In the context of elasticity, if income elasticity of demand for a good is negative, the good is: MCQ with Answer and Explanation

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In the context of elasticity, if income elasticity of demand for a good is negative, the good is:

A. Normal good

B. Necessary good

C. Inferior good

D. Luxury good

Answer: Option C

Solution (By JKSSB Mock Tests)

A negative income elasticity of demand indicates that the good is inferior; demand for it falls as income rises.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Brown Revolution' in India is associated with:

A. coffee and cocoa

B. food processing

C. leather

D. fertilizer

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Correct Answer: Option A

Explanation:
Brown Revolution is associated with coffee and cocoa production.

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 value of the next best alternative forgone

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

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Correct Answer: Option C

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

In the context of the Indian economy, the 'Demographic Dividend' refers to:

A. Increase in the old-age population only

B. Economic growth potential from a large working-age population

C. Decline in the total population

D. Increase in the proportion of dependent population

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Correct Answer: Option B

Explanation:
Demographic dividend arises when a large share of the population is of working age, providing an opportunity for higher economic growth if this workforce is productively employed.

This question belongs to: Economy GK Economy Set 1

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