Which of the following is a feature of the production function in the long run? MCQ with Answer and Explanation

Question

Share Report Error

Which of the following is a feature of the production function in the long run?

A. Returns to scale are irrelevant

B. Only labour is variable

C. At least one factor is fixed

D. All factors are variable

Answer: Option D

Solution (By JKSSB Mock Tests)

In the long run, all factors of production are variable, and the firm can choose the optimal scale of production; returns to scale become relevant.

This question belongs to: Economy GK Economy Set 1

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1

The term 'revenue-neutral rate' in GST context means a rate that:

A. eliminates all taxes

B. maximizes tax revenue

C. maintains the same revenue collection as pre-GST indirect taxes

D. only applies to direct taxes

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option C

Explanation:
Revenue-neutral rate is the GST rate that preserves the existing indirect tax revenue.

This question belongs to: Economy GK Economy Set 1

Question #2

In the context of the Indian economy, GST is best described as:

A. A direct tax on income

B. A wealth tax

C. A comprehensive indirect tax on the supply of goods and services with a dual structure

D. A corporate tax levied only on companies

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option C

Explanation:
GST is a destination-based, multi-stage indirect tax levied on the supply of goods and services, administered jointly by the Centre and the States.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'index of eight core industries' does not include which of the following?

A. Cement

B. Steel

C. Coal

D. Pharmaceuticals

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option D

Explanation:
Pharmaceuticals is not included in the eight core industries.

This question belongs to: Economy GK Economy Set 1

Explore All Economy Set 1 MCQs