A natural monopoly faces a ____, which means that ____. Which option completes the sentence?
Correct answer D. Decreasing average cost curve, marginal cost lies below average cost
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Economics MCQs
Page 71 of Economics multiple-choice questions with answers. Tap an option to check yourself.
Page 71 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 a rise in the price of blue jeans increases the demand for tennis shoes, how are the two goods related?
Correct answer A. Substitutes
What does the law of supply state about a rise in the price of a good?
Correct answer A. It increases the quantity supplied of that good
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What does a monopolistic market have?
Correct answer A. Only one seller
All of these shift the supply of watches to the right EXCEPT which one?
Correct answer A. An increase in the price of watches
What happens when a good’s price is below the equilibrium price?
Correct answer B. There is a shortage and the price will rise
What does an increase (rightward shift) in the demand for a good tend to cause?
Correct answer C. An increase in the equilibrium price and quantity
If both supply and demand for personal computers increase, what would we expect in that market?
Correct answer D. The equilibrium quantity to rise and the change in the equilibrium price to be ambiguous
Which statement is correct about the effect of a rise in the price of lettuce?
Correct answer C. The equilibrium price and quantity of salad dressing will fall
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Consumer tastes shift towards eating apples. Which statement accurately describes the effect on the apple market?
Correct answer D. There is an increase in the demand for apples and an increase in the quantity supplied of apples
For an inferior good, what does a rise in income cause?
Correct answer D. A decrease in demand
What effect does a rise in income have?
Correct answer B. It shifts the demand curve
A shift in supply will affect price more than output when demand has which characteristic?
Correct answer A. Price inelastic
What would happen if the price were fixed below the equilibrium price?
Correct answer B. Excess demand
What effect does a subsidy paid to producers have?
Correct answer C. It shifts the supply curve
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Which of these can the price mechanism NOT do?
Correct answer C. Shift the demand curve
Which role does the price mechanism NOT perform?
Correct answer A. Indicator of income
In which case will a shift in demand affect price more than quantity?
Correct answer D. The price elasticity of supply is +0.2
What should a fall in demand for a product do to the market equilibrium?
Correct answer B. Decrease equilibrium price and quantity
The statement ‘Income inequality can be high in a free market and should be reduced’ is an example of what?
Correct answer D. Normative economic statement