# SSC Economy Previous year questions set-3

21. The value of a commodity expressed in terms of money is known as:[FCI Assistant Grade-III 2012]
A. Price
B. Utility
C. Value
D. Wealth

Explanation-

22. The fixed cost on such factors of production which are neither hired nor bought by the firm is called[SSC Section Officer (Commercial Audit) 2005]
A. social cost
B. opportunity cost
C. economic cost
D. surcharged cost

Explanation-

23. The four factors of production are___ [SSC Combined Matric Level (PRE) 2001]
A. land, labour, capital, organisation
B. land, electricity, water, labour
C. labour, capital, land, rainfall
D. labour, climate, land, tools

Answer –A. land, labour, capital, organisation
Explanation-

24. If total utility is maximum at a point, then marginal utility is: [SSC Combined Matric Level (PRE) 2000]
A. positive
B. zero
C. negative
D. positive but decreasing

Explanation-

25. The Marginal Utility Curve slopes downward from left toright indicating:[SSC CPO Sub-Inspector 2003]
A. A direct relationship between marginal utility and the stock of commodity
B. A constant relationship between marginal utility and the stock of commodity
C. A proportionate relationship between marginal utility and the stock of commodity
D. An inverse relationship between marginal utility and the stock of commodity

Answer – D. An inverse relationship between marginal utility and the stock of commodity
Explanation-

26. Cross elasticity of demand between petrol and car is….[SSC Tax Assistant (Income Tax & Central Excise) 2008]
A. infinite
B. positive
C. zero
D. negative

Explanation-

27. The ‘break-even point’ is where [SSC CGL Prelim 2005]
A. marginal revenue equals marginal cost
B. average revenue equals average cost
C. total revenue equals total cost
D. None of these

Answer –B. average revenue equals average cost
Explanation-

28. The theory of distribution relates to which of the following?[SSC Section Officer (Audit) 2001]
A. The distribution of assets
B. The distribution of income
C. The distribution of factor payments
D. Equality in the distribution of the income and wealth

Answer –D. Equality in the distribution of the income and wealth
Explanation-

29. In equilibrium, a perfectly competitive firm will equate:[SSC CPO Sub-Inspector 2003]
A. marginal social cost with marginal social benefit
B. market supply with market demand
C. marginal profit with marginal cost
D. marginal revenue with marginal cost

Answer – D. marginal revenue with marginal cost
Explanation-

30. The demand curve for a Giffen good is….[SSC CGL Prelims 2007]
A. upward rising
B. downward falling
C. parallel to the quantity axis
D. parallel to the price axis