The concept of 'Opportunity Cost' is best defined as: MCQ with Answer and Explanation

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The concept of 'Opportunity Cost' is best defined as:

A. The difference between total revenue and total cost

B. The cost of producing one more unit of a commodity

C. The total cost incurred in production

D. The value of the next best alternative forgone

Answer: Option D

Solution (By JKSSB Mock Tests)

Opportunity cost refers to the value of the next best alternative that is sacrificed when a choice is made. It is a fundamental concept in economics.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Most Favoured Nation' tariff treatment under WTO requires countries to:

A. give special preferences to neighbours

B. ban imports

C. extend the same trade advantages to all WTO members

D. impose zero tariffs on all goods

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Correct Answer: Option C

Explanation:
MFN requires non-discriminatory treatment among all WTO members.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Budget at a Glance' is a document that:

A. is prepared by RBI

B. is not made public

C. provides a summary of the budget

D. contains only secret information

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Correct Answer: Option C

Explanation:
Budget at a Glance provides a summary of budget estimates.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Goods and Services Tax' rate on postal services is:

A. 18%

B. 0%

C. 12%

D. 5%

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Correct Answer: Option B

Explanation:
Postal services by the Department of Posts are exempt from GST.

This question belongs to: Economy GK Economy Set 1

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