Economy and Finance- 2 - SSC CGL Free MCQ Test with solutions

Statement 1 is correct as opportunity cost refers to the value of the next best alternative sacrificed.
Statement 2 is incorrect because opportunity cost can be non-monetary, such as time or resources.

Monopolistic competition features many firms offering differentiated products (e.g., through branding), unlike perfect competition (identical products), oligopoly (few firms), or monopoly (single firm).

NDP is GDP minus depreciation (capital consumption), accounting for the wear and tear of capital goods used in production.

Structural unemployment occurs when workers’ skills do not match job demands, often due to technological changes, unlike frictional (job transitions), cyclical (economic downturns), or seasonal (periodic).

Statement 1 is correct as HDI includes life expectancy, education, and income.
Statement 2 cannot be verified as the question lacks specific data on India’s 2023/24 HDI rank..

The Reverse Repo Rate is the rate at which the RBI borrows from commercial banks, absorbing excess liquidity from the system.

NITI Aayog acts as a policy think-tank, unlike the Planning Commission, which formulated five-year plans. NITI Aayog does not allocate funds, and the Planning Commission was a statutory body.

Launched in 2014, Make in India seeks to enhance manufacturing, create jobs, and attract foreign direct investment in sectors like electronics and automobiles.

Statement 1 is correct as PM Gati Shakti focuses on integrated infrastructure development.
Statement 2 is incorrect; it is coordinated by the Ministry of Commerce and Industry, not Road Transport.

PM Fasal Bima Yojana offers crop insurance to protect farmers from losses due to natural disasters, unlike PM-KISAN (income support) or e-NAM (market platform).

SEBI regulates capital markets, oversees stock exchanges (e.g., BSE, NSE), and protects investor interests, unlike the other options, which relate to RBI or government functions.

The Current Account covers trade in goods, services, and transfers (e.g., remittances), while FDI, borrowings, and portfolio investments fall under the Capital Account.

The 2024–25 Economic Survey emphasized non-farm job creation and projected GDP growth at 6.5–7%, aligning with India’s economic trends up to June 2025.

The NMP, launched in 2021, aims to monetize public assets like roads, railways, and airports to raise funds for infrastructure development.

The CPI measures inflation by tracking changes in the price of a basket of goods and services, unlike the Gini Coefficient (inequality), HDI (development), or fiscal deficit (budgetary).

The NCLT oversees IBC resolution processes for insolvent companies, ensuring timely restructuring or liquidation, unlike the other entities listed.

Statement 1 is correct as GST is a destination-based tax collected at the point of consumption.
Statement 2 is incorrect; GST is administered by the GST Council and tax authorities, not the RBI.

Ayushman Bharat, providing healthcare coverage, is managed by the Ministry of Health and Family Welfare.

SLR requires banks to invest a portion of their deposits in government-approved securities, ensuring liquidity and safety, unlike CRR (cash reserves) or repo rate (lending rate).

PM Awas Yojana aims to provide affordable housing to the urban and rural poor by 2022, extended to ensure housing for all eligible beneficiaries.