An isoquant shows different combinations of two inputs that produce: MCQ with Answer and Explanation

An isoquant shows different combinations of two inputs that produce:
A. different levels of output
B. maximum profit
C. the same level of output
D. minimum cost
Answer: Option C
Solution (By JKSSB Mock Tests)
An isoquant is a curve showing all combinations of two inputs that yield the same level of output.

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Practice More Economy Set 1 Questions

Question #1
The concept of 'Tragedy of the Commons' illustrates:
A. The under-provision of public goods only
B. The efficient use of private goods
C. The benefits of free access to all resources
D. The overuse of a common-pool resource when property rights are not well defined

Correct Answer: Option D


Explanation:
The tragedy of the commons describes the tendency for a shared, non-excludable but rivalrous resource to be over-exploited when individual users do not bear the full social cost of their actions.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Clean Development Mechanism' under the Kyoto Protocol allows developed countries to:
A. tax developing countries
B. avoid all climate action
C. increase emissions
D. earn emission reduction credits by investing in projects in developing countries

Correct Answer: Option D


Explanation:
CDM allows developed countries to earn Certified Emission Reductions by financing emission reduction projects in developing countries.

This question belongs to: Economy GK Economy Set 1
Question #3
The concept of 'Too Big to Fail' in banking refers to:
A. The expectation that systemically important banks will receive government support in the event of distress
B. The legal requirement that all banks must be small
C. Only the size of non-bank firms
D. The absence of any systemic risk

Correct Answer: Option A


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