Which of the following is a characteristic of 'Algorithmic Pricing'? MCQ with Answer and Explanation

Which of the following is a characteristic of 'Algorithmic Pricing'?
A. Only cost-plus pricing without data
B. Only manual price setting by humans
C. Prices that never change
D. The use of algorithms to set prices automatically, potentially leading to tacit collusion or rapid price adjustment
Answer: Option D
Solution (By JKSSB Mock Tests)
Algorithmic pricing employs software algorithms that automatically adjust prices in response to demand, competitor prices and other data; under certain conditions it can facilitate tacit collusion or increase price volatility.

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Practice More Economy Set 1 Questions

Question #1
The concept of 'Human Capital' in growth theory refers to:
A. Only financial assets
B. Only natural resources
C. The stock of skills, knowledge and health embodied in the labour force
D. Only physical capital

Correct Answer: Option C


Explanation:
Human capital comprises the knowledge, skills, health and other attributes of individuals that affect their productivity and are accumulated through education, training and health expenditure.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Goods and Services Tax' rate on education and health care is zero because:
A. they are outside GST
B. they are considered essential services
C. they are taxed by states
D. they are luxury services

Correct Answer: Option B


Explanation:
Education and health care are essential services and are exempted.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Goods and Services Tax' on housekeeping services is:
A. 5%
B. 12%
C. 28%
D. 18%

Correct Answer: Option D


Explanation:
Housekeeping services attract 18% GST.

This question belongs to: Economy GK Economy Set 1