RRB NTPC Economics quiz for Stage-I : 27/03/2019

RRB NTPC Economics quiz for Stage-I

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

Q1.A commodity market has a _________ structure, if there is one seller of the commodity, the commodity has no substitute, and entry into the industry by another firm is prevented.

(a) Perfect Competition                                                

(b) Monopoly

(c) Oligopoly                                                                      

(d) Monopolistic Competition

Q2.Goods for which demand move in the opposite direction of the income of the consumer are called?

(a) Inferior goods                                                            

(b) Normal goods

(c) Complementary goods                                                           

(d) Substitute goods

Q3.The ________ balance is the sum of the balance of merchandise trade, services and net transfers received from the rest of the world.

(a) Current Account                                                        

(b) Savings Account

(c) Capital Account                                                         

(d) Asset Account

Q14.The demand for a normal good decreases with ________ in the consumers income.

(a) Increase                                                                       

(b)Decrease

(c) Constant                                                                       

(d) Double

Q5. An increase in the growth rate of the nominal money supply results in –

(a) Lower rate of inflation            

(b) Higher rate of inflation

(c) Lower interest rates

(d) Currency appreciation

Q6.Unemployment that arises when there is a general downturn in business activity is known as –

(a) Structural unemployment

(b) Frictional unemployment

(c) Cyclical unemployment

(d) Disguised unemployment

Q7.This tax is entirely borne by the entity it is levied upon and cannot be passed

(a) Direct tax                     

(b) Indirect tax  

(c) Straight tax                  

(d) Advance tax

Q8. Match the characteristics with their market structure:

(i) Differentiated products, but close substitutes for consumers so their demand curves are elastic

(ii) Homogeneous product, all goods are perfect substitutes for consumers

Options

(a) (i) Monopolistic Competition, (ii) Pure Competition

(b) (i) Monopolistic Competition, (ii) Pure Monopoly

(c) (i) Pure Competition, (ii) Monopolistic Competition

(d) (i) Pure Monopoly, (ii) Pure Competition

Q9. Find Point elasticity of demand, if quantity demanded falls from 1050 to 950 when of the item is increased from Rs. 250 to Rs. 290?

(a) –0.65                                              

(b) –0.6

(c) 0.68                                 

(d) 0.6

Q10.If Money supply growth is faster than real GDP growth, it results in _____.

(a) Inflation                        

(b) Deflation      

(c) Budget surplus                           

(d) Budget deficit

 

 

Ans.1.(b)

Exp. A commodity market has a monopoly structure, if there is one seller of the commodity, the commodity has no substitute, and entry into the industry by another firm is prevented.

Ans.2.(a)

Exp.Goods for which demand move in the opposite direction of the income of the consumer are called Inferior goods.

Ans.3.(a)

Exp.The Current Account balance is the sum of the balance of merchandise trade, services and net transfers received from the rest of the world.

Ans.4.(b)

Exp. In economics, normal goods are any goods for which demand increases when income increases, and falls when income decreases.

Ans.5.(b)

Exp. Inflation is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling. When money supply increase it tends to higher rate of inflation.

Ans.6.(c)

Exp.Cyclical unemployment is a factor of overall unemployment that relates to the cyclical trends in growth and production that occur within the business cycle. When business cycles are at their peak, cyclical unemployment will be low because total economic output is being maximized.

Ans.7.(a)

Exp.Direct taxes include the taxes that cannot be transferred or shifted to another person, for instance the income tax an individual pays directly to the government.

Ans.8.(a)

Exp. Differentiated products, but close substitutes for consumers so their demand curves are elastic, is an example of Monopolistic Competition and Homogeneous product, all goods are perfect substitutes for consumers, is an example of Pure Competition.

Ans.9.(a)

Exp.Elasticity=(%change in the quantity) /(% change in the price)

         =(-100/950)×(250/40)

         =-0.65.

Ans.10.(a)

Exp. If Money supply growth is faster than real GDP growth, it results in Inflation.

 

3

Leave a Reply