In the context of demand theory, the law of demand may not hold for: MCQ with Answer and Explanation

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In the context of demand theory, the law of demand may not hold for:

A. Necessary goods with elastic demand

B. All inferior goods without exception

C. Giffen goods and Veblen goods

D. Normal goods

Answer: Option C

Solution (By JKSSB Mock Tests)

Giffen goods (strong negative income effect) and Veblen goods (prestige value rising with price) are exceptions to the law of demand.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Goods and Services Tax' on hotel rooms with tariff below Rs 1,000 is:

A. 12%

B. 5%

C. 18%

D. 0%

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Correct Answer: Option D

Explanation:
Hotel rooms below Rs 1,000 tariff are exempt from GST.

This question belongs to: Economy GK Economy Set 1

Question #2

The concept of 'Opportunity Cost' is best defined as:

A. The difference between total revenue and total cost

B. The total cost incurred in production

C. The cost of producing one more unit of a commodity

D. The value of the next best alternative forgone

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Correct Answer: Option D

Explanation:
Opportunity cost refers to the value of the next best alternative that is sacrificed when a choice is made. It is a fundamental concept in economics.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'International Labour Organization' was established in which year?

A. 1948

B. 1945

C. 1919

D. 1966

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Correct Answer: Option C

Explanation:
The ILO was established in 1919 under the Treaty of Versailles.

This question belongs to: Economy GK Economy Set 1

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