14.  In  which  industrial  policy  was  the 
 investment  limit  for  a  tiny  industry/unit 
 increased to ?2 lakh ? 
 SSC CGL 14/07/2023 (1st shift) 
 (a) 1977  (b) 1991  (c) 1980  (d) 1956 
 Sol.14.(c)  1980.  Industrial  Policy  1980  : 
 This  Policy  focused  on  the  promotion  of 
 economic  federation  and  restoration  of 
 the  Monopolies  and  Restrictive  Trade 
 Practices  (MRTP)  Act.  Some  other 
 Industrial  policies  (IPs):  IP ,  1948  -  It 
 ushered  in  a  mixed  economic  model  in 
 the  country.  IP ,  1956  -  Three  schedules 
 were  laid  out  for  the  classi?cation  of 
 industries.  IP ,  1977  -  The  Policy’s  main 
 emphasis  had  been  the  propagation  of 
 cottage  and  small  industries.  IP ,  1991  - 
 Foreign  Direct  investment  allowed, 
 Amendment  of  the  Monopolies  and 
 Restrictive  Trade  Practices  (MRTP)  Act. 
 The  main  goals  of  the  New  Industrial 
 Policy  (1991)  were:  L  -  Liberalisation,  P  - 
 Privatisation, G - Globalisation. 
 Q.15.  Machines,  tools  and  implements, 
 and  buildings  are  examples  of  which  type 
 of goods? 
 SSC CGL 17/07/2023 (1st shift) 
 (a) Consumer goods      (b) Inferior goods 
 (c) Intermediate goods  (d) Capital goods 
 Sol.15.(d)  Capital  goods  -  Physical 
 assets  which  a  company  uses  to  produce 
 goods  and  services  for  consumers. 
 Inferior  goods  :  An  item  that  is  often  a 
 substitute  product  whose  demand  drops 
 when  people's  income  increases. 
 Example  -  instant  noodles,  frozen 
 dinners, and canned goods. 
 Q.16.  How  many  industries  were  listed  in 
 Schedule A of Industrial Policy, 1956? 
 SSC CGL 18/07/2023 (1st shift) 
 (a) 16  (b) 17  (c) 10  (d) 12 
 Sol.16.(b)  17  .  The  1956  policy  divided 
 the  industries  into  3  categories  based  on 
 management.  Schedule  A  Industries  :  It 
 consisted  of  17  industrial  areas  which 
 were  under  the  Central  Government. 
 Schedule  B  Industries  :  It  consisted  of  12 
 industries  that  were  left  to  the  state 
 government  to  follow  up  with  the  private 
 sector  that  includes  compulsory 
 licensing  provisions.  Schedule  C 
 Industries  :  It  consisted  of  those 
 industries  which  were  left  out  of 
 Schedule  A  and  B  and  were  with  the 
 private  sectors  and  subject  to  licensing 
 and regulation under the IDR Act. 
 Q.17.  Which  of  the  following  can  be 
 considered  as  an  example  of  ?ow 
 variable? 
 (i) Production of rice 
 (ii) Import of cloth 
 (iii) Change in capital 
 SSC CGL 21/07/2023 (1st shift) 
 (a) None of (i), (ii) and (iii) 
 (b) Only (iii) 
 (c) All of (i), (ii) and (iii) 
 (d) Only (i) and (ii) 
 Sol.17.(c)  All  of  (i),  (ii)  and  (iii).  Flow 
 variable  -  A  quanti?ed  variable  that  is 
 measured  over  a  speci?ed  period  of 
 time.  It  is  time  bounded  and  expressed 
 as  per  unit  of  time.  Examples  -  Income, 
 expenditure,  depreciation,  production, 
 consumption,  exports,  rent,  pro?t, 
 interest.  Stock  variable  -  A  quantity 
 which  is  measurable  at  a  particular  point 
 of  time.  Examples  -  Capital,  wealth, 
 foreign debts, loan. 
 Q.18.  Hindustan  Aeronautics  Limited 
 comes under which sector? 
