In the context of demand theory, the law of demand states that, ceteris paribus: MCQ with Answer and Explanation

In the context of demand theory, the law of demand states that, ceteris paribus:
A. Price and quantity demanded are inversely related
B. Price and quantity demanded are positively related
C. Price and supply are inversely related
D. Income and quantity demanded are inversely related
Answer: Option A
Solution (By JKSSB Mock Tests)
The law of demand states that, other things remaining constant, the quantity demanded of a commodity falls when its price rises and rises when its price falls, indicating an inverse relationship between price and quantity demanded.

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Practice More Economy Set 1 Questions

Question #1
The Doha Development Round of WTO negotiations primarily focused on:
A. intellectual property only
B. military alliances
C. concerns of developing countries
D. exchange rate management

Correct Answer: Option C


Explanation:
The Doha Round focused on development concerns of developing countries.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'National Anti-profiteering Authority' under GST was set up to ensure:
A. benefits of GST rate cuts are passed to consumers
B. more exports
C. fewer returns
D. higher GST collections

Correct Answer: Option A


Explanation:
National Anti-profiteering Authority ensures that tax reductions are passed on to consumers.

This question belongs to: Economy GK Economy Set 1
Question #3
In the context of international finance, 'Bretton Woods Institutions' refer to:
A. IMF and World Bank
B. OECD and G20 only
C. ADB and AIIB
D. WTO and UNCTAD

Correct Answer: Option A


Explanation:
The Bretton Woods Conference (1944) led to the creation of the International Monetary Fund and the World Bank (IBRD).

This question belongs to: Economy GK Economy Set 1