A perfectly inelastic demand curve has an elasticity of: MCQ with Answer and Explanation

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A perfectly inelastic demand curve has an elasticity of:

A. infinity

B. one

C. zero

D. greater than one

Answer: Option C

Solution (By JKSSB Mock Tests)

With perfectly inelastic demand, quantity demanded does not change as price changes; elasticity is zero.

This question belongs to: Economy GK Economy Set 1

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Question #1

The concept of 'Economic Value Added' (EVA) is defined as:

A. Only cash flow

B. Only accounting profit

C. Only revenue minus explicit costs

D. Net operating profit after tax minus the opportunity cost of capital employed

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Correct Answer: Option D

Explanation:
Economic Value Added is a measure of residual income calculated as net operating profit after tax minus a charge for the opportunity cost of the capital employed in the business.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Goods and Services Tax' on print media advertising is:

A. 12%

B. 5%

C. 0%

D. 18%

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Correct Answer: Option B

Explanation:
Advertising in print media attracts 5% GST.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Goods and Services Tax' on edible oils is:

A. 5%

B. 0%

C. 12%

D. 18%

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Correct Answer: Option A

Explanation:
Edible oils attract 5% GST.

This question belongs to: Economy GK Economy Set 1

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