The 'shoe-leather cost' of inflation refers to: MCQ with Answer and Explanation

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The 'shoe-leather cost' of inflation refers to:

A. cost of imports

B. cost of unemployment

C. cost of buying shoes

D. cost of holding less cash and making more frequent trips to banks

Answer: Option D

Solution (By JKSSB Mock Tests)

Shoe-leather cost is the cost associated with reducing money holdings to avoid inflation.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Consumer Price Index - Industrial Workers' is compiled by:

A. CSO

B. NITI Aayog

C. Labour Bureau

D. RBI

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Correct Answer: Option C

Explanation:
CPI-IW is compiled by the Labour Bureau.

This question belongs to: Economy GK Economy Set 1

Question #2

TRIPS is an agreement of the WTO dealing with:

A. anti-dumping measures

B. trade in services

C. agricultural subsidies

D. intellectual property rights

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Correct Answer: Option D

Explanation:
TRIPS deals with Trade-Related Aspects of Intellectual Property Rights.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is used to measure the degree of openness of an economy?

A. Share of exports and imports in GDP

B. Money supply growth rate

C. Unemployment rate

D. Fiscal deficit as a percentage of GDP

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Correct Answer: Option A

Explanation:
The degree of openness is commonly measured by the ratio of total trade (exports + imports) to GDP, reflecting integration with the global economy.

This question belongs to: Economy GK Economy Set 1

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