The 'Minimum Support Price' is based on which cost concept? MCQ with Answer and Explanation

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The 'Minimum Support Price' is based on which cost concept?

A. C2 cost

B. only paid-out costs

C. C3 cost only

D. A2 + FL cost

Answer: Option D

Solution (By JKSSB Mock Tests)

MSP is based on A2 plus family labour (FL) cost, though CACP recommends and government can consider C2.

This question belongs to: Economy GK Economy Set 1

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Question #1

The primary objective of the Reserve Bank of India's monetary policy is to:

A. maintain price stability while keeping in mind the objective of growth

B. manage government expenditure

C. maximize exports

D. eliminate fiscal deficit

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Correct Answer: Option A

Explanation:
The RBI's monetary policy aims primarily to maintain price stability while supporting economic growth.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Startup India Seed Fund Scheme' provides:

A. pension to workers

B. subsidies to farmers

C. seed funding to startups

D. loans to large companies

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Correct Answer: Option C

Explanation:
Startup India Seed Fund Scheme provides seed funding to startups.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is a characteristic of the informal sector in developing economies?

A. Complete absence of employment

B. High capital intensity and formal contracts

C. Easy entry, small scale and labour intensity

D. High degree of regulation

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Correct Answer: Option C

Explanation:
The informal sector is characterised by easy entry, small-scale operations, labour-intensive technology, lack of formal contracts and limited regulation.

This question belongs to: Economy GK Economy Set 1

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