Railway/SSC JE 2019 Economics quiz for Phase I and other railways exams20/02/2019

Railway/SSC JE 2019 Economics quiz for Phase I

Railway/SSC JE Economics quiz for  (Phase I), RRB NTPC, SSC various exams and other competitive exams.

Q1.The demand for inferior goods decreases with ________ in the consumer’s income.

(a) Increase                                                                       

(b) Decrease

(c) Constant                                                                       

(d) Double

Q2.Goods for which the quantity that a consumer chooses, increases as the consumer’s income increases and decreases as the income decreases are called?

(a) Inferior goods                                                                            

(b) Normal goods

(c) Complementary goods                                                           

(d) Substitute goods

Q3.The _________ balance is equal to capital flows from the rest of the world, minus capital flows to the rest of the world.

(a) Current Account                                                        

(b) Savings Account

(c) Capital Account                                                         

(d) Asset Account

Q4. Balance of Trade is the difference between

(a) Country’s Income and Expense  

(b) Country’s Exports and Import

(c) Country’s Tax Revenue and Expense

(d) Country’s capital inflow and outflow

Q5. Micro economics deals with –

(a) the circular flow of income

(b) the decision making of a single economic variable like demand

(c) understanding unemployment

(d) economic growth

Q6. __________________is a good whose quantity demanded decreases when consumer income rises.

(a) Veblen good               

(b) Normal good

(c) Exclusive good                           

(d) Inferior good

Q7. In economic equilibrium _____

(a) supply is equal to the demand.

(b) the surplus is larger than the shortage.

(c) elasticity of demand equals elasticity of supply

(d) price elasticity of demand is unity

Q8. The _________ of a firm is a relationship between inputs used and output produced by the firm.

(a) Marginal product                                                      

(b) Production function

(c) Total product                                                                              

(d) Average product

Q9.___________ is the set of all possible combinations of the two inputs that yield the same maximum possible level of output.

(a) The Short Run                                                                            

(b) The Long Run

(c) Isoquant                                                                       

(d) Average product

Q10.The __________ exchange rate is the price of one unit of foreign currency in terms of domestic currency.

(a) Artificial                                                                        

(b) Nominal

(c) Fixed                                                                                              

(d) Real

Answer key-

Ans.1.(a)

Exp. In economics, an inferior good is a good whose quantity demanded decreases when consumer income rises.

Ans.2.(b)

Exp. In economics, normal goods are any goods for which demand increases when income increases, and falls when income decreases but price remains constant, i.e. with a positive income elasticity of demand.

Ans.3.(c)

Exp.The Capital Account balance is equal to capital flows from the rest of the world, minus capital flows to the rest of the world.

Ans.4.(b)

Exp.The balance of trade (BOT) is the difference between a country’s imports and its exports for a given time period. The balance of trade is the largest component of the country’s balance of payments (BOP).

Ans.5.(b)

Exp.Micro economics deals with the decision making of a single economic variable like demand.

Ans.6.(d)

Exp.An inferior good is a good whose quantity demanded decreases when consumer income rises unlike normal goods, for which the opposite is observed. Normal goods are those for which consumers demand increases when their income increases.

Ans.7.(a)

Exp.In economic equilibrium, supply is equal to the demand.

Ans.8.(b)

Exp. In economics, a production function relates physical output of a production process to physical inputs or factors of production in a firm.

Ans.9.(c)

Exp. An isoquant is a contour line drawn through the set of points at which the same quantity of output is produced while changing the quantities of two or more inputs. In other words, Isoquant is the set of all possible combinations of the two inputs that yield the same maximum possible level of output.

Ans.10.(b)

Sol.The nominal exchange rate is defined as the number of units of the domestic currency that can purchase a unit of a given foreign currency and vice versa.

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