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

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The 'money illusion' in economics occurs when people:

A. fully adjust for inflation

B. avoid using money

C. focus on nominal values rather than real values

D. only hold cash

Answer: Option C

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

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Question #1

The 'Laffer curve' was popularized by which economist?

A. John Maynard Keynes

B. Paul Samuelson

C. Arthur Laffer

D. Milton Friedman

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Correct Answer: Option C

Explanation:
The Laffer curve was popularized by Arthur Laffer.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'G20' comprises how many members?

A. 20 countries

B. 24 countries

C. 22 countries

D. 19 countries plus EU

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Correct Answer: Option D

Explanation:
G20 comprises 19 countries and the European Union.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Atal New India Challenge' is an initiative of:

A. Atal Innovation Mission, NITI Aayog

B. SEBI

C. Ministry of Defence

D. Ministry of Finance

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Correct Answer: Option A

Explanation:
Atal New India Challenge is an initiative of Atal Innovation Mission under NITI Aayog.

This question belongs to: Economy GK Economy Set 1

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