Which of the following is a characteristic of a closed economy? MCQ with Answer and Explanation

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Which of the following is a characteristic of a closed economy?

A. Free capital flows

B. Membership of WTO only

C. No foreign trade

D. High volume of exports and imports

Answer: Option C

Solution (By JKSSB Mock Tests)

A closed economy does not engage in international trade or capital flows. It is self-sufficient and isolated from the rest of the world.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Gross Domestic Product' of India is estimated by which method?

A. Only production method

B. Only expenditure method

C. Output/value added and expenditure methods

D. Only income method

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Correct Answer: Option C

Explanation:
India's GDP is estimated using the output/value added and expenditure approaches.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Goods and Services Tax' on cryptocurrency is:

A. 0%

B. 28%

C. 18%

D. 5%

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Correct Answer: Option C

Explanation:
Cryptocurrency transactions are subject to 18% GST as financial services, though regulation is evolving.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Goods and Services Tax' on services by foreign diplomatic mission in India is:

A. 5%

B. 0%

C. exempt

D. 18%

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Correct Answer: Option C

Explanation:
Services by foreign diplomatic missions are exempt from GST.

This question belongs to: Economy GK Economy Set 1

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