Markets sometimes fail to exist because of________?
Markets sometimes fail to exist because of________?
A. externalities
B. the free-rider problem
C. a and b
D. a and c
Economics Mcqs
-
-
Externalities arise because there is a divergence between ________ and _________?
Externalities arise because there is a divergence between ________ and _________?A. private costs, private benefits
B. private costs, social costs or benefits
C. social costs, social benefit
D. insiders, outsiders -
The allocation of resources is not efficient if ?
The allocation of resources is not efficient if ?A. the marginal cost of production does not equal society’s marginal benefit
B. the distribution is inequitable
C. economic growth is low
D. unemployment is high -
We cannot say whether one allocation of resources is better than another allocation because ?
We cannot say whether one allocation of resources is better than another allocation because ?A. some people can’t count
B. some people may not be permanent resident
C. not all economic activity is legal
D. We can’t make value judgments to compare different people’s welfare -
An allocation is Pareto-efficient if no reallocation of resources would make some people _______ without making others ________?
An allocation is Pareto-efficient if no reallocation of resources would make some people _______ without making others ________?A. worse off; worse off
B. better off; better off
C. better off; worse off
D. equal, unequal -
Moral hazard means that the act of insuring ____ that the desired outcome will occur?
Moral hazard means that the act of insuring ____ that the desired outcome will occur?A. reduces the likelihood
B. increases the likelihood
C. guarantees
D. none of the above -
A dominant strategy is ?
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 -
The prisoners Dilemma Game demonstrates that ?
The prisoners Dilemma Game demonstrates that ?A. players are better of to act independently
B. monopoly is better than competition
C. people will always cheat
D. players are better off if they co-operate -
The reason for the kinked demand curve is that ?
The reason for the kinked demand curve is that ?A. The oligopolist believes that competitors will match output increase but not output reduction
B. The oligopolist believes that competitors will match price increase but not output reduction
C. The oligopolist believers that competitors will match price cuts but not price rises
D. The oligopolist believes that competitors will match price increase but not output increase -
A natural monopoly has a declining _______ over a large range of output?
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