SSC Economy Previous year questions set-7

61. The income elasticity of demand being greater than one, the commodity must be:[SSC Section Officer (Audit) 2001]
A. a necessity
B. a luxury
C. an inferior good
D. None of these

Answer –B. a luxury

62. Which from the following is not true when the interest rate in the economy goes up ?[SSC CPO Sub-Inspector 2009]
A. Saving increases
B. Lending decreases
C. Cost of production increases
D. Return on capital increases

Answer –D. Return on capital increases

63. Payment of water charges by the farmers to the government represents…..[SSC Combined Matric Level (PRE) 2000]
A. intermediate consumption
B. final consumption
C. fixed investment
D. inventory investment

Answer –A. intermediate consumption

64. Demand of commodity mainly depends upon–[SSC Section Officer (Audit) 2003]
A. Purchasing will
B. Purchasing power
C. Tax policy
D. Advertisement

Answer –B. Purchasing power

65. The Law of Demand expresses: [SSC Tax Assistant (Income Tax & Central Excise) 2008]
A. effect of change in price of a commodity on its demand
B. effect of change in demand of a commodity on its price
C. effect of change in demand of a commodity over the supply of its substitute
D. None of the above

Answer –A. effect of change in price of a commodity on its demand

66. When there is one buyer and many sellers then that situation is called:[SSC Combined CGL Prelim 2002]
A. Monopoly
B. Single buyer right
C. Down right
D. Double buyers right

Answer –B. Single buyer right

67. Labour Intensive Technique would get chosen in a…[SSC CPO Sub-Inspector 2009]
A. Labour Surplus Economy
B. Capital Surplus Economy
C. Developed Economy
D. Developing Economy

Answer –A. Labour Surplus Economy

68. Same price prevails throughout the market under….[SSC Combined Matric Level (PRE) 2002]
A. perfect competition
B. monopoly
C. monopolistic competition
D. oligopoly

Answer –A. perfect competition

69. Which of the following does not determine supply of labour ?[SSC Section Officer (Commercial Audit 2006]
A. Size and age-structure of population
B. Nature of work
C. Marginal productivity of labour
D. Work-leisure ratio

Answer –C. Marginal productivity of labour

70. A refrigerator operating in a chemist’s shop is an example of….[SSC CPO Sub-Inspector 2008]
A. free good
B. final good
C. producers good
D. consumer’s good

Answer –B. final good

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