In the two-commodity consumer equilibrium condition, which equality must hold? MCQ with Answer and Explanation

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In the two-commodity consumer equilibrium condition, which equality must hold?

A. Px/Py = MUy/MUx

B. Px × MUx = Py × MUy

C. MUx/Px = MUy/Py

D. MUx = MUy

Answer: Option C

Solution (By JKSSB Mock Tests)

The consumer is in equilibrium when marginal utility per rupee is equal for all goods: MUx/Px = MUy/Py.

This question belongs to: Economy GK Economy Set 1

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Question #1

Which of the following is NOT a type of economic system?

A. Capitalist economy

B. Socialist economy

C. Barter economy as a complete system classification

D. Mixed economy

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Correct Answer: Option C

Explanation:
Economic systems are classified as capitalist, socialist and mixed based on ownership and resource allocation. Barter is a method of exchange, not a complete economic system classification.

This question belongs to: Economy GK Economy Set 1

Question #2

MGNREGA was enacted in which year?

A. 2003

B. 2007

C. 2005

D. 2010

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Correct Answer: Option C

Explanation:
MGNREGA was enacted in 2005.

This question belongs to: Economy GK Economy Set 1

Question #3

Expenditure on construction of a national highway is classified as:

A. revenue expenditure

B. transfer payment

C. capital expenditure

D. non-plan expenditure

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Correct Answer: Option C

Explanation:
Construction of a highway creates a capital asset and is capital expenditure.

This question belongs to: Economy GK Economy Set 1

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