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

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Which of the following is a characteristic of 'Prospect Theory' developed by Kahneman and Tversky?

A. People evaluate outcomes relative to a reference point and are loss-averse

B. Only final wealth levels matter

C. People always maximise expected utility with stable preferences

D. Losses and gains are treated symmetrically

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Correct Answer: Option A

Explanation:
Prospect theory posits that individuals evaluate outcomes as gains or losses relative to a reference point, overweight small probabilities, and exhibit loss aversion (losses loom larger than gains).

This question belongs to: Economy GK Economy Set 1

Question #2

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The 'Goods and Services Tax' on a transaction is payable by the:

A. GST Council

B. government

C. buyer always

D. supplier, except under reverse charge

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Correct Answer: Option D

Explanation:
Generally the supplier pays GST, but under reverse charge the recipient pays.

This question belongs to: Economy GK Economy Set 1

Question #3

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Insurance Regulatory and Development Authority of India was established in which year?

A. 1999

B. 1991

C. 2003

D. 2008

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Correct Answer: Option A

Explanation:
IRDAI was established in 1999 following the IRDA Act.

This question belongs to: Economy GK Economy Set 1

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