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

Question
In the context of elasticity, if the price elasticity of demand is greater than one, demand is said to be:
A. Inelastic
B. Unitary elastic
C. Perfectly inelastic
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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Question #1
Which of the following is a major source of tax revenue for the Central Government?
A. Only entertainment tax
B. Only property tax collected by local bodies
C. Only professional tax
D. Corporation tax, income tax and central GST
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Correct Answer: Option D

Explanation:
The major sources of central tax revenue include corporation tax, personal income tax, and the central share of GST, along with customs duties.
This question belongs to: Economy GK Economy Set 1
Question #2
The 'UDAY' scheme was launched by the Ministry of:
A. Finance
B. Petroleum
C. Power
D. Rural Development
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Correct Answer: Option C

Explanation:
UDAY was launched by the Ministry of Power for DISCOM financial turnaround.
This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is a characteristic of the 'New Economic Geography' associated with Paul Krugman?
A. It assumes constant returns and no transport costs
B. It ignores agglomeration forces
C. It explains the spatial concentration of economic activity through increasing returns and transport costs
D. It focuses only on comparative advantage
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Correct Answer: Option C

Explanation:
New Economic Geography models show how increasing returns, transport costs and factor mobility can lead to the endogenous agglomeration of economic activity in particular locations.
This question belongs to: Economy GK Economy Set 1
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