In the context of cost, Marginal Cost is defined as: MCQ with Answer and Explanation

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In the context of cost, Marginal Cost is defined as:

A. Variable cost divided by output

B. Total cost divided by output

C. Fixed cost divided by output

D. Change in total cost due to production of one additional unit

Answer: Option D

Solution (By JKSSB Mock Tests)

Marginal Cost (MC) is the addition to total cost when one more unit of output is produced. MC = ΔTC/ΔQ.

This question belongs to: Economy GK Economy Set 1

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The 'injection' into the circular flow in a three-sector economy includes:

A. saving

B. government expenditure and investment

C. imports

D. taxes

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Correct Answer: Option B

Explanation:
In a three-sector economy, injections include investment and government expenditure.

This question belongs to: Economy GK Economy Set 1

Question #2

The concept of 'Macroprudential Policy' aims at:

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D. Only the soundness of individual institutions

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Correct Answer: Option B

Explanation:
Macroprudential policy uses regulatory and supervisory tools to mitigate systemic risk and to increase the resilience of the financial system as a whole, complementing microprudential supervision of individual institutions.

This question belongs to: Economy GK Economy Set 1

Question #3

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Correct Answer: Option C

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

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