If a 10% increase in the price of a good causes quantity demanded to fall by 5%, the price elasticity of demand is: MCQ with Answer and Explanation

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If a 10% increase in the price of a good causes quantity demanded to fall by 5%, the price elasticity of demand is:

A. 1

B. 0.5

C. 2

D. 5

Answer: Option B

Solution (By JKSSB Mock Tests)

Elasticity = 5% / 10% = 0.5, which is inelastic.

This question belongs to: Economy GK Economy Set 1

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The 'RBI's Annual Report' is published by:

A. NITI Aayog

B. Ministry of Finance

C. Reserve Bank of India

D. National Statistical Office

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Correct Answer: Option C

Explanation:
The RBI publishes its Annual Report.

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following is a feature of the Indian banking system?

A. Dual regulation of cooperative banks by RBI and state governments

B. No role for foreign banks

C. Absence of priority sector lending norms

D. Complete absence of NBFCs

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Correct Answer: Option A

Explanation:
Urban and rural cooperative banks in India are subject to dual regulation by the Reserve Bank of India and the respective state governments.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Goods and Services Tax' on services provided by PFRDA is:

A. exempt

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D. 0%

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Correct Answer: Option A

Explanation:
PFRDA services are exempt from GST.

This question belongs to: Economy GK Economy Set 1

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