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

The concept of 'Purchasing Power Parity' helps in:
A. Determining only nominal exchange rates
B. Measuring only unemployment
C. Comparing real income and living standards across countries
D. Calculating domestic fiscal deficit
Answer: Option C
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
MGNREGA was enacted in which year?
A. 2005
B. 2010
C. 2007
D. 2003

Correct Answer: Option A


Explanation:
MGNREGA was enacted in 2005.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Economic Community of West African States' promotes economic integration in:
A. West Africa
B. Europe
C. Asia
D. South America

Correct Answer: Option A


Explanation:
ECOWAS promotes economic integration in West Africa.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is a characteristic of the 'Platform Economy'?
A. Digital platforms that intermediate between groups of users and often exhibit strong network effects
B. Only traditional brick-and-mortar retail
C. Only agricultural markets
D. Only government-provided services

Correct Answer: Option A


Explanation:
The platform economy consists of digital multi-sided platforms that facilitate interactions and transactions between different groups of users (e.g., buyers and sellers, drivers and riders) and typically display network externalities.

This question belongs to: Economy GK Economy Set 1