The 'adaptive expectations' hypothesis assumes people form expectations based on: MCQ with Answer and Explanation

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The 'adaptive expectations' hypothesis assumes people form expectations based on:

A. future policy announcements only

B. rational models only

C. random guesses

D. past values of the variable

Answer: Option D

Solution (By JKSSB Mock Tests)

Adaptive expectations are formed based on past observations.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Goods and Services Tax' on horse racing is:

A. 28%

B. 18%

C. 5%

D. 12%

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Correct Answer: Option A

Explanation:
Horse racing services attract 28% GST.

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following is a major problem of the agricultural sector in India?

A. Fragmentation of land holdings

B. Excessive capital intensity

C. Overabundance of irrigation facilities

D. High productivity across all regions

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Correct Answer: Option A

Explanation:
Fragmentation and subdivision of land holdings is a major structural problem in Indian agriculture, leading to uneconomic farm sizes and low productivity.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'World Bank's World Development Indicators' is a publication that:

A. publishes stock prices

B. provides development data on countries

C. sets interest rates

D. tracks military spending

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Correct Answer: Option B

Explanation:
World Development Indicators provides comprehensive development data.

This question belongs to: Economy GK Economy Set 1

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