The 'money illusion' in economics occurs when people: MCQ with Answer and Explanation

Question

Share Report Error

The 'money illusion' in economics occurs when people:

A. only hold cash

B. avoid using money

C. fully adjust for inflation

D. focus on nominal values rather than real values

Answer: Option D

Solution (By JKSSB Mock Tests)

Money illusion is the tendency to think of money in nominal rather than real terms.

This question belongs to: Economy GK Economy Set 1

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1

Which of the following is a characteristic of the 'Attention Economy'?

A. Only traditional advertising without digital platforms

B. Only physical goods matter

C. Human attention is treated as a scarce resource that platforms and content providers compete to capture

D. Attention is unlimited and has no economic value

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option C

Explanation:
In the attention economy, the limited cognitive resource of human attention is the scarce factor that digital platforms, media and advertisers compete to attract and monetise.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Union Budget' is presented in Parliament by the:

A. Finance Secretary

B. President

C. Prime Minister

D. Finance Minister

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option D

Explanation:
The Union Budget is presented by the Finance Minister.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'forward market' in foreign exchange deals with:

A. only government transactions

B. only spot transactions

C. immediate delivery of currencies

D. delivery of currencies at a future date at a predetermined rate

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option D

Explanation:
The forward market deals with contracts for future delivery of currencies at predetermined rates.

This question belongs to: Economy GK Economy Set 1

Explore All Economy Set 1 MCQs