The concept of 'Tobin's q' is defined as: MCQ with Answer and Explanation

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The concept of 'Tobin's q' is defined as:

A. The ratio of investment to saving

B. The ratio of consumption to income

C. The ratio of money supply to GDP

D. The ratio of the market value of installed capital to its replacement cost

Answer: Option D

Solution (By JKSSB Mock Tests)

Tobin's q is the ratio of the market value of a firm's capital to the replacement cost of that capital. Investment is encouraged when q > 1 and discouraged when q < 1.

This question belongs to: Economy GK Economy Set 1

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Correct Answer: Option B

Explanation:
Sagarmala aims to promote port-led development and coastal infrastructure.

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Correct Answer: Option B

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Correct Answer: Option B

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