Which of the following is a characteristic of the 'Foundational Economy' approach to local development? MCQ with Answer and Explanation

Which of the following is a characteristic of the 'Foundational Economy' approach to local development?
A. Only attracting mobile capital
B. Prioritising the improvement of essential everyday services that all citizens rely on, rather than focusing solely on competitive tradable sectors
C. Focusing only on high-tech export clusters
D. Ignoring everyday services
Answer: Option B
Solution (By JKSSB Mock Tests)
The foundational-economy perspective argues that the quality and accessibility of essential local services—utilities, food, health, education, care—are central to well-being and should be a primary focus of regional and urban policy.

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Practice More Economy Set 1 Questions

Question #1
Which of the following is a feature of the Indian tax system?
A. No progressive taxation
B. Only indirect taxes
C. Both direct and indirect taxes
D. Only direct taxes

Correct Answer: Option C


Explanation:
The Indian tax system consists of both direct taxes (income tax, corporation tax) and indirect taxes (GST, customs duty), with progressive elements in direct taxes.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Tobin tax' is a proposed tax on:
A. income
B. property
C. imports
D. short-term foreign exchange transactions

Correct Answer: Option D


Explanation:
A Tobin tax is a tax on short-term foreign exchange transactions to reduce speculative flows.

This question belongs to: Economy GK Economy Set 1
Question #3
A demat account is used for:
A. holding shares in electronic form
B. trading only in commodities
C. holding foreign currency
D. banking transactions only

Correct Answer: Option A


Explanation:
A demat account holds securities in electronic form.

This question belongs to: Economy GK Economy Set 1