General Knowledge Questions for CDS & CAPF: 15th December



Dear Students, Defence Adda is providing you all with this quiz on General Knowledge questions for CDS, AFCAT, CAPF and other Defence Examinations.


Q1. An economic system combining private and state enterprise is called as _____
(a) Market economy
(b) Centrally planned economy
(c) Private economy
(d) Mixed economy

Q2. What was the main motive of Third Five Year Plan in India?
(a) Rural development
(b) Agriculture
(c) Financial inclusion
(d) Economic reform

Q3. When there is only one buyer and one seller of product, it is called _____ situation.
(a) Public monopoly
(b) Bilateral monopoly
(c) Franchised monopoly
(d) Monopsony

Q4. Which among the following is not an account under Balance of Payment (BOP)? 
(a) Current Account
(b) Capital Account
(c) Official Reserves Account
(d)Financial account

Q5. Who gave the 'General Equilibrium Theory'?
(a) J. M. Keynes
(b) Leon Walras
(c) David Ricardo
(d) Adam Smith

Q6. __________________is a good whose quantity demanded decreases when consumer income rises.
(a) Veblen good
(b) Normal good
(c) Exclusive good
(d) Inferior good

Q7. In economic equilibrium _____
(a) supply is equal to the demand.
(b) the surplus is larger than the shortage.
(c) elasticity of demand equals elasticity of supply
(d) price elasticity of demand is unity

Q8. The _________ of a firm is a relationship between inputs used and output produced by the firm.
(a) Marginal product
(b) Production function
(c) Total product
(d) Average product

Q9.___________ is the set of all possible combinations of the two inputs that yield the same maximum possible level of output.
(a) The Short Run
(b) The Long Run
(c) Isoquant
(d) Average product

Q10. The __________ exchange rate is the price of one unit of foreign currency in terms of domestic currency.
(a) Artiļ¬cial
(b) Nominal
(c) Fixed
(d) Real

Q11. A commodity market has a _________ structure, if there is one seller of the commodity, the commodity has no substitute, and entry into the industry by another firm is prevented.
(a) Perfect Competition
(b) Monopoly
(c) Oligopoly
(d) Monopolistic Competition

Q12. Goods for which demand move in the opposite direction of the income of the consumer are called?
(a) Inferior goods
(b) Normal goods
(c) Complementary goods
(d) Substitute goods

Q13. The ________ balance is the sum of the balance of merchandise trade, services and net transfers received from the rest of the world.
(a) Current Account
(b) Savings Account
(c) Capital Account
(d) Asset Account

Q14. The demand for a normal good decreases with ________ in the consumers income.
(a) Increase
(b)Decrease
(c) Constant
(d) Double

Q15. An increase in the growth rate of the nominal money supply results in -
(a) Lower rate of inflation
(b) Higher rate of inflation
(c) Lower interest rates
(d) Currency appreciation

SOLUTIONS

S1. Ans.(d)
Sol. In a mixed economy, private and public sectors are involved in economy as two side of one coin. The government directs economic activity in some socially important areas of the economy, the rest being left to the price mechanism to operate.

S2. Ans.(b)
Sol.The 3rd five year plan laid considerable stress on the agricultural sector. However, with the short lived Sino Indian War of 1962 India diverted its attention to the safety of the country. Again, during the period 1965 to 1966, owing to Green Revolution, once again agriculture attracted attention.

S3. Ans.(b)
Sol. A bilateral monopoly is a market structure consisting of both a monopoly (a single seller) and a monopsony (a single buyer).

S4. Ans.(c)
Sol.Official Reserves Account is not an account under Balance of Payments(BOP).

S5. Ans.(b)
Sol. French economist Leon Walras in his pioneering work Elements of Pure Economics in 1874 gave General Equilibrium theory. It attempts to explain the behavior of supply, demand, and prices in a whole economy with several or many interacting markets, by seeking to prove that the interaction of demand and supply will result in an overall general equilibrium.'

S6. Ans.(d)
Sol.An inferior good is a good whose quantity demanded decreases when consumer income rises unlike normal goods, for which the opposite is observed. Normal goods are those for which consumers demand increases when their income increases.

S7. Ans.(a)
Sol.In economic equilibrium, supply is equal to the demand.

S8. Ans.(b)
Sol. In economics, a production function relates physical output of a production process to physical inputs or factors of production in a firm.

S9. Ans.(c)
Sol. An isoquant is a contour line drawn through the set of points at which the same quantity of output is produced while changing the quantities of two or more inputs. In other words, Isoquant is the set of all possible combinations of the two inputs that yield the same maximum possible level of output.

S10. Ans.(b)
Sol.The nominal exchange rate is defined as the number of units of the domestic currency that can purchase a unit of a given foreign currency and vice versa.

S11. Ans.(b)
Sol. A commodity market has a monopoly structure, if there is one seller of the commodity, the commodity has no substitute, and entry into the industry by another firm is prevented.

S12. Ans.(a)
Sol.Goods for which demand move in the opposite direction of the income of the consumer are called Inferior goods.

S13. Ans.(a)
Sol.The Current Account balance is the sum of the balance of merchandise trade, services and net transfers received from the rest of the world.

S14. Ans.(b)
Sol. In economics, normal goods are any goods for which demand increases when income increases, and falls when income decreases.

S15. Ans.(b)
Sol. Inflation is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling. When money supply increase it tends to higher rate of inflation.



                  

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