 SSC MTS 03/05/2023 (Evening) 
 (a) Co - operative sector (b) Private sector 
 (c) Foreign sector            (d) Public sector 
 Sol.18.(d)  Public  sector.  Hindustan 
 Aeronautics  Limited  (HAL)  is  an  Indian 
 ‘Navratna’  aerospace  and  defence 
 company,  headquartered  in  Bangalore. 
 Co-operative  sector  industries  are 
 operated  and  owned  by  the  suppliers  or 
 producers  of  raw  materials,  workers  or 
 both.  Foreign  secto  r  is  the  part  of  a 
 country's  economy  that  is  concerned 
 with  external  trade  (imports  and  exports) 
 and capital ?ows (inward and outward). 
 Q.19.  In  migration  the  factors  which 
 cause  people  to  leave  their  place  of 
 residence or origin are called ________. 
 SSC MTS 10/05/2023 (Evening) 
 (a) Pull factors  (b) Regular factors 
 (c) Push factors  (d) Irregular factors 
 Sol.19.(c)  Push  factors  .  These  are  the 
 factors  that  drive  people  away  from  their 
 place  of  origin,  such  as  war,  political 
 instability,  or  economic  hardship  .  Pull 
 factors  are  the  factors  that  attract  people 
 to  a  new  place,  such  as  better  economic 
 opportunities,  better  education,  or  a  more 
 favourable climate. 
 Q.20.  What  is  the  ?scal  year  period  in 
 India? 
 SSC MTS 10/05/2023 (Evening) 
 (a) 1st April of a year to 31st March of 
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 the next upcoming year 
 (b) 1st April to 31st December of the 
 same year 
 (c) 1st January to 31st December of the 
 same year 
 (d) 1st January of a year to 31st 
 December of the next upcoming year 
 Sol.20.(a)  Financial  Year  .  Assessment 
 yea  r  -  The  year  in  which  the  income  is 
 assessed  to  tax  and  all  taxes  are  paid 
 and tax returns ?led. 
 Q.21.  Change  in  the  inventory  of  a  ?rm  is 
 treated as _________. 
 SSC MTS 18/05/2023 (Afternoon) 
 (a) Disinvestment  (b) Investment 
 (c) Liability  (d) Asset 
 Sol.21.(b)  Investment  -  It  refers  to  the 
 allocation  of  money  or  resources  with 
 the  expectation  of  generating  a  return  or 
 pro?t  over  time.  Disinvestment  is  when 
 governments  or  organisations  sell  or 
 liquidate assets or subsidiaries. 
 Q.22.  Which  of  the  following  is  an 
 example of joint sector Industry? 
 SSC MTS 13/06/2023 (Afternoon) 
 (a) Steel Authority of India Limited 
 (b) Hindustan Aeronautics Limited 
 (c) Maruti Udyog Limited 
 (d) Anand Milk Union Limited 
 Sol.22.(c)  Maruti  Udyog  Limited.  The 
 Joint  Sector  Enterprise  is  an  industry 
 wherein  private  entrepreneurs  and  a 
 Government  jointly  participate  in 
 ownership,  control,  and  management. 
 Economic  activities,  such  as  the 
 production  and  distribution  of  goods  and 
 services,  take  place  broadly  in  4  sectors, 
 namely  public  sector,  private  sector,  joint 
 sector,  and  cooperative  sector.  Examples 
 of  some  joint  sector  industries  -  Oil  India 
 Limited,  Cochin  Re?neries,  Tamil  Nadu 
 Fluorine & Allied Chemicals Limited. 
 Q.23.  Which  among  the  following 
 statements is incorrect? 
 SSC CHSL 09/03/2023 (1st Shift) 
 (a) Industrial Securities Market is also 
 known as the gilt-edged market. 
 (b) The secondary market is the market 
 for the sale and purchase of 
 previously  issued securities. 
 (c) RBI plays a dominant role in the 
 gilt-edged market through its 'Open 
 Market Operations'. 
 (d) The primary market is also known as 
 the new issue market 
 Sol.23.(a) Gilt-edged market  is known as 
 the government securities market.  The 
 Industrial  Securities  Market  is  divided 
 into  two  categories  -  Primary  Market  ( 
 New  company  shares  issued  (IPO)  and 
 Secondary  Market  (Stock  Exchange).  The 
 secondary  market  is  the  market  for  the 
 sale  and  purchase  of  previously  issued 
 securities. 
