The 'rent-seeking' behaviour in economics refers to: MCQ with Answer and Explanation

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The 'rent-seeking' behaviour in economics refers to:

A. paying rent

B. manipulating political or economic environment to obtain benefits without creating wealth

C. buying real estate

D. earning profit through productive activity

Answer: Option B

Solution (By JKSSB Mock Tests)

Rent-seeking is the pursuit of benefits through manipulation rather than productive activity.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Pradhan Mantri Poshan Shakti Nirman' is a programme for:

A. education loans

B. skill development

C. rural housing

D. hot cooked meals in schools

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Correct Answer: Option D

Explanation:
PM POSHAN provides hot cooked meals in government and aided schools.

This question belongs to: Economy GK Economy Set 1

Question #2

In the context of financial markets, 'Adverse Selection' before a loan is made refers to:

A. Borrowers becoming riskier after receiving loans

B. Lenders always having perfect information

C. Only the problem of monitoring after the loan

D. Borrowers with higher risk being more likely to seek loans

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Correct Answer: Option D

Explanation:
Adverse selection in credit markets occurs when higher-risk borrowers are more eager to borrow at any given interest rate, so that the pool of applicants becomes riskier as the interest rate rises.

This question belongs to: Economy GK Economy Set 1

Question #3

Price elasticity of demand is measured as:

A. percentage change in price divided by percentage change in quantity demanded

B. change in quantity divided by change in price

C. change in price divided by change in quantity

D. percentage change in quantity demanded divided by percentage change in price

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Correct Answer: Option D

Explanation:
Price elasticity of demand is the percentage change in quantity demanded divided by the percentage change in price.

This question belongs to: Economy GK Economy Set 1

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