The slope of the budget line is equal to: MCQ with Answer and Explanation

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The slope of the budget line is equal to:

A. Py divided by Px

B. negative Px divided by Py

C. Px multiplied by Py

D. Px plus Py

Answer: Option B

Solution (By JKSSB Mock Tests)

The budget line slope is -Px/Py, where Px is price of good X and Py is price of good Y.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

Which of the following indices is used to measure income inequality?

A. Gini Coefficient

B. Physical Quality of Life Index

C. Human Development Index

D. Gender Development Index

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Correct Answer: Option A

Explanation:
The Gini Coefficient measures the extent of income or wealth inequality in a population. A value of 0 represents perfect equality and 1 represents perfect inequality.

This question belongs to: Economy GK Economy Set 1

Question #2

The concept of 'Planetary Boundaries' identifies:

A. Nine biophysical thresholds that, if crossed, could destabilise the Earth system

B. Only population limits

C. Only national environmental regulations

D. Only economic growth limits

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Correct Answer: Option A

Explanation:
The planetary-boundaries framework, developed by Rockström and colleagues, defines a set of nine Earth-system processes and associated quantitative boundaries within which humanity can operate safely.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Goods and Services Tax' on a supply is determined by the:

A. location of supplier

B. place of supply

C. type of product only

D. mode of payment

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Correct Answer: Option B

Explanation:
GST liability depends on the place of supply and the nature of supply.

This question belongs to: Economy GK Economy Set 1

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