 Q.24.  Which  of  the  following  statements 
 is  correct  regarding  the  socialist  society 
 in the economy? 
 I.  The  government  decides  what  goods 
 are to be produced. 
 II.  Distribution  of  goods  under  socialism 
 is  supposed  to  be  based  on  what  people 
 need. 
 SSC CHSL 10/03/2023 (4th Shift) 
 (a) Only I  (b) Neither I nor II 
 (c) Both I and II  (d) Only II 
 Sol.24.(c)  Both  I  and  II  .  Socialist 
 Economy  decides  on  the  products  and 
 services  manufactured  in  line  with 
 society’s  requirements.  It  also  have 
 complete  control  over  the  factors  of 
 production.  The  main  motive  for 
 producing  goods  and  services  in  this 
 economy  is  social  welfare  and  not  pro?t. 
 Example  -  China  and  Cuba.  In  India  -Mix 
 Economy. 
 Q.25.  Macroeconomics deals with which 
 of the following studies? 
 I.  Reasons behind the unemployment of 
 resources 
 Il.  Determination of total output 
 SSC CHSL 17/03/2023 (3rd Shift) 
 (a) Only l  (b) Only ll 
 (c) Neither I nor II      (d) Both l and Il 
 Sol.25.(d)  Both  I  and  II. 
 Macroeconomics  looks  at  the  economy 
 as  a  whole  and  studies  aggregate 
 phenomena  such  as  overall  economic 
 output  (eg.  GDP),  unemployment  rates, 
 in?ation, and national income. 
 Q.26.  A  free  -  market  economy  is  a 
 crucial aspect of _______ . 
 SSC CHSL 21/03/2023 (2nd Shift) 
 (a) Socialism  (b) Capitalism 
 (c) Feudalism  (d) Functionalist 
 Sol.26.(b)  Capitalism  refers  to  an 
 economic  system  where  private 
 businesses  can  have  ownership  of 
 capital  goods.  Functionalism  is  de?ned 
 as  the  perspective  that  society  is 
 constructed  of  several  interconnected 
 parts  designed  to  meet  biological  and 
 social  needs.  Feudalism  is  a  type  of 
 social  and  political  system  in  which 
 landholders  provide  land  and  protection 
 to people in exchange for their loyalty 
 and service. 
 Q.27.  Which  of  the  given  sectors  is 
 largely driven by considerations of social 
 welfare? 
 SSC CGL 01/12/2022 (2nd Shift) 
 (a) Foreign  (b) Co-operative 
 (c) Public  (d) Private 
 Sol.27.(c)  Public  sector  (completely 
 owned  and  operated  by  the  government 
 of  the  country)  promotes  social  welfare 
 by  providing  basic  amenities  to  citizens 
 of the country. 
 Q.28.  Name  the  two  states  in  which  land 
 reform was successful ? 
 SSC CGL 08/12/2022 (4th Shift) 
 (a) Uttar Pradesh and Bihar 
 (b) West Bengal and Kerala 
 (c) Maharashtra and Tamil Nadu 
 (d) Karnataka and West Bengal 
 Sol.28.(b)  West  Bengal  and  Kerala.  The 
 Kumarappan  committee  (1949)  was 
 appointed  to  study  and  recommend 
 comprehensive  land  reform  measures  for 
 independent  India.  Land  Reforms 
 consisted  of  four  elements:  The  Abolition 
 of  the  Intermediaries,  Tenancy  Reforms, 
 Fixing  Ceilings  on  Landholdings  and 
 Consolidation of Landholdings. 
 Q.29.  Aid  or  auxiliary  to  trade  includes 
 which of the following? 
 SSC CGL 09/12/2022 (1st Shift) 
 (a) Production  (b) Selling 
 (c) Buying  (d) Warehousing 
 Sol.29.(d)  Warehousing.  Auxiliaries  to 
 trade  are  essential  services  and 
 functions  that  assist  the  business  which 
 include  transport,  banking,  warehousing, 
 insurance,  advertising  etc.  Five  distinct 
 examples  of  economic  activities  are 
 producing,  supplying,  buying,  selling,  and 
 the consumption of goods and services. 
