In the Cobb-Douglas production function Q = A L^α K^β, if α + β = 1, the production function exhibits: MCQ with Answer and Explanation

In the Cobb-Douglas production function Q = A L^α K^β, if α + β = 1, the production function exhibits:
A. decreasing returns to scale
B. increasing returns to scale
C. constant returns to scale
D. negative returns
Answer: Option C
Solution (By JKSSB Mock Tests)
If α + β = 1, the Cobb-Douglas production function exhibits constant returns to scale.

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Practice More Economy Set 1 Questions

Question #1
The 'ICRA' in India is a:
A. bank
B. insurance company
C. stock exchange
D. credit rating agency

Correct Answer: Option D


Explanation:
ICRA is a credit rating agency.

This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following is NOT a method of measuring national income?
A. Product method
B. Balance of payments method
C. Expenditure method
D. Income method

Correct Answer: Option B


Explanation:
National income is measured by product (value added), income and expenditure methods. Balance of payments is used for recording international transactions, not for measuring national income.

This question belongs to: Economy GK Economy Set 1
Question #3
The concept of 'Social Reproduction' in feminist economics refers to:
A. The activities and processes that maintain and reproduce the labour force on a daily and intergenerational basis, often performed unpaid within households
B. Only the reproduction of capital
C. Only market production of goods
D. Only biological reproduction without social dimensions

Correct Answer: Option A


Explanation:
Social reproduction encompasses the unpaid and paid activities—care, domestic work, education, health—that reproduce people as social and economic beings on a daily and generational basis.

This question belongs to: Economy GK Economy Set 1