The concept of 'Purchasing Power Parity' helps in: MCQ with Answer and Explanation

The concept of 'Purchasing Power Parity' helps in:
A. Comparing real income and living standards across countries
B. Measuring only unemployment
C. Calculating domestic fiscal deficit
D. Determining only nominal exchange rates
Answer: Option A
Solution (By JKSSB Mock Tests)
PPP-based comparisons adjust for differences in price levels across countries, providing a better measure of real income and relative living standards.

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Practice More Economy Set 1 Questions

Question #1
The 'National Commission for Protection of Child Rights' is a:
A. constitutional body
B. judicial body
C. statutory body
D. private body

Correct Answer: Option C


Explanation:
NCPCR is a statutory body under the Commissions for Protection of Child Rights Act, 2005.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'credit card' allows a customer to:
A. deposit cash only
B. spend from bank account only
C. borrow money up to a limit for purchases
D. trade securities

Correct Answer: Option C


Explanation:
A credit card allows borrowing up to a limit for purchases.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is NOT a type of public enterprise based on ownership?
A. Departmental undertaking
B. Public corporation
C. Government company
D. Private limited company with no government share

Correct Answer: Option D


Explanation:
Public enterprises are owned wholly or substantially by the government and include departmental undertakings, public corporations and government companies. A purely private limited company is not a public enterprise.

This question belongs to: Economy GK Economy Set 1