In the context of public goods, the free-rider problem arises because public goods are: MCQ with Answer and Explanation

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In the context of public goods, the free-rider problem arises because public goods are:

A. Excludable

B. Non-excludable

C. Rivalrous

D. Private in nature

Answer: Option B

Solution (By JKSSB Mock Tests)

Since pure public goods are non-excludable, individuals can enjoy the benefits without contributing to the cost, creating an incentive to free-ride.

This question belongs to: Economy GK Economy Set 1

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Question #1

MSME classification in India is based on:

A. export earnings

B. number of employees only

C. investment in plant and machinery or equipment and turnover

D. location only

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Correct Answer: Option C

Explanation:
MSMEs are classified based on investment in plant and machinery/equipment and annual turnover.

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following is an example of a progressive tax system feature?

A. Tax rate independent of income

B. Higher tax rate on higher income slabs

C. Same tax rate for all income levels

D. Higher tax burden on lower income groups

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Correct Answer: Option B

Explanation:
A progressive tax system imposes higher marginal tax rates on higher income levels, increasing the average tax rate as income rises.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'e-Pathshala' is an initiative for:

A. tax payment

B. online banking

C. digital textbooks and learning resources

D. railway reservation

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Correct Answer: Option C

Explanation:
e-Pathshala provides digital textbooks and educational resources.

This question belongs to: Economy GK Economy Set 1

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