The concept of 'Consumer Surplus' is the area: MCQ with Answer and Explanation

The concept of 'Consumer Surplus' is the area:
A. Above the supply curve and below the price line
B. Below the demand curve and above the price line
C. Below the supply curve and above the price line
D. Above the demand curve and below the price line
Answer: Option B
Solution (By JKSSB Mock Tests)
Consumer surplus is the difference between the maximum amount consumers are willing to pay and the amount they actually pay, represented by the area under the demand curve and above the market price.

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Practice More Economy Set 1 Questions

Question #1
The 'Goods and Services Tax' on restaurant food is:
A. 28%
B. 5% without ITC
C. 18%
D. 12%

Correct Answer: Option B


Explanation:
Restaurant services generally attract 5% GST without input tax credit.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Digital India' programme includes which of the following pillars?
A. Only manufacturing
B. Digital infrastructure, governance and digital empowerment
C. Only defence
D. Only agriculture

Correct Answer: Option B


Explanation:
Digital India rests on digital infrastructure, digital governance and digital empowerment.

This question belongs to: Economy GK Economy Set 1
Question #3
The first Narasimham Committee of 1991 was appointed to recommend reforms in:
A. the financial system and banking sector
B. indirect taxes
C. agricultural pricing
D. capital markets only

Correct Answer: Option A


Explanation:
The Narasimham Committee was appointed to recommend financial system and banking sector reforms.

This question belongs to: Economy GK Economy Set 1