In the context of inflation, 'Built-in Inflation' refers to: MCQ with Answer and Explanation

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In the context of inflation, 'Built-in Inflation' refers to:

A. Inflation resulting from the wage-price spiral

B. Inflation caused by excess demand

C. One-time increase in prices

D. Inflation due to supply shocks only

Answer: Option A

Solution (By JKSSB Mock Tests)

Built-in inflation arises from adaptive expectations and the wage-price spiral, where past inflation influences current wage and price setting.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'International Development Association' is a part of:

A. IMF

B. WTO

C. United Nations

D. World Bank Group

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Correct Answer: Option D

Explanation:
IDA is part of the World Bank Group.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Dutch disease' term was coined after the discovery of natural gas in:

A. Australia

B. Norway

C. Netherlands

D. United Kingdom

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Correct Answer: Option C

Explanation:
Dutch disease was named after the effects of natural gas discoveries in the Netherlands.

This question belongs to: Economy GK Economy Set 1

Question #3

A consumer consuming a single commodity attains equilibrium when:

A. TU is rising

B. MU of the commodity is zero

C. Px is greater than MUx

D. MUx divided by Px equals marginal utility of money

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Correct Answer: Option D

Explanation:
For one commodity, consumer equilibrium occurs when MUx/Px equals the marginal utility of money.

This question belongs to: Economy GK Economy Set 1

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