In the context of market structures, price rigidity is a feature of: MCQ with Answer and Explanation

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In the context of market structures, price rigidity is a feature of:

A. Monopoly with no barriers

B. Monopolistic competition with free entry only

C. Oligopoly

D. Perfect competition

Answer: Option C

Solution (By JKSSB Mock Tests)

Oligopolistic markets often exhibit price rigidity, explained by the kinked demand curve model, due to inter-firm interdependence.

This question belongs to: Economy GK Economy Set 1

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The 'Periodic Labour Force Survey' provides estimates of unemployment by:

A. monthly

B. daily only

C. weekly only

D. usual status, CWS and current daily status

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Correct Answer: Option D

Explanation:
PLFS gives unemployment estimates by usual status, current weekly status and current daily status.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Goods and Services Tax' on alcohol for human consumption is:

A. 0%

B. 18%

C. 5%

D. not under GST

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Correct Answer: Option D

Explanation:
Alcoholic liquor for human consumption is outside GST.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is a major objective of monetary policy in a developing country like India?

A. Only maximising fiscal deficit

B. Only maximising inflation

C. Price stability consistent with growth and financial stability

D. Only promoting imports

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Correct Answer: Option C

Explanation:
The primary objective of monetary policy in India is to maintain price stability while keeping in mind the objective of growth, along with ensuring financial stability.

This question belongs to: Economy GK Economy Set 1

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