In the context of inflation measurement, the GDP deflator is: MCQ with Answer and Explanation

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In the context of inflation measurement, the GDP deflator is:

A. A fixed-basket consumer price index

B. A measure of consumer price changes only

C. A measure of wholesale prices only

D. The ratio of nominal GDP to real GDP

Answer: Option D

Solution (By JKSSB Mock Tests)

The GDP deflator is calculated as (Nominal GDP / Real GDP) × 100 and reflects price changes of all goods and services produced domestically.

This question belongs to: Economy GK Economy Set 1

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Question #1

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

A. 12%

B. 5%

C. 18%

D. 28%

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Correct Answer: Option C

Explanation:
DTH services attract 18% GST.

This question belongs to: Economy GK Economy Set 1

Question #2

The term 'Moral Hazard' in economics refers to:

A. Asymmetric information before a contract

B. Change in behaviour after obtaining insurance

C. Perfect information in markets

D. Equal risk sharing

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Correct Answer: Option B

Explanation:
Moral hazard occurs when one party takes more risks because another party bears the cost, typically after a contract (e.g., insurance) is in place. Adverse selection occurs before the contract.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'asymmetric corridor' in Indian monetary policy refers to:

A. dual GST rates

B. repo and reverse repo being equidistant from the policy rate

C. fixed exchange rate bands

D. different widths of the corridor at different times or instruments

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Correct Answer: Option D

Explanation:
The asymmetric corridor refers to variations in the distance between policy rate, MSF and reverse repo rates.

This question belongs to: Economy GK Economy Set 1

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