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

Which of the following is a characteristic of the 'Attention Economy' valuation of platforms?
A. Attention has no relation to valuation
B. Valuations are based only on physical assets
C. Market valuations often reflect the platform’s ability to capture and monetise user attention and data rather than traditional cash flows alone
D. Only book value matters
Answer: Option C
Solution (By JKSSB Mock Tests)
In the attention economy, the market value of many digital platforms is driven by their capacity to attract, retain and monetise user attention and the data generated by user engagement.

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Practice More Economy Set 1 Questions

Question #1
The 'Goods and Services Tax' on admission to amusement parks is:
A. 5%
B. 28%
C. 12%
D. 18%

Correct Answer: Option D


Explanation:
Amusement park admissions attract 18% GST.

This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following is a characteristic of a developing economy?
A. High productivity in agriculture
B. Dualistic economic structure
C. High rate of capital accumulation
D. Low dependence on foreign trade

Correct Answer: Option B


Explanation:
Developing economies often exhibit dualism — coexistence of a modern industrial sector and a traditional agricultural sector with low productivity.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is a characteristic of the 'Easterlin Paradox'?
A. Only relative income matters and absolute income is irrelevant even within countries
B. Income has no relation to happiness at any level
C. Within countries, higher income is associated with higher happiness, but over time average happiness does not rise with average income
D. Happiness always rises proportionally with income both within and across countries

Correct Answer: Option C


Explanation:
The Easterlin Paradox observes that, while richer individuals within a country tend to report higher happiness, average national happiness does not increase systematically as national income grows over the long run.

This question belongs to: Economy GK Economy Set 1