The term 'Core Inflation' is useful for policy makers because it: MCQ with Answer and Explanation

The term 'Core Inflation' is useful for policy makers because it:
A. Includes all volatile items
B. Excludes food and fuel prices to reveal underlying inflation trends
C. Measures only food inflation
D. Is always higher than headline inflation
Answer: Option B
Solution (By JKSSB Mock Tests)
Core inflation excludes volatile components such as food and energy, providing a clearer picture of persistent inflationary pressures for monetary policy decisions.

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Practice More Economy Set 1 Questions

Question #1
The 'C2 cost' in agriculture includes A2 plus family labour plus:
A. only fertilizer cost
B. only pesticide cost
C. interest on land and fixed capital
D. only seed cost

Correct Answer: Option C


Explanation:
C2 cost includes A2 plus family labour plus interest on land and fixed capital.

This question belongs to: Economy GK Economy Set 1
Question #2
The Lead Bank Scheme was introduced in 1969 based on the recommendations of:
A. Narasimham Committee
B. Gadgil Study Group
C. Kelkar Committee
D. Rangarajan Committee

Correct Answer: Option B


Explanation:
The Lead Bank Scheme was introduced on the recommendation of the Gadgil Study Group.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'GST practitioner' is a person who:
A. collects taxes
B. audits GST revenue
C. assists taxpayers in filing GST returns and compliance
D. sets GST rates

Correct Answer: Option C


Explanation:
A GST practitioner assists taxpayers in GST compliance and returns.

This question belongs to: Economy GK Economy Set 1