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Efficiency And The Public Interest

The whole class of goods that will be under produced or not produced at all in a completely unregulated market economy are referred to as ?

The whole class of goods that will be under produced or not produced at all in a completely unregulated market economy are referred to as ?

A. Pareto goods
B. public goods
C. private goods
D. free goods

The whole class of goods that will be under produced or not produced at all in a completely unregulated market economy are referred to as ? Read More »

Economics Mcqs, Efficiency And The Public Interest, Markets

A person will continue to pursue an activity up to the point where ?

A person will continue to pursue an activity up to the point where ?

A. Marginal benefit equals marginal damage cost
B. marginal benefits equals marginal social cost
C. marginal benefit equals marginal private cost
D. marginal social cost equals marginal external cost

A person will continue to pursue an activity up to the point where ? Read More »

Economics Mcqs, Efficiency And The Public Interest, Markets

If some gain and some lose as the result of a proposed change and it can be demonstrated that the value of the gains would exceed the value of the losses then the change is said to be ?

If some gain and some lose as the result of a proposed change and it can be demonstrated that the value of the gains would exceed the value of the losses then the change is said to be ?

A. technically efficient.
B. inefficient.
C. potentially efficient
D. unequivocally Pareto optimal

If some gain and some lose as the result of a proposed change and it can be demonstrated that the value of the gains would exceed the value of the losses then the change is said to be ? Read More »

Economics Mcqs, Efficiency And The Public Interest, Markets

Markets fail to produce an efficient allocation of resources, but government also fail because ?

Markets fail to produce an efficient allocation of resources, but government also fail because ?

A. elected officials will act selflessly for the good of society and ignore their own self interest
B. the managers of government agencies are trying to maximize the profit of their agency and they ignore the implications that this has on other departments
C. the optimal level of public goods may be too expensive for the society to produce
D. the measurement of social damages and benefits is difficult and imprecise

Markets fail to produce an efficient allocation of resources, but government also fail because ? Read More »

Economics Mcqs, Efficiency And The Public Interest, Markets

The idea that when externalities are present private parties can arrive at the efficient solution without government intervention under certain circumstance is known as ?

The idea that when externalities are present private parties can arrive at the efficient solution without government intervention under certain circumstance is known as ?

A. The coase theorem
B. Arrow’s impossibility theorem
C. the drop -in-the bucket problem.
the free rider problem

The idea that when externalities are present private parties can arrive at the efficient solution without government intervention under certain circumstance is known as ? Read More »

Economics Mcqs, Efficiency And The Public Interest, Markets

If a large number of individuals are affected by an external benefit, private bargaining will not work because of ?

If a large number of individuals are affected by an external benefit, private bargaining will not work because of ?

A. non-rivalry
B. the free-rider problem
C. the Coase theorem
D. the fallacy of composition

If a large number of individuals are affected by an external benefit, private bargaining will not work because of ? Read More »

Economics Mcqs, Efficiency And The Public Interest, Markets

If one person’s enjoyment of the benefits of a good does not interfere with another’s consumption of it, the good is said to be ?

If one person’s enjoyment of the benefits of a good does not interfere with another’s consumption of it, the good is said to be ?

A. limitless in utility
B. non-rival in consumption
C. congestible in consumption
D. non-excludable

If one person’s enjoyment of the benefits of a good does not interfere with another’s consumption of it, the good is said to be ? Read More »

Economics Mcqs, Efficiency And The Public Interest, Markets