 Q.30.  In  the  Industrial  Policy  Resolution 
 of  1948,  which  of  the  following  was  NOT 
 the  monopoly  of  the  Central 
 Government? 
 SSC CGL 12/12/2022 (4th Shift) 
 (a) Iron and Steel 
 (b) Atomic energy 
 (c) Railway 
 (d) Arms and ammunition 
 Sol.30.(a)  Iron  and  Steel.  Industrial 
 Policy  Resolution  (1948)  declared  the 
 Indian  economy  as  a  Mixed  Economy. 
 Four  categories:  The  exclusive  monopoly 
 of  central  government  (arms  and 
 ammunitions,  production  of  atomic 
 energy,  and  management  of  railways), 
 New  undertakings  were  undertaken  only 
 by  the  state  (coal,  iron  and  steel,  aircraft 
 manufacturing,  shipbuilding,  telegraph, 
 telephone,  etc.),  Industries  to  be 
 regulated  by  the  government  (Industries 
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 of  basic  importance),  Open  to  private 
 enterprises, individuals, and cooperatives 
 (remaining). 
 Q.31.  What  is  the  emigration  of  a 
 signi?cant  proportion  of  a  country’s 
 highly  skilled,  highly  educated 
 professional  population  to  other 
 countries  offering  better  economic  and 
 social opportunities called ? 
 SSC CGL 12/04/2022 (Afternoon) 
 (a) Carrying capacity 
 (b) Brain drain 
 (c) Demographic transition 
 (d) Closed population 
 Sol.31.(b)  Brain  Drain  is  the  movement 
 of  highly  skilled  and  educated  people  to 
 a  country  where  they  can  work  in  better 
 conditions  and  earn  more  money. 
 Economic  carrying  capacity  takes  the 
 form  of  maximum  global  economic 
 welfare  derivable  from  the  sustainable 
 throughput  ?ows  of  the  ecosphere. 
 Demographic  transition  is  a  long-term 
 trend  of  declining  birth  and  death  rates, 
 resulting  in  substantive  change  in  the 
 age distribution of a population. 
 Q.32.  In the context of Economics, what 
 does P stand for in EPF? 
 SSC MTS 12/10/2021 (Afternoon) 
 (a) Planning  (b) Pro?t 
 (c) Promotion  (d) Provident 
 Sol.32.(d)  Employees  Provident  Fund 
 (EPF)  is  a  retirement  bene?ts  scheme 
 provided  by  the  Employees’  Provident 
 Fund  Organization  (EPFO).  The 
 contribution  of  the  employer  to  the  EPF  is 
 12%  of  the  salary  of  the  employee  on  a 
 monthly  basis.  The  contribution  of  the 
 employee  is  12%  of  his  salary  on  a 
 monthly  basis  (contribution  to  EPF  is 
 3.67%  of  the  salary  and  contribution  to 
 EPS is 8.33% of the salary). 
 Q.33.  Which  of  the  following  is  NOT 
 important for individual health? 
 SSC MTS 18/10/2021 (Morning) 
 (a) Social equality   (b) Public cleanliness 
 (c) Harmony            (d) Public transport 
 Sol.33.(d)  Public  transport  is  not 
 important  for  individual  health.  Living  a 
 healthy  lifestyle  can  help  prevent  chronic 
 diseases and long-term illnesses. 
 Q.34.  Which  of  the  following  statements 
 is related to positive economics ? 
 SSC CGL 17/08/2021 (Evening) 
 (a) In?ation is better than de?ation. 
 (b) Inequalities in the distribution of 
 wealth and incomes should be 
 reduced. 
 (c) More production of luxury goods is 
 not good for a less developed 
 country. 
 (d) An increase in money supply implies 
 a price rise in an economy. 
