In the context of elasticity, the demand for a necessary good with no close substitutes is likely to be: MCQ with Answer and Explanation

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In the context of elasticity, the demand for a necessary good with no close substitutes is likely to be:

A. Highly elastic

B. Perfectly elastic

C. Unitary elastic

D. Relatively inelastic

Answer: Option D

Solution (By JKSSB Mock Tests)

Necessities with few or no close substitutes tend to have inelastic demand because consumers cannot easily reduce consumption when price rises.

This question belongs to: Economy GK Economy Set 1

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Question #1

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The 'Impossible Trinity' in international economics is also called:

A. the development trilemma

B. the fiscal trilemma

C. the trade trilemma

D. the monetary policy trilemma

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Correct Answer: Option D

Explanation:
The Impossible Trinity is also known as the monetary policy trilemma.

This question belongs to: Economy GK Economy Set 1

Question #2

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The acceleration principle relates investment to changes in:

A. consumption or output

B. money supply

C. government expenditure

D. interest rates

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Correct Answer: Option A

Explanation:
The accelerator principle states that investment depends on changes in output or consumption.

This question belongs to: Economy GK Economy Set 1

Question #3

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The 'Goods and Services Tax' annual return is filed in:

A. GSTR-9

B. GSTR-3B

C. GSTR-1

D. GSTR-4

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Correct Answer: Option A

Explanation:
GSTR-9 is the annual return.

This question belongs to: Economy GK Economy Set 1

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