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. Flexible wages and prices ensuring continuous full employment

B. Sticky wages and prices

C. Possibility of liquidity trap

D. Importance of aggregate demand in determining output

Answer: Option A

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

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The 'maternity benefit' under the Maternity Benefit Act provides paid leave of how many weeks?

A. 14 weeks

B. 26 weeks

C. 12 weeks

D. 30 weeks

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Correct Answer: Option B

Explanation:
The Maternity Benefit Amendment Act 2017 increased paid maternity leave to 26 weeks.

This question belongs to: Economy GK Economy Set 1

Question #2

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The 'Goods and Services Tax' on helicopter services is:

A. 28%

B. 5%

C. 18%

D. 12%

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Correct Answer: Option C

Explanation:
Helicopter services attract 18% GST, with some exemptions for pilgrimage.

This question belongs to: Economy GK Economy Set 1

Question #3

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Which of the following is NOT a characteristic of money?

A. Portability

B. Durability

C. Divisibility

D. Perishability as a desirable feature

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Correct Answer: Option D

Explanation:
Desirable characteristics of money include durability, portability, divisibility, uniformity and limited supply. Perishability is undesirable as money should retain value over time.

This question belongs to: Economy GK Economy Set 1

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