The 'long-run aggregate supply curve' is: MCQ with Answer and Explanation

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The 'long-run aggregate supply curve' is:

A. downward sloping

B. horizontal

C. U-shaped

D. vertical

Answer: Option D

Solution (By JKSSB Mock Tests)

The long-run aggregate supply curve is vertical at the full employment level of output.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Employees' Provident Funds and Miscellaneous Provisions Act' was enacted in which year?

A. 1956

B. 1961

C. 1952

D. 1948

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Correct Answer: Option C

Explanation:
EPF Act was enacted in 1952.

This question belongs to: Economy GK Economy Set 1

Question #2

The concept of 'Horizontal Equity' in taxation requires that:

A. Taxes should be independent of ability to pay

B. Individuals with higher ability to pay should pay proportionally more

C. Only vertical equity matters

D. Individuals with the same ability to pay should pay the same tax

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Correct Answer: Option D

Explanation:
Horizontal equity is the principle that taxpayers with equal capacity to pay (usually measured by income or wealth) should bear equal tax burdens.

This question belongs to: Economy GK Economy Set 1

Question #3

A 'common market' includes not only free trade and a common external tariff but also:

A. common defence

B. common currency

C. free movement of factors of production

D. common taxation only

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Correct Answer: Option C

Explanation:
A common market allows free movement of goods, services, capital and labour.

This question belongs to: Economy GK Economy Set 1

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