Which of these is an example of a signal used to reveal private information?
Correct answer D. All of these answers are correct
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Economics MCQs
Page 120 of Economics multiple-choice questions with answers. Tap an option to check yourself.
Page 120 of 131
- Miscellaneous Economics 737
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- Introduction To Economics 70
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- Profit Maximizing Under Perfect Competition And Monopoly 56
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- Characteristics and Institutions of Developing Countries 24
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- Consumer Theory vs. Real Consumers 20
- Applied Microeconomics 20
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- Public Goods 20
- Balance of Payments, Aid and Foreign Investment 19
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- Budget Deficits And The Trade Balance 18
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- Application of Economics 16
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- Monopoly & Competition 15
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- Average And Total Cost 14
- Poverty, Malnutrition, And Income Inequality 12
- Monetary Union 10
Which of these is NOT a method firms use to tackle moral hazard in the employment relationship?
Correct answer C. They buy life insurance on their workers
Which of these is NOT one of the properties required of a perfect voting system?
Correct answer D. The median voter always wins
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Under pairwise majority voting, if each person votes for the option closest to their own preferred outcome, which statement holds?
Correct answer D. The outcome preferred by the median voter wins
In the ultimatum game, which split would be rational for both the proposer and the responder who must accept or reject it?
Correct answer A. 99/1
After a friend dies suddenly of a heart attack, Jamil rushes to his doctor for an expensive check-up. What does his reaction illustrate?
Correct answer B. People give too much weight to a small number of vivid observations
Which of these is a response to people behaving inconsistently over time?
Correct answer C. Forced contributions to a retirement plan
Nicole wants to avoid buying a car that turns out to be a lemon, so she has her mechanic inspect the car before she buys it. What is this called?
Correct answer B. Screening
For a signal to reveal private information effectively, what must be true of it?
Correct answer A. It must be costly to the signalling party but less costly to the party with the higher-quality product
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Which scenario best illustrates moral hazard?
Correct answer B. Enzo drives more recklessly after he buys car insurance
In a vote on spending for City Hall artwork, 40 percent of voters want to spend Rs1,000, 25 percent want Rs20,000 and 35 percent want Rs22,000. What are the median, average and modal preferred outcomes respectively?
Correct answer D. Rs20,000; Rs13,100; Rs1,000
Which statement about how people make decisions is NOT true?
Correct answer A. People are always rational maximisers
Firms sometimes pay workers bonuses in especially profitable years to stop them becoming disgruntled. Which principle helps explain this?
Correct answer C. People care about fairness
What does UK spending on motoring as a percentage of household expenditure indicate about motoring?
Correct answer A. A superior good
What does the evidence suggest about the price elasticity of demand for motoring?
Correct answer A. Inelastic
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Which city has a transport policy in which car licences are very expensive, vehicle entry to the city centre is tightly restricted, road pricing is being introduced and modern, cheap rail transport is being expanded?
Correct answer A. Singapore
According to its supporters, where does the real gain from antimonopoly enforcement lie?
Correct answer D. It deters firms from engaging in practices such as collusion, price-fixing and deceptive advertising
Which firms join together in a horizontal merger?
Correct answer B. Firms producing the same product
A paper manufacturer merges with a book publisher. What type of merger is this?
Correct answer B. A vertical merger
What is a merger called when firms at different stages of the same production process combine?
Correct answer C. Vertical merger