Which of the following is NOT a type of cost in the short run?
A. Total cost
B. Sunk cost as the only long-run cost
C. Variable cost
D. Fixed cost
Answer: Option B
Solution (By JKSSB Mock Tests)
In the short run, costs are classified as fixed, variable and total. Sunk costs are costs that have already been incurred and cannot be recovered, relevant in both short and long run decisions.
Explanation:
Government borrowing can raise interest rates (financial crowding out) and, in an open economy, appreciate the currency, thereby reducing net exports (international crowding out).
Explanation:
Major sources of central government revenue include corporation tax, personal income tax, and the central share of GST, along with customs and other duties.
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