A. players are better of to act independently
B. monopoly is better than competition
C. people will always cheat
D. players are better off if they co-operate
Economics Mcqs
A dominant strategy is ?
A. a wining strategy
B. a losing strategy
C. a players best strategy when moving first
D. a player’s best strategy whatever the strategies adopted by rivals
Moral hazard means that the act of insuring …. that the desired outcome will occur?
A. reduces the likelihood
B. increases the likelihood
C. guarantees
D. none of the above
An allocation is Pareto-efficient if no reallocation of resources would make some people ……. without making others ……..?
A. worse off; worse off
B. better off; better off
C. better off; worse off
D. equal, unequal
We cannot say whether one allocation of resources is better than another allocation because ?
A. some people can’t count
B. some people may not be permanent resident
C. not all economic activity is legal
D. We can’t make value judgments to compare different people’s welfare
The allocation of resources is not efficient if ?
A. the marginal cost of production does not equal society’s marginal benefit
B. the distribution is inequitable
C. economic growth is low
D. unemployment is high
Externalities arise because there is a divergence between …….. and ………?
A. private costs, private benefits
B. private costs, social costs or benefits
C. social costs, social benefit
D. insiders, outsiders
Markets sometimes fail to exist because of……..?
A. externalities
B. the free-rider problem
C. a and b
D. a and c
If the consumption of good by one person does not reduce the quantity available by others and nobody can be easily excluded from consumption, we are referring to a ?
A. Private good
B. merit good
C. public good
D. abundant good
Except for taxes to offset …… taxes are ……?
A. imperfect competition popular
B. externalities , distortionary
C. inequality , a first best option
D. poor health, unnecessary