Economic cost includes: MCQ with Answer and Explanation

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Economic cost includes:

A. both explicit and implicit costs

B. only implicit costs

C. only explicit costs

D. only accounting costs

Answer: Option A

Solution (By JKSSB Mock Tests)

Economic cost includes both explicit costs and implicit opportunity costs.

This question belongs to: Economy GK Economy Set 1

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Question #1

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Which of the following is a characteristic of oligopoly?

A. Interdependence among firms

B. Large number of independent sellers

C. Homogeneous product with free entry

D. Perfect information and no barriers

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Correct Answer: Option A

Explanation:
Oligopoly is characterised by a few firms that are interdependent in their decision-making, as the actions of one firm affect the others.

This question belongs to: Economy GK Economy Set 1

Question #2

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In the context of the Indian economy, GST is best described as:

A. A wealth tax

B. A corporate tax levied only on companies

C. A direct tax on income

D. A comprehensive indirect tax on the supply of goods and services with a dual structure

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Correct Answer: Option D

Explanation:
GST is a destination-based, multi-stage indirect tax levied on the supply of goods and services, administered jointly by the Centre and the States.

This question belongs to: Economy GK Economy Set 1

Question #3

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Which of the following is a feature of the Indian tax system after the introduction of GST?

A. Persistence of multiple cascading taxes

B. Complete elimination of all state-level taxes without dual structure

C. A unified destination-based tax on goods and services with input tax credit mechanism

D. Only origin-based taxation

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Correct Answer: Option C

Explanation:
GST replaced a large number of cascading central and state taxes with a unified destination-based tax that permits seamless input tax credit.

This question belongs to: Economy GK Economy Set 1

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