Economic Sectors & Market Development
Explore 300 exam‑style MCQs covering Economic Sectors and Market Development — from agriculture, industry, and services to globalization, policy, sustainability, and financial markets. Each question includes a correct answer and clear explanation, making this set ideal for UPSC, JEE, SAT, GMAT, and academic prep. Whether you're a student, educator, or content strategist, this mega‑set delivers complete topic coverage, modular formatting, and deployment‑ready clarity.
✅ A) Agriculture
B) Banking
C) Retail trade
D) Software development
Explanation: Agriculture is a primary sector activity as it involves extraction of natural resources.
Q2. Which of the following is part of the secondary sector?
✅ A) Manufacturing cars
B) Farming wheat
C) Teaching students
D) Providing healthcare
Explanation: Manufacturing is a secondary sector activity as it transforms raw materials into goods.
Q3. Which of the following is part of the tertiary sector?
✅ A) Transport services
B) Mining coal
C) Producing steel
D) Growing rice
Explanation: Tertiary sector provides services like transport, banking, and retail.
Q4. Which of the following is part of the quaternary sector?
✅ A) Research and development
B) Agriculture
C) Construction
D) Retail trade
Explanation: Quaternary sector involves knowledge‑based activities like R&D.
Q5. Which of the following is part of the quinary sector?
✅ A) High‑level decision making
B) Farming
C) Manufacturing
D) Retailing
Explanation: Quinary sector includes top executives, policy makers, and leadership roles.
Q6. Which of the following is true about the primary sector?
✅ A) Involves extraction of natural resources
B) Involves providing services
C) Involves manufacturing goods
D) Involves policy making
Explanation: Primary sector is based on extraction of resources.
Q7. Which of the following is true about the secondary sector?
✅ A) Involves transformation of raw materials into finished goods
B) Involves extraction of natural resources
C) Involves providing services
D) Involves policy making
Explanation: Secondary sector transforms raw materials into goods.
Q8. Which of the following is true about the tertiary sector?
✅ A) Involves providing services to consumers and businesses
B) Involves extraction of natural resources
C) Involves manufacturing goods
D) Involves policy making
Explanation: Tertiary sector provides services.
Q9. Which of the following is true about the quaternary sector?
✅ A) Involves knowledge‑based services like IT and R&D
B) Involves extraction of natural resources
C) Involves manufacturing goods
D) Involves farming
Explanation: Quaternary sector is knowledge‑driven.
Q10. Which of the following is true about the quinary sector?
✅ A) Involves leadership and decision‑making roles
B) Involves farming
C) Involves manufacturing goods
D) Involves retailing
Explanation: Quinary sector includes top‑level executives and leaders.
Q11. Which of the following is an example of primary sector employment?
✅ A) Fishing
B) Banking
C) Teaching
D) Software engineering
Explanation: Fishing is a primary sector activity.
Q12. Which of the following is an example of secondary sector employment?
✅ A) Factory worker producing textiles
B) Farmer growing crops
C) Doctor treating patients
D) Teacher in a school
Explanation: Factory work is secondary sector.
Q13. Which of the following is an example of tertiary sector employment?
✅ A) Retail shop worker
B) Miner
C) Factory worker
D) Farmer
Explanation: Retail services are tertiary sector.
Q14. Which of the following is an example of quaternary sector employment?
✅ A) Data analyst
B) Farmer
C) Factory worker
D) Retailer
Explanation: Data analysis is a knowledge‑based service.
Q15. Which of the following is an example of quinary sector employment?
✅ A) Government minister
B) Farmer
C) Factory worker
D) Retailer
Explanation: Ministers and executives are part of quinary sector.
Q16. Which of the following is true about sectoral classification?
✅ A) It helps analyze economic development stages
B) It is irrelevant to economics
C) It only applies to agriculture
D) It only applies to services
Explanation: Sectoral classification shows development stages.
Q17. Which of the following is true about sectoral shifts in development?
✅ A) Economies move from primary to secondary to tertiary sectors
B) Economies remain in primary sector
C) Economies skip secondary sector
D) Economies only focus on quinary sector
Explanation: Development involves sectoral shifts.
Q18. Which of the following is true about advanced economies?
✅ A) Dominated by tertiary and quaternary sectors
B) Dominated by primary sector
C) Dominated by secondary sector only
D) Dominated by quinary sector only
Explanation: Advanced economies rely on services and knowledge sectors.
Q19. Which of the following is true about developing economies?
✅ A) Dominated by primary and secondary sectors
B) Dominated by tertiary sector
C) Dominated by quaternary sector
D) Dominated by quinary sector
Explanation: Developing economies rely on agriculture and industry.
Q20. Which of the following is true about sectoral contribution to GDP in modern economies?
✅ A) Services contribute the largest share
B) Agriculture contributes the largest share
C) Manufacturing contributes the largest share
D) Mining contributes the largest share
Explanation: Services dominate GDP in modern economies.
Q21. Which sector contributes the largest share to GDP in advanced economies?
✅ A) Tertiary sector
B) Primary sector
C) Secondary sector
D) Quinary sector
Explanation: Services dominate GDP in advanced economies.
Q22. Which sector contributes the largest share to GDP in developing economies?
✅ A) Primary sector
B) Tertiary sector
C) Quaternary sector
D) Quinary sector
Explanation: Agriculture and extraction dominate GDP in developing economies.
Q23. Which sector is the main source of employment in underdeveloped economies?
✅ A) Primary sector
B) Secondary sector
C) Tertiary sector
D) Quaternary sector
Explanation: Agriculture provides most jobs in underdeveloped economies.
Q24. Which sector is the main source of employment in advanced economies?
✅ A) Tertiary sector
B) Primary sector
C) Secondary sector
D) Quinary sector
Explanation: Services provide most jobs in advanced economies.
Q25. Which sector is associated with industrialization?
✅ A) Secondary sector
B) Primary sector
C) Tertiary sector
D) Quinary sector
Explanation: Industrialization is linked to manufacturing.
Q26. Which sector is associated with post‑industrial economies?
✅ A) Tertiary and quaternary sectors
B) Primary sector
C) Secondary sector
D) Quinary sector
Explanation: Post‑industrial economies rely on services and knowledge.
Q27. Which sector is most vulnerable to climate change?
✅ A) Primary sector
B) Secondary sector
C) Tertiary sector
D) Quinary sector
Explanation: Agriculture and extraction are directly affected by climate.
Q28. Which sector is most influenced by globalization?
✅ A) Tertiary sector
B) Primary sector
C) Secondary sector
D) Quinary sector
Explanation: Services like IT and finance are globalized.
Q29. Which sector is most influenced by automation?
✅ A) Secondary sector
B) Primary sector
C) Tertiary sector
D) Quinary sector
Explanation: Manufacturing is heavily impacted by automation.
Q30. Which sector is most influenced by digitalization?
✅ A) Quaternary sector
B) Primary sector
C) Secondary sector
D) Quinary sector
Explanation: Knowledge‑based services thrive with digitalization.
Q31. Which sector shows declining employment share during development?
✅ A) Primary sector
B) Secondary sector
C) Tertiary sector
D) Quinary sector
Explanation: Agriculture employment declines as economies develop.
Q32. Which sector shows rising employment share during development?
✅ A) Tertiary sector
B) Primary sector
C) Secondary sector
D) Quinary sector
Explanation: Services employment rises with development.
Q33. Which sector shows peak employment during industrialization?
✅ A) Secondary sector
B) Primary sector
C) Tertiary sector
D) Quinary sector
Explanation: Manufacturing peaks during industrialization.
Q34. Which sector shows dominance in knowledge economies?
✅ A) Quaternary sector
B) Primary sector
C) Secondary sector
D) Quinary sector
Explanation: Knowledge services dominate knowledge economies.
Q35. Which sector shows dominance in leadership and governance?
✅ A) Quinary sector
B) Primary sector
C) Secondary sector
D) Tertiary sector
Explanation: Quinary sector includes leadership roles.
Q36. Which sector is most capital‑intensive?
✅ A) Secondary sector
B) Primary sector
C) Tertiary sector
D) Quinary sector
Explanation: Manufacturing requires high capital investment.
Q37. Which sector is most labor‑intensive in underdeveloped economies?
✅ A) Primary sector
B) Secondary sector
C) Tertiary sector
D) Quinary sector
Explanation: Agriculture is labor‑intensive in underdeveloped economies.
Q38. Which sector is most skill‑intensive in advanced economies?
✅ A) Quaternary sector
B) Primary sector
C) Secondary sector
D) Tertiary sector
Explanation: Knowledge services require high skills.
