CHSL 2022 Prelims Economics Part 1

Question 1 of 25

1. Question

Which among the following statements is incorrect?

The primary market is also known as new issue market.
Industrial Securities Market is also known as gilt-edged market.
The secondary market is the market for the sale and purchase of previously issued securities.
RBI plays a dominant role in the gilt-edged market through its ‘Open Market Operations’.

Question 2 of 25

2. Question

The value added of a firm is calculated as ____.

value of production of the firm + value of intermediate goods used by the firm
value of production of the firm + value of capital goods used by the firm
value of production of the firm – value of intermediate goods used by the firm
value of production of the firm / value of intermediate goods used by the firm

Question 3 of 25

3. Question

The Industrial Policy Resolution of 1956 formed the basis of the ____.

Fourth Five Year plan
Second Five Year plan
Third Five Year plan
Fifth Five Year plan

Question 4 of 25

4. Question

Which Indian financial institution protects investors in a stock market?

Securities and Exchange Board of India
Bombay Stock Exchange
Reserve Bank of India
National Stock Exchange

Question 5 of 25

5. Question

Which five-year plan was based on the ideas of Mahalanobis?

Fourth five-year plan
First five-year plan
Third five-year plan
Second five-year plan

Question 6 of 25

6. Question

A ____ account is one which is maintained by an Indian Bank in the foreign countries usually in the currency of that country for the purpose of carrying out transactions there.

VOSTRO
LIBOR
NOSTRO
MIBOR

Question 7 of 25

7. Question

Which of the following combinations of ‘RBI Tool–Monetary instrument’ is correct?

Qualitative - Cash Reserve ratio
Qualitative – Moral Suasion
Quantitative – Marginal requirement
Qualitative – Open Market Operations

Question 8 of 25

8. Question

Which of the following statements is correct regarding the bank reserves?

I. These reserves are kept partly as cash and partly in the form of financial instruments.
II. Cash Reserves Ratio are deposits which commercial banks keep with the Reserve Bank of India.

Only I
Neither I nor II
Both I and II
Only II

Question 9 of 25

9. Question

Which of the following indicates the correct limit of marginal propensity to consume (MPC)?

-1 < MPC < 1
0 < MPC < 1
-1 < MPC < 0
0 < MPC < ∞

Question 10 of 25

10. Question

According to the law of demand, the consumer’s demand for a good must be ____.

inversely related to the supply of the good
directly related to the supply of the good
directly related to the price of the good
inversely related to the price of the good

Question 11 of 25

11. Question

Which among the following is correct about Reverse Repo Rate?

When the money is borrowed or lent for more than a day up to 14 days it is called Reverse Repo Rate.
When RBI provides a loan to the bank for short-term between 1 to 90 days, RBI takes some interest from the bank which is termed as Reverse Repo Rate.
Reverse Repo Rate is a state in which the Value of Money is Falling and the Prices are rising, over a period of time.
When bank deposit it's excess money in RBI then RBI provides some interest to that bank. This interest is known as Reverse Repo Rate.

Question 12 of 25

12. Question

Which of the following statements is correct regarding the socialist society in the economy?

I. The government decides what goods are to be produced.
II. Distribution of goods under socialism is supposed to be based on what people need.

Only I
Neither I nor II
Both I and II
Only II

Question 13 of 25

13. Question

____ is the change in total utility due to consumption of one additional unit of a commodity.

Marginal utility (MU)
Demand utility (DU)
Revenue utility (RU)
Product Utility (PU)

Question 14 of 25

14. Question

_____, also known as search unemployment, occurs when workers lose their current job and are in the process of finding another one.

Frictional unemployment
Voluntary unemployment
Classical unemployment
Disguised unemployment

Question 15 of 25

15. Question

____ is calculated by dividing the nominal GDP in a given year by the real GDP for the same year and multiplying it by 100.

Disposable Income
GDP Deflator
Real Income
Per Capita Income

Question 16 of 25

16. Question

If unemployment continues for long-term in a country, it is called ____ unemployment.

casual
frictional
technological
Chronic

Question 17 of 25

17. Question

In the XXI phase of sale of electoral bonds can be only purchase from which of the following institution?

NITI Aayog
RBI
SBI
SEBI

Question 18 of 25

18. Question

In which of the following ways, aggregate demand function is related to consumption function?

I. They have the same slope C.
II. The aggregate demand function is parallel to the consumption function.

Only I
Neither I nor II
Only II
Both I and II

Question 19 of 25

19. Question

If ex ante aggregate demand and ex ante aggregate supply are plotted together in a graphical diagram, then at which point equilibrium will be reached?

Where ex ante aggregate demand is less than ex ante aggregate supply
Where ex ante aggregate demand is more than ex ante aggregate supply
Where ex ante aggregate demand is zero
Where ex ante aggregate demand is equal to ex ante aggregate supply

Question 20 of 25

20. Question

Law of Demand states that, there is a negative relationship between ____.

demand for a commodity and its supply
tax on a commodity and its price
demand for a commodity and its price
supply of a commodity and its price

Question 21 of 25

21. Question

Which of the following statements is correct regarding the Industrial Policy resolution 1956?

I. This resolution formed the basis of the Second Five Year Plan.
II. This policy was used for promoting industry in backward regions.

Only I
Only II
Neither I nor II
Both I and II

Question 22 of 25

22. Question

If the price elasticity of demand is less than one, then the demand for the goods is said to be ____.

Inelastic
Unitary elastic
Perfectly elastic
Perfectly inelastic

Question 23 of 25

23. Question

The production function can be expressed as _____. (where L is labour and C is capital and Q is the maximum output that can be produced)

Q = f (C)
Q = f (L, C)
L = f (Q, C)
Q = f (L)

Question 24 of 25

24. Question

Which of the following is correct regarding the Private Income?

Private Income = Factor income from net domestic product accruing to the private sector – National debt interest + Net factor income from abroad + Current transfers from government + Other net transfers from the rest of the world
Private Income = Factor income from net domestic product accruing to the private sector + National debt interest + Net factor income from abroad + Current transfers from government + Other net transfers from the rest of the world
Private Income = Factor income from net domestic product accruing to the private sector + National debt interest + Net factor income from abroad – Current transfers from government + Other net transfers from the rest of the world
Private Income = Factor income from net domestic product accruing to the private sector + National debt interest – Net factor income from abroad + Current transfers from government + Other net transfers from the rest of the world

Question 25 of 25

25. Question

Which of the following statements is correct regarding the features of a perfectly competitive market?

I. The market consists of a large number of buyers and sellers.
II. Information is perfect.

Both I and II
Neither I nor II
Only I
Only II