Which of the following is an example of a positive externality in production? MCQ with Answer and Explanation

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Which of the following is an example of a positive externality in production?

A. Pollution from a factory

B. Bee-keeping near an apple orchard

C. Congestion on public roads

D. Noise from an airport

Answer: Option B

Solution (By JKSSB Mock Tests)

Bee-keeping provides pollination benefits to nearby apple orchards without compensation, representing a positive production externality.

This question belongs to: Economy GK Economy Set 1

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Question #1

Which of the following is NOT a function of NABARD?

A. Supervising cooperative banks and RRBs

B. Promoting rural development

C. Issuing currency notes

D. Refinancing rural credit institutions

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Correct Answer: Option C

Explanation:
Issuing currency is the function of RBI. NABARD provides refinancing, promotes rural development and supervises cooperative banks and Regional Rural Banks.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'money illusion' in economics occurs when people:

A. avoid using money

B. fully adjust for inflation

C. only hold cash

D. focus on nominal values rather than real values

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Correct Answer: Option D

Explanation:
Money illusion is the tendency to think of money in nominal rather than real terms.

This question belongs to: Economy GK Economy Set 1

Question #3

Deadweight loss in economics refers to:

A. depreciation of capital

B. loss of revenue to the government

C. loss suffered by a monopolist

D. loss of total welfare due to market inefficiency

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Correct Answer: Option D

Explanation:
Deadweight loss is the loss of economic welfare due to inefficiency such as taxes, price controls or monopoly.

This question belongs to: Economy GK Economy Set 1

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