The least-cost combination of inputs for a producer occurs where: MCQ with Answer and Explanation

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The least-cost combination of inputs for a producer occurs where:

A. marginal cost is zero

B. total product is maximum

C. the isoquant is tangent to the isocost line

D. the isoquant intersects the isocost line at any point

Answer: Option C

Solution (By JKSSB Mock Tests)

Producer equilibrium for least cost is achieved at the tangency of an isoquant and isocost line.

This question belongs to: Economy GK Economy Set 1

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The Food Corporation of India is responsible for:

A. providing crop loans

B. regulating stock exchanges

C. procurement, storage and distribution of food grains

D. controlling inflation

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Correct Answer: Option C

Explanation:
FCI handles procurement, storage and distribution of food grains for the public distribution system.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Agricultural Produce Market Committee' is a:

A. private market

B. statutory body under state APMC Act

C. cooperative society

D. central government body

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Correct Answer: Option B

Explanation:
APMCs are statutory market committees established under state APMC Acts.

This question belongs to: Economy GK Economy Set 1

Question #3

In the context of national income accounting, which of the following is excluded from GDP?

A. Imputed rent of owner-occupied houses

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C. Value of intermediate goods

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Correct Answer: Option C

Explanation:
Intermediate goods are excluded from GDP to avoid double counting. Only the value of final goods and services is included.

This question belongs to: Economy GK Economy Set 1

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