External economies of scale are enjoyed by a firm when: MCQ with Answer and Explanation

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External economies of scale are enjoyed by a firm when:

A. the entire industry expands

B. it reduces prices

C. the firm increases its own size

D. it merges with another firm

Answer: Option A

Solution (By JKSSB Mock Tests)

External economies arise from expansion of the industry as a whole, benefiting all firms.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Goods and Services Tax' on advertising services is:

A. 12%

B. 18%

C. 28%

D. 5%

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Correct Answer: Option B

Explanation:
Advertising services attract 18% GST.

This question belongs to: Economy GK Economy Set 1

Question #2

Say's law of markets states that:

A. government must manage demand

B. demand creates its own supply

C. supply creates its own demand

D. saving is always equal to investment

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Correct Answer: Option C

Explanation:
Say's law states that supply creates its own demand.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Prime Minister's Economic Advisory Council' was reconstituted in which year?

A. 2019

B. 2017

C. 2020

D. 2014

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Correct Answer: Option B

Explanation:
The PMEAC was reconstituted in September 2017.

This question belongs to: Economy GK Economy Set 1

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