In the context of production functions, returns to scale refer to: MCQ with Answer and Explanation

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In the context of production functions, returns to scale refer to:

A. Change in price when supply changes

B. Change in output when all inputs are varied proportionately

C. Change in output when one input is varied

D. Change in cost when output changes

Answer: Option B

Solution (By JKSSB Mock Tests)

Returns to scale examine how output changes when all inputs are increased by the same proportion. They can be increasing, constant or decreasing.

This question belongs to: Economy GK Economy Set 1

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The 'Asian Development Bank' headquarters is in:

A. Singapore

B. Tokyo

C. Manila

D. Beijing

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Correct Answer: Option C

Explanation:
ADB headquarters is in Manila.

This question belongs to: Economy GK Economy Set 1

Question #2

The guiding philosophy of NITI Aayog is:

A. centralized planning

B. command economy

C. cooperative federalism

D. import substitution

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Correct Answer: Option C

Explanation:
NITI Aayog works on the principle of cooperative federalism.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is an example of Foreign Portfolio Investment?

A. Buying equity shares in Indian companies without acquiring control

B. Acquiring a 51% stake in an Indian company

C. Establishing a joint venture

D. Setting up a wholly owned subsidiary

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Correct Answer: Option A

Explanation:
Buying shares without acquiring control is portfolio investment.

This question belongs to: Economy GK Economy Set 1

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