In the context of the digital economy, 'Zero-Price Markets' are characterised by: MCQ with Answer and Explanation

In the context of the digital economy, 'Zero-Price Markets' are characterised by:
A. Markets in which all goods are free without any monetisation
B. Markets without any economic activity
C. Markets in which the monetary price charged to users is zero and platforms monetise through other means such as advertising or data
D. Only traditional markets with positive prices
Answer: Option C
Solution (By JKSSB Mock Tests)
Zero-price markets are those in which consumers pay no monetary price; the platform typically monetises through advertising, data sales or complementary paid services, raising distinctive issues for competition analysis.

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Practice More Economy Set 1 Questions

Question #1
The 'MUDRA' loans are extended to:
A. state governments
B. multinational corporations
C. micro and small enterprises
D. large industries

Correct Answer: Option C


Explanation:
MUDRA provides loans to micro and small enterprises.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Revenue deficit' indicates that the government's:
A. capital expenditure exceeds capital receipts
B. revenue expenditure exceeds revenue receipts
C. revenue receipts exceed revenue expenditure
D. total budget is balanced

Correct Answer: Option B


Explanation:
Revenue deficit is the excess of revenue expenditure over revenue receipts.

This question belongs to: Economy GK Economy Set 1
Question #3
In the context of monetary policy transmission, the 'Credit Channel' emphasises:
A. Only the interest-rate effects on investment
B. Only exchange-rate effects
C. The effects of monetary policy on the supply of bank loans and external finance premia
D. Only wealth effects on consumption

Correct Answer: Option C


Explanation:
The credit channel (or financial-accelerator mechanism) stresses that monetary policy affects real activity not only through interest rates but also through changes in the availability and cost of external finance for borrowers.

This question belongs to: Economy GK Economy Set 1