A firm should shut down in the short run if price is less than: MCQ with Answer and Explanation

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A firm should shut down in the short run if price is less than:

A. marginal cost

B. average fixed cost

C. average variable cost

D. average total cost

Answer: Option C

Solution (By JKSSB Mock Tests)

In the short run, a firm shuts down if price is less than average variable cost.

This question belongs to: Economy GK Economy Set 1

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Question #1

The concept of 'Too Big to Fail' in banking refers to:

A. The legal requirement that all banks must be small

B. Only the size of non-bank firms

C. The absence of any systemic risk

D. The expectation that systemically important banks will receive government support in the event of distress

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Correct Answer: Option D

Explanation:
Too-big-to-fail refers to the market perception or policy practice that certain large and interconnected financial institutions will be rescued by the authorities because their failure would impose systemic costs.

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following is a characteristic of a monopoly?

A. Free entry and exit

B. Homogeneous product with many sellers

C. Large number of sellers

D. Single seller and no close substitutes

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Correct Answer: Option D

Explanation:
Monopoly is characterised by a single seller of a product that has no close substitutes, with barriers to entry.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Evergreen Revolution' concept is associated with:

A. only organic farming

B. increasing fertilizer use

C. reducing crop diversity

D. sustainable agriculture with high productivity

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Correct Answer: Option D

Explanation:
Evergreen Revolution refers to sustainable agriculture while maintaining high productivity.

This question belongs to: Economy GK Economy Set 1

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