Q39. Which sector is most policy‑intensive?
✅ A) Quinary sector
B) Primary sector
C) Secondary sector
D) Tertiary sector
Explanation: Leadership and governance rely on policy decisions.
Q40. Which sector is most trade‑intensive globally?
✅ A) Secondary sector
B) Primary sector
C) Tertiary sector
D) Quinary sector
Explanation: Manufacturing dominates global trade.
Q41. Which of the following is a characteristic of informal markets?
✅ A) Lack of regulation and documentation
B) High taxation
C) Strong legal enforcement
D) Transparent pricing
Explanation: Informal markets operate outside formal regulation.
Q42. Which of the following is a characteristic of formal markets?
✅ A) Regulated and documented transactions
B) Lack of taxation
C) Hidden operations
D) No legal framework
Explanation: Formal markets are regulated and documented.
Q43. Which of the following is true about rural markets?
✅ A) Dominated by agriculture and basic goods
B) Dominated by luxury services
C) Dominated by advanced technology
D) Dominated by global trade
Explanation: Rural markets focus on agriculture and essentials.
Q44. Which of the following is true about urban markets?
✅ A) Dominated by services and industrial goods
B) Dominated by agriculture
C) Dominated by informal trade only
D) Dominated by subsistence farming
Explanation: Urban markets focus on services and industry.
Q45. Which of the following is true about informal employment?
✅ A) No social security or legal protection
B) Full legal protection
C) High wages guaranteed
D) Regulated by government
Explanation: Informal employment lacks legal protection.
Q46. Which of the following is true about formal employment?
✅ A) Provides legal protection and social security
B) No legal protection
C) No taxation
D) No regulation
Explanation: Formal employment ensures legal rights.
Q47. Which of the following is true about informal credit markets?
✅ A) Operate outside banking regulations
B) Operate under strict banking laws
C) Provide government subsidies
D) Are part of stock exchanges
Explanation: Informal credit markets are unregulated.
Q48. Which of the following is true about formal credit markets?
✅ A) Operate under banking regulations
B) Operate outside legal framework
C) Provide no documentation
D) Are illegal
Explanation: Formal credit markets are regulated by banking laws.
Q49. Which of the following is true about rural consumption patterns?
✅ A) Focused on necessities and agricultural goods
B) Focused on luxury services
C) Focused on global imports
D) Focused on advanced technology
Explanation: Rural consumption emphasizes necessities.
Q50. Which of the following is true about urban consumption patterns?
✅ A) Focused on services, luxury, and technology
B) Focused on agriculture only
C) Focused on subsistence goods
D) Focused on informal trade only
Explanation: Urban consumption emphasizes services and luxury.
Q51. Which of the following is true about informal trade networks?
✅ A) Based on trust and personal relationships
B) Based on legal contracts
C) Based on government regulation
D) Based on taxation
Explanation: Informal trade relies on trust.
Q52. Which of the following is true about formal trade networks?
✅ A) Based on contracts and regulation
B) Based on personal trust only
C) Based on hidden operations
D) Based on illegal practices
Explanation: Formal trade relies on contracts and regulation.
Q53. Which of the following is true about rural market infrastructure?
✅ A) Limited transport and communication facilities
B) Advanced digital infrastructure
C) Global trade hubs
D) Stock exchanges
Explanation: Rural markets often lack infrastructure.
Q54. Which of the following is true about urban market infrastructure?
✅ A) Advanced transport and communication facilities
B) Limited infrastructure
C) No digital access
D) Only agricultural hubs
Explanation: Urban markets have advanced infrastructure.
Q55. Which of the following is true about informal sector contribution to GDP?
✅ A) Significant in developing economies
B) Negligible in developing economies
C) Dominant in advanced economies
D) Irrelevant globally
Explanation: Informal sector contributes significantly in developing economies.
Q56. Which of the following is true about formal sector contribution to GDP?
✅ A) Dominant in advanced economies
B) Negligible in advanced economies
C) Dominant in rural economies
D) Irrelevant globally
Explanation: Formal sector dominates GDP in advanced economies.
Q57. Which of the following is true about rural employment?
✅ A) Dominated by agriculture and informal work
B) Dominated by services
C) Dominated by technology
D) Dominated by global trade
Explanation: Rural employment is agriculture‑based.
Q58. Which of the following is true about urban employment?
✅ A) Dominated by services and industry
B) Dominated by agriculture
C) Dominated by informal farming
D) Dominated by subsistence work
Explanation: Urban employment is service‑based.
Q59. Which of the following is true about informal sector wages?
✅ A) Often low and unstable
B) High and stable
C) Guaranteed by law
D) Subsidized by government
Explanation: Informal wages are low and unstable.
Q60. Which of the following is true about formal sector wages?
✅ A) Stable and legally protected
B) Unstable and unprotected
C) Always higher than informal
D) Subsidized by government
Explanation: Formal wages are legally protected and stable.
Q61. Which of the following is a feature of perfect competition?
✅ A) Large number of buyers and sellers
B) Single seller dominates
C) Government monopoly
D) Price discrimination
Explanation: Perfect competition has many buyers and sellers.
Q62. Which of the following is a feature of monopoly?
✅ A) Single seller controls the market
B) Many sellers compete
C) Free entry and exit
D) Homogeneous products
Explanation: Monopoly means one seller dominates.
Q63. Which of the following is a feature of oligopoly?
✅ A) Few large firms dominate the market
B) Many small firms compete
C) Perfect knowledge
D) Homogeneous products only
Explanation: Oligopoly is controlled by a few large firms.
Q64. Which of the following is a feature of monopolistic competition?
✅ A) Product differentiation among many sellers
B) Single seller dominates
C) Homogeneous products only
D) No competition
Explanation: Monopolistic competition involves differentiated products.
Q65. Which of the following is true about price in perfect competition?
✅ A) Determined by market forces of demand and supply
B) Determined by single seller
C) Determined by government only
D) Determined by product differentiation
Explanation: Price is set by demand and supply in perfect competition.
Q66. Which of the following is true about price in monopoly?
✅ A) Determined by the monopolist
B) Determined by market forces only
C) Determined by government always
D) Determined by product differentiation
Explanation: Monopolist sets the price.
Q67. Which of the following is true about price in oligopoly?
✅ A) Influenced by rivals’ actions
B) Determined independently
C) Determined by government only
D) Determined by product differentiation
Explanation: Oligopoly pricing depends on rivals’ strategies.
Q68. Which of the following is true about price in monopolistic competition?
✅ A) Influenced by product differentiation and competition
B) Determined by single seller
C) Determined by government only
D) Determined by homogeneous products
Explanation: Product differentiation affects pricing.
Q69. Which of the following is true about entry in perfect competition?
✅ A) Free entry and exit
B) Restricted entry
C) Controlled by government
D) Only one seller allowed
Explanation: Perfect competition allows free entry and exit.
Q70. Which of the following is true about entry in monopoly?
✅ A) Barriers prevent new firms from entering
B) Free entry and exit
C) Controlled by government only
D) Always open to competition
Explanation: Monopoly has barriers to entry.
Q71. Which of the following is true about entry in oligopoly?
✅ A) Entry is difficult due to high capital requirements
B) Free entry and exit
C) Always open to competition
D) Controlled by government only
Explanation: Oligopoly requires high capital, limiting entry.
Q72. Which of the following is true about entry in monopolistic competition?
✅ A) Relatively free entry with product differentiation
B) Entry is impossible
C) Controlled by government only
D) Only one seller allowed
Explanation: Monopolistic competition allows entry with differentiation.
Q73. Which of the following is true about products in perfect competition?
✅ A) Homogeneous products
B) Differentiated products
C) Unique products
D) Branded products
Explanation: Perfect competition has homogeneous products.
Q74. Which of the following is true about products in monopoly?
✅ A) Unique product with no close substitutes
B) Homogeneous products
C) Differentiated products
D) Branded products
Explanation: Monopoly offers unique products.
Q75. Which of the following is true about products in oligopoly?
✅ A) Can be homogeneous or differentiated
B) Always homogeneous
C) Always unique
D) Always branded
Explanation: Oligopoly products may be homogeneous or differentiated.
Q76. Which of the following is true about products in monopolistic competition?
✅ A) Differentiated products with close substitutes
B) Homogeneous products only
C) Unique products only
D) No substitutes
Explanation: Monopolistic competition has differentiated products.
Q77. Which of the following is true about knowledge in perfect competition?
✅ A) Perfect knowledge among buyers and sellers
B) Imperfect knowledge
C) Controlled by monopolist
D) Controlled by government
Explanation: Perfect competition assumes perfect knowledge.
