The term 'core inflation' was coined because it excludes items with: MCQ with Answer and Explanation

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The term 'core inflation' was coined because it excludes items with:

A. high price volatility such as food and fuel

B. high import content

C. high tax rates

D. high weight in CPI

Answer: Option A

Solution (By JKSSB Mock Tests)

Core inflation excludes volatile food and fuel prices to reveal underlying inflation.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The 'Goods and Services Tax' on government services is:

A. always 28%

B. always exempt

C. always 18%

D. exempt for certain government services and taxable for others

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Correct Answer: Option D

Explanation:
Some government services are exempt, others taxable.

This question belongs to: Economy GK Economy Set 1

Question #2

In the context of production, the stage of diminishing returns begins when:

A. Average product is zero

B. Marginal product starts declining

C. Marginal product is negative

D. Total product is maximum

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Correct Answer: Option B

Explanation:
The stage of diminishing returns starts when the marginal product of the variable factor begins to decline, although it may still be positive.

This question belongs to: Economy GK Economy Set 1

Question #3

The term 'Primary Deficit' is defined as:

A. Revenue deficit minus interest payments

B. Budget deficit minus interest payments

C. Fiscal deficit minus interest payments

D. Fiscal deficit plus interest payments

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Correct Answer: Option C

Explanation:
Primary deficit = Fiscal deficit − Interest payments. It indicates the borrowing requirement of the government excluding interest payments on previous borrowings.

This question belongs to: Economy GK Economy Set 1

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