The 'Effective Revenue Deficit' was introduced to exclude from revenue deficit those grants: MCQ with Answer and Explanation

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The 'Effective Revenue Deficit' was introduced to exclude from revenue deficit those grants:

A. given to foreign countries

B. used for interest payments

C. used for creation of capital assets

D. given to states for revenue expenditure

Answer: Option C

Solution (By JKSSB Mock Tests)

Effective revenue deficit excludes grants for creation of capital assets from revenue deficit.

This question belongs to: Economy GK Economy Set 1

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Question #1

Which of the following is a characteristic of a dualistic economy?

A. Only agricultural activities

B. Coexistence of modern and traditional sectors

C. Absence of informal sector

D. Uniform technology across sectors

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Correct Answer: Option B

Explanation:
Dualism refers to the coexistence of a modern, capital-intensive sector alongside a traditional, labour-intensive sector within the same economy.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Organisation for Economic Co-operation and Development' is headquartered in:

A. Paris

B. Geneva

C. New York

D. London

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Correct Answer: Option A

Explanation:
OECD is headquartered in Paris.

This question belongs to: Economy GK Economy Set 1

Question #3

In the context of demand, a Giffen good is one for which:

A. Demand is perfectly elastic

B. Demand decreases as price increases

C. Demand is independent of price

D. Demand increases as price increases

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Correct Answer: Option D

Explanation:
A Giffen good is an inferior good for which the income effect outweighs the substitution effect, leading to an upward-sloping demand curve (demand rises when price rises).

This question belongs to: Economy GK Economy Set 1

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