Question : The opportunity cost of production of a commodity is
Option 1: The cost that the firm could have incurred when a different technique was adopted
Option 2: The cost that the firm could have incurred under a different method of production
Option 3: The actual cost incurred
Option 4: The best alternative output
Correct Answer: The best alternative output
Solution : The correct answer is the best alternative output.
The value of the best alternative that must be given up when resources are employed to create that commodity rather than another one is referred to as the opportunity cost of production of a commodity. In other terms, it is the cost of what you give up to generate a specific item. For example, if a farmer has the option of cultivating wheat or maize on a plot of land and chooses wheat, the opportunity cost of producing wheat is the value of the maize they might have produced instead. This cost might be both monetary and in terms of resources.
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Question : Carbon dating means:
Option 1: a method to determine the density of fissile material
Option 2: a method of calculating the remains of sulphur and nitrogen in hard rock
Option 3: a method of calculating the age of objects by measuring the amounts of different forms of carbon in them
Option 4: a method of determining the weight of the rock
Question : Which one of the following is not a method of measurement of national income?
Option 1: Value-added method
Option 2: Income method
Option 3: Investment method
Option 4: Expenditure method
Question : The market equilibrium for a commodity is determined by:
Option 1: the market supply of the commodity.
Option 2: the balancing of the force of demand and supply for the commodity.
Option 3: the intervention of the government.
Option 4: market demand of the commodity.
Question : Which of the following shows modernisation to increase the production of goods and services?
Option 1: Adoption of old technique with large scale
Option 2: Adoption of same technique in different way
Option 3: Following western culture
Option 4: Adoption of new technology
Question : In India, which of the following regulatory mechanisms was not in existence to enforce regulation of the industrial sector?
Option 1: Industrial licensing under which every entrepreneur had to get permission from government officials to start a firm, close a firm or decide the amount of goods that could be produced.
Option 2: Controls on price fixation and distribution of selected industrial products.
Option 3: Private sector was allowed in all industries.
Option 4: Some goods could be produced only in small-scale industries.
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