In the context of production, the law of variable proportions is also known as:
A. Law of returns to scale
B. Law of diminishing returns
C. Law of increasing returns
D. Law of constant returns
Answer: Option B
Solution (By JKSSB Mock Tests)
The law of variable proportions (or law of diminishing returns) states that as more units of a variable factor are applied to a fixed factor, after a point, the marginal product of the variable factor diminishes.
Explanation:
CPI is the Consumer Price Index, which measures changes in the price level of a basket of consumer goods and services. It is the primary measure targeted by RBI for inflation.
Explanation:
Vertical equity requires that taxpayers with greater ability to pay contribute more in taxes, which is the ethical foundation for progressive taxation.
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