SSC CGL Tier II Economics Quiz for the post of AAO

Q1. Under which market condition do firms have excess capacity?
(a) Perfect competition
(b) Monopolistic competition
(c) Duopoly
(d) Oligopoly

Q2. Who defined investment as “the construction of a new capital asset like machinery or factory building”?
(a) Hansen
(b) JM Keynes
(c) Harrod
(d) JR Hicks

Q3. When the price of commodity falls, we can expect
(a) The supply of it to increase
(b) The demand for it to fall
(c) The demand for it to stay constant
(d) The demand for it to increase

Q4. Law of demand implies that when there is excess demand for a commodity, then
(a) Price of the commodity falls
(b) Price of the commodity remains same
(c) Price of the commodity rises
(d) Quantity demanded of the commodity falls

Q5. A horizontal demand curve is
(a) Relatively elastic
(b) Perfectly inelastic
(c) Perfectly elastic
(d) Of unitary elasticity

Q6. Demand curve of a firm under perfect competition is
(a) Horizontal to x-axis
(b) Negatively sloped
(c) Positively sloped
(d) U-shaped

Q7. The situation in which total Revenues equals to the total cost, is known as
(a) Monopolistic competition
(b) Equilibrium level of output
(c) Break-even point
(d) Perfect competition

Q8. The marginal revenue of a monopolist is
(a) More than price
(b) Equal to price
(c) Less than price
(d) Less than marginal cost

Q9. Production function relates to
(a) Costs to outputs
(b) Costs to inputs
(c) Inputs to outputs
(d) Wage level to profits

Q10. “Economics is what it ought to be” This statement refers to
(a) Normative economics
(b) Positive economics
(c) Monetary economics
(d) Fiscal economics

Q11. The most distinguishing feature of oligopoly is
(a) Number of firms
(b) Interdependence
(c) Negligible influence on price
(d) Price leadership

Q12. A want becomes a demand only when it backed by the
(a) Ability to purchase
(b) Necessity to buy
(c) Desire to buy
(d) Utility of the product

Q13. Under increasing returns and supply curve is
(a) Positively sloped from left to right
(b) Negatively sloped from left to right
(c) Parallel to the quantity-axis
(d) Parallel to the price-axis

Q14. The degree of monopoly power is to be measured in terms of the firm’s
(a) Normal profit
(b) Supernormal profit
(c) Both normal and supernormal profit
(d) Selling price

Q15. Price theory is also known as
(a) Macro Economics
(b) Development Economics
(c) Public Economics
(d) Micro Economics

Solutions

1.B
2.B
3.D
4.C
5.C
6.A
7.C
8.C
9.C
10.A
11.B
12.A
13.A
14.D

15.D