 Sol.34.(d)  Positive  economics  is 
 objective  and  based  on  statistics,  with 
 descriptive,  speci?c,  and  measurable 
 statements.  There  are  no  instances  of 
 approval-disapproval  in  it.  Examples  -  the 
 in?ation  rate,  the  unemployment  rate, 
 housing  market  statistics,  and  consumer 
 spending. 
 Q.35.  Which  branch  of  economics  deals 
 with  the  depletion  of  natural  resources 
 stock  and  pollution,  which  are  a  result  of 
 rapid economic development ? 
 SSC CGL 23/08/2021 (Afternoon) 
 (a) Environmental Economics 
 (b) Developmental Economics 
 (c) International Economics 
 (d) Public Economics 
 Sol.35.(a)  Environmental  Economics. 
 Development  economics  deals  with  the 
 economic  aspects  of  the  development 
 process  in  low-income  countries.  Public 
 economics  is  the  study  of  government 
 policy  through  the  lens  of  economic 
 e?ciency and equity. 
 Q.36.  All  monetary  transfers  or  kinds 
 sent  by  migrants  to  their  place  of  origin 
 are called ______. 
 SSC CGL 24/08/2021 (Evening) 
 (a) bills  (b) drafts 
 (c) remittances  (d) payments 
 Sol.36.(c)  Remittances.  In  remittance, 
 money  can  be  transferred  from  one 
 country  to  another  country  by  migrants  to 
 their families and communities. 
 Q.37.  People  like  small  farmers  and 
 seasonal  workers  who  regularly  move  in 
 and  out  of  poverty  are  categorised  as 
 ________. 
 SSC CPO 24/11/2020 (Evening) 
 (a) occasionally poor  (b) churning poor 
 (c) always poor  (d) usually poor 
 Sol.37.(b)  Churning  poor  are  those 
 people  who  regularly  move  in  or  out  of 
 poverty.  When  they  get  employed  or  their 
 harvest  is  good  they  are  above  the 
 poverty  line  but  when  they  are 
 unemployed  or  in  bad  climatic  years  they 
 are  below  the  poverty  line.  Example 
 seasonal workers or small farmers . 
 Q.38.  An  unexpected  rise  in  sales  of  a 
 product leads to ______. 
 SSC CPO 25/11/2020 (Evening) 
 (a) Planned accumulation of inventory 
 (b) Planned decumulation of inventory 
 (c) Unplanned decumulation of 
 inventory 
 (d) Unplanned accumulation of 
 inventory 
 Sol.38.(c)  Unplanned  decumulation  of 
 inventory  refers  to  the  unexpected 
 decrease  in  the  stock  of  goods  due  to  the 
 rise  in  sales.  Unplanned  accumulation  of 
 inventory  refers  to  the  unexpected 
 increase  in  the  stock  of  goods  due  to  the 
 fall  in  sales.  Inventory  is  the  stock  of 
 unsold  ?nished  goods,  or  semi-?nished 
 goods,  or  raw  materials  which  a  ?rm 
 carries from one year to the next. 
 Q.39.  An  industrial  economy  is  best 
 de?ned  as  an  economy  whose  50%  or 
 more  produce  value  comes  from  the 
 _______ sector. 
 SSC CHSL 14/10/2020 (Evening) 
 (a) banking  (b) secondary 
 (c) tertiary  (d) primary 
 Sol.39.(b) Secondary. 
 Q.40.  'Income  and  employment  theory'  is 
 the  other  name  for  which  branch  of 
 Economics? 
 SSC CHSL 16/10/2020 (Afternoon) 
 (a) International economics 
 (b) Public ?nance 
 (c) Microeconomics 
 (d) Macroeconomics 
 Sol.40.(d)  Macroeconomics  is  the 
 branch  of  economics  that  studies  the 
 behaviour  and  performance  of  an 
 economy  as  a  whole.  It  focuses  on  the 
 aggregate  changes  in  the  economy  such 
 as unemployment, growth rate, gross 
 domestic product, and in?ation. 
 Q.41.  ______  is  de?ned  as  the  study  of 
 behaviour  of  individual  decision-making 
 units,  such  as  consumers,  resource 
 owners and ?rms. 
