The 'Personal Income' of a country includes: MCQ with Answer and Explanation

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The 'Personal Income' of a country includes:

A. only indirect taxes

B. transfer payments and factor incomes received by households

C. only wages

D. corporate profits retained

Answer: Option B

Solution (By JKSSB Mock Tests)

Personal income includes all incomes received by households, including transfer payments.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The 'Multidimensional Poverty Index' uses how many indicators?

A. 12

B. 10

C. 5

D. 20

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Correct Answer: Option B

Explanation:
MPI uses 10 indicators across three dimensions.

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following is a feature of the 'Real Business Cycle' theory?

A. Business cycles are primarily driven by real shocks, especially technology shocks

B. Sticky prices are the main source of fluctuations

C. Fiscal policy is the primary driver of cycles

D. Business cycles are primarily caused by monetary shocks

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Correct Answer: Option A

Explanation:
Real Business Cycle theory attributes macroeconomic fluctuations mainly to real shocks, particularly technological disturbances, under the assumption of continuous market clearing and rational expectations.

This question belongs to: Economy GK Economy Set 1

Question #3

The concept of 'Asymmetric Information' can lead to:

A. Efficient market outcomes always

B. Adverse selection and moral hazard problems

C. Zero transaction costs

D. Perfect competition

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Correct Answer: Option B

Explanation:
Asymmetric information, where one party has superior information, can result in adverse selection before contracting and moral hazard after contracting.

This question belongs to: Economy GK Economy Set 1

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