When does a positive externality occur?
Correct answer B. When social marginal benefits are higher than private marginal benefits
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Economics MCQs
Page 72 of Economics multiple-choice questions with answers. Tap an option to check yourself.
Page 72 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
What happens if the government fixes a market price above the equilibrium?
Correct answer A. There is excess supply
Why do agricultural prices tend to be unstable?
Correct answer C. Demand and supply are price inelastic
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Which statement correctly describes a public good?
Correct answer B. It has the properties of being non-excludable and non-diminishable
What results when a maximum price is set below the equilibrium price?
Correct answer D. Excess demand
Economists say some form of rationing is needed whenever which condition exists?
Correct answer B. There is excess demand
If a government set a minimum wage for adult workers, what would economists predict?
Correct answer A. The costs and prices of firms employing cheap labour would increase
The government plans to tax cigarettes to raise money for health-care benefits, and demand for cigarettes is price inelastic. Which statement is true?
Correct answer D. The tax may not raise as much revenue as anticipated in the years to come because the demand for cigarettes is likely to become more elastic over time
Which of the following is the government most likely to subsidise?
Correct answer D. Positive externalities
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Which of these is NOT a type of imperfect competition?
Correct answer C. Unfair competition
In a contestable market, what must incumbent firms do to prevent new competitors from entering?
Correct answer C. Behave like competitive firms
In a Nash equilibrium, how does each player choose their best strategy?
Correct answer C. Given the strategies of other players
In insurance, high-risk customers are the most likely to buy cover. What is this an example of?
Correct answer C. Adverse selection
Why is a competitive equilibrium Pareto-efficient?
Correct answer E. All of the above
My neighbour burns garden waste and my house fills with smoke. What is this an example of?
Correct answer B. A consumption externality
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Which of these is a macroeconomic issue?
Correct answer B. The level of unemployment in Pakistan
What can cause market failure?
Correct answer E. All of the above
Which of these is NOT part of fiscal policy?
Correct answer C. Interest rates
Which of these is a good example of a public good?
Correct answer D. National defence
Which of these is NOT a macroeconomic issue?
Correct answer D. The wages paid to footballers