In the context of elasticity, if the price elasticity of demand is greater than one, demand is said to be: MCQ with Answer and Explanation

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In the context of elasticity, if the price elasticity of demand is greater than one, demand is said to be:

A. Perfectly inelastic

B. Inelastic

C. Unitary elastic

D. Elastic

Answer: Option D

Solution (By JKSSB Mock Tests)

When |Ed| > 1, demand is elastic, meaning quantity demanded changes more than proportionately to a change in price.

This question belongs to: Economy GK Economy Set 1

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Dumping refers to:

A. imposing high tariffs on imports

B. buying goods from abroad at lower prices

C. selling goods in a foreign market below cost or home market price

D. exporting goods with subsidies

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Correct Answer: Option C

Explanation:
Dumping is selling goods in a foreign market below cost or home market price.

This question belongs to: Economy GK Economy Set 1

Question #2

The concept of 'Too Big to Fail' in banking refers to:

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C. The legal requirement that all banks must be small

D. The expectation that systemically important banks will receive government support in the event of distress

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Correct Answer: Option D

Explanation:
Too-big-to-fail refers to the market perception or policy practice that certain large and interconnected financial institutions will be rescued by the authorities because their failure would impose systemic costs.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Finance Commission' is appointed every how many years?

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Correct Answer: Option C

Explanation:
The Finance Commission is constituted every five years under Article 280.

This question belongs to: Economy GK Economy Set 1

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