The 'demonstration effect' in consumption means: MCQ with Answer and Explanation

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The 'demonstration effect' in consumption means:

A. people reduce consumption

B. people consume only basic goods

C. people copy the consumption patterns of others

D. people save more

Answer: Option C

Solution (By JKSSB Mock Tests)

The demonstration effect is the tendency to imitate the consumption patterns of others.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'World Economic Outlook' is published by:

A. OECD

B. UNCTAD

C. World Bank

D. IMF

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Correct Answer: Option D

Explanation:
The World Economic Outlook is published by the IMF.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'RoDTEP' scheme remits which taxes on exported products?

A. wealth tax

B. duties and taxes levied at central, state and local levels on inputs

C. direct taxes

D. income tax

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Correct Answer: Option B

Explanation:
RoDTEP remits embedded central, state and local duties/taxes on exported products.

This question belongs to: Economy GK Economy Set 1

Question #3

In the circular flow of income, leakages include:

A. income and output

B. investment and exports

C. consumption and government spending

D. saving, taxes and imports

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Correct Answer: Option D

Explanation:
Leakages from the circular flow are saving, taxes and imports.

This question belongs to: Economy GK Economy Set 1

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