MCQOPTIONS
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MCQOPTIONS
This section includes 124 Mcqs, each offering curated multiple-choice questions to sharpen your Economics knowledge and support exam preparation. Choose a topic below to get started.
| 101. |
A tariff-rate quota ? |
| A. | is a limit on the number of tariffs that a country can place on imports? |
| B. | uses a single tariff along with import quotas to restrict import |
| C. | is designed to avoid the the price increases caused by simple tariffs |
| D. | is a two-tier tariff system intended to restrict imports? |
| Answer» E. | |
| 102. |
A subsidy paid to producers ? |
| A. | Shifts the supply curve |
| B. | shifts the demand curve |
| C. | Leads to a contractions in supply |
| D. | Leads to an extension of supply |
| Answer» B. shifts the demand curve | |
| 103. |
A specification of a maximum amount of a foreign produced good that will be allowed to enter the country over a given time period is referred to as a (an) ? |
| A. | domestic subsidy |
| B. | export subsidy |
| C. | import quota |
| D. | export quota |
| Answer» D. export quota | |
| 104. |
A shift in supply will have more effect on price than quantity if ? |
| A. | The price elasticity of supply is – 3 |
| B. | The price elasticity of supply is – 0.2 |
| C. | The price elasticity of supply is – 2 |
| D. | The price elasticity of supply is infinity |
| Answer» B. The price elasticity of supply is – 0.2 | |
| 105. |
A shift is demand will have more effect on price than quantity if ? |
| A. | The price elasticity of supply is price inelastic |
| B. | The price elasticity of supply is price elastic |
| C. | The price elasticity of supply is perfectly elastic |
| D. | The price elasticity of supply is infinity |
| Answer» E. | |
| 106. |
A shift in supply will have a bigger effect on price than output if demand is ? |
| A. | income elastic |
| B. | income inelastic |
| C. | Price elastic |
| D. | Price inelastic |
| Answer» E. | |
| 107. |
A shift in demand will have more effect on price than quantity if ? |
| A. | The price elasticity of supply is + 3 |
| B. | The price elasticity of supply is + 0.2 |
| C. | The price elasticity of supply is + 2 |
| D. | The price elasticity of supply is infinity |
| Answer» D. The price elasticity of supply is infinity | |
| 108. |
A reduction in the costs of production will ? |
| A. | Lead to a movement along the supply curve |
| B. | Shift the demand curve |
| C. | Shift the supply curve |
| D. | Lead to an extension of supply |
| Answer» D. Lead to an extension of supply | |
| 109. |
A public good ? |
| A. | Is provided by the government |
| B. | Is free |
| C. | Has the properties of being non-excludable and non-diminishable |
| D. | Gas external costs |
| Answer» D. Gas external costs | |
| 110. |
A public good will ? |
| A. | Be under provided in the free market |
| B. | Be over provided in the free market |
| C. | Not be provided in the free market |
| D. | Has no opportunity cost |
| Answer» D. Has no opportunity cost | |
| 111. |
A production subsidy that is granted to a producer of an import-competing good ? |
| A. | does not require government taxes to finance it |
| B. | yields the same deadweight welfare loss as an import tariff or import quota |
| C. | has only a consumption effect deadweight loss |
| D. | has only a protective effect deadweight loss |
| Answer» E. | |
| 112. |
A price ceiling is ? |
| A. | a maximum price usually set by government that sellers may charge for a good |
| B. | the different between the initial equilibrium price and the equilibrium price after a decrease in supply |
| C. | a minimum price usually set by government that sellers must charge for a good |
| D. | a minimum price that consumers are willing to pay for a good. |
| Answer» B. the different between the initial equilibrium price and the equilibrium price after a decrease in supply | |
| 113. |
A positive externality occurs when ? |
| A. | The social marginal costs are higher than the private marginals costs |
| B. | A product is not provided in the free market |
| C. | The social marginal cost equal the social marginal benefit |
| D. | The social marginal benefits are higher than the private marginal benefits |
| Answer» B. A product is not provided in the free market | |
| 114. |
A perfectly competitive market has ? |
| A. | firms that set their own prices |
| B. | only one seller. |
| C. | at least a few sellers. |
| D. | many buyers and sellers. |
| Answer» E. | |
| 115. |
A natural monopoly has a declining _______ over a large range of output? |
| A. | long run marginal cost |
| B. | short run marginal cost |
| C. | long run average cost |
| D. | long run marginal cost |
| Answer» D. long run marginal cost | |
| 116. |
A movement along the demand curve may be caused by ? |
| A. | A change in income |
| B. | A change in the number of buyers |
| C. | A change in advertising |
| D. | A shift in supply |
| Answer» E. | |
| 117. |
A movement along the supply curve may be caused by ? |
| A. | A change in technology |
| B. | A change in the number of producers |
| C. | A shift in demand |
| D. | A change in costs |
| Answer» D. A change in costs | |
| 118. |
A monopoly may be self-perpetuating because profits may be used for ? |
| A. | research |
| B. | cost-saving |
| C. | technical advance |
| D. | all of the above |
| Answer» E. | |
| 119. |
A monopolistic market has ? |
| A. | many buyers and sellers |
| B. | none of these answers |
| C. | firms that are price takers |
| D. | only one seller |
| Answer» E. | |
| 120. |
A good example of a public good is ? |
| A. | public transport |
| B. | the national health service |
| C. | national defence |
| D. | rail transport |
| Answer» D. rail transport | |
| 121. |
A dominant strategy is ? |
| A. | a wining strategy |
| B. | a losing strategy |
| C. | a players best strategy when moving first |
| D. | a player’s best strategy whatever the strategies adopted by rivals |
| Answer» E. | |
| 122. |
A decrease (leftward shift) in the supply for a good will tend to cause ? |
| A. | an increase in the equilibrium price and quantity |
| B. | a decrease in the equilibrium price and an increase in the equilibrium quantity |
| C. | none of these answers |
| D. | a decrease in the equilibrium price and quantity. |
| E. | an increase in the equilibrium price and a decrease in the equilibrium quantity |
| Answer» B. a decrease in the equilibrium price and an increase in the equilibrium quantity | |
| 123. |
A decrease in demand for a products should ? |
| A. | increase equilibrium price and quantity |
| B. | Decrease equilibrium price and quantity |
| C. | Increase equilibrium price and decrease quantity |
| D. | Decrease equilibrium price and increase quantity |
| Answer» C. Increase equilibrium price and decrease quantity | |
| 124. |
A competitive equilibrium is Pareto-efficient because ? |
| A. | Producers are price takers |
| B. | consumers and producers face the same prices |
| C. | marginal costs and benefits are equal |
| D. | prices equal marginal cost and benefit |
| E. | All of the above |
| Answer» F. | |