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Principles of Microeconomics MCQ

1. What is strategic behavior?

Firm behavior that is only influenced by the market power of other firms in the industry.

Firm behavior that is only influenced by the reactions of other firms in the industry.

Firm behavior that is not influenced by the market power or reactions of other firms in the industry.

Firm behavior that takes into account the market power and reactions of other firms in the industry.

Answer

Correct Answer: Firm behavior that takes into account the market power and reactions of other firms in the industry.

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2. What is a specific tariff?

A tax on imports that is proportional to the value of the imported good.

A tax on exports that is proportional to the number of units or items exported.

A tax on exports that is proportional to the value of the exported good.

A tax on imports that is proportional to the number of units or items imported.

Answer

Correct Answer: A tax on imports that is proportional to the number of units or items imported.

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3. What is utility?

The force that drives an entity to satisfy its needs or wants

The degree to which a good or service meets the needs of a consumer

A numerical indicator of a person's preferences in which higher levels of utility indicate a greater preference.

The state of being useful, profitable, or beneficial

Answer

Correct Answer: A numerical indicator of a person's preferences in which higher levels of utility indicate a greater preference.

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4. What is the voting paradox?

A situation where voting patterns will not consistently reflect citizens’ preferences because of multiple issues on which people vote.

A situation where voting patterns will not consistently reflect citizens’ preferences because of a single issue on which people vote.

A situation where voting patterns will consistently reflect citizens’ preferences because of multiple issues on which people vote.

Answer

Correct Answer: A situation where voting patterns will not consistently reflect citizens’ preferences because of multiple issues on which people vote.

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5. What is a vertical merger?

Two separate companies coming together to form one company

A combining of two firms, one of which supplies goods to the other.

Two companies that produce similar products merging in order to cut competition

When a smaller company is bought out by a larger company

Answer

Correct Answer: A combining of two firms, one of which supplies goods to the other.

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6. What does "user fee" mean?

A fee charged for the use of a good normally provided by the government.

A fee charged for the use of a government service

A fee charged by the government for the use of a good provided by a private company.

A good provided by the government at no charge

Answer

Correct Answer: A fee charged for the use of a good normally provided by the government.

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7. Who opened the Uruguay Round?

1971

1980

1986

1979

Answer

Correct Answer: 1986

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8. When was the Uruguay Round of multilateral negotiations completed?

1996

1982

1993

1989

Answer

Correct Answer: 1993

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9. What is the Temporary Assistance to Needy Families (TANF) program?

A program that provides food for needy families

A program that gives clothes to needy families

A program that gives cash to certain low-income families

A program that provides shelter for needy families

Answer

Correct Answer: A program that gives cash to certain low-income families

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10. What is taxable income?

A household's income times exemptions and deductions

A household's income minus exemptions and deductions

A household's income plus exemptions and deductions

A household's income over exemptions and deductions

Answer

Correct Answer: A household's income minus exemptions and deductions

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11. What is tax revenue?

The tax rate minus the amount subject to tax

The tax rate times the amount subject to tax

The tax rate multiplied by the amount not subject to tax

The tax rate divided by the amount subject to tax

Answer

Correct Answer: The tax rate times the amount subject to tax

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12. What is the tax incidence?

The tax rate.

The allocation of the burden of the tax between buyer and seller.

The amount of tax paid by the seller.

The amount of tax paid by the buyer.

Answer

Correct Answer: The allocation of the burden of the tax between buyer and seller.

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13. Slope is defined as the change in the variable on the axis divided by the change in the variable on the axis.

Vertical, horizontal

Horizontal, horizontal

Vertical, vertical

Horizontal, vertical

Answer

Correct Answer: Vertical, horizontal

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14. What is the shutdown point?

The point at which price equals the maximum of marginal cost.

The point at which price equals the minimum of marginal cost.

The point at which price equals the minimum of average variable cost.

The point at which price equals the maximum of average variable cost.

Answer

Correct Answer: The point at which price equals the minimum of average variable cost.

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15. What is the point at which price equals the minimum of average variable cost called?

