Which of the following is a feature of the short-run cost curves? MCQ with Answer and Explanation

Which of the following is a feature of the short-run cost curves?
A. There are no fixed costs
B. All costs are variable
C. Average fixed cost declines continuously as output increases
D. Marginal cost is always constant
Answer: Option C
Solution (By JKSSB Mock Tests)
Average fixed cost falls continuously with an increase in output because total fixed cost is spread over a larger number of units; the AFC curve is a rectangular hyperbola.

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Practice More Economy Set 1 Questions

Question #1
The 'National Anti-profiteering Authority' was later replaced by which body under GST?
A. GST Appellate Tribunal
B. Central Board of Indirect Taxes and Customs
C. Competition Commission of India
D. GST Council

Correct Answer: Option C


Explanation:
The NAA's functions were transferred to the Competition Commission of India.

This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following is a characteristic of the 'Foundational Economy' approach?
A. Focus only on luxury consumption
B. Focus only on financial services
C. Focus only on high-tech export sectors
D. Focus on the essential goods and services that keep citizens safe, healthy and educated, often provided collectively

Correct Answer: Option D


Explanation:
The foundational economy comprises the everyday goods and services—utilities, food, health, education, care—that are essential for civilised life and are often most effectively provided through collective arrangements.

This question belongs to: Economy GK Economy Set 1
Question #3
The term 'Soft Loan' typically refers to:
A. Loans with concessional interest rates and longer repayment periods
B. Loans with commercial interest rates
C. Only domestic commercial bank loans
D. Only short-term trade credit

Correct Answer: Option A


Explanation:
Soft loans are provided by multilateral agencies or governments at below-market interest rates with longer maturities and grace periods, often for development purposes.

This question belongs to: Economy GK Economy Set 1