Which of the following is a characteristic of the 'Attention Economy'? MCQ with Answer and Explanation

Which of the following is a characteristic of the 'Attention Economy'?
A. Only physical goods matter
B. Attention is unlimited and has no economic value
C. Human attention is treated as a scarce resource that platforms and content providers compete to capture
D. Only traditional advertising without digital platforms
Answer: Option C
Solution (By JKSSB Mock Tests)
In the attention economy, the limited cognitive resource of human attention is the scarce factor that digital platforms, media and advertisers compete to attract and monetise.

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Practice More Economy Set 1 Questions

Question #1
Which of the following is a feature of the 'Purchasing Power Parity' theory in its absolute form?
A. The exchange rate between two currencies equals the ratio of the countries’ price levels
B. Exchange rates are determined only by trade balances
C. The exchange rate equals the interest differential
D. Only relative changes in prices matter

Correct Answer: Option A


Explanation:
Absolute purchasing power parity states that the nominal exchange rate should equal the ratio of the domestic to the foreign price level so that a basket of goods costs the same in both countries.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Economic Advisor' who compiles the Economic Survey is under the:
A. Ministry of Finance
B. Ministry of Statistics
C. NITI Aayog
D. RBI

Correct Answer: Option A


Explanation:
Chief Economic Adviser is under the Department of Economic Affairs, Ministry of Finance.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is a characteristic of the 'Natural Rate Hypothesis'?
A. Monetary policy can permanently reduce unemployment below the natural rate
B. There is a permanent trade-off between inflation and unemployment
C. Only adaptive expectations are assumed
D. In the long run, unemployment returns to its natural rate regardless of the inflation rate

Correct Answer: Option D


Explanation:
The natural rate hypothesis, associated with Friedman and Phelps, states that in the long run the economy returns to the natural rate of unemployment and there is no permanent trade-off with inflation.

This question belongs to: Economy GK Economy Set 1