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. average fixed cost

B. average total cost

C. average variable cost

D. marginal 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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Practice More Economy Set 1 Questions

Question #1

The 'Asian Development Bank' headquarters is in:

A. Beijing

B. Tokyo

C. Singapore

D. Manila

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Correct Answer: Option D

Explanation:
ADB headquarters is in Manila.

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following is a feature of the 'Modern Supply-Side Economics' emphasis?

A. Tax incentives and structural reforms to raise potential output and improve incentives to work, save and invest

B. Only monetary expansion

C. Only demand management through fiscal expansion

D. Complete neglect of incentives

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Correct Answer: Option A

Explanation:
Supply-side approaches stress policies that expand the productive capacity of the economy by improving incentives, reducing distortions and raising the efficiency of resource allocation.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'National Skill Development Corporation' was set up as a:

A. state-owned company only

B. government department

C. public-private partnership

D. regulatory body

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Correct Answer: Option C

Explanation:
NSDC is a public-private partnership for skill development.

This question belongs to: Economy GK Economy Set 1

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