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

Question

Share Report Error

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

A. Giffen goods and Veblen goods

B. Necessary goods with elastic demand

C. All inferior goods without exception

D. Normal goods

Answer: Option A

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

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1

The 'labour force' is defined as:

A. working-age population only

B. employed only

C. total population

D. employed plus unemployed

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option D

Explanation:
Labour force = employed + unemployed.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'International Court of Justice' is headquartered at:

A. The Hague

B. New York

C. Vienna

D. Geneva

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option A

Explanation:
The International Court of Justice is headquartered at The Hague, Netherlands.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Goods and Services Tax' has subsumed taxes like entry tax, which has helped reduce:

A. income tax

B. check posts and barriers at state borders

C. direct tax

D. customs duty

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
Subsuming entry tax reduced state border check posts and barriers.

This question belongs to: Economy GK Economy Set 1

Explore All Economy Set 1 MCQs