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

First-degree price discrimination occurs when a monopolist:

A. charges different prices in different markets

B. charges a single uniform price

C. sells in bulk at a lower price

D. charges each consumer the maximum price they are willing to pay

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Correct Answer: Option D

Explanation:
First-degree price discrimination, also called perfect price discrimination, charges each consumer their maximum willingness to pay.

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following is a major structural challenge for the Indian economy?

A. Self-sufficiency in all commodities without trade

B. Regional disparities, unemployment and informalisation of the workforce

C. Complete equality of income across regions

D. Absence of an informal sector

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Correct Answer: Option B

Explanation:
The Indian economy continues to face structural challenges such as regional imbalances, unemployment and underemployment, and a large informal sector.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is a non-tax revenue of the government?

A. Income tax

B. Customs duty

C. Interest receipts

D. Corporation tax

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Correct Answer: Option C

Explanation:
Non-tax revenue includes interest receipts, dividends and profits from PSUs, fees, fines, etc. Taxes like corporation tax, income tax and customs duty are tax revenues.

This question belongs to: Economy GK Economy Set 1

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