Which of the following is a feature of the long-run average cost curve under constant returns to scale? MCQ with Answer and Explanation

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Which of the following is a feature of the long-run average cost curve under constant returns to scale?

A. Continuously rising

B. Continuously falling

C. Horizontal

D. U-shaped due to fixed factors

Answer: Option C

Solution (By JKSSB Mock Tests)

Under constant returns to scale, long-run average cost remains constant as output expands, resulting in a horizontal LAC curve.

This question belongs to: Economy GK Economy Set 1

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Question #1

Which of the following is a feature of the Indian tax system?

A. Only indirect taxes

B. Both direct and indirect taxes

C. No progressive taxation

D. Only direct taxes

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Correct Answer: Option B

Explanation:
The Indian tax system consists of both direct taxes (income tax, corporation tax) and indirect taxes (GST, customs duty), with progressive elements in direct taxes.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'National Anti-profiteering Authority' under GST was set up to ensure:

A. more exports

B. benefits of GST rate cuts are passed to consumers

C. higher GST collections

D. fewer returns

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Correct Answer: Option B

Explanation:
National Anti-profiteering Authority ensures that tax reductions are passed on to consumers.

This question belongs to: Economy GK Economy Set 1

Question #3

A quota is a:

A. tax on exports

B. price support for imports

C. type of exchange rate

D. quantitative restriction on imports or exports

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Correct Answer: Option D

Explanation:
A quota is a quantitative restriction on imports or exports.

This question belongs to: Economy GK Economy Set 1

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