Which of the following is used to measure the degree of concentration in an industry? MCQ with Answer and Explanation

Which of the following is used to measure the degree of concentration in an industry?
A. Herfindahl-Hirschman Index
B. Gini coefficient only
C. Human Development Index
D. Lorenz curve only
Answer: Option A
Solution (By JKSSB Mock Tests)
The Herfindahl-Hirschman Index (HHI) is calculated as the sum of the squares of the market shares of all firms in an industry and is widely used to measure market concentration.

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Practice More Economy Set 1 Questions

Question #1
The 'Goods and Services Tax' on butter and ghee is:
A. 28%
B. 18%
C. 12%
D. 5%

Correct Answer: Option C


Explanation:
Butter and ghee attract 12% GST.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Employees' Provident Fund' contribution is deposited by:
A. both employer and employee
B. government only
C. employee only
D. employer only

Correct Answer: Option A


Explanation:
EPF contribution is made by both employer and employee.

This question belongs to: Economy GK Economy Set 1
Question #3
In the context of economic reforms, 'Disinvestment' involves:
A. Nationalisation of private firms
B. Complete closure of all public enterprises
C. Increasing government stake in public sector enterprises
D. Sale of government equity in public sector enterprises

Correct Answer: Option D


Explanation:
Disinvestment refers to the sale of government-held shares in public sector enterprises to private investors or the public, thereby reducing the government's ownership stake.

This question belongs to: Economy GK Economy Set 1