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 weight in CPI

B. high import content

C. high price volatility such as food and fuel

D. high tax rates

Answer: Option C

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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Question #1

In the context of monetary economics, the 'Velocity of Circulation of Money' refers to:

A. The average number of times a unit of money is used to purchase final goods and services in a given period

B. The growth rate of the money supply

C. The rate of inflation only

D. The rate of interest

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Correct Answer: Option A

Explanation:
Velocity of money measures how frequently the average unit of currency is spent on final goods and services during a given time period; it appears in the equation of exchange.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Food Corporation of India' was established in which year?

A. 1956

B. 1975

C. 1965

D. 1970

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Correct Answer: Option C

Explanation:
The Food Corporation of India was established in 1965.

This question belongs to: Economy GK Economy Set 1

Question #3

In the context of cost, Marginal Cost is defined as:

A. Change in total cost due to production of one additional unit

B. Fixed cost divided by output

C. Total cost divided by output

D. Variable cost divided by output

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Correct Answer: Option A

Explanation:
Marginal Cost (MC) is the addition to total cost when one more unit of output is produced. MC = ΔTC/ΔQ.

This question belongs to: Economy GK Economy Set 1

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