The 'GDP deflator' is a price index that measures: MCQ with Answer and Explanation

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The 'GDP deflator' is a price index that measures:

A. prices of all domestically produced final goods and services

B. only consumer prices

C. only wholesale prices

D. only food prices

Answer: Option A

Solution (By JKSSB Mock Tests)

GDP deflator measures the average price of all final goods and services produced domestically.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The 'World Bank's World Development Indicators' is a publication that:

A. sets interest rates

B. publishes stock prices

C. tracks military spending

D. provides development data on countries

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Correct Answer: Option D

Explanation:
World Development Indicators provides comprehensive development data.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'liquidity trap' causes which policy to become ineffective?

A. fiscal policy

B. trade policy

C. expansionary monetary policy

D. exchange rate policy

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Correct Answer: Option C

Explanation:
In a liquidity trap, interest rates are near zero and monetary expansion does not lower rates further, making monetary policy ineffective.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is NOT a method of measuring national income?

A. Expenditure method

B. Product method

C. Income method

D. Balance of payments method

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Correct Answer: Option D

Explanation:
National income is measured by product (value added), income and expenditure methods. Balance of payments is used for recording international transactions, not for measuring national income.

This question belongs to: Economy GK Economy Set 1

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