The concept of 'Opportunity Cost' is central to which branch of economics? MCQ with Answer and Explanation

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The concept of 'Opportunity Cost' is central to which branch of economics?

A. Only international economics

B. Both micro and macroeconomics

C. Only macroeconomics

D. Only microeconomics

Answer: Option B

Solution (By JKSSB Mock Tests)

Opportunity cost is a fundamental concept used in both microeconomics (individual choice) and macroeconomics (resource allocation at national level).

This question belongs to: Economy GK Economy Set 1

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Question #1

Which of the following is an example of a public good?

A. Private car

B. National defence

C. Restaurant meal

D. Cinema ticket

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Correct Answer: Option B

Explanation:
Public goods are non-excludable and non-rivalrous. National defence is a classic example as one person's consumption does not reduce availability for others and people cannot be easily excluded from its benefits.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Multi-State Cooperative Societies Act' was enacted in which year?

A. 2012

B. 2002

C. 2006

D. 1984

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Correct Answer: Option B

Explanation:
The Multi-State Cooperative Societies Act was enacted in 2002.

This question belongs to: Economy GK Economy Set 1

Question #3

In the context of market failure, 'Asymmetric Information' leads to:

A. Perfect competition

B. Efficient market outcomes

C. Zero transaction costs

D. Adverse selection and moral hazard

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Correct Answer: Option D

Explanation:
Asymmetric information, where one party has more information than the other, can lead to adverse selection (before the contract) and moral hazard (after the contract).

This question belongs to: Economy GK Economy Set 1

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