The slope of an isocost line is equal to: MCQ with Answer and Explanation

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The slope of an isocost line is equal to:

A. negative price of labour divided by price of capital

B. total cost divided by output

C. price of labour divided by price of capital

D. price of capital divided by price of labour

Answer: Option A

Solution (By JKSSB Mock Tests)

The isocost line slope is the negative ratio of input prices, typically -w/r, where w is labour price and r is capital price.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Vote on Account' is used to:

A. obtain Parliament's approval for expenditure for part of the financial year

B. impose new taxes

C. present the full budget for the year

D. reduce fiscal deficit

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Correct Answer: Option A

Explanation:
Vote on Account authorizes government expenditure for a limited period, usually before elections.

This question belongs to: Economy GK Economy Set 1

Question #2

In the context of economic theory, the 'Production Possibility Frontier' shifts outward when there is:

A. Decrease in the labour force

B. Inefficient allocation of resources

C. Unemployment of resources

D. Economic growth due to increase in resources or technology

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Correct Answer: Option D

Explanation:
An outward shift of the PPF indicates economic growth, which can result from an increase in the quantity or quality of resources or from technological progress.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is a form of public enterprise based on ownership and organisation?

A. Only cooperative societies without government ownership

B. Only foreign multinational corporations

C. Only private limited companies with no government share

D. Departmental undertaking, public corporation and government company

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Correct Answer: Option D

Explanation:
Public enterprises may be organised as departmental undertakings, statutory public corporations or government companies in which the government holds a majority stake.

This question belongs to: Economy GK Economy Set 1

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