The concept of 'Social Opportunity Cost' is particularly relevant in the evaluation of:
A. Private investment projects only
B. Monetary policy only
C. International trade only
D. Public investment projects
Answer: Option D
Solution (By JKSSB Mock Tests)
Social opportunity cost considers the true cost to society of using resources in a particular project and is especially important in the appraisal of public investment projects.
Explanation:
According to Keynes, the level of effective demand (where aggregate demand equals aggregate supply) determines the equilibrium level of employment and output.
No comments yet. Be the first to start the discussion!