According to the kinked demand curve theory, what is likely to happen?
Correct answer B. Non-price competition is likely
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Economics MCQs
Page 12 of Economics multiple-choice questions with answers. Tap an option to check yourself.
Page 12 of 131
- Miscellaneous Economics 737
- Basic of Economics 430
- Markets, Efficiency And The Public Interest 167
- Agriculture & Irrigation System of Pakistan 126
- Market 87
- Macroeconomic Issues and Analysis 75
- Money, Interest Rates And Output 73
- Introduction To Economics 70
- Population And Development 62
- Profit Maximizing Under Perfect Competition And Monopoly 56
- Income Inequality 52
- Non-Tariff Trade Barriers 48
- Aggregate Supply, Unemployment And Inflation 45
- Natural Resources and the Environment Toward Sustainable Development 44
- Costs , Supply And Perfect Competition 44
- Human Capital 42
- Labour Market 39
- Monopoly 35
- Long Term Economic Growth 30
- Inflation & Productivity 30
- Regional Trading Arrangements 29
- Characteristics and Institutions of Developing Countries 24
- Oligopoly 23
- Consumer Theory vs. Real Consumers 20
- Applied Microeconomics 20
- Alternative Theories Of The Firm 20
- Public Goods 20
- Balance of Payments, Aid and Foreign Investment 19
- Prices, Wages & Taxes 19
- Comparative GDP 19
- Budget Deficits And The Trade Balance 18
- Macroeconomic Policy Tools 18
- Asymmetric Information 17
- Application of Economics 16
- Production Factors 16
- Monopoly & Competition 15
- Capital Formation, Investment Choice, Information Technology, And Technical Progress 15
- Monetary, Fiscal And Incomes Policy, And Inflation 15
- Average And Total Cost 14
- Poverty, Malnutrition, And Income Inequality 12
- Monetary Union 10
What do firms in a cartel do?
Correct answer B. Firms collude
What is a market structure called in which many firms sell products that are similar but not identical?
Correct answer C. Monopolistic competition
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An oligopolist is maximising its own profit. If, on the marginal unit, the output effect is greater than the price effect, what should it do?
Correct answer B. Produce more units
When an oligopolist chooses its output on its own to maximise its profit, how does that output compare with monopoly and competitive levels?
Correct answer C. More than the level produced by a monopoly and less than the level produced by a competitive market
What happens as the number of sellers in an oligopoly rises?
Correct answer B. The price in the market moves closer to marginal cost
What do many economists argue about resale price maintenance?
Correct answer D. It has a legitimate purpose of stopping discount retailers from free riding on the services provided by full-service retailers
ABC Publishing sells an economics textbook and a matching study guide, both with zero marginal cost. Raheel would pay Rs75 for the text and Rs15 for the guide; Mariam would pay Rs60 for the text and Rs25 for the guide. If ABC prices the two products separately, what is the combined total of its best prices?
Correct answer D. Rs 75
Which game theory model is commonly used to analyse oligopoly?
Correct answer A. Prisoner's Dilemma
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Suppose a tariff and an import quota cause the same rise in the domestic price of steel. Which statement is then correct?
Correct answer B. They have different impacts on how income is distributed
If a tariff and an import quota raise the domestic price of steel by the same amount, what follows?
Correct answer C. They have identical impact on how much is produced and consumed
What are antidumping duties used for?
Correct answer B. Offset the margin of dumping
Suppose Norway, which imports computers under free trade, imposes an import quota of 800 computers to reduce imports. Compared with free trade, what happens to Norway’s consumer surplus and producer surplus?
Correct answer D. Decrease, increase
When domestic demand is growing, how does an import quota compare with a tariff?
Correct answer A. It is more restrictive on a country's imports than a tariff
If import licences are auctioned to domestic importers in a competitive market, who receives their scarcity value (the revenue effect)?
Correct answer A. The domestic government
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Import quotas usually lead to all of the following EXCEPT which outcome?
Correct answer C. Domestic producers of the imported good being harmed
Claiming that South Koreans are dumping DVDs in the United States means claiming what?
Correct answer B. Koreans are selling DVDs in the US below their production cost
How frequently do governments worldwide auction quota licences to the highest bidder?
Correct answer A. Seldom
In some industries, Japanese employers avoid laying off workers and so end up with surplus goods they cannot sell at home without cutting prices. To limit losses, they sell the goods abroad at prices well below Japanese prices. What is this practice called?
Correct answer C. Dumping
Which quotas cut off trade completely?
Correct answer B. Embargoes