Core inflation excludes which of the following? MCQ with Answer and Explanation

Core inflation excludes which of the following?
A. all manufactured goods
B. housing prices
C. food and fuel prices
D. imported goods
Answer: Option C
Solution (By JKSSB Mock Tests)
Core inflation excludes volatile food and fuel prices to capture underlying inflation trends.

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Practice More Economy Set 1 Questions

Question #1
In the context of public debt, the 'Domar Condition' for debt sustainability relates to:
A. Only the maturity structure of debt
B. The relationship between the interest rate, growth rate and primary balance
C. Only the level of absolute debt
D. Only external debt

Correct Answer: Option B


Explanation:
The Domar condition indicates that the debt-to-GDP ratio will stabilise or decline if the primary surplus is sufficient relative to the difference between the interest rate and the growth rate of GDP.

This question belongs to: Economy GK Economy Set 1
Question #2
In the context of trade policy, the 'Optimal Tariff' argument suggests that:
A. Only small countries can benefit from tariffs
B. A large country may improve its terms of trade by imposing a tariff, provided foreign retaliation is absent
C. Free trade is never optimal
D. Tariffs are always welfare-reducing for the imposing country

Correct Answer: Option B


Explanation:
A large country can improve its terms of trade by restricting imports, thereby extracting some monopoly or monopsony rent; the optimal tariff balances this gain against the efficiency loss.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'GST practitioner' is a person who:
A. audits GST revenue
B. assists taxpayers in filing GST returns and compliance
C. sets GST rates
D. collects taxes

Correct Answer: Option B


Explanation:
A GST practitioner assists taxpayers in GST compliance and returns.

This question belongs to: Economy GK Economy Set 1