SSC CGL Economy – Basic Concepts of Economics – Level 1 · Warm-up · Tier I Level

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SSC CGL Economy – Basic Concepts of Economics – Level 1 · Warm-up · Tier I Level – 12 questions, subject: Indian Economy. Every question has the correct answer with a one-line explanation; tap "Show Answer". Free practice for TNPSC, UPSC, SSC, Bank and RRB exams – Shanmugam IAS Academy, Coimbatore.

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1.  
One-line recallWho wrote An Inquiry into the Nature and Causes of the Wealth of Nations (1776)?

Correct Answer: B [Adam Smith]

Explanation:

Smith (1776) – wealth definition; Marshall 1890, Robbins 1932, Keynes 1936.

2.  
The 'scarcity' definition of economics is associated with:

Correct Answer: A [Lionel Robbins]

Explanation:

Robbins (1932): ends are unlimited, means are scarce and have alternative uses.

3.  
Microeconomics mainly studies:

Correct Answer: C [the behaviour of individual units such as a consumer, a firm or the market for one good]

Explanation:

Micro = individual units (price theory); the other three are macro topics.

4.  
Fishing is an activity of which sector?

Correct Answer: D [Primary]

Explanation:

Fishing takes a product directly from nature → primary (Nature–Make–Serve).

5.  
Which of the following is a flow?

Correct Answer: B [Income of a household per month]

Explanation:

'Per month' makes sense only for income → flow; the others are measured at a point of time.

6.  
The reward for the factor 'land' is:

Correct Answer: A [Rent]

Explanation:

Real Workers Invest Profitably: land–rent, labour–wages, capital–interest, entrepreneur–profit.

7.  
A market with a single seller of a product that has no close substitute is called:

Correct Answer: D [Monopoly]

Explanation:

One seller = monopoly; monopsony is one buyer.

8.  
The production possibility curve is normally concave to the origin because:

Correct Answer: C [the marginal opportunity cost rises as more of one good is produced]

Explanation:

Rising MOC (1, 2, 3, 4, 5 in the table) bows the curve outward; equal efficiency would give a straight line.

9.  
Fill in the blankBy the law of demand, other things remaining the same, when the price of a good falls, its quantity demanded ______.

Correct Answer: D [rises]

Explanation:

Price and quantity demanded move in opposite directions.

10.  
In a centrally planned economy the central problems are solved mainly by:

Correct Answer: C [the central authority (government)]

Explanation:

Central planning: the government decides what, how and for whom.

11.  
Statement-basedWhich of the following is/are correct?
I. Enterprises in the organised sector are registered by the government and must follow its rules.
II. Workers in the unorganised sector generally get paid leave and provident fund.

Correct Answer: A [Only I]

Explanation:

Paid leave and provident fund are features of the organised sector, so II is false.

12.  
Odd one outOdd one out (by sector):

Correct Answer: B [Fisherman]

Explanation:

Fisherman → primary; teacher, banker and transporter give services → tertiary.

➤ Full notes, shortcuts and every answer explained – SSC CGL 2026 Indian Economy book (₹149): www.shanmugamiasacademy.in/study-materials/ssc-cgl-indian-economy

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