A consumer consuming a single commodity attains equilibrium when: MCQ with Answer and Explanation

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A consumer consuming a single commodity attains equilibrium when:

A. TU is rising

B. Px is greater than MUx

C. MUx divided by Px equals marginal utility of money

D. MU of the commodity is zero

Answer: Option C

Solution (By JKSSB Mock Tests)

For one commodity, consumer equilibrium occurs when MUx/Px equals the marginal utility of money.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

Which of the following is included in the current account of the Balance of Payments?

A. Foreign direct investment

B. NRI deposits

C. External commercial borrowing

D. Trade in goods and services

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Correct Answer: Option D

Explanation:
The current account includes trade in goods and services, income and current transfers.

This question belongs to: Economy GK Economy Set 1

Question #2

In the Cobb-Douglas production function Q = A L^α K^β, if α + β = 1, the production function exhibits:

A. constant returns to scale

B. negative returns

C. increasing returns to scale

D. decreasing returns to scale

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Correct Answer: Option A

Explanation:
If α + β = 1, the Cobb-Douglas production function exhibits constant returns to scale.

This question belongs to: Economy GK Economy Set 1

Question #3

The concept of 'Interoperability' in digital markets refers to:

A. The ability of different systems, platforms or services to work together and exchange information

B. Only the absence of any data sharing

C. The complete isolation of platforms

D. Only the proprietary control of all interfaces

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Correct Answer: Option A

Explanation:
Interoperability is the capacity of different digital systems or platforms to communicate, exchange data and use the exchanged information, which can reduce switching costs and increase contestability.

This question belongs to: Economy GK Economy Set 1

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