The 'stagflation' is a combination of: MCQ with Answer and Explanation

Question

Share Report Error

The 'stagflation' is a combination of:

A. low inflation and high unemployment

B. low inflation and low unemployment

C. high inflation and low unemployment

D. high inflation and high unemployment

Answer: Option D

Solution (By JKSSB Mock Tests)

Stagflation is high inflation combined with high unemployment and stagnant demand.

This question belongs to: Economy GK Economy Set 1

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1

Under perfect competition, the profit-maximizing condition for a firm is:

A. P = AC

B. MR = MC and MC is rising

C. TR is maximum

D. MR is maximum

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
A perfectly competitive firm maximizes profit where marginal revenue equals marginal cost and MC is rising.

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following is the primary objective of monetary policy in India?

A. Reducing fiscal deficit

B. Price stability while keeping in mind growth

C. Increasing government expenditure

D. Maximising tax revenue

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
As per the Monetary Policy Framework Agreement, the primary objective of monetary policy is to maintain price stability while keeping in mind the objective of growth.

This question belongs to: Economy GK Economy Set 1

Question #3

In the context of international trade, the theory of comparative advantage was propounded by:

A. Paul Krugman

B. Adam Smith

C. Heckscher and Ohlin

D. David Ricardo

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option D

Explanation:
David Ricardo developed the theory of comparative advantage, which states that countries should specialise in producing goods in which they have a lower opportunity cost.

This question belongs to: Economy GK Economy Set 1

Explore All Economy Set 1 MCQs