The 'rational expectations' hypothesis assumes people: MCQ with Answer and Explanation

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The 'rational expectations' hypothesis assumes people:

A. ignore information

B. only use past values

C. have no expectations

D. use all available information to form expectations

Answer: Option D

Solution (By JKSSB Mock Tests)

Rational expectations assumes agents use all available information efficiently.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Federal Reserve System' is the central bank of:

A. United States

B. United Kingdom

C. Japan

D. Germany

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Correct Answer: Option A

Explanation:
The Federal Reserve System is the central bank of the United States.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Goods and Services Tax' on works contract services is:

A. 18%

B. 12%

C. 5%

D. 28%

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Correct Answer: Option B

Explanation:
Works contract services generally attract 12% GST with ITC.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is a characteristic of the Indian service sector?

A. Complete dependence on agriculture

B. Low contribution to GDP

C. Absence of IT and ITES services

D. Largest contributor to GDP and significant employment generation in recent decades

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Correct Answer: Option D

Explanation:
The services sector is the largest contributor to India's GDP and has been a major driver of growth, particularly through IT, financial services, trade and tourism.

This question belongs to: Economy GK Economy Set 1

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