Q78. Which of the following is true about knowledge in monopoly?
✅ A) Imperfect knowledge among buyers
B) Perfect knowledge among buyers
C) Controlled by government
D) Shared equally
Explanation: Monopoly creates imperfect knowledge.
Q79. Which of the following is true about knowledge in oligopoly?
✅ A) Firms closely monitor rivals’ actions
B) Perfect knowledge among all buyers
C) Controlled by government only
D) No knowledge available
Explanation: Oligopoly firms track rivals.
Q80. Which of the following is true about knowledge in monopolistic competition?
✅ A) Imperfect knowledge due to product differentiation
B) Perfect knowledge among all buyers
C) Controlled by government only
D) No knowledge available
Explanation: Differentiation creates imperfect knowledge.
Q81. Which of the following is a key feature of globalization?
✅ A) Integration of markets across borders
B) Isolation of economies
C) Elimination of trade
D) Restriction of technology
Explanation: Globalization integrates markets worldwide.
Q82. Which of the following is true about globalization’s impact on trade?
✅ A) Expands international trade opportunities
B) Reduces trade flows
C) Eliminates exports
D) Eliminates imports
Explanation: Globalization increases trade flows.
Q83. Which of the following is true about globalization’s impact on technology?
✅ A) Promotes rapid diffusion of innovation
B) Restricts innovation
C) Eliminates technology transfer
D) Creates isolation
Explanation: Globalization spreads technology quickly.
Q84. Which of the following is true about globalization’s impact on labor markets?
✅ A) Creates outsourcing and migration opportunities
B) Eliminates labor mobility
C) Reduces employment globally
D) Restricts labor supply
Explanation: Globalization increases labor mobility.
Q85. Which of the following is true about globalization’s impact on capital markets?
✅ A) Promotes cross‑border investment flows
B) Restricts investment
C) Eliminates capital mobility
D) Creates isolation
Explanation: Globalization integrates capital markets.
Q86. Which of the following is true about globalization’s impact on culture?
✅ A) Promotes cultural exchange and hybridization
B) Eliminates cultural diversity
C) Creates isolation
D) Restricts communication
Explanation: Globalization fosters cultural exchange.
Q87. Which of the following is true about globalization’s impact on inequality?
✅ A) Can widen gaps between rich and poor
B) Eliminates inequality
C) Always reduces poverty
D) Creates uniform wealth distribution
Explanation: Globalization may widen inequality.
Q88. Which of the following is true about globalization’s impact on environment?
✅ A) Can increase resource exploitation and pollution
B) Eliminates environmental issues
C) Always promotes sustainability
D) Creates isolation
Explanation: Globalization can harm the environment.
Q89. Which of the following is true about globalization’s impact on rural markets?
✅ A) Introduces new products and services
B) Eliminates rural trade
C) Creates isolation
D) Restricts agriculture
Explanation: Globalization brings new goods to rural areas.
Q90. Which of the following is true about globalization’s impact on urban markets?
✅ A) Expands services and global brands
B) Eliminates urban trade
C) Creates isolation
D) Restricts industry
Explanation: Urban markets expand with globalization.
Q91. Which of the following is true about globalization’s impact on informal markets?
✅ A) Creates competition with formal global networks
B) Eliminates informal trade
C) Always strengthens informal trade
D) Restricts local exchange
Explanation: Informal markets face competition from global networks.
Q92. Which of the following is true about globalization’s impact on formal markets?
✅ A) Strengthens regulation and integration
B) Eliminates regulation
C) Creates isolation
D) Restricts trade
Explanation: Formal markets integrate globally.
Q93. Which of the following is true about globalization’s impact on agriculture?
✅ A) Promotes exports and imports of food products
B) Eliminates agriculture
C) Creates isolation
D) Restricts farming
Explanation: Agriculture becomes globally traded.
Q94. Which of the following is true about globalization’s impact on industry?
✅ A) Expands global supply chains
B) Eliminates industry
C) Creates isolation
D) Restricts manufacturing
Explanation: Industry integrates into global supply chains.
Q95. Which of the following is true about globalization’s impact on services?
✅ A) Expands IT, finance, and tourism globally
B) Eliminates services
C) Creates isolation
D) Restricts communication
Explanation: Services expand globally.
Q96. Which of the following is true about globalization’s impact on employment?
✅ A) Creates new opportunities but also job displacement
B) Eliminates jobs globally
C) Always increases employment
D) Restricts labor
Explanation: Globalization creates and displaces jobs.
Q97. Which of the following is true about globalization’s impact on small businesses?
✅ A) Creates competition with global firms
B) Eliminates small businesses
C) Always strengthens small businesses
D) Restricts entrepreneurship
Explanation: Small businesses face global competition.
Q98. Which of the following is true about globalization’s impact on consumers?
✅ A) Provides wider choice of goods and services
B) Eliminates consumer choice
C) Creates isolation
D) Restricts consumption
Explanation: Consumers benefit from wider choices.
Q99. Which of the following is true about globalization’s impact on governments?
✅ A) Requires policy adaptation to global standards
B) Eliminates government role
C) Creates isolation
D) Restricts regulation
Explanation: Governments adapt policies to global standards.
Q100. Which of the following is true about globalization’s impact on market integration?
✅ A) Creates interconnected global markets
B) Eliminates integration
C) Creates isolation
D) Restricts trade
Explanation: Globalization integrates markets worldwide.
Q101. Which of the following is true about taxation on inelastic goods?
✅ A) Governments impose higher taxes due to stable demand
B) Governments avoid taxing inelastic goods
C) Taxes eliminate demand completely
D) Taxes have no effect
Explanation: Inelastic goods are taxed more since demand doesn’t fall much.
Q102. Which of the following is true about taxation on elastic goods?
✅ A) Higher taxes reduce demand significantly
B) Taxes have no effect
C) Governments prefer taxing elastic goods
D) Elastic goods are immune to taxation
Explanation: Elastic goods lose demand quickly when taxed.
Q103. Which of the following is true about subsidies on elastic goods?
✅ A) Subsidies increase demand significantly
B) Subsidies have no effect
C) Subsidies reduce demand
D) Subsidies are irrelevant
Explanation: Elastic goods respond strongly to subsidies.
Q104. Which of the following is true about subsidies on inelastic goods?
✅ A) Subsidies have limited impact on demand
B) Subsidies eliminate demand
C) Subsidies reduce demand
D) Subsidies are irrelevant
Explanation: Inelastic goods don’t respond much to subsidies.
Q105. Which of the following is true about welfare policies?
✅ A) Aim to support vulnerable populations through subsidies and transfers
B) Aim to eliminate government intervention
C) Aim to reduce social spending
D) Aim to privatize welfare
Explanation: Welfare policies support vulnerable groups.
Q106. Which of the following is true about progressive taxation?
✅ A) Higher income groups pay higher tax rates
B) All income groups pay the same rate
C) Lower income groups pay higher rates
D) Taxes are unrelated to income
Explanation: Progressive taxation increases with income.
Q107. Which of the following is true about regressive taxation?
✅ A) Lower income groups bear a higher burden
B) Higher income groups pay higher rates
C) All income groups pay the same rate
D) Taxes are unrelated to income
Explanation: Regressive taxation burdens lower income groups.
Q108. Which of the following is true about proportional taxation?
✅ A) All income groups pay the same percentage
B) Higher income groups pay higher rates
C) Lower income groups pay higher rates
D) Taxes are unrelated to income
Explanation: Proportional taxation applies equal percentage.
Q109. Which of the following is true about indirect taxes?
✅ A) Levied on goods and services, paid by consumers
B) Levied directly on income
C) Levied only on property
D) Levied only on corporations
Explanation: Indirect taxes are paid on goods/services.
Q110. Which of the following is true about direct taxes?
✅ A) Levied directly on income and wealth
B) Levied on goods and services
C) Levied only on imports
D) Levied only on exports
Explanation: Direct taxes are imposed on income/wealth.
Q111. Which of the following is true about welfare subsidies?
✅ A) Reduce inequality by supporting low‑income groups
B) Increase inequality
C) Eliminate demand
D) Are irrelevant
Explanation: Welfare subsidies reduce inequality.
Q112. Which of the following is true about food subsidies?
✅ A) Ensure access to basic nutrition for poor households
B) Eliminate food demand
C) Increase food prices
D) Are irrelevant
Explanation: Food subsidies ensure nutrition access.
Q113. Which of the following is true about healthcare subsidies?
