The concept of 'Break-even Analysis' is used to determine: MCQ with Answer and Explanation

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The concept of 'Break-even Analysis' is used to determine:

A. The level of output at which average cost is maximum

B. The level of output at which total revenue equals total cost

C. The level of output at which marginal cost is minimum

D. The level of output at which profit is maximised

Answer: Option B

Solution (By JKSSB Mock Tests)

Break-even analysis identifies the output level at which total revenue equals total cost, so that the firm makes neither profit nor loss.

This question belongs to: Economy GK Economy Set 1

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Question #1

Which of the following is a measure of economic inequality?

A. Human Development Index as a pure inequality measure

B. Gini coefficient, Lorenz curve and Theil index

C. Only GDP growth rate

D. Only unemployment rate

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Correct Answer: Option B

Explanation:
The Gini coefficient, Lorenz curve and Theil index are standard measures used to quantify the degree of inequality in the distribution of income or wealth.

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following is NOT a function of money?

A. Unit of account

B. Store of value

C. Medium of exchange

D. Means of production

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Correct Answer: Option D

Explanation:
The primary functions of money are medium of exchange, measure of value (unit of account), store of value and standard of deferred payments. Means of production is not a function of money.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Employees' State Insurance Corporation' provides which type of social security?

A. education loans

B. old age pension only

C. housing loans

D. health insurance, sickness and maternity benefits

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Correct Answer: Option D

Explanation:
ESIC provides health insurance, sickness, maternity and disability benefits to insured workers.

This question belongs to: Economy GK Economy Set 1

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