📊Economics MCQs
Economics MCQs
451 MCQs11
Supporters of antimonopoly enforcement argue that the real gain from such enforcement ?
Ais that if encourages firms to engage in research which leads to new products
Bis the revenue generated from the fines paid by those individuals who are found guilty of antitrust violation?
CIs that this policy serves to deter firms from engaging in such practices as collusion, price-fixing and deceptive advertising
Dis that it forces firms to produce efficiently.
12
Which city has the following transport policy ?
ACar licenses are very expensive vehicle entry to the city center is very restricted road pricing is being introduced and modern cheap rail transport is being expanded.
BLondon
CAthens
DSingapore E. New York
13
Evidence suggests that the price elasticity of demand for motoring is ?
Aabsolutely inelastic
BUnitarily elastic
CElastic
Dinelastic
14
Spending on motoring as a % of household expenditure in the UK shows that motoring is ?
AEnvironmentally damaging
Ban inferior good
Ca potential public good
Da superior good
15
Which of the following help explain why firms pay bonuses to workers during particularly profitable years to prevent workers from becoming disgruntled ?
Apeople are rational maximizers
BPeople are reluctant to change their minds
CPeople are inconsistent over time
DPeople care about fairness
16
In the UK, electricity industry parts are a ____ and other parts are ___ ?
Anationalized; privatized
Bnatural monopoly; potentially competitive
Ccartel; a sellers’ market
Dmonopolistic competition duopoly
17
Sales staff are keen to sell extended warranties because ?
Aextended warranties offer value for money.
Bthe cost of repair will usually exceed the cost of the warranty
Cthey are paid commission on each extended warranty they sell.
DThey are concerned about customer satisfaction.
18
A conglomerate merger is a merger of ?
Afirms producing the same product
Bfirms at various stages in production process.
Cfirm producing complementary products
Dfirms producing unrelated products.
19
Antimonopoly laws are based on the proposition that ?
Aincreasing market power is the best way to achieve efficiency.
Bcompetition is the best way to achieve efficiency.
Cpublic ownership is the best way to achieve efficiency
Dregulation is the best way to achieve efficiency.
20
The external benefits of using cars are ____ and the external costs are _____?
Alow; low
Bhigh; high
Clow; high
Dhigh; low