✅ A) Improve access to medical services
B) Eliminate healthcare demand
C) Increase healthcare costs
D) Are irrelevant
Explanation: Healthcare subsidies improve access.
Q114. Which of the following is true about education subsidies?
✅ A) Improve access to schooling and higher education
B) Eliminate education demand
C) Increase education costs
D) Are irrelevant
Explanation: Education subsidies improve access.
Q115. Which of the following is true about agricultural subsidies?
✅ A) Support farmers and stabilize food supply
B) Eliminate farming
C) Increase food prices
D) Are irrelevant
Explanation: Agricultural subsidies support farmers.
Q116. Which of the following is true about industrial subsidies?
✅ A) Encourage manufacturing and innovation
B) Eliminate industry
C) Increase costs
D) Are irrelevant
Explanation: Industrial subsidies promote industry.
Q117. Which of the following is true about welfare transfers?
✅ A) Direct cash or benefits to vulnerable groups
B) Eliminate welfare demand
C) Increase inequality
D) Are irrelevant
Explanation: Welfare transfers support vulnerable groups.
Q118. Which of the following is true about policy regulation in markets?
✅ A) Ensures fair competition and consumer protection
B) Eliminates competition
C) Increases monopolies
D) Is irrelevant
Explanation: Regulation ensures fairness.
Q119. Which of the following is true about anti‑trust policies?
✅ A) Prevent monopolies and promote competition
B) Encourage monopolies
C) Eliminate competition
D) Are irrelevant
Explanation: Anti‑trust policies prevent monopolies.
Q120. Which of the following is true about welfare economics?
✅ A) Studies how policies affect social well‑being
B) Studies only profits
C) Studies only production
D) Studies only trade
Explanation: Welfare economics focuses on social well‑being.
Q121. Which of the following is true about technology’s role in market development?
✅ A) Enhances efficiency and productivity
B) Eliminates competition
C) Reduces innovation
D) Creates isolation
Explanation: Technology improves efficiency and productivity.
Q122. Which of the following is true about digitalization in markets?
✅ A) Expands e‑commerce and online services
B) Eliminates consumer choice
C) Reduces communication
D) Creates isolation
Explanation: Digitalization expands online trade and services.
Q123. Which of the following is true about automation in industry?
✅ A) Increases productivity but may reduce jobs
B) Eliminates productivity
C) Always increases employment
D) Creates isolation
Explanation: Automation boosts productivity but can displace labor.
Q124. Which of the following is true about innovation in services?
✅ A) Creates new business models like fintech and edtech
B) Eliminates services
C) Reduces consumer choice
D) Creates isolation
Explanation: Innovation drives new service models.
Q125. Which of the following is true about technology in agriculture?
✅ A) Improves yields through mechanization and biotechnology
B) Eliminates farming
C) Reduces food supply
D) Creates isolation
Explanation: Technology enhances agricultural productivity.
Q126. Which of the following is true about technology in healthcare?
✅ A) Improves access through telemedicine and digital records
B) Eliminates healthcare
C) Reduces medical services
D) Creates isolation
Explanation: Technology expands healthcare access.
Q127. Which of the following is true about technology in education?
✅ A) Expands learning through online platforms
B) Eliminates education
C) Reduces literacy
D) Creates isolation
Explanation: Technology improves education access.
Q128. Which of the following is true about innovation in finance?
✅ A) Creates digital banking and fintech solutions
B) Eliminates finance
C) Reduces investment
D) Creates isolation
Explanation: Innovation drives fintech growth.
Q129. Which of the following is true about innovation in retail?
✅ A) Expands e‑commerce and digital payments
B) Eliminates retail
C) Reduces consumer choice
D) Creates isolation
Explanation: Innovation transforms retail through e‑commerce.
Q130. Which of the following is true about technology in transportation?
✅ A) Improves logistics and global connectivity
B) Eliminates transport
C) Reduces mobility
D) Creates isolation
Explanation: Technology enhances transport efficiency.
Q131. Which of the following is true about innovation in communication?
✅ A) Expands global connectivity through internet and mobile
B) Eliminates communication
C) Reduces connectivity
D) Creates isolation
Explanation: Innovation improves communication globally.
Q132. Which of the following is true about technology in energy markets?
✅ A) Promotes renewable energy and efficiency
B) Eliminates energy supply
C) Reduces sustainability
D) Creates isolation
Explanation: Technology supports renewable energy.
Q133. Which of the following is true about innovation in housing markets?
✅ A) Promotes smart homes and sustainable construction
B) Eliminates housing
C) Reduces affordability
D) Creates isolation
Explanation: Innovation drives smart housing.
Q134. Which of the following is true about technology in global trade?
✅ A) Enhances supply chain management and tracking
B) Eliminates trade
C) Reduces exports
D) Creates isolation
Explanation: Technology improves trade logistics.
Q135. Which of the following is true about innovation in entrepreneurship?
✅ A) Creates startups in digital and knowledge sectors
B) Eliminates entrepreneurship
C) Reduces innovation
D) Creates isolation
Explanation: Innovation fosters startups.
Q136. Which of the following is true about technology in governance?
✅ A) Promotes e‑governance and transparency
B) Eliminates governance
C) Reduces accountability
D) Creates isolation
Explanation: Technology improves governance.
Q137. Which of the following is true about innovation in consumer behavior?
✅ A) Shifts demand toward digital and sustainable goods
B) Eliminates consumer choice
C) Reduces consumption
D) Creates isolation
Explanation: Innovation changes consumer preferences.
Q138. Which of the following is true about technology in global finance?
✅ A) Enables instant cross‑border transactions
B) Eliminates finance
C) Reduces investment
D) Creates isolation
Explanation: Technology enables global financial flows.
Q139. Which of the following is true about innovation in labor markets?
✅ A) Creates gig economy and flexible work models
B) Eliminates labor
C) Reduces employment
D) Creates isolation
Explanation: Innovation reshapes labor markets.
Q140. Which of the following is true about technology in sustainability?
✅ A) Promotes green innovation and circular economy
B) Eliminates sustainability
C) Reduces environmental protection
D) Creates isolation
Explanation: Technology supports sustainable development.
Q141. Which of the following is true about agriculture in developing economies?
✅ A) Provides majority employment and GDP share
B) Provides minimal employment
C) Dominates advanced economies
D) Is irrelevant globally
Explanation: Agriculture dominates employment in developing economies.
Q142. Which of the following is true about agriculture in advanced economies?
✅ A) Provides minimal employment but high productivity
B) Provides majority employment
C) Dominates GDP share
D) Is irrelevant globally
Explanation: Agriculture is efficient but employs fewer people in advanced economies.
Q143. Which of the following is true about industrialization in developing economies?
✅ A) Shifts labor from agriculture to manufacturing
B) Eliminates agriculture
C) Reduces GDP
D) Creates isolation
Explanation: Industrialization moves labor into manufacturing.
Q144. Which of the following is true about industrialization in advanced economies?
✅ A) Manufacturing becomes capital‑intensive and automated
B) Provides majority employment
C) Eliminates services
D) Creates isolation
Explanation: Advanced economies automate manufacturing.
Q145. Which of the following is true about services in advanced economies?
✅ A) Services dominate GDP and employment
B) Services are irrelevant
C) Services provide minimal employment
D) Services are eliminated
Explanation: Services dominate advanced economies.
Q146. Which of the following is true about services in developing economies?
✅ A) Growing rapidly but secondary to agriculture and industry
B) Dominant in GDP
C) Irrelevant globally
D) Eliminated by globalization
Explanation: Services grow but agriculture/industry dominate.
Q147. Which of the following is true about agriculture modernization?
✅ A) Increases productivity through technology and irrigation
B) Eliminates farming
C) Reduces food supply
D) Creates isolation
Explanation: Modernization improves productivity.
Q148. Which of the following is true about industrial modernization?
✅ A) Increases efficiency through automation and innovation
B) Eliminates industry
C) Reduces output
D) Creates isolation
Explanation: Modernization boosts industrial efficiency.
Q149. Which of the following is true about service modernization?
✅ A) Expands digital platforms and global reach
B) Eliminates services
C) Reduces consumer choice
D) Creates isolation
Explanation: Modernization expands services digitally.
Q150. Which of the following is true about agriculture globalization?
✅ A) Expands exports and imports of food products
B) Eliminates farming
C) Reduces food supply
D) Creates isolation
Explanation: Agriculture becomes globally traded.
Q151. Which of the following is true about industry globalization?
✅ A) Integrates global supply chains
B) Eliminates industry
C) Reduces manufacturing
D) Creates isolation
Explanation: Industry integrates globally.
Q152. Which of the following is true about service globalization?
