The paradox of thrift suggests that: MCQ with Answer and Explanation

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The paradox of thrift suggests that:

A. increased saving by all households may reduce aggregate demand and output

B. saving is impossible in a recession

C. thrift always increases investment

D. saving is always beneficial for the economy

Answer: Option A

Solution (By JKSSB Mock Tests)

The paradox of thrift states that if everyone saves more during a recession, total demand and output may fall.

This question belongs to: Economy GK Economy Set 1

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Question #1

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The 'Imperial Bank of India' was created in 1921 by merging three presidency banks: Bank of Bengal, Bank of Bombay and:

A. Punjab National Bank

B. Bank of Madras

C. Allahabad Bank

D. Bank of Calcutta

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Correct Answer: Option B

Explanation:
The Imperial Bank of India was formed by merging Bank of Bengal, Bank of Bombay and Bank of Madras.

This question belongs to: Economy GK Economy Set 1

Question #2

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Which of the following types of unemployment is most prevalent in Indian agriculture?

A. Cyclical unemployment

B. Structural unemployment

C. Disguised unemployment

D. Frictional unemployment

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Correct Answer: Option C

Explanation:
Disguised unemployment is most prevalent in Indian agriculture.

This question belongs to: Economy GK Economy Set 1

Question #3

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The 'Sarva Shiksha Abhiyan' was launched in:

A. 2001

B. 1995

C. 2010

D. 2005

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Correct Answer: Option A

Explanation:
Sarva Shiksha Abhiyan was launched in 2001.

This question belongs to: Economy GK Economy Set 1

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