The 'base effect' in inflation calculation means: MCQ with Answer and Explanation

Question

Share Report Error

The 'base effect' in inflation calculation means:

A. change in base year of the price index

B. effect of currency depreciation

C. effect of money supply

D. the influence of the previous year's price level on current inflation

Answer: Option D

Solution (By JKSSB Mock Tests)

Base effect refers to the impact of the previous year's price level on the current inflation rate.

This question belongs to: Economy GK Economy Set 1

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1

Which of the following is NOT a function of the World Trade Organisation?

A. Providing a forum for trade negotiations

B. Settling trade disputes

C. Administering trade agreements

D. Providing long-term development finance

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option D

Explanation:
Long-term development finance is the function of the World Bank. The WTO deals with trade rules, negotiations and dispute settlement.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'consumption function' in Keynesian economics is usually expressed as:

A. Y = C + I

B. S = I

C. C = a + bY

D. MV = PT

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option C

Explanation:
The Keynesian consumption function is C = a + bY, where a is autonomous consumption and b is MPC.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Goods and Services Tax' on casinos is:

A. 28%

B. 18%

C. 5%

D. 12%

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option A

Explanation:
Casino services attract 28% GST.

This question belongs to: Economy GK Economy Set 1

Explore All Economy Set 1 MCQs