The 'withdrawal' from the circular flow in a three-sector economy includes: MCQ with Answer and Explanation

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The 'withdrawal' from the circular flow in a three-sector economy includes:

A. exports

B. government expenditure

C. taxes and saving

D. investment

Answer: Option C

Solution (By JKSSB Mock Tests)

In a three-sector economy, withdrawals include saving and taxes.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'International Solar Alliance' is headquartered in:

A. Gurugram, India

B. Paris

C. Geneva

D. New York

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Correct Answer: Option A

Explanation:
The International Solar Alliance is headquartered in Gurugram, India.

This question belongs to: Economy GK Economy Set 1

Question #2

In the context of development economics, the 'Kuznets Curve' suggests that:

A. Inequality rises continuously with development

B. Inequality is unrelated to the level of development

C. Inequality first rises and then falls with economic development

D. Inequality falls continuously with development

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Correct Answer: Option C

Explanation:
The Kuznets hypothesis proposes an inverted-U relationship between income inequality and per capita income: inequality rises in the early stages of development and declines later.

This question belongs to: Economy GK Economy Set 1

Question #3

In the context of production theory, the isoquant represents:

A. Combinations of income and consumption

B. Combinations of inputs that yield the same level of output

C. Combinations of prices that maximise profit

D. Combinations of goods that give the same utility

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Correct Answer: Option B

Explanation:
An isoquant is a curve that shows all possible combinations of two inputs that produce the same level of output, analogous to an indifference curve in consumer theory.

This question belongs to: Economy GK Economy Set 1

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