The concept of 'Producer Surplus' is the difference between: MCQ with Answer and Explanation

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The concept of 'Producer Surplus' is the difference between:

A. Price and marginal cost only

B. What producers are willing to accept and what they actually receive

C. Total revenue and total cost

D. What consumers are willing to pay and what they actually pay

Answer: Option B

Solution (By JKSSB Mock Tests)

Producer surplus is the difference between the amount a producer is willing to accept for a good and the amount actually received (market price).

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Wholesale Price Index' in India is compiled by:

A. NITI Aayog

B. Office of Economic Adviser, Ministry of Commerce and Industry

C. Ministry of Finance

D. RBI

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Correct Answer: Option B

Explanation:
The WPI is compiled by the Office of Economic Adviser in the Ministry of Commerce and Industry.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Goods and Services Tax' on legal services provided to individuals is:

A. 12%

B. 5%

C. 0%

D. 18%

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Correct Answer: Option D

Explanation:
Legal services to individuals attract 18% GST.

This question belongs to: Economy GK Economy Set 1

Question #3

The marginal rate of substitution of X for Y is equal to:

A. MUy divided by MUx

B. TUx plus TUy

C. MUx divided by MUy

D. Px multiplied by Py

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Correct Answer: Option C

Explanation:
MRS of X for Y is the ratio of marginal utility of X to marginal utility of Y.

This question belongs to: Economy GK Economy Set 1

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