Economics Mcqs

A. price
B. quantity
C. demand
D. supply

A. wages in general would fall as employers tried to hold down costs
B. fewer young workers would be employed
C. the costs and prices of firms employing cheap labour would increase
D. there would be more unemployment

A. This tax will not raise much revenue either in the short term or the long term since demand is price inelastic
B. The tax on cigarettes may not raise as much revenue as anticipated in the years to com because the demand for cigarettes is likely to become more elastic over time.
C. This a very good way to raise revenue both in the short term and in the long term, because there are no substitutes for cigarettes.
D. No tax revenue can be raised in this way because sellers of cigarette will just lower their price by the amount of the tax and therefore, the price of cigarettes to consumers will not change

A. Negative externalies
B. Positive externalities
C. Monopolies
D. Oligopolies

A. monopolistic competition
B. oligopoly
C. monopoly
D. unfair competition

A. behave like competitive firms
B. agree to act together
C. differentiate their products
D. practice price discrimination

A. Assuming other players move first
B. dominated by the other players
C. given the strategies of other players
D. that is a credible threat

A. moral hazard
B. risk aversion
C. adverse selection
D. a poor gamble

A. Producers are price takers
B. consumers and producers face the same prices
C. marginal costs and benefits are equal
D. prices equal marginal cost and benefit
E. All of the above

A. a production externality
B. a second-best solution
C. transaction costs
D. a consumption externality