GENERAL KNOWLEDGE

Detailed explanation-1: -Coal mines is not an example of economic overheads. Economic overhead is capital investment into the infrastructure which should encourage new industrial growth and social well being. The other three school, sanitary facilities and roads and railway are economic overheads.

Detailed explanation-2: -Economic and social overheads such as power, telecommunications, irrigation, the transport network, ports and airports, water supply, sanitation and sewerage, waste collection and disposal, drainage, health and education are included under an umbrella term known as infrastructure.

Detailed explanation-3: -Overhead refers to the costs of running a business that are not directly related to producing a good or service. These costs can be fixed, such as rent, or variable, such as transport costs. They can also be semi-variable, such as utilities.

Detailed explanation-4: -The concept of “social overhead capital” (SOC) is used to identify the source of certain “basic” services required in the production of virtually all commodities. In its most narrow sense the term refers to transportation, communication, and power facilities.