In the context of elasticity, if the cross elasticity of demand between two goods is positive, the goods are: MCQ with Answer and Explanation

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In the context of elasticity, if the cross elasticity of demand between two goods is positive, the goods are:

A. Giffen goods

B. Complements

C. Inferior goods

D. Substitutes

Answer: Option D

Solution (By JKSSB Mock Tests)

A positive cross elasticity of demand indicates that the goods are substitutes; a rise in the price of one increases the demand for the other.

This question belongs to: Economy GK Economy Set 1

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Question #1

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Which of the following is a characteristic of a dualistic economy?

A. Coexistence of modern and traditional sectors

B. Uniform technology across sectors

C. Only agricultural activities

D. Absence of informal sector

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Correct Answer: Option A

Explanation:
Dualism refers to the coexistence of a modern, capital-intensive sector alongside a traditional, labour-intensive sector within the same economy.

This question belongs to: Economy GK Economy Set 1

Question #2

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The 'Goods and Services Tax' on government services is:

A. always 28%

B. always exempt

C. always 18%

D. exempt for certain government services and taxable for others

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Correct Answer: Option D

Explanation:
Some government services are exempt, others taxable.

This question belongs to: Economy GK Economy Set 1

Question #3

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The 'Goods and Services Tax' on legal services is:

A. 12%

B. 0%

C. 5%

D. 18%

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Correct Answer: Option D

Explanation:
Legal services generally attract 18% GST, with some exemptions.

This question belongs to: Economy GK Economy Set 1

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