A negative externality occurs when: MCQ with Answer and Explanation

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A negative externality occurs when:

A. social cost exceeds private cost

B. private benefit equals social benefit

C. social benefit exceeds private benefit

D. private cost exceeds social cost

Answer: Option A

Solution (By JKSSB Mock Tests)

A negative externality arises when social cost exceeds private cost, e.g. pollution.

This question belongs to: Economy GK Economy Set 1

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Question #1

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The 'Goods and Services Tax' on life insurance under Pradhan Mantri Jeevan Jyoti Bima Yojana is:

A. 18%

B. 5%

C. exempt

D. 0%

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Correct Answer: Option C

Explanation:
PMJJBY premium is exempt from GST.

This question belongs to: Economy GK Economy Set 1

Question #2

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The 'Food and Agriculture Organization' is headquartered in:

A. Geneva

B. New York

C. Vienna

D. Rome

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Correct Answer: Option D

Explanation:
The Food and Agriculture Organization is headquartered in Rome, Italy.

This question belongs to: Economy GK Economy Set 1

Question #3

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Which of the following is NOT a component of Gross Domestic Product (GDP) calculated by the expenditure method?

A. Private final consumption expenditure

B. Net factor income from abroad

C. Government final consumption expenditure

D. Gross fixed capital formation

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Correct Answer: Option B

Explanation:
GDP by expenditure method includes private final consumption expenditure, government final consumption expenditure, gross fixed capital formation, and net exports. Net factor income from abroad is used to convert GDP into GNP, not a component of GDP itself.

This question belongs to: Economy GK Economy Set 1

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