✅ A) Expands IT, finance, and tourism worldwide
B) Eliminates services
C) Reduces communication
D) Creates isolation
Explanation: Services expand globally.
Q153. Which of the following is true about agriculture employment trends?
✅ A) Declines with economic development
B) Increases with development
C) Remains constant
D) Eliminates industry
Explanation: Agriculture employment declines as economies grow.
Q154. Which of the following is true about industry employment trends?
✅ A) Peaks during industrialization then declines with automation
B) Always increases
C) Always decreases
D) Eliminates services
Explanation: Industry employment peaks then declines.
Q155. Which of the following is true about service employment trends?
✅ A) Rises steadily with development
B) Declines with development
C) Remains constant
D) Eliminates agriculture
Explanation: Service employment rises with development.
Q156. Which of the following is true about agriculture productivity trends?
✅ A) Increases with technology adoption
B) Declines with modernization
C) Remains constant
D) Eliminates farming
Explanation: Technology boosts productivity.
Q157. Which of the following is true about industry productivity trends?
✅ A) Increases with automation and innovation
B) Declines with modernization
C) Remains constant
D) Eliminates industry
Explanation: Automation boosts productivity.
Q158. Which of the following is true about service productivity trends?
✅ A) Increases with digitalization and global integration
B) Declines with modernization
C) Remains constant
D) Eliminates services
Explanation: Digitalization boosts service productivity.
Q159. Which of the following is true about agriculture’s role in food security?
✅ A) Ensures stable food supply for populations
B) Eliminates food supply
C) Reduces nutrition
D) Creates isolation
Explanation: Agriculture ensures food security.
Q160. Which of the following is true about services’ role in knowledge economies?
✅ A) Drive innovation through IT, education, and R&D
B) Eliminate knowledge
C) Reduce innovation
D) Create isolation
Explanation: Services drive knowledge economies.
Q161. Which of the following is true about inflation’s impact on consumer demand?
✅ A) Reduces demand for discretionary goods
B) Increases demand for luxury goods
C) Eliminates demand for necessities
D) Has no effect
Explanation: Inflation reduces discretionary spending.
Q162. Which of the following is true about inflation’s impact on necessities?
✅ A) Demand remains relatively inelastic
B) Demand becomes highly elastic
C) Demand disappears
D) Demand is irrelevant
Explanation: Necessities remain inelastic during inflation.
Q163. Which of the following is true about inflation’s impact on savings?
✅ A) Reduces real value of savings
B) Increases real value of savings
C) Eliminates savings
D) Has no effect
Explanation: Inflation erodes savings value.
Q164. Which of the following is true about inflation’s impact on investment?
✅ A) Creates uncertainty and reduces investment
B) Always increases investment
C) Eliminates investment
D) Has no effect
Explanation: Inflation discourages investment.
Q165. Which of the following is true about recession’s impact on luxury goods?
✅ A) Demand decreases sharply
B) Demand increases sharply
C) Demand remains constant
D) Demand is irrelevant
Explanation: Luxury demand falls in recession.
Q166. Which of the following is true about recession’s impact on necessities?
✅ A) Demand remains relatively stable
B) Demand disappears
C) Demand increases sharply
D) Demand is irrelevant
Explanation: Necessities remain stable in recession.
Q167. Which of the following is true about recession’s impact on unemployment?
✅ A) Unemployment rises significantly
B) Unemployment falls
C) Unemployment remains constant
D) Unemployment is irrelevant
Explanation: Recession increases unemployment.
Q168. Which of the following is true about recession’s impact on GDP?
✅ A) GDP contracts
B) GDP expands
C) GDP remains constant
D) GDP is irrelevant
Explanation: Recession reduces GDP.
Q169. Which of the following is true about recession’s impact on investment?
✅ A) Investment declines due to uncertainty
B) Investment increases
C) Investment remains constant
D) Investment is irrelevant
Explanation: Recession discourages investment.
Q170. Which of the following is true about recession’s impact on government policy?
✅ A) Governments use stimulus measures to revive demand
B) Governments reduce spending
C) Governments ignore recession
D) Governments eliminate welfare
Explanation: Stimulus policies counter recession.
Q171. Which of the following is true about pandemic’s impact on global trade?
✅ A) Disrupts supply chains and reduces trade flows
B) Expands trade flows
C) Eliminates trade permanently
D) Has no effect
Explanation: Pandemics disrupt trade.
Q172. Which of the following is true about pandemic’s impact on healthcare demand?
✅ A) Demand rises sharply
B) Demand falls sharply
C) Demand remains constant
D) Demand is irrelevant
Explanation: Healthcare demand rises in pandemics.
Q173. Which of the following is true about pandemic’s impact on tourism?
✅ A) Tourism demand collapses
B) Tourism demand rises sharply
C) Tourism demand remains constant
D) Tourism demand is irrelevant
Explanation: Tourism collapses during pandemics.
Q174. Which of the following is true about pandemic’s impact on digital services?
✅ A) Demand rises sharply for online platforms
B) Demand falls sharply
C) Demand remains constant
D) Demand is irrelevant
Explanation: Digital services expand in pandemics.
Q175. Which of the following is true about pandemic’s impact on employment?
✅ A) Informal sector jobs are most vulnerable
B) Formal jobs are unaffected
C) Employment rises sharply
D) Employment is irrelevant
Explanation: Informal jobs suffer most in pandemics.
Q176. Which of the following is true about pandemic’s impact on government spending?
✅ A) Increases healthcare and welfare expenditure
B) Reduces spending
C) Eliminates welfare
D) Has no effect
Explanation: Governments increase spending during pandemics.
Q177. Which of the following is true about pandemic’s impact on inequality?
✅ A) Inequality widens due to uneven effects
B) Inequality disappears
C) Inequality reduces sharply
D) Inequality is irrelevant
Explanation: Pandemics widen inequality.
Q178. Which of the following is true about crisis management policies?
✅ A) Aim to stabilize demand and employment
B) Aim to eliminate markets
C) Aim to reduce welfare
D) Are irrelevant
Explanation: Crisis policies stabilize economies.
Q179. Which of the following is true about inflation shocks in developing economies?
✅ A) Hit poor households hardest due to necessity spending
B) Affect rich households most
C) Eliminate inequality
D) Are irrelevant
Explanation: Inflation shocks hurt poor households.
Q180. Which of the following is true about recession recovery strategies?
✅ A) Focus on stimulus, investment, and job creation
B) Focus on reducing demand
C) Focus on eliminating welfare
D) Are irrelevant
Explanation: Recovery strategies stimulate demand and jobs.
Q181. Which sector dominates GDP in developed economies?
✅ A) Tertiary sector
B) Primary sector
C) Secondary sector
D) Quinary sector
Explanation: Services dominate GDP in developed economies.
Q182. Which sector dominates GDP in developing economies?
✅ A) Primary sector
B) Tertiary sector
C) Quaternary sector
D) Quinary sector
Explanation: Agriculture dominates GDP in developing economies.
Q183. Which sector provides most employment in developed economies?
✅ A) Tertiary sector
B) Primary sector
C) Secondary sector
D) Quinary sector
Explanation: Services provide most jobs in developed economies.
Q184. Which sector provides most employment in developing economies?
✅ A) Primary sector
B) Tertiary sector
C) Quaternary sector
D) Quinary sector
Explanation: Agriculture provides most jobs in developing economies.
Q185. Which of the following is true about industrialization in developing economies?
✅ A) Shifts labor from agriculture to manufacturing
B) Eliminates agriculture
C) Reduces GDP
D) Creates isolation
Explanation: Industrialization moves labor into manufacturing.
Q186. Which of the following is true about industrialization in developed economies?
✅ A) Manufacturing becomes capital‑intensive and automated
B) Provides majority employment
C) Eliminates services
D) Creates isolation
Explanation: Developed economies automate manufacturing.
Q187. Which of the following is true about services in developed economies?
✅ A) Services dominate GDP and employment
B) Services are irrelevant
C) Services provide minimal employment
D) Services are eliminated
Explanation: Services dominate developed economies.
Q188. Which of the following is true about services in developing economies?
✅ A) Growing rapidly but secondary to agriculture and industry
B) Dominant in GDP
C) Irrelevant globally
D) Eliminated by globalization
Explanation: Services grow but agriculture/industry dominate.
Q189. Which of the following is true about productivity in developed economies?
✅ A) High due to technology and capital intensity
B) Low due to labor intensity
C) Constant across all sectors
D) Irrelevant globally
Explanation: Productivity is high in developed economies.
Q190. Which of the following is true about productivity in developing economies?
