The concept of 'Break-even Point' in economics refers to: MCQ with Answer and Explanation

Question

Share Report Error

The concept of 'Break-even Point' in economics refers to:

A. The level of output where average cost is maximum

B. The level of output where total revenue equals total cost

C. The level of output where profit is maximum

D. The level of output where marginal cost is minimum

Answer: Option B

Solution (By JKSSB Mock Tests)

The break-even point is the level of output at which total revenue equals total cost, so that economic profit is zero.

This question belongs to: Economy GK Economy Set 1

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1

The 'take-off' stage in Rostow's model is characterized by:

A. decrease in savings

B. rapid increase in investment and industrialization

C. decline in investment

D. agricultural stagnation

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
Take-off is marked by a sharp rise in investment and industrial growth.

This question belongs to: Economy GK Economy Set 1

Question #2

Deficit financing means:

A. reducing government expenditure

B. financing government expenditure through borrowing or money creation

C. financing government expenditure through taxation

D. repayment of public debt

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
Deficit financing involves financing a budget deficit through borrowing or creation of money.

This question belongs to: Economy GK Economy Set 1

Question #3

The term 'Primary Market' in the capital market refers to:

A. Market for short-term funds only

B. Market for issue of new securities

C. Market for trading existing securities

D. Market for agricultural commodities

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
The primary market is the market where new securities are issued by companies or governments for the first time to raise capital. The secondary market deals with existing securities.

This question belongs to: Economy GK Economy Set 1

Explore All Economy Set 1 MCQs