The 'veblen effect' is associated with: MCQ with Answer and Explanation

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The 'veblen effect' is associated with:

A. conspicuous consumption where higher prices increase demand

B. perfect competition

C. homogeneous goods

D. inferior goods

Answer: Option A

Solution (By JKSSB Mock Tests)

Veblen effect occurs when higher prices increase the prestige of a good and therefore its demand.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The 'Attorney General of India' is appointed under which article?

A. Article 76

B. Article 77

C. Article 78

D. Article 88

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Correct Answer: Option A

Explanation:
The Attorney General is appointed under Article 76.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Goods and Services Tax' on IT-enabled services is:

A. 5%

B. 18%

C. 12%

D. 28%

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Correct Answer: Option B

Explanation:
IT-enabled services attract 18% GST.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following best describes the concept of 'Cross Elasticity of Demand'?

A. Responsiveness of quantity demanded to a change in income

B. Responsiveness of supply to a change in price

C. Responsiveness of quantity demanded of a good to a change in its own price

D. Responsiveness of quantity demanded of a good to a change in the price of another good

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Correct Answer: Option D

Explanation:
Cross elasticity of demand measures how the quantity demanded of one good responds to a change in the price of another related good. It is positive for substitutes and negative for complements.

This question belongs to: Economy GK Economy Set 1

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