The 'Dutch disease' phenomenon in economics refers to: MCQ with Answer and Explanation

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The 'Dutch disease' phenomenon in economics refers to:

A. a decline in manufacturing due to a boom in natural resource exports

B. high inflation

C. a fall in agricultural productivity

D. a banking crisis

Answer: Option A

Solution (By JKSSB Mock Tests)

Dutch disease is a situation where a resource boom causes currency appreciation and decline in other tradable sectors like manufacturing.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

National Population Policy 2000 aims to achieve replacement level fertility by:

A. 2045

B. 2015

C. 2010

D. 2020

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Correct Answer: Option C

Explanation:
The National Population Policy 2000 aimed to achieve replacement level fertility by 2010.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'General Agreement on Tariffs and Trade' was signed in which year?

A. 1995

B. 1955

C. 1947

D. 1944

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Correct Answer: Option C

Explanation:
GATT was signed in 1947 and came into force in 1948.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is a characteristic of the long-run equilibrium under monopolistic competition?

A. Firms produce at the lowest point of the LAC curve

B. Firms earn supernormal profits

C. Firms earn only normal profits and operate with excess capacity

D. Price equals minimum average cost

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Correct Answer: Option C

Explanation:
In the long run, free entry eliminates supernormal profits under monopolistic competition. Firms operate on the falling portion of their LAC curve, implying excess capacity.

This question belongs to: Economy GK Economy Set 1

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