Shutdown condition

Shutting down

Shutdown procedure

Shutdown point

Answer

Correct Answer: Shutdown point

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16. What is the definition of shortage?

The situation in which quantity demanded is greater than quantity supplied.

The situation in which quantity supplied is greater than quantity demanded.

There is no demand for the product.

The situation in which quantity demanded is equal to quantity supplied.

Answer

Correct Answer: The situation in which quantity demanded is greater than quantity supplied.

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17. Excess demand is also known as...?

Insufficiency

Deficit

Shortage

Oversupply

Answer

Correct Answer: Shortage

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18. What does "short run" refer to in economics?

The period of time during which it is possible to change all inputs

The period of time during which it is impossible to change any inputs

The period of time during which only some inputs can be changed

The period of time during which all inputs can be changed

Answer

Correct Answer: The period of time during which only some inputs can be changed

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19. Resale price maintenance is when _____.

A producer sets a list price and does not allow the retailer to offer a discount to consumers.

A producer sets a list price and allows the retailer to offer a discount to consumers.

The retailer sets the price for the product.

The producer and retailer agree on a list price.

Answer

Correct Answer: A producer sets a list price and does not allow the retailer to offer a discount to consumers.

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20. What is the rental price of capital?

The amount that a rental company charges for the use of capital equipment for a specified period of time.

The amount that a rental company charges for the use of labor for a specified period of time.

The amount that a rental company charges for the use of property for a specified period of time.

The amount that a rental company charges for the use of goods for a specified period of time.

Answer

Correct Answer: The amount that a rental company charges for the use of capital equipment for a specified period of time.

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21. What is rent control?

A government price control that sets the maximum allowable rent on a house or apartment.

A government price control that sets the average allowable rent on a house or apartment.

A government price control that sets the rent on a house or apartment according to the consumer price index.

A government price control that sets the minimum allowable rent on a house or apartment.

Answer

Correct Answer: A government price control that sets the maximum allowable rent on a house or apartment.

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22. What is relative price?

The price of all goods divided by the quantity demanded for all goods

The price of a particular good compared to the price of other things.

The average price of all goods

The quantity demanded for a particular good compared to the quantity demanded for other goods.

Answer

Correct Answer: The price of a particular good compared to the price of other things.

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23. What does the term "quintiles" refer to?

A group of five musicians

A unit of measure of length

A set of five

Divisions or groupings of one-fifth of a population ordered by income, wealth, or some other statistic

Answer

Correct Answer: Divisions or groupings of one-fifth of a population ordered by income, wealth, or some other statistic

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24. What does production possibilities refer to?

The principle that the opportunity cost of anything is what you must give up to get it

The amount of output that an economy can produce with its available resources

Alternative combinations of production of various goods that are possible, given the economy’s resources

The economic concept that scarcity necessitates trade-offs

Answer

Correct Answer: Alternative combinations of production of various goods that are possible, given the economy’s resources

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25. What are production possibilities?

Alternative combinations of production of various goods that are possible, given the economy’s resources.

The condition of the market after production has ceased

How much of a good or service an economy can produce given the resources

The capacity of workers to produce more output

Answer

Correct Answer: Alternative combinations of production of various goods that are possible, given the economy’s resources.

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26. What is a production function?

A relationship that shows the quantity of output for any given amount of input.

A relationship that shows the quantity of input for any given amount of output

A machine that helps increase productivity

The study of how businesses use raw materials and labor to produce goods and services

Answer

Correct Answer: A relationship that shows the quantity of output for any given amount of input.

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27. What is product differentiation?

The act of firms working together to produce goods

The process of firms producing goods at the lowest possible cost

The effort by firms to produce goods that are slightly different from other types of goods

A government-imposed restriction on the number of firms

Answer

Correct Answer: The effort by firms to produce goods that are slightly different from other types of goods

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28. What is a private remedy?

A procedure that requires government action in order to eliminate or internalize externalities.

A procedure that is done in private without government interference.

A procedure that eliminates or internalizes externalities without government action other than defining property rights.

A procedure that is done in secret and without government knowledge.

