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. A2 + FL cost

B. C3 cost only

C. C2 cost

D. only paid-out costs

Answer: Option A

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

Which of the following is NOT a component of the money market in India?

A. Treasury Bills

B. Equity shares

C. Commercial Paper

D. Certificate of Deposit

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Correct Answer: Option B

Explanation:
Equity shares are long-term instruments and form part of the capital market. Money market instruments include Treasury Bills, Commercial Paper, Certificates of Deposit and call money.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'National Commission for Scheduled Castes' is constituted under which article?

A. Article 340

B. Article 341

C. Article 342

D. Article 338

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Correct Answer: Option D

Explanation:
The National Commission for Scheduled Castes is constituted under Article 338.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is not included in the calculation of Gross Domestic Product at market prices?

A. Government final consumption expenditure

B. Gross fixed capital formation

C. Old age pension paid by government

D. Final consumption expenditure of households

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Correct Answer: Option C

Explanation:
Old age pension is a transfer payment and is not a payment for current production, hence it is excluded from GDP.

This question belongs to: Economy GK Economy Set 1

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