✅ A) Low due to reliance on labor and limited technology
B) High due to automation
C) Constant across all sectors
D) Irrelevant globally
Explanation: Productivity is lower in developing economies.
Q191. Which of the following is true about sectoral shifts in developed economies?
✅ A) Move from agriculture to industry to services
B) Remain in agriculture
C) Skip industry
D) Focus only on quinary sector
Explanation: Developed economies shift toward services.
Q192. Which of the following is true about sectoral shifts in developing economies?
✅ A) Transition from agriculture to industry is ongoing
B) Already dominated by services
C) Skip agriculture
D) Focus only on quinary sector
Explanation: Developing economies are transitioning to industry.
Q193. Which of the following is true about income levels in developed economies?
✅ A) Higher due to productivity and services dominance
B) Lower due to agriculture reliance
C) Constant across all sectors
D) Irrelevant globally
Explanation: Higher incomes result from productivity.
Q194. Which of the following is true about income levels in developing economies?
✅ A) Lower due to agriculture reliance and low productivity
B) Higher due to automation
C) Constant across all sectors
D) Irrelevant globally
Explanation: Lower incomes result from agriculture reliance.
Q195. Which of the following is true about technology adoption in developed economies?
✅ A) High adoption across all sectors
B) Low adoption
C) Constant across all sectors
D) Irrelevant globally
Explanation: Developed economies adopt technology widely.
Q196. Which of the following is true about technology adoption in developing economies?
✅ A) Limited adoption due to resource constraints
B) High adoption across all sectors
C) Constant across all sectors
D) Irrelevant globally
Explanation: Developing economies face resource limits.
Q197. Which of the following is true about globalization’s impact on developed economies?
✅ A) Expands services and knowledge sectors
B) Eliminates services
C) Reduces GDP
D) Creates isolation
Explanation: Globalization strengthens services in developed economies.
Q198. Which of the following is true about globalization’s impact on developing economies?
✅ A) Expands industry and agriculture exports
B) Eliminates agriculture
C) Reduces GDP
D) Creates isolation
Explanation: Developing economies expand exports.
Q199. Which of the following is true about sustainability in developed economies?
✅ A) Focus on green innovation and renewable energy
B) Ignore sustainability
C) Reduce environmental protection
D) Create isolation
Explanation: Developed economies emphasize sustainability.
Q200. Which of the following is true about sustainability in developing economies?
✅ A) Struggle with balancing growth and environment
B) Ignore sustainability completely
C) Reduce GDP
D) Create isolation
Explanation: Developing economies balance growth with environment.
Q201. Which of the following is true about green markets?
✅ A) Promote eco‑friendly products and services
B) Eliminate sustainability
C) Reduce consumer choice
D) Create isolation
Explanation: Green markets focus on eco‑friendly goods.
Q202. Which of the following is true about renewable energy markets?
✅ A) Expand solar, wind, and hydro power
B) Eliminate energy supply
C) Reduce sustainability
D) Create isolation
Explanation: Renewable energy drives sustainability.
Q203. Which of the following is true about carbon markets?
✅ A) Trade carbon credits to reduce emissions
B) Eliminate carbon regulation
C) Increase pollution
D) Create isolation
Explanation: Carbon markets regulate emissions.
Q204. Which of the following is true about sustainable agriculture?
✅ A) Promotes organic farming and resource conservation
B) Eliminates farming
C) Reduces food supply
D) Creates isolation
Explanation: Sustainable agriculture conserves resources.
Q205. Which of the following is true about sustainable industry?
✅ A) Focuses on clean technology and recycling
B) Eliminates industry
C) Reduces output
D) Creates isolation
Explanation: Sustainable industry uses clean technology.
Q206. Which of the following is true about sustainable services?
✅ A) Promote eco‑tourism and digital efficiency
B) Eliminate services
C) Reduce consumer choice
D) Create isolation
Explanation: Services can be made sustainable.
Q207. Which of the following is true about green consumer behavior?
✅ A) Shifts demand toward eco‑friendly goods
B) Eliminates consumer choice
C) Reduces consumption
D) Creates isolation
Explanation: Consumers prefer eco‑friendly products.
Q208. Which of the following is true about corporate sustainability policies?
✅ A) Aim to reduce carbon footprint and waste
B) Eliminate sustainability
C) Reduce profits only
D) Create isolation
Explanation: Corporate policies reduce environmental impact.
Q209. Which of the following is true about government sustainability policies?
✅ A) Promote renewable energy and conservation
B) Eliminate sustainability
C) Reduce GDP
D) Create isolation
Explanation: Governments promote sustainability.
Q210. Which of the following is true about international sustainability agreements?
✅ A) Aim to reduce global emissions collectively
B) Eliminate cooperation
C) Reduce trade
D) Create isolation
Explanation: Agreements reduce emissions globally.
Q211. Which of the following is true about green innovation?
✅ A) Creates eco‑friendly technologies and products
B) Eliminates innovation
C) Reduces sustainability
D) Creates isolation
Explanation: Green innovation drives eco‑friendly growth.
Q212. Which of the following is true about circular economy?
✅ A) Promotes reuse, recycling, and resource efficiency
B) Eliminates sustainability
C) Reduces consumer choice
D) Creates isolation
Explanation: Circular economy conserves resources.
Q213. Which of the following is true about sustainable finance?
✅ A) Invests in eco‑friendly projects and companies
B) Eliminates finance
C) Reduces investment
D) Creates isolation
Explanation: Sustainable finance supports green projects.
Q214. Which of the following is true about ESG (Environmental, Social, Governance) investing?
✅ A) Focuses on sustainability and ethical practices
B) Eliminates investment
C) Reduces profits only
D) Creates isolation
Explanation: ESG investing promotes ethical sustainability.
Q215. Which of the following is true about green jobs?
✅ A) Employment in renewable energy and eco‑friendly sectors
B) Eliminate employment
C) Reduce wages
D) Create isolation
Explanation: Green jobs support sustainability.
Q216. Which of the following is true about sustainable tourism?
✅ A) Promotes eco‑friendly travel and conservation
B) Eliminates tourism
C) Reduces consumer choice
D) Creates isolation
Explanation: Sustainable tourism protects environments.
Q217. Which of the following is true about sustainable urban development?
✅ A) Promotes smart cities and eco‑friendly infrastructure
B) Eliminates cities
C) Reduces housing
D) Creates isolation
Explanation: Sustainable urban development builds smart cities.
Q218. Which of the following is true about sustainable rural development?
✅ A) Promotes eco‑friendly farming and resource use
B) Eliminates rural areas
C) Reduces agriculture
D) Creates isolation
Explanation: Sustainable rural development conserves resources.
Q219. Which of the following is true about green supply chains?
✅ A) Reduce waste and promote eco‑friendly logistics
B) Eliminate supply chains
C) Reduce efficiency
D) Create isolation
Explanation: Green supply chains reduce waste.
Q220. Which of the following is true about sustainable consumption?
✅ A) Encourages responsible use of resources
B) Eliminates consumption
C) Reduces consumer choice
D) Creates isolation
Explanation: Sustainable consumption promotes responsible use.
Q221. Which of the following is true about global trade in manufactured goods?
✅ A) Dominates world trade flows
B) Negligible in global trade
C) Eliminated by globalization
D) Irrelevant globally
Explanation: Manufactured goods dominate global trade.
Q222. Which of the following is true about global trade in services?
✅ A) Expanding rapidly through IT, finance, and tourism
B) Declining globally
C) Eliminated by globalization
D) Irrelevant globally
Explanation: Services trade is expanding worldwide.
Q223. Which of the following is true about global trade in agriculture?
✅ A) Provides food security through imports and exports
B) Eliminated globally
C) Irrelevant globally
D) Reduces food supply
Explanation: Agriculture trade ensures food security.
Q224. Which of the following is true about elasticity of demand in luxury goods?
✅ A) Highly elastic, demand falls with price rise
B) Inelastic, demand remains constant
C) Perfectly inelastic
D) Irrelevant globally
Explanation: Luxury goods have elastic demand.
Q225. Which of the following is true about elasticity of demand in necessities?
✅ A) Relatively inelastic, demand remains stable
B) Highly elastic
C) Perfectly elastic
D) Irrelevant globally
Explanation: Necessities are inelastic.
Q226. Which of the following is true about elasticity of demand in agricultural products?
✅ A) Often inelastic due to necessity
B) Highly elastic
C) Perfectly elastic
D) Irrelevant globally
Explanation: Food demand is inelastic.
Q227. Which of the following is true about elasticity of demand in industrial goods?
