In the context of digital regulation, the 'DMA' (Digital Markets Act) of the European Union aims to: MCQ with Answer and Explanation

In the context of digital regulation, the 'DMA' (Digital Markets Act) of the European Union aims to:
A. Only apply ex-post competition law without any specific rules
B. Deregulate all digital platforms
C. Only regulate small start-ups
D. Impose ex-ante obligations on designated gatekeeper platforms to ensure contestable and fair digital markets
Answer: Option D
Solution (By JKSSB Mock Tests)
The Digital Markets Act establishes a set of dos and don’ts for large gatekeeper platforms, aiming to prevent unfair practices and to keep digital markets contestable and fair through ex-ante regulation.

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Practice More Economy Set 1 Questions

Question #1
A firm under perfect competition is a price taker because:
A. it differentiates its product
B. there are high barriers to entry
C. it controls the entire market
D. there are many buyers and sellers and the product is homogeneous

Correct Answer: Option D


Explanation:
In perfect competition, many sellers produce a homogeneous product, so no single firm can influence price.

This question belongs to: Economy GK Economy Set 1
Question #2
In the context of banking regulation, the Capital Adequacy Ratio is prescribed to:
A. Determine the interest rate on deposits
B. Ensure banks maintain sufficient capital relative to risk-weighted assets
C. Determine the dividend payout
D. Fix the CRR level

Correct Answer: Option B


Explanation:
Capital Adequacy Ratio (CAR) requires banks to hold a minimum amount of capital in proportion to their risk-weighted assets to absorb potential losses and protect depositors.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Goods and Services Tax' on software services is:
A. 12%
B. 5%
C. 28%
D. 18%

Correct Answer: Option D


Explanation:
Software services attract 18% GST.

This question belongs to: Economy GK Economy Set 1