An indifference curve is convex to the origin because of: MCQ with Answer and Explanation

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An indifference curve is convex to the origin because of:

A. increasing marginal rate of substitution

B. constant marginal utility

C. diminishing marginal rate of substitution

D. increasing returns to scale

Answer: Option C

Solution (By JKSSB Mock Tests)

Convexity of indifference curves is due to diminishing marginal rate of substitution.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The 'Gross National Disposable Income' equals GNP at market prices plus:

A. depreciation

B. net current transfers from abroad

C. net factor income from abroad

D. indirect taxes

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Correct Answer: Option B

Explanation:
Gross National Disposable Income = GNP at market prices + net current transfers from abroad.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Goods and Services Tax' on religious pilgrimage tours is:

A. 18%

B. 0%

C. 5%

D. 12%

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Correct Answer: Option C

Explanation:
Religious pilgrimage tours attract 5% GST.

This question belongs to: Economy GK Economy Set 1

Question #3

The concept of 'Intergenerational Equity' is particularly relevant in the context of:

A. Only short-term monetary policy

B. Only trade policy

C. Public debt and fiscal sustainability

D. Only private investment decisions

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Correct Answer: Option C

Explanation:
Intergenerational equity concerns the fairness of distributing the burden of public debt and resource use between present and future generations, important for fiscal sustainability.

This question belongs to: Economy GK Economy Set 1

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