 SSC CHSL 09/10/2020 (Morning) 
 (a) Microeconomics 
 (b) Macroeconomics 
 (c) Health economics 
 (d) Econometrics 
 Sol.41.(a)  Microeconomics  is  a  branch 
 of  economics  that  studies  the  behaviour 
 of  individuals  and  ?rms  in  making 
 decisions  regarding  the  allocation  of 
 scarce  resources  and  the  interactions 
 among  these  individuals  and  ?rms.  The 
 concepts  of  wages,  rent,  interest  and 
 pro?t are studied under Microeconomics. 
 Q.42.  John Maynard Keynes, best known 
 for  his  economic  theories  (Keynesian 
 theories), hailed from which country? 
 SSC CGL 04/03/2020 (Afternoon) 
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 Pinnacle  Economics 
 (a) Sweden  (b) Denmark 
 (c) Australia  (d) England 
 Sol.42.(d)  England.  John  Maynard 
 Keynes  (  Father  of  Macroeconomics) 
 Studied  how  economies,  markets  and 
 other  systems  that  operate  on  a  large 
 scale  behave.  Keynesian  economics 
 argues  that  demand  drives  supply  and 
 that  healthy  economies  spend  or  invest 
 more than they save. 
 Concepts of Demand and Supply 
 Q.43.  Which of these statements is true? 
 SSC CHSL 09/08/2023 (4th shift) 
 (a) Under competitive asset market 
 conditions, the price of a bond must 
 always be equal to its present value in 
 equilibrium. 
 (b) Under competitive asset market 
 conditions, the price of a bond must 
 be less than its present value to 
 bene?t the seller 
 (c) Under competitive asset market 
 conditions, the price of a bond must 
 exceed its present value to bene?t the 
 buyer. 
 (d) Under competitive asset market 
 conditions, the present value must 
 exceed the price of a bond to bene?t 
 the seller. 
 Sol.43.(a)  Market  prices  are  in?uenced 
 by  demand  and  supply  interactions,  with 
 equilibrium  price  balancing  factors. 
 Changes  occur  when  demand  or  supply 
 shifts.  The  ?ve  factors  that  affect  the 
 market  equilibrium  are  excess  demand, 
 excess  supply,  changes  in  demand  and 
 supply,  competitive  factors,  and  strategic 
 factors. 
 Q.44.  If  the  interest  rate  goes  up,  the 
 demand for money will  _______. 
 SSC CGL 20/07/2023 (2nd shift) 
 (a) First rise and then falls   (b) rise 
 (c) remain the same              (d) fall 
 Sol.44.(d)  Fall.  In?ation  and  Interest  rate, 
 both  have  an  inverse  relationship. 
 Increased  interest  rates  :  It  will  slow 
 down  economic  growth,  reduce 
 disposable  income,  bring  appreciation  to 
 exchange  rate,  lead  to  more  savings,  give 
 rise  to  unemployment.  Decreased 
 interest  rates  :  It  will  boost  economic 
 growth,  bring  depreciation  to  the 
 exchange  rate,  cost  of  borrowing  will 
 become  cheaper,  promote  more 
 spending  and  the  situation  of 
 unemployment decreases. 
 Q.45.  According  to  the  law  of  demand, 
 the consumer's demand for a good must 
 be ______. 
 SSC CHSL 10/03/2023 (1st Shift) 
 (a) directly related to the supply of the 
 good 
 (b) inversely related to the price of the 
 good 
 (c) directly related to the price of the 
 good 
 (d) inversely related to the supply of the 
 good 
 Sol.45.(b)  Inversely  related  to  the  price 
 of  the  good.  The  law  of  demand  and 
 supply  given  by  Adam  smith  .  Law  of 
 demand:  An  economic  principle 
 explaining  the  negative  correlation 
 between  the  price  of  a  good  or  service 
 and  its  demand.  If  all  other  factors 
 remain  the  same,  when  the  price  of  a 
 good  or  service  increases,  the  quantity  of 
 demand decreases, and vice versa. 
 Q.46.  If  ex  ante  aggregate  demand  and 
 ex  ante  aggregate  supply  are  plotted 
 together  in  a  graphical  diagram,  then  at 
 which point equilibrium will be reached? 