✅ A) Varies depending on substitutes and necessity
B) Always inelastic
C) Always elastic
D) Irrelevant globally
Explanation: Elasticity varies for industrial goods.
Q228. Which of the following is true about elasticity of demand in services?
✅ A) Varies depending on type of service
B) Always inelastic
C) Always elastic
D) Irrelevant globally
Explanation: Services elasticity depends on type.
Q229. Which of the following is true about elasticity of demand in healthcare?
✅ A) Relatively inelastic due to necessity
B) Highly elastic
C) Perfectly elastic
D) Irrelevant globally
Explanation: Healthcare demand is inelastic.
Q230. Which of the following is true about elasticity of demand in education?
✅ A) Relatively inelastic due to necessity and long‑term value
B) Highly elastic
C) Perfectly elastic
D) Irrelevant globally
Explanation: Education demand is inelastic.
Q231. Which of the following is true about elasticity of demand in energy?
✅ A) Relatively inelastic due to necessity
B) Highly elastic
C) Perfectly elastic
D) Irrelevant globally
Explanation: Energy demand is inelastic.
Q232. Which of the following is true about elasticity of demand in transport services?
✅ A) Varies depending on alternatives and necessity
B) Always inelastic
C) Always elastic
D) Irrelevant globally
Explanation: Transport elasticity depends on alternatives.
Q233. Which of the following is true about elasticity of demand in digital services?
✅ A) Highly elastic due to substitutes and competition
B) Always inelastic
C) Perfectly inelastic
D) Irrelevant globally
Explanation: Digital services are elastic.
Q234. Which of the following is true about elasticity of demand in agricultural exports?
✅ A) Inelastic due to necessity in importing countries
B) Highly elastic
C) Perfectly elastic
D) Irrelevant globally
Explanation: Food imports are inelastic.
Q235. Which of the following is true about elasticity of demand in industrial exports?
✅ A) Elastic depending on substitutes and global competition
B) Always inelastic
C) Perfectly inelastic
D) Irrelevant globally
Explanation: Industrial exports are elastic.
Q236. Which of the following is true about elasticity of demand in service exports?
✅ A) Elastic depending on quality and alternatives
B) Always inelastic
C) Perfectly inelastic
D) Irrelevant globally
Explanation: Service exports vary in elasticity.
Q237. Which of the following is true about elasticity of demand in luxury imports?
✅ A) Highly elastic due to discretionary nature
B) Inelastic
C) Perfectly inelastic
D) Irrelevant globally
Explanation: Luxury imports are elastic.
Q238. Which of the following is true about elasticity of demand in essential imports?
✅ A) Relatively inelastic due to necessity
B) Highly elastic
C) Perfectly elastic
D) Irrelevant globally
Explanation: Essential imports are inelastic.
Q239. Which of the following is true about elasticity of demand in global energy trade?
✅ A) Relatively inelastic due to necessity
B) Highly elastic
C) Perfectly elastic
D) Irrelevant globally
Explanation: Energy trade is inelastic.
Q240. Which of the following is true about elasticity of demand in global digital trade?
✅ A) Highly elastic due to competition and substitutes
B) Always inelastic
C) Perfectly inelastic
D) Irrelevant globally
Explanation: Digital trade is elastic globally.
Q241. Which of the following is true about capital markets?
✅ A) Facilitate long‑term investment in securities
B) Focus only on short‑term loans
C) Eliminate investment opportunities
D) Are irrelevant globally
Explanation: Capital markets provide long‑term investment.
Q242. Which of the following is true about money markets?
✅ A) Deal with short‑term borrowing and lending
B) Focus only on long‑term securities
C) Eliminate liquidity
D) Are irrelevant globally
Explanation: Money markets handle short‑term funds.
Q243. Which of the following is true about stock exchanges?
✅ A) Provide a platform for buying and selling shares
B) Eliminate trading
C) Reduce investment opportunities
D) Are irrelevant globally
Explanation: Stock exchanges enable equity trading.
Q244. Which of the following is true about bond markets?
✅ A) Facilitate debt financing for governments and firms
B) Eliminate borrowing
C) Reduce investment opportunities
D) Are irrelevant globally
Explanation: Bond markets provide debt financing.
Q245. Which of the following is true about derivatives markets?
✅ A) Allow trading of futures and options for risk management
B) Eliminate risk completely
C) Reduce investment opportunities
D) Are irrelevant globally
Explanation: Derivatives manage risk through contracts.
Q246. Which of the following is true about foreign exchange markets?
✅ A) Facilitate currency trading globally
B) Eliminate currency exchange
C) Reduce trade opportunities
D) Are irrelevant globally
Explanation: Forex markets trade currencies.
Q247. Which of the following is true about financial intermediaries?
✅ A) Channel funds between savers and borrowers
B) Eliminate savings
C) Reduce investment opportunities
D) Are irrelevant globally
Explanation: Intermediaries connect savers and borrowers.
Q248. Which of the following is true about commercial banks?
✅ A) Provide loans, deposits, and payment services
B) Eliminate savings
C) Reduce investment opportunities
D) Are irrelevant globally
Explanation: Banks provide core financial services.
Q249. Which of the following is true about investment banks?
✅ A) Facilitate capital raising and mergers
B) Focus only on deposits
C) Eliminate investment opportunities
D) Are irrelevant globally
Explanation: Investment banks raise capital and advise firms.
Q250. Which of the following is true about insurance markets?
✅ A) Provide risk coverage for individuals and firms
B) Eliminate risk completely
C) Reduce investment opportunities
D) Are irrelevant globally
Explanation: Insurance covers risks.
Q251. Which of the following is true about pension funds?
✅ A) Invest savings for retirement security
B) Eliminate retirement savings
C) Reduce investment opportunities
D) Are irrelevant globally
Explanation: Pension funds secure retirement.
Q252. Which of the following is true about mutual funds?
✅ A) Pool savings to invest in diversified portfolios
B) Eliminate savings
C) Reduce investment opportunities
D) Are irrelevant globally
Explanation: Mutual funds diversify investments.
Q253. Which of the following is true about hedge funds?
✅ A) Use high‑risk strategies for high returns
B) Eliminate risk completely
C) Reduce investment opportunities
D) Are irrelevant globally
Explanation: Hedge funds pursue high‑risk returns.
Q254. Which of the following is true about venture capital?
✅ A) Provides funding to startups and innovation
B) Eliminates entrepreneurship
C) Reduces investment opportunities
D) Is irrelevant globally
Explanation: Venture capital funds startups.
Q255. Which of the following is true about private equity?
✅ A) Invests in firms to restructure and grow
B) Eliminates firms
C) Reduces investment opportunities
D) Is irrelevant globally
Explanation: Private equity restructures firms.
Q256. Which of the following is true about financial regulation?
✅ A) Ensures stability and protects investors
B) Eliminates markets
C) Reduces transparency
D) Is irrelevant globally
Explanation: Regulation stabilizes markets.
Q257. Which of the following is true about capital market integration?
✅ A) Connects global investors and firms
B) Eliminates investment opportunities
C) Reduces globalization
D) Is irrelevant globally
Explanation: Integration connects global capital.
Q258. Which of the following is true about financial crises?
✅ A) Disrupt capital markets and reduce confidence
B) Eliminate finance permanently
C) Increase investment opportunities
D) Are irrelevant globally
Explanation: Crises disrupt markets.
Q259. Which of the following is true about central banks?
✅ A) Regulate money supply and ensure stability
B) Eliminate finance
C) Reduce investment opportunities
D) Are irrelevant globally
Explanation: Central banks regulate money supply.
Q260. Which of the following is true about stock market indices?
✅ A) Measure performance of selected groups of stocks
B) Eliminate trading
C) Reduce investment opportunities
D) Are irrelevant globally
Explanation: Indices track stock performance.
Q261. Which of the following is true about consumer behavior in developing economies?
✅ A) Focused on necessities and basic goods
B) Focused on luxury services
C) Focused on global imports only
D) Irrelevant globally
Explanation: Consumers in developing economies prioritize necessities.
Q262. Which of the following is true about consumer behavior in developed economies?
✅ A) Focused on services, luxury, and technology
B) Focused only on agriculture
C) Focused on subsistence goods
D) Irrelevant globally
Explanation: Developed economies emphasize services and luxury.
Q263. Which of the following is true about consumer preferences in rural areas?
✅ A) Centered on agricultural and essential goods
B) Centered on luxury imports
C) Centered on advanced technology
D) Irrelevant globally
Explanation: Rural consumers prioritize essentials.
Q264. Which of the following is true about consumer preferences in urban areas?