Answer

Correct Answer: A procedure that eliminates or internalizes externalities without government action other than defining property rights.

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29. What is the best outcome of the prisoner's dilemma?

Competitive

Cooperative

Noncooperative

Nonoptimal

Answer

Correct Answer: Cooperative

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30. What is the name of the game in which individual incentives lead to a nonoptimal outcome?

Prisoner's dilemma

Chicken

Coordinated attack

Rock, paper, scissors

Answer

Correct Answer: Prisoner's dilemma

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31. What is a price ceiling?

A government price control that sets the maximum allowable quantity for a good.

A government price that sets the maximum allowable quantity for a good.

A government price control that sets the minimum allowable price for a good.

A government price control that sets the maximum allowable price for a good.

Answer

Correct Answer: A government price control that sets the maximum allowable price for a good.

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32. What is the definition of price?

The amount of money or other goods that one must barter to obtain a particular good.

The amount of money or other goods that one must sell to obtain a particular good.

The amount of money or other goods that one must trade to obtain a particular good.

The amount of money or other goods that one must pay to obtain a particular good.

Answer

Correct Answer: The amount of money or other goods that one must pay to obtain a particular good.

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33. What is the present discounted value?

The value of money in the past.

The value in the present of future payments.

The value of money in the present.

The value of money in the future.

Answer

Correct Answer: The value in the present of future payments.

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34. What is the goal of predatory pricing?

To make a quick profit

To drive its competitors out of business

To eliminate the competition

To increase market share

Answer

Correct Answer: To drive its competitors out of business

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35. What is the poverty rate?

The percentage of people living below the poverty line.

The percentage of people living in developing countries.

The percentage of people living above the poverty line.

The percentage of people living in developed countries.

Answer

Correct Answer: The percentage of people living below the poverty line.

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36. What is the definition of "positively related?"

A situation in which there is no association between two variables.

A situation in which an increase in one variable is associated with an increase in another variable.

A situation in which an increase in one variable is associated with a decrease in another variable.

A situation in which an association between two variables cannot be determined.

Answer

Correct Answer: A situation in which an increase in one variable is associated with an increase in another variable.

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37. What is on-the-job training?

The building of the skills of a firm's employees while they work for the firm.

The building of the skills of a firm's employees while they are working for another firm.

The building of the skills of a firm's employees while they work for the firm on their own time.

The building of the skills of a firm's employees while they are not working for the firm.

Answer

Correct Answer: The building of the skills of a firm's employees while they work for the firm.

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38. What is a nontariff barrier?

Any government action that reduces imports

Any government action that reduces exports

Any government action that promotes free trade

Any government action that imposes a tariff

Answer

Correct Answer: Any government action that reduces imports

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39. What is the definition of "nonexcludability"?

The situation in which one can be excluded from consuming a good.

The situation in which all can be excluded from consuming a good.

The situation in which some can be excluded from consuming a good.

The situation in which no one can be excluded from consuming a good.

Answer

Correct Answer: The situation in which no one can be excluded from consuming a good.

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40. What is a noncooperative outcome?

An outcome of a game that benefits all players

An equilibrium in a game where the players cannot agree to cooperate and instead follow their individual incentives

An equilibrium in a game where the players agree to cooperate

An outcome of a game where one player benefits at the expense of others

Answer

Correct Answer: An equilibrium in a game where the players cannot agree to cooperate and instead follow their individual incentives

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41. What is a negatively related relationship?

A situation in which an increase in one variable is associated with an increase in another variable

A situation in which two variables are not related

A situation in which one variable does not change while the other variable changes

A situation in which an increase in one variable is associated with a decrease in another variable

Answer

Correct Answer: A situation in which an increase in one variable is associated with a decrease in another variable

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42. What is the median voter theorem?

A theorem stating that the median or middle of political preferences will have no bearing on government decisions.

A theorem stating that the median or middle of political preferences will be the only factor considered in government decisions.

A theorem stating that the median or middle of political preferences will be reflected in government decisions.

Answer

Correct Answer: A theorem stating that the median or middle of political preferences will be reflected in government decisions.

