In the context of measuring economic progress, the 'Genuine Progress Indicator' attempts to: MCQ with Answer and Explanation

In the context of measuring economic progress, the 'Genuine Progress Indicator' attempts to:
A. Adjust GDP by subtracting environmental and social costs and adding non-market benefits
B. Replace GDP with only environmental indicators
C. Ignore all non-market activities
D. Measure only market production
Answer: Option A
Solution (By JKSSB Mock Tests)
The Genuine Progress Indicator starts from personal consumption expenditure and then adjusts for factors such as income distribution, environmental degradation, and the value of unpaid work to provide a broader measure of welfare.

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Practice More Economy Set 1 Questions

Question #1
Commercial paper is a short-term instrument issued by:
A. RBI
B. state governments
C. individuals
D. highly rated corporate borrowers

Correct Answer: Option D


Explanation:
Commercial paper is an unsecured short-term instrument issued by highly rated corporate borrowers.

This question belongs to: Economy GK Economy Set 1
Question #2
In the context of production theory, the isoquant represents:
A. Combinations of prices that maximise profit
B. Combinations of inputs that yield the same level of output
C. Combinations of income and consumption
D. Combinations of goods that give the same utility

Correct Answer: Option B


Explanation:
An isoquant is a curve that shows all possible combinations of two inputs that produce the same level of output, analogous to an indifference curve in consumer theory.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is NOT a component of Current Account in the Balance of Payments?
A. Unilateral transfers
B. Foreign direct investment
C. Trade in goods
D. Trade in services

Correct Answer: Option B


Explanation:
Foreign direct investment is a component of the Capital Account. Current Account includes merchandise trade, invisibles (services), and unilateral transfers.

This question belongs to: Economy GK Economy Set 1