The 'marginal propensity to consume' can never be greater than: MCQ with Answer and Explanation

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The 'marginal propensity to consume' can never be greater than:

A. infinity

B. 2

C. 1

D. 0.5

Answer: Option C

Solution (By JKSSB Mock Tests)

MPC is the fraction of additional income consumed, so it ranges from 0 to 1.

This question belongs to: Economy GK Economy Set 1

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The 'Asian Infrastructure Investment Bank' is headquartered in:

A. Beijing

B. Tokyo

C. Singapore

D. Manila

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Correct Answer: Option A

Explanation:
The Asian Infrastructure Investment Bank is headquartered in Beijing.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Most Favoured Nation' tariff treatment under WTO requires countries to:

A. ban imports

B. give special preferences to neighbours

C. impose zero tariffs on all goods

D. extend the same trade advantages to all WTO members

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Correct Answer: Option D

Explanation:
MFN requires non-discriminatory treatment among all WTO members.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following taxes is progressive in nature?

A. Excise duty

B. Income tax

C. Sales tax

D. Customs duty

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Correct Answer: Option B

Explanation:
A progressive tax is one where the tax rate increases with the increase in the taxable amount. Personal income tax in India is progressive with different slabs.

This question belongs to: Economy GK Economy Set 1

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