Average product is obtained by dividing total product by: MCQ with Answer and Explanation

Question

Share Report Error

Average product is obtained by dividing total product by:

A. fixed input

B. units of variable input

C. marginal product

D. total cost

Answer: Option B

Solution (By JKSSB Mock Tests)

Average product is total product divided by the units of the variable input used.

This question belongs to: Economy GK Economy Set 1

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1

In the context of trade policy, the 'Optimal Tariff' argument suggests that:

A. Free trade is never optimal

B. A large country may improve its terms of trade by imposing a tariff, provided foreign retaliation is absent

C. Tariffs are always welfare-reducing for the imposing country

D. Only small countries can benefit from tariffs

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
A large country can improve its terms of trade by restricting imports, thereby extracting some monopoly or monopsony rent; the optimal tariff balances this gain against the efficiency loss.

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following is a feature of the 'Beyond GDP' movement?

A. The search for broader indicators of well-being and sustainability that complement or go beyond GDP

B. The complete abandonment of any quantitative indicators

C. The rejection of all economic statistics

D. The exclusive focus on GDP growth

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option A

Explanation:
The Beyond GDP agenda seeks to develop and use a wider set of indicators—covering health, education, environment, inequality and subjective well-being—to provide a more comprehensive picture of societal progress.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is a characteristic of the 'Easterlin Paradox'?

A. Within countries, higher income is associated with higher happiness, but over time average happiness does not rise with average income

B. Happiness always rises proportionally with income both within and across countries

C. Only relative income matters and absolute income is irrelevant even within countries

D. Income has no relation to happiness at any level

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option A

Explanation:
The Easterlin Paradox observes that, while richer individuals within a country tend to report higher happiness, average national happiness does not increase systematically as national income grows over the long run.

This question belongs to: Economy GK Economy Set 1

Explore All Economy Set 1 MCQs