Deadweight loss in economics refers to: MCQ with Answer and Explanation

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Deadweight loss in economics refers to:

A. depreciation of capital

B. loss suffered by a monopolist

C. loss of revenue to the government

D. loss of total welfare due to market inefficiency

Answer: Option D

Solution (By JKSSB Mock Tests)

Deadweight loss is the loss of economic welfare due to inefficiency such as taxes, price controls or monopoly.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The 'Rashtriya Krishi Vikas Yojana' aims at:

A. urban housing

B. agricultural development and infrastructure

C. industrial growth

D. tourism development

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Correct Answer: Option B

Explanation:
RKVY aims at promoting agricultural development and related infrastructure.

This question belongs to: Economy GK Economy Set 1

Question #2

Tax Deduction at Source means:

A. the payer deducts tax at the time of payment and deposits it with the government

B. the taxpayer pays tax after assessment

C. tax is paid by the employer after salary payment

D. tax is waived

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Correct Answer: Option A

Explanation:
TDS requires the payer to deduct tax at source and deposit it with the government.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is a major objective of the Reserve Bank of India Act?

A. To regulate the issue of bank notes and maintain monetary stability

B. To collect direct taxes

C. To maximise government revenue

D. To formulate five-year plans

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Correct Answer: Option A

Explanation:
The RBI Act, 1934 primarily aims at regulating the issue of bank notes, maintaining reserves to secure monetary stability and operating the currency and credit system of the country.

This question belongs to: Economy GK Economy Set 1

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