✅ A) Centered on services, branded goods, and technology
B) Centered on agriculture only
C) Centered on subsistence goods
D) Irrelevant globally
Explanation: Urban consumers demand services and branded goods.
Q265. Which of the following is true about consumer demand during inflation?
✅ A) Shifts away from discretionary goods
B) Shifts toward luxury goods
C) Eliminates demand for necessities
D) Irrelevant globally
Explanation: Inflation reduces discretionary spending.
Q266. Which of the following is true about consumer demand during recession?
✅ A) Necessities remain stable, luxury demand falls
B) Necessities collapse
C) Luxury demand rises
D) Irrelevant globally
Explanation: Recession reduces luxury demand.
Q267. Which of the following is true about consumer demand during globalization?
✅ A) Expands choice of goods and services
B) Eliminates consumer choice
C) Reduces consumption
D) Irrelevant globally
Explanation: Globalization expands consumer choice.
Q268. Which of the following is true about consumer demand during digitalization?
✅ A) Shifts toward online platforms and e‑commerce
B) Eliminates consumption
C) Reduces consumer choice
D) Irrelevant globally
Explanation: Digitalization shifts demand online.
Q269. Which of the following is true about consumer demand during pandemics?
✅ A) Shifts toward healthcare and digital services
B) Eliminates consumption
C) Reduces healthcare demand
D) Irrelevant globally
Explanation: Pandemics increase healthcare and digital demand.
Q270. Which of the following is true about consumer demand during technological innovation?
✅ A) Shifts toward new products and services
B) Eliminates consumption
C) Reduces consumer choice
D) Irrelevant globally
Explanation: Innovation creates new demand.
Q271. Which of the following is true about consumer demand in luxury markets?
✅ A) Highly elastic and income‑dependent
B) Inelastic
C) Perfectly inelastic
D) Irrelevant globally
Explanation: Luxury demand is elastic.
Q272. Which of the following is true about consumer demand in necessity markets?
✅ A) Relatively inelastic due to essential nature
B) Highly elastic
C) Perfectly elastic
D) Irrelevant globally
Explanation: Necessities are inelastic.
Q273. Which of the following is true about consumer demand in digital markets?
✅ A) Highly elastic due to substitutes and competition
B) Inelastic
C) Perfectly inelastic
D) Irrelevant globally
Explanation: Digital demand is elastic.
Q274. Which of the following is true about consumer demand in healthcare markets?
✅ A) Relatively inelastic due to necessity
B) Highly elastic
C) Perfectly elastic
D) Irrelevant globally
Explanation: Healthcare demand is inelastic.
Q275. Which of the following is true about consumer demand in education markets?
✅ A) Relatively inelastic due to long‑term value
B) Highly elastic
C) Perfectly elastic
D) Irrelevant globally
Explanation: Education demand is inelastic.
Q276. Which of the following is true about consumer demand in energy markets?
✅ A) Relatively inelastic due to necessity
B) Highly elastic
C) Perfectly elastic
D) Irrelevant globally
Explanation: Energy demand is inelastic.
Q277. Which of the following is true about consumer demand in entertainment markets?
✅ A) Elastic due to discretionary nature
B) Inelastic
C) Perfectly inelastic
D) Irrelevant globally
Explanation: Entertainment demand is elastic.
Q278. Which of the following is true about consumer demand in transport markets?
✅ A) Varies depending on alternatives and necessity
B) Always inelastic
C) Always elastic
D) Irrelevant globally
Explanation: Transport demand depends on alternatives.
Q279. Which of the following is true about consumer demand in food markets?
✅ A) Relatively inelastic due to necessity
B) Highly elastic
C) Perfectly elastic
D) Irrelevant globally
Explanation: Food demand is inelastic.
Q280. Which of the following is true about consumer demand in housing markets?
✅ A) Relatively inelastic due to necessity and long‑term value
B) Highly elastic
C) Perfectly elastic
D) Irrelevant globally
Explanation: Housing demand is inelastic.
Q281. Which of the following is true about integrated sectoral development policies?
✅ A) Aim to balance agriculture, industry, and services
B) Focus only on agriculture
C) Focus only on services
D) Ignore industry
Explanation: Integrated policies balance all sectors.
Q282. Which of the following is true about industrial policy in developing economies?
✅ A) Encourages manufacturing growth and employment
B) Eliminates industry
C) Reduces GDP
D) Creates isolation
Explanation: Industrial policy promotes manufacturing.
Q283. Which of the following is true about agricultural policy in developing economies?
✅ A) Supports farmers through subsidies and infrastructure
B) Eliminates farming
C) Reduces food supply
D) Creates isolation
Explanation: Agricultural policy supports farmers.
Q284. Which of the following is true about service sector policy in advanced economies?
✅ A) Promotes IT, finance, and knowledge services
B) Eliminates services
C) Reduces GDP
D) Creates isolation
Explanation: Service policies promote knowledge sectors.
Q285. Which of the following is true about trade policy in globalization?
✅ A) Encourages exports and imports through liberalization
B) Eliminates trade
C) Reduces globalization
D) Creates isolation
Explanation: Trade policy liberalizes markets.
Q286. Which of the following is true about fiscal policy in recession?
✅ A) Uses government spending to stimulate demand
B) Reduces demand
C) Eliminates welfare
D) Creates isolation
Explanation: Fiscal policy stimulates demand.
Q287. Which of the following is true about monetary policy in inflation?
✅ A) Raises interest rates to reduce demand
B) Lowers interest rates
C) Eliminates money supply
D) Creates isolation
Explanation: Monetary policy raises rates to curb inflation.
Q288. Which of the following is true about monetary policy in recession?
✅ A) Lowers interest rates to encourage investment
B) Raises interest rates
C) Eliminates money supply
D) Creates isolation
Explanation: Monetary policy lowers rates in recession.
Q289. Which of the following is true about welfare policy in inequality reduction?
✅ A) Provides subsidies and transfers to vulnerable groups
B) Eliminates welfare
C) Reduces GDP
D) Creates isolation
Explanation: Welfare policy reduces inequality.
Q290. Which of the following is true about environmental policy in sustainable development?
✅ A) Promotes renewable energy and conservation
B) Eliminates sustainability
C) Reduces environmental protection
D) Creates isolation
Explanation: Environmental policy supports sustainability.
Q291. Which of the following is true about industrial clusters policy?
✅ A) Promotes regional specialization and efficiency
B) Eliminates industry
C) Reduces productivity
D) Creates isolation
Explanation: Clusters improve efficiency.
Q292. Which of the following is true about rural development policy?
✅ A) Promotes agriculture, infrastructure, and welfare
B) Eliminates rural areas
C) Reduces farming
D) Creates isolation
Explanation: Rural policy supports agriculture and welfare.
Q293. Which of the following is true about urban development policy?
✅ A) Promotes smart cities and infrastructure growth
B) Eliminates cities
C) Reduces housing
D) Creates isolation
Explanation: Urban policy builds smart cities.
Q294. Which of the following is true about globalization policy in advanced economies?
✅ A) Promotes services and knowledge exports
B) Eliminates globalization
C) Reduces GDP
D) Creates isolation
Explanation: Advanced economies export services.
Q295. Which of the following is true about globalization policy in developing economies?
✅ A) Promotes agriculture and industry exports
B) Eliminates globalization
C) Reduces GDP
D) Creates isolation
Explanation: Developing economies export agriculture/industry.
Q296. Which of the following is true about crisis management policy?
✅ A) Stabilizes demand, employment, and confidence
B) Eliminates markets
C) Reduces welfare
D) Creates isolation
Explanation: Crisis policies stabilize economies.
Q297. Which of the following is true about innovation policy?
✅ A) Promotes R&D and technology adoption
B) Eliminates innovation
C) Reduces productivity
D) Creates isolation
Explanation: Innovation policy drives R&D.
Q298. Which of the following is true about labor policy in globalization?
✅ A) Protects workers while enabling mobility
B) Eliminates labor
C) Reduces employment
D) Creates isolation
Explanation: Labor policy balances protection and mobility.
Q299. Which of the following is true about integrated fiscal‑monetary policy?
✅ A) Coordinates spending and interest rates for stability
B) Eliminates policy
C) Reduces GDP
D) Creates isolation
Explanation: Fiscal‑monetary coordination ensures stability.
Q300. Which of the following is true about holistic development policy?
✅ A) Balances economic growth, social welfare, and sustainability
B) Focuses only on GDP growth
C) Ignores welfare
D) Ignores sustainability
Explanation: Holistic policy balances growth, welfare, and sustainability.
Post a Comment
Post a Comment