📊Economics MCQs
Economics MCQs
451 MCQs41
Economic growth is depicted by ?
Aa shift in the production possibilities frontier outward.
Ba movement from inside the curve toward the curve.
Ca shift in the production possibilities frontier inward
Da movement along a production possibilities frontier toward capital goods.
42
The merger of a clothing firm and a software producer would be a _______ merger?
Ahorizontal
Bvertical
Cconglomerate
Dhomogeneous
43
Growth maximization is the same as ?
Asales revenue maximization
Bmaximization the growth of sales revenue.
CSales maximization
Dlong-run profit maximization.
44
A sale maximizing firm will produce where ?
AAR minus AC is maximized
BMC = MR
Cquantity sold is maximized
Dsales revenue is maximized
45
The divorce of owner ship and control causes a problem usually referred to by economists as ?
Aprofit myopia
Bprincipal-agent problem.
Cmerger mania.
Dmoral hazard
46
Williamson suggests that managers might NOT try to achieve ?
Arespect of other managers.
Bmaximum profits.
Cjob security
Da large number of subordinates
47
A firm may be unable to maximize profits because it ?
Adoes not know its MC and MR
Bhas too much information
Chas too little information
DThe first and third option
48
The divorce of ownership and control tends to occur in ?
Asole proprietors
Bpartnerships
Cpublic limited companies
Dmonopolies
49
Public limited companies may not maximize their profits because ?
Athey are afraid of encouraging takeovers.
Bshareholders have little control over managers.
Cshareholders want higher dividends.
Dboth the first and third option.
50
The traditional profit-maximizing theory of the firm has been criticized by some economists because ?
Afirms do not know how to maximize profits.
Bfirms have other aims
Cit does not explain monopolistic competition
DBoth the first and second option