Economy Set 1 MCQs

Economy GK

Economy Set 1 MCQs

Practice Economy GK MCQs on basic economic concepts including economy, economics, microeconomics, macroeconomics, goods and services, demand and supply, factors of production, opportunity cost, economic activities, sectors of economy and other fundamental concepts frequently asked in SSC, Railway, Banking, UPSC, JKSSB, JKPSC, Police, Defence and other competitive examinations.

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Page 43 of 111
Question #841
Which of the following is a characteristic of the 'Attention Economy' valuation of platforms?
A. Market valuations often reflect the platform’s ability to capture and monetise user attention and data rather than traditional cash flows alone
B. Attention has no relation to valuation
C. Only book value matters
D. Valuations are based only on physical assets
Discuss
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Correct Answer: Option A

Explanation:
In the attention economy, the market value of many digital platforms is driven by their capacity to attract, retain and monetise user attention and the data generated by user engagement.
This question belongs to: Economy GK Economy Set 1
Question #842
In the context of global digital governance, the 'Digital Services Act' of the European Union focuses on:
A. Harmonised rules for intermediary services regarding content moderation, transparency and accountability
B. Only competition rules for gatekeepers
C. Only data-protection rules
D. Only e-commerce contract law
Discuss
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Correct Answer: Option A

Explanation:
The Digital Services Act establishes a horizontal framework of due-diligence, transparency and accountability obligations for digital intermediary services, including online platforms, with respect to illegal content and systemic risks.
This question belongs to: Economy GK Economy Set 1
Question #843
Which of the following is a feature of 'Privacy-Enhancing Technologies'?
A. Technical methods that allow data to be used while minimising the exposure of personal information
B. Technologies that maximise data collection without safeguards
C. Only encryption without any other tools
D. Only complete data anonymisation that destroys all utility
Discuss
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Correct Answer: Option A

Explanation:
Privacy-enhancing technologies (PETs) comprise a range of technical approaches—such as differential privacy, homomorphic encryption and secure multi-party computation—that enable data analysis while protecting individual privacy.
This question belongs to: Economy GK Economy Set 1
Question #844
The concept of 'Data Trusts' or 'Data Commons' explores:
A. The complete free-for-all of unregulated data markets
B. Institutional arrangements in which data is stewarded collectively for the benefit of a defined community of stakeholders
C. Only private ownership of all data by platforms
D. Only government ownership of all personal data
Discuss
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Correct Answer: Option B

Explanation:
Data trusts and data commons are emerging institutional models that seek to govern data as a shared resource, with trustees or collective bodies responsible for managing access and use in accordance with the interests of the data subjects or community.
This question belongs to: Economy GK Economy Set 1
Question #845
Which of the following is a characteristic of the 'Splinternet' or 'Digital Fragmentation' concern?
A. Only the growth of a single global platform
B. The absence of any regulatory differences
C. The complete global harmonisation of all digital rules
D. The risk that the global internet may fragment into separate national or regional networks with incompatible rules and standards
Discuss
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Correct Answer: Option D

Explanation:
Digital fragmentation (or the 'splinternet') refers to the potential balkanisation of the internet into distinct spheres governed by divergent national regulations, technical standards and platform ecosystems.
This question belongs to: Economy GK Economy Set 1
Question #846
In the context of the future of work, 'Skill-Biased Technical Change' refers to:
A. Technical change that only benefits unskilled labour
B. Technical change that is neutral across skill groups
C. Technological progress that raises the relative demand for skilled labour and contributes to wage inequality
D. Only the displacement of all labour
Discuss
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Correct Answer: Option C

Explanation:
Skill-biased technical change describes innovations that complement skilled workers more than unskilled workers, increasing the relative demand for and returns to skill and contributing to rising wage inequality.
This question belongs to: Economy GK Economy Set 1
Question #847
Which of the following is a feature of the 'Polarisation' of the labour market observed in many advanced economies?
A. Uniform growth across all skill levels
B. Growth in high-skill and low-skill employment accompanied by a decline in middle-skill routine jobs
C. Only growth in middle-skill jobs
D. Only decline in high-skill jobs
Discuss
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Correct Answer: Option B

Explanation:
Job polarisation refers to the simultaneous growth of employment at the high and low ends of the skill distribution and the relative decline of middle-skill occupations that involve routine tasks susceptible to automation.
This question belongs to: Economy GK Economy Set 1
Question #848
The concept of 'Lifelong Learning' in the context of technological change emphasises:
A. Only front-loaded education in youth
B. Only on-the-job training without formal education
C. The irrelevance of skills in a digital economy
D. The need for continuous education and skill upgrading throughout an individual’s working life
Discuss
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Correct Answer: Option D

Explanation:
Lifelong learning refers to the ongoing, voluntary and self-motivated pursuit of knowledge and skills throughout life, which becomes increasingly important as technological change accelerates the obsolescence of existing skills.
This question belongs to: Economy GK Economy Set 1
Question #849
Which of the following is a characteristic of 'Remote Work' or 'Telework' as a structural shift?
A. Only the increase in commuting
B. The complete disappearance of all office work
C. The potential to decouple the location of work from the location of the worker, with implications for cities, housing and labour markets
D. Only a temporary pandemic phenomenon without lasting effects
Discuss
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Correct Answer: Option C

