The term 'Base Effect' is related to the calculation of: MCQ with Answer and Explanation

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The term 'Base Effect' is related to the calculation of:

A. Balance of trade

B. Inflation rate

C. Fiscal deficit

D. National income

Answer: Option B

Solution (By JKSSB Mock Tests)

Base effect refers to the impact of the price level of the previous year (base) on the calculation of the inflation rate in the current year.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Central Goods and Services Tax' is levied by:

A. local bodies

B. state governments

C. central government

D. GST Council

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Correct Answer: Option C

Explanation:
CGST is levied by the central government on intra-state supply.

This question belongs to: Economy GK Economy Set 1

Question #2

When marginal product is zero, total product is:

A. negative

B. minimum

C. maximum

D. equal to average product

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Correct Answer: Option C

Explanation:
Total product is maximum when marginal product is zero.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Disposable Personal Income' is personal income minus:

A. direct personal taxes and other deductions

B. customs duty

C. corporate tax

D. indirect taxes

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Correct Answer: Option A

Explanation:
Disposable personal income is personal income after direct personal taxes and other deductions.

This question belongs to: Economy GK Economy Set 1

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