The 'rate of inflation' is measured as: MCQ with Answer and Explanation

The 'rate of inflation' is measured as:
A. percentage change in price index from one period to another
B. change in money supply
C. change in exchange rate
D. change in price level over time divided by current price level
Answer: Option A
Solution (By JKSSB Mock Tests)
Inflation rate is the percentage change in a price index from one period to the next.

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Practice More Economy Set 1 Questions

Question #1
The concept of 'Original Sin' in international finance refers to:
A. The original accumulation of capital
B. The inability of many emerging-market countries to borrow abroad in their own currency
C. The sin of high fiscal deficits
D. Only the problem of domestic debt

Correct Answer: Option B


Explanation:
Original sin describes the situation in which most countries cannot borrow abroad in their own currency, forcing them to denominate external debt in foreign currency and exposing them to currency mismatches.

This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following is an example of a flow variable in economics?
A. National income
B. Money supply at a point in time
C. Capital stock
D. National wealth

Correct Answer: Option A


Explanation:
National income is a flow variable as it is measured over a period of time. Wealth, capital stock and money supply at a point in time are stock variables.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Goods and Services Tax' rate on water supply is:
A. 18%
B. 5%
C. not under GST
D. 0%

Correct Answer: Option D


Explanation:
Water supply through public taps is exempt from GST.

This question belongs to: Economy GK Economy Set 1