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. At least one factor is fixed

C. Only labour is variable

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 'Goods and Services Tax' on tobacco products is:

A. 28% plus cess

B. 18%

C. 12%

D. 0%

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option A

Explanation:
Tobacco products attract 28% GST plus additional cess.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Goods and Services Tax' on entertainment events is:

A. 28%

B. 5%

C. 12%

D. 18%

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option D

Explanation:
Entertainment events generally attract 18% GST.

This question belongs to: Economy GK Economy Set 1

Question #3

If a country's current account is in deficit, its capital account must be in:

A. deficit as well

B. surplus or official reserves must fall

C. equilibrium

D. zero

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
A current account deficit must be financed by a capital account surplus or a drawdown of official reserves.

This question belongs to: Economy GK Economy Set 1

Explore All Economy Set 1 MCQs