Under perfect competition, the demand curve of a firm is: MCQ with Answer and Explanation

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Under perfect competition, the demand curve of a firm is:

A. perfectly elastic

B. downward sloping

C. upward sloping

D. perfectly inelastic

Answer: Option A

Solution (By JKSSB Mock Tests)

A perfectly competitive firm faces a horizontal demand curve at the market price.

This question belongs to: Economy GK Economy Set 1

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Question #1

The concept of 'Opportunity Cost' is best defined as:

A. The total cost incurred in production

B. The difference between total revenue and total cost

C. The value of the next best alternative forgone

D. The cost of producing one more unit of a commodity

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Correct Answer: Option C

Explanation:
Opportunity cost refers to the value of the next best alternative that is sacrificed when a choice is made. It is a fundamental concept in economics.

This question belongs to: Economy GK Economy Set 1

Question #2

Disinvestment in a public sector enterprise is classified in the government budget as:

A. revenue expenditure

B. revenue receipt

C. capital receipt

D. transfer payment

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Correct Answer: Option C

Explanation:
Disinvestment proceeds are capital receipts as they arise from sale of assets.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Asian Infrastructure Investment Bank' is headquartered in:

A. Singapore

B. Manila

C. Tokyo

D. Beijing

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Correct Answer: Option D

Explanation:
The Asian Infrastructure Investment Bank is headquartered in Beijing.

This question belongs to: Economy GK Economy Set 1

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