A. Usually made of wood and plastic
B. built with assumptions.
C. useless if they are simple.
D. created to duplicate reality.
Economics Mcqs
A conglomerate merger is a merger of ?
A. firms producing the same product
B. firms at various stages in production process.
C. firm producing complementary products
D. firms producing unrelated products.
In which of the following cases is the assumption most reasonable ?
A. To address the impact to taxes on income distribution an economist assumes that everyone earns the same income.
B. To address the impact of money growth on inflation, an economist assumes that money is strictly coins.
C. To model the benefits of trade. an economist assumes that there are two people and two goods
D. To estimate the speed at which a beach ball falls, a physicist assumes that if falls in a vacuum.
Sales staff are keen to sell extended warranties because ?
A. extended warranties offer value for money.
B. the cost of repair will usually exceed the cost of the warranty
C. they are paid commission on each extended warranty they sell.
D. They are concerned about customer satisfaction.
Which of the following is most likely to produce scientific evidence about a theory ?
A. A lawyer employed by Renault addressing the impact of air bags on passenger safety.
B. An economist permanently employed at a leading university analyzing the impact of bank regulations on lending to small businesses
C. An economist employed by the Trades union congress doing research on the impact of trade policy on workers’ wages
D. A radio talk show host collecting data from listeners on how capital markets respond to taxation
In the UK, electricity industry parts are a …. and other parts are … ?
A. nationalized; privatized
B. natural monopoly; potentially competitive
C. cartel; a sellers’ market
D. monopolistic competition duopoly
Which of the following is not a factor of production ?
A. labor
B. land
C. money
D. capital
Antimonopoly legislation is undertaken to …. competition and market regulation is undertaken to …. competition ?
A. restrict; promote
B. restrict; restrict
C. promote; promote
D. promote; restrict
Points on the production possibilities frontier are ?
A. inefficient
B. normative
C. unattainable
D. efficient
The theory of the second best suggests that in the absence of perfect competition a privatized industry should charge a price of ?
A. p = Z
B. P = MC + Z
C. p = MC
D. P = MC – Z