In the context of project appraisal, a project is considered economically viable if: MCQ with Answer and Explanation

In the context of project appraisal, a project is considered economically viable if:
A. Only financial costs are considered
B. The present value of benefits exceeds the present value of costs
C. The present value of costs exceeds the present value of benefits
D. Social costs are ignored
Answer: Option B
Solution (By JKSSB Mock Tests)
In cost-benefit analysis, a project is viable when the discounted present value of its benefits exceeds the discounted present value of its costs (positive net present value).

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Practice More Economy Set 1 Questions

Question #1
The 'good and services tax' regime in India is a 'one nation one tax' system.
A. Only for services
B. False
C. True
D. Only for goods

Correct Answer: Option C


Explanation:
GST is a unified indirect tax system for goods and services across India.

This question belongs to: Economy GK Economy Set 1
Question #2
The term 'Managed Floating' exchange rate system means that:
A. The exchange rate is fixed in terms of gold only
B. The exchange rate is rigidly fixed by the government
C. The exchange rate is largely market-determined with occasional central bank intervention
D. There is no role whatsoever for the central bank

Correct Answer: Option C


Explanation:
Under a managed float, the exchange rate is primarily determined by market forces, but the central bank intervenes from time to time to prevent excessive volatility or disorderly movements.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Goods and Services Tax' on solar panels is:
A. 18%
B. 28%
C. 12%
D. 5%

Correct Answer: Option D


Explanation:
Solar panels and modules attract 5% GST.

This question belongs to: Economy GK Economy Set 1