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

Question
If a 10% increase in the price of a good causes quantity demanded to fall by 5%, the price elasticity of demand is:
A. 5
B. 0.5
C. 1
D. 2
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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Question #1
The 'original sin' problem in international finance refers to:
A. currency depreciation
B. trade deficits
C. inability of emerging economies to borrow abroad in their own currency
D. high domestic debt
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Correct Answer: Option C

Explanation:
Original sin is the inability of emerging economies to borrow abroad in their own domestic currency.
This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following is a characteristic of the Indian service sector?
A. Complete dependence on agriculture
B. Largest contributor to GDP and significant employment generation in recent decades
C. Low contribution to GDP
D. Absence of IT and ITES services
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Correct Answer: Option B

Explanation:
The services sector is the largest contributor to India's GDP and has been a major driver of growth, particularly through IT, financial services, trade and tourism.
This question belongs to: Economy GK Economy Set 1
Question #3
The 'Udyam Registration' portal is used for registration of:
A. banks
B. stock brokers
C. MSMEs
D. large companies
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Correct Answer: Option C

Explanation:
Udyam Registration is the online registration portal for MSMEs.
This question belongs to: Economy GK Economy Set 1
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