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

The concept of 'Consumer Surplus' is the area:
A. Above the demand curve and below the price line
B. Below the supply curve and above the price line
C. Above the supply curve and below the price line
D. Below the demand curve and above the price line
Answer: Option D
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 'Estimates Committee' in Parliament examines:
A. judicial appointments
B. CAG reports
C. foreign policy
D. budget estimates and efficiency of expenditure

Correct Answer: Option D


Explanation:
Estimates Committee examines budget estimates and efficiency of expenditure.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Operation Flood' was launched in which year?
A. 1975
B. 1965
C. 1970
D. 1980

Correct Answer: Option C


Explanation:
Operation Flood was launched in 1970.

This question belongs to: Economy GK Economy Set 1
Question #3
In the context of international macroeconomics, the 'Twin Deficits' hypothesis links:
A. Only domestic saving and investment
B. The fiscal deficit and the current-account deficit
C. Only the trade deficit and the capital-account surplus
D. Only the revenue deficit and the primary deficit

Correct Answer: Option B


Explanation:
The twin-deficits hypothesis posits a positive relationship between the government budget deficit and the current-account deficit, arising from the national accounting identity linking private saving, investment and the twin deficits.

This question belongs to: Economy GK Economy Set 1