Economy and Finance- 1 - SSC CGL Free MCQ Test with solutions

Statement 1 is correct as it accurately describes the law of demand.
Statement 2 is incorrect because supply elasticity can be negative in cases like perfectly inelastic supply (e.g., fixed supply of land) or for inferior goods in specific contexts.

A monopoly is characterized by a single firm dominating the market with significant control over price and supply, often with high barriers to entry, unlike the other options which describe perfect competition, monopolistic competition, or oligopoly.

GDP can be calculated using three methods: production (value-added), income (sum of incomes), and expenditure (total spending). All are valid and yield the same result when calculated correctly.

Cost-push inflation occurs when rising production costs (e.g., wages, raw materials) increase prices, as opposed to demand-pull (excess demand) or other types of inflation.

Both statements are correct. Fiscal policy uses government spending and taxation to achieve economic goals, and the primary deficit is the fiscal deficit minus interest payments on previous borrowings.

CRR is a monetary policy tool used by the RBI to regulate the money supply by mandating banks to hold a percentage of their deposits as reserves, unlike the other options, which are fiscal or tax-related.

NITI Aayog, established in 2015, focuses on cooperative federalism, sustainable development, and policy formulation, replacing the Planning Commission, which focused on five-year plans.

The 1991 LPG reforms aimed to liberalize trade, privatize public enterprises, and integrate India into the global economy, addressing the balance of payments crisis.

Bharatmala is under the Ministry of Road Transport and Highways. It aims to enhance road connectivity, including to coastal and border areas.

PM Jan Dhan Yojana focuses on financial inclusion by providing banking services, such as zero-balance accounts and access to credit, to unbanked populations.

the Sick Industrial Companies Act was amended in 1991 to include public enterprises under the BIFR for restructuring or liquidation.

The Balance of Payments includes the current account (trade, services, transfers) and capital account, whereas fiscal, revenue, and primary deficits are budgetary terms.

The 2024–25 Union Budget focused on infrastructure and green energy (e.g., renewable energy targets). While tax reforms were discussed, no new tax slab was introduced for salaried employees.

The PLI scheme, launched under Atmanirbhar Bharat, incentivizes manufacturing in sectors like electronics and pharmaceuticals to boost domestic production.

The MPI measures poverty based on health, education, and living standards, unlike the Gini Coefficient (inequality), HDI (development), or CPI (inflation).

The IBC, introduced in 2016, aims to resolve NPAs by streamlining insolvency and bankruptcy processes for distressed companies.

Both statements are correct. The repo rate is the lending rate for banks, and open market operations regulate money supply through securities transactions.

PM-KISAN, providing income support to farmers, is managed by the Ministry of Agriculture and Farmers Welfare.

The Gini Coefficient measures income or wealth inequality within a population, with higher values indicating greater disparity.

GST, introduced in 2017, is an indirect tax that replaced multiple taxes like VAT, service tax, and excise duty, creating a unified tax system.