In the context of cost curves, when Marginal Cost is less than Average Cost: MCQ with Answer and Explanation

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In the context of cost curves, when Marginal Cost is less than Average Cost:

A. Average Cost is falling

B. Average Cost is rising

C. Average Cost is at its maximum

D. Average Cost is constant

Answer: Option A

Solution (By JKSSB Mock Tests)

When MC is below AC, it pulls the average down, so AC is falling. AC starts rising only when MC exceeds AC.

This question belongs to: Economy GK Economy Set 1

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The 'GST' is a destination-based tax, so tax revenue accrues to:

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B. consuming state

C. producing state

D. exporting state

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Correct Answer: Option B

Explanation:
GST is destination-based; tax revenue goes to the state where goods are consumed.

This question belongs to: Economy GK Economy Set 1

Question #2

The term 'Budgetary Deficit' in the earlier classification referred to:

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Correct Answer: Option B

Explanation:
In the older classification, budgetary deficit was the difference between total expenditure and total receipts (both revenue and capital, excluding borrowings). It is no longer widely used.

This question belongs to: Economy GK Economy Set 1

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Correct Answer: Option C

Explanation:
A circular economy emphasizes reuse, recycling and regeneration to minimize waste.

This question belongs to: Economy GK Economy Set 1

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