 SSC CHSL 14/03/2023 (1st Shift) 
 (a) Where ex ante aggregate demand is 
 equal to ex ante aggregate supply 
 (b) Where ex ante aggregate demand is 
 zero 
 (c) Where ex ante aggregate demand is 
 less than ex ante aggregate supply 
 (d) Where ex ante aggregate demand is 
 more than ex ante aggregate supply 
 Sol.46.(a)  The  aggregate  demand 
 /aggregate  supply  model  is  a  model  that 
 shows  what  determines  total  supply  or 
 total  demand  for  the  economy  and  how 
 total  demand  and  total  supply  interact  at 
 the  macroeconomic  level.  Aggregate 
 supply  is  the  total  quantity  of  output 
 ?rms  will  produce  and  sell-in  other 
 words,  the  real  GDP .  Aggregate  demand 
 is  the  amount  of  total  spending  on 
 domestic  goods  and  services  in  an 
 economy.  Equilibrium  point  is  E  and 
 equilibrium level of income is OY 
 1 
 Q.47.  If  the  price  elasticity  of  demand  is 
 less  than  one,  then  the  demand  for  the 
 goods is  said to be _______. 
 SSC CHSL 14/03/2023 (2nd Shift) 
 (a) Perfectly inelastic    (b) Inelastic 
 (c) Perfectly elastic       (d) Unitary-elastic 
 Sol.47.(b)  Inelastic.  Price  Elasticity  of 
 Demand  is  a  measurement  of  the  change 
 in  the  consumption  of  a  product  in 
 relation  to  a  change  in  its  price.  If  price 
 elasticity  is  greater  than  1  then  the  good 
 is  elastic  ,  if  less  than  1  then  it  is 
 inelastic  , if the price elasticity is in?nite 
 then  a  good  is  perfectly  elastic  ,  and  If 
 the  good's  price  elasticity  is  0  then  it  is 
 perfectly inelastic  . 
 Q.48.  The  simultaneous  shifts  of  both 
 the  demand  curve  and  the  supply  curve 
 can  happen  in  which  of  the  following 
 ways? 
 I.  Supply  curve  shifts  leftward  and 
 demand curve shifts rightward. 
 II.  Both  supply  and  demand  curves  shift 
 leftwards. 
 III.  Supply  curve  shifts  rightward  and 
 demand curve shifts leftward. 
 SSC CHSL 16/03/2023 (3rd Shift) 
 (a) Only I  (b) I, II and III 
 (c) I and II  (d) II and III 
 Sol.48.(b) I, II and III.  When both curves 
 shift  rightward  ,  the  equilibrium  quantity 
 increases  ,  but  the  equilibrium  price  may 
 increase,  decrease  or  remain  unchanged. 
 When  Both  curves  shift  towards  the  left  , 
 the  equilibrium  quantity  decreases  but 
 the  equilibrium  price  may  increase, 
 decrease  or  remain  the  same.  When 
 demand  curve  shifts  right  and  supply 
 curve  to  the  left,  the  equilibrium  price 
 increases  but  the  equilibrium  quantity 
 may  increase,  decrease  or  remain  the 
 same.  All  depending  on  the  magnitude  of 
 shift in 
 the two curves. 
 Q.49.  Which  of  the  following 
 assumptions  is  made  to  determine  the 
 level  of  aggregate  demand  for  ?nal 
 goods in the economy? 
 I.  A  constant  ?nal  goods  price  and 
 constant  rate  of  interest  over  short  run 
 are assumed. 
 II.  The  aggregate  supply  is  assumed  to 
 be perfectly elastic. 
 SSC CHSL 21/03/2023 (4th Shift) 
 (a) Only II  (b) Only I 
 (c) Neither I nor II  (d) Both I and II 
 Sol.49.(d)  Both  I  and  II.  Effective 
 demand  principle  :  Under  such 
 circumstances,  aggregate  output  is 
 determined  solely  by  the  level  of 
 aggregate  demand.  An  increase 
 (decrease)  in  autonomous  spending 
 causes aggregate output of ?nal goods 
 to increase (decrease) by a larger 
 amount through the multiplier process. 
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