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

Question

Share Report Error

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

A. C3 cost only

B. A2 + FL cost

C. only paid-out costs

D. C2 cost

Answer: Option B

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

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1

The 'Goods and Services Tax' on courier services is:

A. 18%

B. 5%

C. 12%

D. 28%

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option A

Explanation:
Courier services attract 18% GST.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'dumping margin' is the difference between:

A. import price and domestic price

B. tariff and subsidy

C. export price and cost of production

D. export price and home market price

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option D

Explanation:
Dumping margin is the difference between the normal value (home market price) and export price.

This question belongs to: Economy GK Economy Set 1

Question #3

If a 10% increase in the price of a good causes quantity demanded to fall by 5%, the price elasticity of demand is:

A. 0.5

B. 2

C. 1

D. 5

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option A

Explanation:
Elasticity = 5% / 10% = 0.5, which is inelastic.

This question belongs to: Economy GK Economy Set 1

Explore All Economy Set 1 MCQs