SSC CGL Finance – Basic Concepts of Economics, Micro Economics, Demand & Supply – Level 3 · Challenge

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SSC CGL Finance – Basic Concepts of Economics, Micro Economics, Demand & Supply – Level 3 · Challenge – 8 questions, subject: Finance & Economics (Tier II Paper III). 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.  
Budget ₹ 18; price of X ₹ 3, price of Y ₹ 2. MU of successive units – X: 36, 27, 21, 15, 9; Y: 18, 14, 10, 6, 4. The utility-maximising bundle is:

Correct Answer: C [4 X and 3 Y]

Explanation:

MU/P equal at 5 for the 4th X (15/3) and the 3rd Y (10/2); cost 12 + 6 = ₹ 18 (total utility 141, the highest).

2.  
In the market Qd = 120 − 3P, Qs = 3P − 30, a tax of ₹ 6 per unit is levied on sellers. The price paid by buyers becomes:

Correct Answer: A [₹ 28]

Explanation:

Before tax 120 − 3P = 3P − 30 → P = 25.

3.  
True/false countHow many of the following statements are true?
(i) A change in the good's own price causes a movement along its demand curve.
(ii) Veblen goods may be demanded more at a higher price because they signal status.
(iii) Cross elasticity between unrelated goods is zero.
(iv) Every inferior good is a Giffen good.

Correct Answer: D [Three]

Explanation:

(i)–(iii) true; (iv) false – every Giffen good is inferior, not the other way round.

4.  
Price elasticity of demand is 1.5. If price is cut by 10%, total revenue:

Correct Answer: B [Rises by 3.5%]

Explanation:

Quantity +15%; TR factor 0.9 × 1.15 = 1.035 → +3.5%.

5.  
A buyer is willing to pay ₹ 50, ₹ 42, ₹ 35 and ₹ 28 for the 1st to 4th unit. Market price is ₹ 30. Consumer surplus is:

Correct Answer: B [₹ 37]

Explanation:

Buys 3 units (4th is worth only ₹ 28): (50 − 30) + (42 − 30) + (35 − 30) = 37.

6.  
Combinations of an economy: (Cloth, Wheat) = (0, 50), (1, 48), (2, 42), (3, 32), (4, 18), (5, 0). The opportunity cost of producing the 4th unit of cloth is:

Correct Answer: C [14 units of wheat]

Explanation:

Moving from (3, 32) to (4, 18) gives up 32 − 18 = 14 wheat.

7.  
The demand curve Q = a − 4P has unit elasticity at P = ₹ 10. The value of a is:

Correct Answer: A [80]

Explanation:

e = 4 × 10/(a − 40) = 1 → a = 80.

8.  
Diagram-basedIn the figure, D1 and D2 are demand curves.
A move from point A to point C is called:

Correct Answer: D [Increase in demand]

Explanation:

A (on D1) and C (on D2) are at the same price; more is bought because the curve shifted right.

➤ Full notes, shortcuts and every answer explained – SSC CGL 2026 Finance & Economics (Tier II Paper III) book (₹149): www.shanmugamiasacademy.in/study-materials/ssc-cgl-finance-economics

📘 SSC CGL 2026 – General Studies – Finance & Economics (Tier II Paper III)
Here you get the answer with a one-line explanation. 1,064 original questions with worked answers · Part A Finance & Accounts and Part B Economics & Governance notes · practice sets + 3 mock tests
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