The concept of 'Data as a Factor of Production' suggests that: MCQ with Answer and Explanation

The concept of 'Data as a Factor of Production' suggests that:
A. Data has no productive value
B. Data has become a key input in production processes alongside labour, capital and land
C. Only traditional factors matter
D. Data is only a consumption good
Answer: Option B
Solution (By JKSSB Mock Tests)
In the digital economy, data is increasingly recognised as a critical factor of production that enables personalisation, prediction, optimisation and the creation of new products and services.

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Practice More Economy Set 1 Questions

Question #1
Which of the following is NOT a type of market based on the degree of competition?
A. Perfect competition
B. Barter market as a competition classification
C. Monopoly
D. Oligopoly

Correct Answer: Option B


Explanation:
Barter refers to exchange without money. Market structures based on competition are perfect competition, monopolistic competition, oligopoly and monopoly.

This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following is a feature of the mixed economy model adopted by India?
A. Absence of market mechanism
B. Complete central planning without private enterprise
C. Complete private ownership of all means of production
D. Coexistence of public and private sectors with government regulation

Correct Answer: Option D


Explanation:
India adopted a mixed economy framework where both public and private sectors coexist, with the government playing a regulatory and developmental role.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is a feature of the classical theory of employment?
A. Liquidity trap
B. Possibility of underemployment equilibrium
C. Full employment as a normal condition
D. Importance of effective demand

Correct Answer: Option C


Explanation:
Classical theory assumes that the economy always tends towards full employment through flexible wages and prices. Underemployment equilibrium and liquidity trap are Keynesian concepts.

This question belongs to: Economy GK Economy Set 1