The 'menu cost' of inflation refers to: MCQ with Answer and Explanation

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The 'menu cost' of inflation refers to:

A. cost of printing new currency

B. cost of food

C. cost to firms of changing prices frequently

D. cost of borrowing

Answer: Option C

Solution (By JKSSB Mock Tests)

Menu cost is the cost firms incur in updating prices during inflation.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'seigniorage' revenue for a government arises from:

A. tax collection

B. borrowing from abroad

C. selling public assets

D. issuing currency

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Correct Answer: Option D

Explanation:
Seigniorage is the profit from issuing currency, the difference between face value and production cost.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Goods and Services Tax' on online education courses is:

A. 5%

B. 18%

C. 0%

D. 12%

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Correct Answer: Option B

Explanation:
Online education courses generally attract 18% GST.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'World Bank' headquarters is in:

A. New York

B. Washington D.C.

C. Geneva

D. Paris

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Correct Answer: Option B

Explanation:
World Bank headquarters is in Washington D.C.

This question belongs to: Economy GK Economy Set 1

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