Mock Test

Exam: SSC CGL Subject: General Awareness Topic: Economics

Total Questions: 20

Q1. Which institution is responsible for formulating and implementing monetary policy in India?

SEBI RBI IRDAI PFRDA
Q2. The Economic Survey often discusses the importance of 'Structural Reforms'. Which of the following would be considered a structural reform?

A one-time tax rebate for individuals. A temporary reduction in interest rates. Comprehensive changes in labor laws or land acquisition processes. A short-term stimulus package for a particular industry.
Q3. A 'valued policy' is one where:

The insurer pays the actual cash value of the damaged property The insurer pays a predetermined amount in the event of a loss The policyholder decides the sum insured after a loss The sum insured is adjusted based on inflation
Q4. Which of these is a common goal for urban development, focusing on citizen well-being?

Increasing traffic congestion Improving public health facilities Reducing access to healthcare Promoting unhealthy lifestyles
Q5. An EIA aims to provide decision-makers with:

A purely qualitative assessment of a project. A comprehensive understanding of the potential economic consequences. A guarantee of project success. An analysis of solely environmental risks.
Q6. If a firm doubles its inputs and its output more than doubles, it is experiencing:

Diseconomies of scale. Constant returns to scale. Increasing returns to scale. Diminishing returns to scale.
Q7. Which of the following is a merit good?

Alcohol Cigarettes Education Gambling
Q8. In the context of agricultural economics, which of the following is the most accurate description of the 'Tragedy of the Commons' as it applies to shared agricultural resources?

The over-exploitation of a private land holding due to insufficient investment. The depletion of a shared pasture or water source by individual users acting in their own self-interest. The collapse of a government-subsidized agricultural market due to excessive supply. The inefficient allocation of labor on a large, privately owned farm.
Q9. When a country devalues its currency, it is:

Increasing the value of its currency Decreasing the value of its currency Maintaining a fixed exchange rate Allowing the market to determine the currency's value
Q10. The Economic Survey is prepared by which ministry?

Ministry of Commerce and Industry Ministry of Finance Ministry of Home Affairs Ministry of Planning and Statistics
Q11. If the government decides to increase its spending on infrastructure development significantly, how would this likely impact the Gross Domestic Product (GDP) of the country, assuming other factors remain constant?

GDP would decrease due to increased government debt. GDP would remain unchanged as it only accounts for private sector activity. GDP would increase due to the direct injection of government spending into the economy. GDP would decrease as private investment would be crowded out.
Q12. Which of the following is a primary cause of 'built-in' or 'wage-price spiral' inflation?

A sudden increase in oil prices Increased government spending Expectations of future inflation leading to higher wage demands and prices A decrease in the money supply
Q13. A key challenge in assessing the economic impacts of a new manufacturing plant on a rural area is:

Overestimating the multiplier effect of indirect employment Underestimating the potential for labor displacement in existing sectors Ignoring the potential for induced economic activity due to increased consumer spending Failing to account for the initial capital investment
Q14. What is the Reverse Repo Rate?

The rate at which commercial banks lend to each other The rate at which the RBI lends to commercial banks The rate at which commercial banks deposit money with the RBI The rate at which the RBI borrows from commercial banks
Q15. Which of the following is considered a 'visible' item in BOP?

Tourism services Shipping charges Export of textiles Software development
Q16. The concept of 'adverse selection' in insurance refers to:

The tendency of individuals with lower risk to purchase more insurance The tendency of individuals with higher risk to purchase more insurance The insurer's ability to predict future losses accurately The market value of insurance policies
Q17. Which of the following is an example of structural unemployment?

Unemployment due to a recession Unemployment due to seasonal factors Unemployment due to a mismatch between skills and job requirements Unemployment due to voluntary job changes
Q18. Deflation is a period of:

Rising prices Falling prices Stable prices High employment
Q19. Which of the following is a method of measuring national income?

Surveys of consumer confidence Analysis of stock market performance Expenditure method Analysis of employment trends
Q20. Inflation erodes the value of:

Assets Debts Savings All of the above

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