The concept of 'Time Preference' is central to the theory of: MCQ with Answer and Explanation

The concept of 'Time Preference' is central to the theory of:
A. Interest
B. Profit
C. Rent
D. Wages
Answer: Option A
Solution (By JKSSB Mock Tests)
The time preference theory of interest explains the rate of interest as arising from the preference of individuals for present consumption over future consumption.

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Practice More Economy Set 1 Questions

Question #1
The 'Pradhan Mantri Shram Yogi Maandhan' provides pension to:
A. only farmers
B. only government employees
C. unorganized sector workers in the age group of 18 to 40 years
D. all citizens

Correct Answer: Option C


Explanation:
PM-SYM provides monthly pension to unorganized workers aged 18-40.

This question belongs to: Economy GK Economy Set 1
Question #2
The marginal rate of substitution of X for Y is equal to:
A. MUy divided by MUx
B. TUx plus TUy
C. MUx divided by MUy
D. Px multiplied by Py

Correct Answer: Option C


Explanation:
MRS of X for Y is the ratio of marginal utility of X to marginal utility of Y.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'People's Bank of China' is the central bank of:
A. Vietnam
B. China
C. Japan
D. India

Correct Answer: Option B


Explanation:
The People's Bank of China is China's central bank.

This question belongs to: Economy GK Economy Set 1