In contestable markets, how do large oligopolistic firms end up behaving?
Correct answer D. Like perfectly competitive firms
Subject / 2,616 questions
Economics MCQs
Page 5 of Economics multiple-choice questions with answers. Tap an option to check yourself.
Page 5 of 131
- Miscellaneous Economics 737
- Basic of Economics 430
- Markets, Efficiency And The Public Interest 167
- Agriculture & Irrigation System of Pakistan 126
- Market 87
- Macroeconomic Issues and Analysis 75
- Money, Interest Rates And Output 73
- Introduction To Economics 70
- Population And Development 62
- Profit Maximizing Under Perfect Competition And Monopoly 56
- Income Inequality 52
- Non-Tariff Trade Barriers 48
- Aggregate Supply, Unemployment And Inflation 45
- Natural Resources and the Environment Toward Sustainable Development 44
- Costs , Supply And Perfect Competition 44
- Human Capital 42
- Labour Market 39
- Monopoly 35
- Long Term Economic Growth 30
- Inflation & Productivity 30
- Regional Trading Arrangements 29
- Characteristics and Institutions of Developing Countries 24
- Oligopoly 23
- Consumer Theory vs. Real Consumers 20
- Applied Microeconomics 20
- Alternative Theories Of The Firm 20
- Public Goods 20
- Balance of Payments, Aid and Foreign Investment 19
- Prices, Wages & Taxes 19
- Comparative GDP 19
- Budget Deficits And The Trade Balance 18
- Macroeconomic Policy Tools 18
- Asymmetric Information 17
- Application of Economics 16
- Production Factors 16
- Monopoly & Competition 15
- Capital Formation, Investment Choice, Information Technology, And Technical Progress 15
- Monetary, Fiscal And Incomes Policy, And Inflation 15
- Average And Total Cost 14
- Poverty, Malnutrition, And Income Inequality 12
- Monetary Union 10
If one person’s consumption of a good reduces how much others can use, how is the good described?
Correct answer D. Rival
How is a private good classified?
Correct answer A. Both rival and excludable
Advertisement
How is a common resource classified?
Correct answer B. Rival but not excludable
Twenty neighbours on a street each value street repairs at €3,000, and the repair costs €40,000. Which statement is true?
Correct answer A. It is efficient for the government to tax each resident €2,000 and repair the road
Which of these items counts as a public good?
Correct answer B. National defence
When governments use cost-benefit analysis to decide whether to provide a public good, why is it hard to measure the benefits?
Correct answer A. Respondents to questionnaires have little incentive to tell the truth
What does the parable of the tragedy of the commons illustrate?
Correct answer B. Why common resources are overconsumed
Which of these are possible ways to tackle air pollution?
Correct answer D. All of these answers
Advertisement
When markets fail to allocate resources efficiently, what is usually the underlying cause?
Correct answer A. That property rights have not been well established
How is a congested toll road classified?
Correct answer D. A private good
Someone in the UK who regularly watches BBC programmes but does not pay the TV licence fee is described as what?
Correct answer B. A free rider
How is a public good classified?
Correct answer A. Neither rival nor excludable
How is a good produced by a natural monopoly classified?
Correct answer D. Not rival but excludable
Why is it hard for a private market to provide public goods?
Correct answer B. The free-rider problem
Advertisement
What is a free rider?
Correct answer C. Receives the benefits of a good but avoids paying for it
A positive externality distorts market efficiency in a way similar to which type of good?
Correct answer D. Public good
A negative externality distorts market efficiency in a way similar to which type of good?
Correct answer B. A common resource
Which of these items would economists classify as a common resource?
Correct answer D. A national park
If people can be prevented from using a good, how is the good described?
Correct answer A. Excludable