Which of the following is a feature of the Classical model of the economy? MCQ with Answer and Explanation

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Which of the following is a feature of the Classical model of the economy?

A. Possibility of liquidity trap

B. Importance of aggregate demand in determining output

C. Flexible wages and prices ensuring continuous full employment

D. Sticky wages and prices

Answer: Option C

Solution (By JKSSB Mock Tests)

The Classical model assumes flexible wages and prices that adjust continuously to maintain full employment equilibrium.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Spices Board of India' is headquartered in:

A. Mumbai

B. Chennai

C. Delhi

D. Kochi

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Correct Answer: Option D

Explanation:
The Spices Board of India is headquartered in Kochi.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Goods and Services Tax' on bread is:

A. 12%

B. 0%

C. 18%

D. 5%

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Correct Answer: Option B

Explanation:
Bread is exempt from GST.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Estimates Committee' in Parliament examines:

A. budget estimates and efficiency of expenditure

B. CAG reports

C. foreign policy

D. judicial appointments

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Correct Answer: Option A

Explanation:
Estimates Committee examines budget estimates and efficiency of expenditure.

This question belongs to: Economy GK Economy Set 1

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