Returns to scale refers to the relationship between inputs and output when: MCQ with Answer and Explanation

Returns to scale refers to the relationship between inputs and output when:
A. only one factor is changed
B. marginal cost is constant
C. technology is fixed
D. all factors are changed in the same proportion
Answer: Option D
Solution (By JKSSB Mock Tests)
Returns to scale describe the long-run response of output when all inputs change proportionally.

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Practice More Economy Set 1 Questions

Question #1
The 'Make in India' initiative targets increasing the share of manufacturing in GDP to what percentage?
A. 25%
B. 40%
C. 15%
D. 30%

Correct Answer: Option A


Explanation:
Make in India aims to raise manufacturing's share of GDP to 25%.

This question belongs to: Economy GK Economy Set 1
Question #2
The term 'Gross Fixed Capital Formation' includes:
A. Only financial investments
B. Only inventory investment
C. Only construction of buildings
D. Investment in fixed assets such as machinery, buildings and infrastructure

Correct Answer: Option D


Explanation:
Gross Fixed Capital Formation refers to the net addition to the stock of fixed assets such as plant, machinery, buildings and infrastructure during a period.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is a measure of absolute poverty commonly used in India?
A. Gini coefficient
B. Lorenz curve
C. Relative income share of the bottom 10%
D. Poverty line based on calorie norms and consumption expenditure

Correct Answer: Option D


Explanation:
India has traditionally used a poverty line based on minimum calorie requirements and corresponding consumption expenditure to measure absolute poverty.

This question belongs to: Economy GK Economy Set 1