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

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The 'demonstration effect' in consumption means:

A. people consume only basic goods

B. people copy the consumption patterns of others

C. people save more

D. people reduce consumption

Answer: Option B

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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Practice More Economy Set 1 Questions

Question #1

The 'Trade-Related Aspects of Intellectual Property Rights' agreement came into force in which year?

A. 1995

B. 1994

C. 2000

D. 1998

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Correct Answer: Option A

Explanation:
TRIPS came into force in 1995.

This question belongs to: Economy GK Economy Set 1

Question #2

The concept of 'Pareto Optimality' is associated with:

A. Monetary economics

B. International trade theory

C. Welfare economics

D. Development economics

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Correct Answer: Option C

Explanation:
Pareto Optimality is a concept in welfare economics where resources are allocated in such a way that no one can be made better off without making someone else worse off.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following was NOT part of the 1991 economic reforms?

A. Reduction of import tariffs

B. Opening up to foreign investment

C. Abolition of industrial licensing for most industries

D. Nationalization of commercial banks

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Correct Answer: Option D

Explanation:
Nationalization of commercial banks was done earlier in 1969 and 1980, not in the 1991 reforms.

This question belongs to: Economy GK Economy Set 1

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