In the context of cost curves, the Average Fixed Cost (AFC) curve is: MCQ with Answer and Explanation

Question

Share Report Error

In the context of cost curves, the Average Fixed Cost (AFC) curve is:

A. U-shaped

B. Rectangular hyperbola

C. Horizontal

D. Upward sloping

Answer: Option B

Solution (By JKSSB Mock Tests)

Average Fixed Cost falls continuously as output increases and the AFC curve is a rectangular hyperbola.

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

The 'Bretton Woods Conference' was held in which year?

A. 1947

B. 1950

C. 1940

D. 1944

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option D

Explanation:
The Bretton Woods Conference was held in 1944.

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following is a feature of the 'Debt-Deflation' theory associated with Irving Fisher?

A. Debt is irrelevant for the business cycle

B. Falling prices raise the real value of debt, leading to further declines in spending and prices

C. Deflation always reduces the real burden of debt

D. Only inflation causes debt problems

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
Fisher’s debt-deflation theory argues that an initial decline in prices increases the real burden of nominal debt, forcing distressed selling and further price declines in a downward spiral.

This question belongs to: Economy GK Economy Set 1

Question #3

Personal Disposable Income is obtained by subtracting from personal income:

A. customs duty

B. direct personal taxes

C. indirect taxes

D. corporate tax

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
Personal disposable income is personal income minus direct personal taxes and other non-tax payments.

This question belongs to: Economy GK Economy Set 1

Explore All Economy Set 1 MCQs