For a normal good, a fall in its price creates: MCQ with Answer and Explanation

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For a normal good, a fall in its price creates:

A. negative income effect only

B. negative substitution effect

C. positive substitution effect and positive income effect

D. zero income effect

Answer: Option C

Solution (By JKSSB Mock Tests)

For a normal good, both substitution effect and income effect work in the same direction when price falls, increasing quantity demanded.

This question belongs to: Economy GK Economy Set 1

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The 'Multidimensional Poverty Index' uses how many indicators?

A. 10

B. 20

C. 5

D. 12

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Correct Answer: Option A

Explanation:
MPI uses 10 indicators across three dimensions.

This question belongs to: Economy GK Economy Set 1

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The 'Goods and Services Tax' on race club services is:

A. 12%

B. 28%

C. 5%

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Correct Answer: Option B

Explanation:
Race club services attract 28% GST.

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The 'Belt and Road Initiative' was announced by China in which year?

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Correct Answer: Option D

Explanation:
Belt and Road Initiative was announced in 2013.

This question belongs to: Economy GK Economy Set 1

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