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 profit is maximised

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

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

The 'Goods and Services Tax' input tax credit is claimed by:

A. the final consumer

B. registered businesses on their purchases

C. the government

D. unregistered dealers

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Correct Answer: Option B

Explanation:
Registered businesses can claim input tax credit on their purchases.

This question belongs to: Economy GK Economy Set 1

Question #2

In the context of international economics, 'Dumping' refers to:

A. Importing goods without tariffs

B. Selling goods abroad at a higher price

C. Exporting goods with subsidies only

D. Selling goods abroad at a price lower than in the domestic market

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Correct Answer: Option D

Explanation:
Dumping is the practice of selling a product in a foreign market at a price lower than the domestic price or below the cost of production, often considered an unfair trade practice.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is a characteristic of the 'New Institutional Economics' approach?

A. It emphasises the role of institutions, property rights and transaction costs in economic performance

B. It ignores institutions completely

C. It focuses only on technological change

D. It assumes zero transaction costs always

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Correct Answer: Option A

Explanation:
New Institutional Economics, associated with Coase, North and Williamson, analyses how institutions, property-rights structures and transaction costs shape economic behaviour and long-run performance.

This question belongs to: Economy GK Economy Set 1

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