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. greater than one

B. zero

C. infinity

D. one

Answer: Option B

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

Which of the following best describes the concept of 'Income Effect' in consumer theory?

A. Change in quantity demanded due to a change in relative prices holding real income constant

B. Change in demand due to a change in tastes

C. Change in supply due to a change in input prices

D. Change in quantity demanded due to a change in real income resulting from a price change

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Correct Answer: Option D

Explanation:
The income effect refers to the change in quantity demanded of a good that results solely from the change in real income caused by a change in the price of the good.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'National Education Policy 2020' proposes which curricular structure in schools?

A. 10+2

B. 8+4

C. 4+3+3+2

D. 5+3+3+4

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Correct Answer: Option D

Explanation:
NEP 2020 proposes a 5+3+3+4 curricular and pedagogical structure.

This question belongs to: Economy GK Economy Set 1

Question #3

In India, the exchange rate of the rupee is best described as:

A. fully floating with no RBI intervention

B. managed floating

C. fixed by the government

D. pegged to the dollar

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Correct Answer: Option B

Explanation:
India follows a managed floating exchange rate system with occasional RBI intervention.

This question belongs to: Economy GK Economy Set 1

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