A Giffen good is a good for which: MCQ with Answer and Explanation

Question

Share Report Error

A Giffen good is a good for which:

A. demand falls when price falls

B. demand increases when price rises

C. income effect is zero

D. demand is perfectly elastic

Answer: Option B

Solution (By JKSSB Mock Tests)

A Giffen good has a strong income effect that dominates the substitution effect, so quantity demanded rises when price rises.

This question belongs to: Economy GK Economy Set 1

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1

Which of the following is NOT a type of unemployment in developing countries?

A. Disguised unemployment

B. Natural rate of unemployment as a policy target only

C. Open unemployment

D. Seasonal unemployment

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
Disguised, seasonal and open unemployment are common in developing countries. The natural rate of unemployment is a concept more relevant to developed economies and macroeconomic policy.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Finance Commission' is appointed under which article?

A. Article 360

B. Article 324

C. Article 280

D. Article 356

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option C

Explanation:
The Finance Commission is constituted under Article 280.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'National Pension System' in India is regulated by:

A. IRDAI

B. RBI

C. SEBI

D. PFRDA

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option D

Explanation:
The National Pension System is regulated by the Pension Fund Regulatory and Development Authority.

This question belongs to: Economy GK Economy Set 1

Explore All Economy Set 1 MCQs