The concept of 'Marginal Rate of Substitution' is derived from: MCQ with Answer and Explanation

The concept of 'Marginal Rate of Substitution' is derived from:
A. Cost curves
B. Production possibility frontier
C. Indifference curve analysis
D. Supply curve
Answer: Option C
Solution (By JKSSB Mock Tests)
The Marginal Rate of Substitution (MRS) is the rate at which a consumer is willing to give up one good for another while remaining on the same indifference curve.

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Practice More Economy Set 1 Questions

Question #1
A Pigouvian tax is imposed to:
A. encourage production of positive externality goods
B. internalize the external cost of a negative externality
C. reduce government revenue
D. increase imports

Correct Answer: Option B


Explanation:
A Pigouvian tax is levied to make producers internalize the external cost of negative externalities.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Goods and Services Tax' on courier services is:
A. 12%
B. 5%
C. 28%
D. 18%

Correct Answer: Option D


Explanation:
Courier services attract 18% GST.

This question belongs to: Economy GK Economy Set 1
Question #3
The Atal Mission for Rejuvenation and Urban Transformation focuses on:
A. urban infrastructure and basic services
B. agricultural markets
C. rural roads
D. railway electrification

Correct Answer: Option A


Explanation:
AMRUT focuses on urban infrastructure and basic services.

This question belongs to: Economy GK Economy Set 1