What is meant by a price ceiling?
Correct answer C. A maximum price usually set by government that sellers may charge for a good
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Economics MCQs
Page 70 of Economics multiple-choice questions with answers. Tap an option to check yourself.
Page 70 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
In which situation does a good need to be rationed?
Correct answer C. Demand exceeds supply
What happens when the market price is set below the equilibrium price?
Correct answer D. Quantity demanded will be greater than quantity supplied
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In economics, what situation does the term black market describe?
Correct answer A. Goods are sold at prices above legal or official price
Which uses of monopoly profit can help a monopoly keep its dominant position over time?
Correct answer D. All of the above
Why does an oligopolist face a kinked demand curve?
Correct answer A. The oligopolist believes that competitors will match price cuts but not price rises
What does the Prisoners’ Dilemma game demonstrate?
Correct answer A. Players are better off if they co-operate
What is a dominant strategy in game theory?
Correct answer B. A player's best strategy whatever the strategies adopted by rivals
Moral hazard means that being insured ____ that the insured-against outcome will occur. Which phrase completes the sentence?
Correct answer B. Increases the likelihood
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An allocation is Pareto-efficient if no reallocation of resources can make some people ____ without making others ____. Which pair completes the sentence?
Correct answer C. Better off; worse off
Why can we not simply say that one allocation of resources is better than another?
Correct answer D. We cannot make value judgements to compare different people's welfare
In which case is the allocation of resources inefficient?
Correct answer D. The marginal cost of production does not equal society's marginal benefit
Externalities arise because of a gap between which two things?
Correct answer D. Private costs, social costs or benefits
Why do some markets fail to exist at all?
Correct answer C. A and B
What do we call a good where one person’s consumption does not reduce the amount available to others and no one can easily be excluded from using it?
Correct answer A. Public good
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Apart from taxes used to offset ____, taxes are ____. Which pair completes the sentence?
Correct answer D. Externalities, distortionary
Taxes drive a wedge between the price paid by buyers and the price received by sellers, preventing the price system from equating which two things?
Correct answer B. Marginal costs, marginal benefits
A tax designed to offset a negative externality will ____ price and ____ quantity. Which pair completes the sentence?
Correct answer A. Increase, reduce
Why does monopoly power create social costs?
Correct answer D. There is too little output at too high a cost
When two firms carrying out the same activity in the same industry combine, what is it called?
Correct answer B. Horizontal merger