Deadweight loss in economics refers to: MCQ with Answer and Explanation

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Deadweight loss in economics refers to:

A. loss of total welfare due to market inefficiency

B. depreciation of capital

C. loss of revenue to the government

D. loss suffered by a monopolist

Answer: Option A

Solution (By JKSSB Mock Tests)

Deadweight loss is the loss of economic welfare due to inefficiency such as taxes, price controls or monopoly.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The 'demonstration effect' in consumption means:

A. people save more

B. people copy the consumption patterns of others

C. people reduce consumption

D. people consume only basic goods

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Correct Answer: Option B

Explanation:
The demonstration effect is the tendency to imitate the consumption patterns of others.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020' was later:

A. amended only

B. repealed in 2021

C. implemented fully

D. extended to 2030

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Correct Answer: Option B

Explanation:
The three farm laws of 2020 were repealed in 2021.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'multiplier-accelerator interaction' explains:

A. monetary policy only

B. exchange rates

C. inflation only

D. business cycles and fluctuations in income

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Correct Answer: Option D

Explanation:
Multiplier-accelerator interaction explains cyclical fluctuations in income.

This question belongs to: Economy GK Economy Set 1

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