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Economics Mcqs

A firm charging different buyers’ different prices for the same product is practicing ?

A. Competitive pricing.
B. Price discrimination
C. price discounting.
D. price fixing.

Categories Applied Microeconomics, Economics Mcqs Leave a comment

Privatization is the transfer of ?

A. corporately owned businesses to individuals
B. publicly held stock to private individuals.
C. government businesses to the private sector
D. privately owned businesses to the government sector

Categories Applied Microeconomics, Economics Mcqs Leave a comment

De-regulation is where the government ?

A. removes barriers to entry
B. imposes higher standards of conduct
C. removes barriers to entry and minimum product quality standards
D. breaks up private sector monopolies.

Categories Applied Microeconomics, Economics Mcqs Leave a comment

In the country X it is now becoming possible to buy electricity from a gas company and gas from an electricity company. This is called ?

A. deregulation
B. making markets contestable
C. natural monopoly.
D. cross-subsidization.

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Economists use the term regulatory capture to mean a situation where the private sector firms being regulated ?

A. Persuade the regulator to operate in the industry’s interests
B. Persuade the regulator to act in the firms interests.
C. Bribe the regulator.
D. Persuade the government to change the regulatory regime.

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Between 1990 and 1999 car ownership per thousand of the population fell in ?

A. Spain
B. Belgium
C. USA
D. UK

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The scientific method requires that ?

A. the scientist be objective
B. The scientific use precision equipment.
C. only correct theories are tested
D. only theories are tested.
E. the scientist uses test tubes and have clean lab.

Categories Application of Economics, Economics Mcqs Leave a comment

The external benefits of using cars are …. and the external costs are …..?

A. low; low
B. high; high
C. low; high
D. high; low

Categories Applied Microeconomics, Economics Mcqs Leave a comment

Which of the following statements regarding the circular-flow diagram is true ?

A. If Susan works for BAe Systems and receives a salary payment, the transaction takes place in the market for good and services.
B. If BAe Systems sells a military aircraft, the transaction takes place in the market for factors for production
C. None of these
D. The factors of production are owned by households

Categories Application of Economics, Economics Mcqs Leave a comment

Antimonopoly laws are based on the proposition that ?

A. increasing market power is the best way to achieve efficiency.
B. competition is the best way to achieve efficiency.
C. public ownership is the best way to achieve efficiency
D. regulation is the best way to achieve efficiency.

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