Explanation:
The expansion of remote work enabled by digital technologies allows many jobs to be performed outside traditional offices, with potentially far-reaching consequences for urban form, housing demand, regional development and work organisation.
This question belongs to: Economy GK Economy Set 1
Question #850
In the context of the future of work, 'Platform Work' is characterised by:
A. Only public-sector employment
B. Work organised through digital platforms that match workers with clients or tasks, often on a short-term or on-demand basis
C. Only traditional permanent employment
D. Only agricultural work
Discuss
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Correct Answer: Option B

Explanation:
Platform work is labour provided through, on or mediated by digital platforms, typically characterised by short-term tasks, algorithmic management and a triangular relationship between platform, worker and client.
This question belongs to: Economy GK Economy Set 1
Question #851
Which of the following is a feature of the 'Care Economy' agenda?
A. Only the neglect of care work as non-economic
B. Recognition of the economic and social value of paid and unpaid care work and policies to support its provision and quality
C. Only the privatisation of all care services
D. Only the reduction of public support for care
Discuss
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Correct Answer: Option B

Explanation:
The care-economy agenda highlights the central role of care work—both paid and unpaid—in sustaining societies and economies, and advocates policies that recognise, reduce and redistribute care responsibilities more equitably.
This question belongs to: Economy GK Economy Set 1
Question #852
The concept of 'Social Reproduction' in feminist economics refers to:
A. Only market production of goods
B. Only biological reproduction without social dimensions
C. Only the reproduction of capital
D. The activities and processes that maintain and reproduce the labour force on a daily and intergenerational basis, often performed unpaid within households
Discuss
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Correct Answer: Option D

Explanation:
Social reproduction encompasses the unpaid and paid activities—care, domestic work, education, health—that reproduce people as social and economic beings on a daily and generational basis.
This question belongs to: Economy GK Economy Set 1
Question #853
Which of the following is a characteristic of the 'Foundational Economy' approach to local development?
A. Prioritising the improvement of essential everyday services that all citizens rely on, rather than focusing solely on competitive tradable sectors
B. Ignoring everyday services
C. Only attracting mobile capital
D. Focusing only on high-tech export clusters
Discuss
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Correct Answer: Option A

Explanation:
The foundational-economy perspective argues that the quality and accessibility of essential local services—utilities, food, health, education, care—are central to well-being and should be a primary focus of regional and urban policy.
This question belongs to: Economy GK Economy Set 1
Question #854
In the context of urban economics, 'Agglomeration Economies' refer to:
A. The productivity benefits that firms and workers derive from locating in close proximity to one another
B. The costs of congestion only
C. Only the disadvantages of density
D. The complete absence of any spatial effects
Discuss
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Correct Answer: Option A

Explanation:
Agglomeration economies are the benefits—knowledge spillovers, labour-market pooling, input sharing—that arise when economic activity is concentrated in space, helping to explain the existence and growth of cities.
This question belongs to: Economy GK Economy Set 1
Question #855
Which of the following is a feature of the '15-Minute City' concept?
A. An urban planning model in which most daily needs can be met within a short walk or cycle from home
B. A purely residential suburb without services
C. Only a high-speed transport network without local amenities
D. A city in which all travel requires long car journeys
Discuss
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Correct Answer: Option A

Explanation:
The 15-minute city is an urban design principle that aims to ensure that residents can access work, shopping, education, healthcare and leisure within a 15-minute walk or bicycle ride from their homes.
This question belongs to: Economy GK Economy Set 1
Question #856
The concept of 'Housing as a Human Right' implies that:
A. Only home ownership is a right
B. Only the absence of any public housing policy
C. Housing is only a private market commodity without any rights dimension
D. Adequate housing is regarded as a fundamental entitlement that states have obligations to respect, protect and fulfil
Discuss
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Correct Answer: Option D

Explanation:
The recognition of housing as a human right, grounded in international human-rights instruments, entails obligations on states to ensure progressive access to adequate, affordable and secure housing for all.
This question belongs to: Economy GK Economy Set 1
Question #857
According to the law of diminishing marginal utility, as a consumer increases consumption of a commodity, the marginal utility derived from each additional unit:
A. eventually declines
B. increases continuously
C. remains constant
D. first declines then increases
Discuss
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Correct Answer: Option A

Explanation:
The law of diminishing marginal utility states that as more units are consumed, the additional satisfaction from each extra unit eventually decreases.
This question belongs to: Economy GK Economy Set 1
Question #858
Total utility is maximum when marginal utility is:
A. maximum
B. equal to average utility
C. negative
D. zero
Discuss
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Correct Answer: Option D

Explanation:
Total utility reaches its maximum when marginal utility is zero; beyond this point, marginal utility becomes negative and total utility falls.
This question belongs to: Economy GK Economy Set 1
Question #859
Cardinal utility analysis assumes that utility:
A. is not comparable across persons
B. depends on income only
C. can be measured in cardinal numbers
D. cannot be measured in numbers
Discuss
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Correct Answer: Option C

Explanation:
Cardinal utility analysis assumes utility can be quantified in numerical units such as utils.
This question belongs to: Economy GK Economy Set 1
Question #860
A consumer consuming a single commodity attains equilibrium when:
A. Px is greater than MUx
B. MU of the commodity is zero
C. MUx divided by Px equals marginal utility of money
D. TU is rising
Discuss
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Correct Answer: Option C

Explanation:
For one commodity, consumer equilibrium occurs when MUx/Px equals the marginal utility of money.
This question belongs to: Economy GK Economy Set 1
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