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

Question
In the context of public goods, the free-rider problem arises because public goods are:
A. Non-excludable
B. Private in nature
C. Excludable
D. Rivalrous
Answer: Option A
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
Which of the following is used to measure the degree of concentration in an industry?
A. Human Development Index
B. Lorenz curve only
C. Gini coefficient only
D. Herfindahl-Hirschman Index
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Correct Answer: Option D

Explanation:
The Herfindahl-Hirschman Index (HHI) is calculated as the sum of the squares of the market shares of all firms in an industry and is widely used to measure market concentration.
This question belongs to: Economy GK Economy Set 1
Question #2
The 'Financial Action Task Force' is an intergovernmental body that combats:
A. inflation
B. money laundering and terrorist financing
C. unemployment
D. trade deficits
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Correct Answer: Option B

Explanation:
FATF combats money laundering and terrorist financing.
This question belongs to: Economy GK Economy Set 1
Question #3
The Phillips curve shows an inverse relationship between:
A. output and employment
B. money supply and price level
C. inflation and unemployment
D. inflation and interest rates
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Correct Answer: Option C

Explanation:
The Phillips curve suggests a short-run trade-off between inflation and unemployment.
This question belongs to: Economy GK Economy Set 1
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