Economics Mcqs

Which of the following is true under pairwise majority rule if people vote for the outcome closest to their most preferred outcome ?

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Which of the following is true under pairwise majority rule if people vote for the outcome closest to their most preferred outcome ?

A. The average preferred outcome wins
B. There is no clear winner due to Arrow’s Impossibility Theorem.
C. The outcome preferred by the median voter wins
D. The outcome preferred by the greatest number of voters wins.

Which of the following is not a method firms use to avoid the moral hazard problem in the employment relationship ?

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Which of the following is not a method firms use to avoid the moral hazard problem in the employment relationship ?

A. They pay employees with delayed compensation such as a year-end bonus
B. They buy life insurance on their workers
C. They pay above equilibrium wages
D. They put hidden video cameras in the workplace

If as the quantity produced increase a production function first exhibits increasing marginal product and later diminishing marginal product, the corresponding marginal-cost curve will ?

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If as the quantity produced increase a production function first exhibits increasing marginal product and later diminishing marginal product, the corresponding marginal-cost curve will ?

A. be flat (horizontal)
B. slope upward
C. slope downward
D. be U-shaped.