The term 'Gross Fixed Capital Formation' includes: MCQ with Answer and Explanation

The term 'Gross Fixed Capital Formation' includes:
A. Only inventory investment
B. Only construction of buildings
C. Investment in fixed assets such as machinery, buildings and infrastructure
D. Only financial investments
Answer: Option C
Solution (By JKSSB Mock Tests)
Gross Fixed Capital Formation refers to the net addition to the stock of fixed assets such as plant, machinery, buildings and infrastructure during a period.

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Practice More Economy Set 1 Questions

Question #1
The 'Goods and Services Tax' on services provided by journalists is:
A. 12%
B. 0%
C. 5%
D. 18%

Correct Answer: Option D


Explanation:
Journalist services attract 18% GST unless exempt.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Mercosur' is a trading bloc in:
A. Asia
B. Africa
C. Europe
D. South America

Correct Answer: Option D


Explanation:
Mercosur is a South American trading bloc including Argentina, Brazil, Paraguay and Uruguay.

This question belongs to: Economy GK Economy Set 1
Question #3
The Finance Commission is constituted under which Article of the Constitution?
A. 324
B. 360
C. 356
D. 280

Correct Answer: Option D


Explanation:
The Finance Commission is constituted under Article 280 of the Constitution.

This question belongs to: Economy GK Economy Set 1