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43. 2. What does "means-tested transfer" mean?

A transfer payment that does not depend on the income of the recipient

A transfer payment that depends on the need of the recipient

A transfer payment that depends on the assets of the recipient

A transfer payment that depends on the income of the recipient

Answer

Correct Answer: A transfer payment that depends on the income of the recipient

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44. What is a means-tested transfer?

A means-tested cash payment.

A transfer payment that does not depend on the income of the recipient.

A transfer payment that depends on the income of the recipient.

A transfer payment that is not means-tested.

Answer

Correct Answer: A transfer payment that depends on the income of the recipient.

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45. Maturity date refers to

The date when the borrower must begin repaying the loan.

The date when the loan is to be paid in full.

The date when the interest on a loan is to be paid back.

The date when the principal on a loan is to be paid back.

Answer

Correct Answer: The date when the principal on a loan is to be paid back.

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46. What is market power?

A firm's power to set its price higher than its competitors.

A firm's power to set its price below its competitors.

A firm's power to set its price regardless of demand.

A firm's power to set its price without losing its entire share of the market.

Answer

Correct Answer: A firm's power to set its price without losing its entire share of the market.

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47. What is market failure?

Any situation in which there is no potential role for government.

Any situation in which the government does not lead to an efficient economic outcome.

Any situation in which the market leads to an efficient economic outcome.

Any situation in which the market does not lead to an efficient economic outcome.

Answer

Correct Answer: Any situation in which the market does not lead to an efficient economic outcome.

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48. What happens when the price is equal to the equilibrium price and the quantity traded equals the equilibrium quantity?

Prices and quantity remain the same.

Quantity supplied exceeds quantity demanded.

Quantity demanded exceeds quantity supplied.

Market equilibrium is reached.

Answer

Correct Answer: Market equilibrium is reached.

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49. What is a market economy?

An economy with no government intervention.

An economy characterized by centrally planned pricing and the government's exchange of goods and services.

An economy characterized by freely determined prices and the free exchange of goods and services in markets.

An economy without money or markets.

Answer

Correct Answer: An economy characterized by freely determined prices and the free exchange of goods and services in markets.

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50. What is the market demand curve?

The vertical summation of all the individual demand curves for a good.

The market supply curve.

A curve showing the quantity of a good that consumers are willing and able to purchase at various prices.

The horizontal summation of all the individual demand curves for a good.

Answer

Correct Answer: The horizontal summation of all the individual demand curves for a good.

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51. What is market definition?

Scarcity

The three basic economic questions

The law of supply and demand

Demarcation of a geographic region and a category of goods or services in which firms compete.

Answer

Correct Answer: Demarcation of a geographic region and a category of goods or services in which firms compete.

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52. What is the meaning of the word "market"?

A place where people can trade stocks

A place where people can gamble

A place where people buy and sell products

An arrangement by which economic exchanges between people take place.

Answer

Correct Answer: An arrangement by which economic exchanges between people take place.

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53. What is marginal utility?

The decrease in utility when consumption of a good increases by one unit

The increase in utility when production of a good increases by one unit

The increase in utility when consumption of a good increases by one unit

The utility when consumption of a good increases by one unit

Answer

Correct Answer: The increase in utility when consumption of a good increases by one unit

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54. What is the marginal tax rate?

The amount of tax paid on an additional dollar of income

The tax rate that applies to the last dollar of income

The total tax paid divided by the income earned

The change in total tax divided by the change in income.

Answer

Correct Answer: The change in total tax divided by the change in income.

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55. What is the marginal social cost?

The marginal cost of production as viewed by society as a whole.

The opportunity cost of producing one more unit of a good.

The total cost of production divided by the quantity of output.

The price of a good minus the marginal cost of production.

Answer

Correct Answer: The marginal cost of production as viewed by society as a whole.

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56. What is marginal social cost?

The total cost of production as viewed by society as a whole

The marginal cost of production as viewed by the producer

The total cost of production as viewed by the producer

The marginal cost of production as viewed by society as a whole

Answer

Correct Answer: The marginal cost of production as viewed by society as a whole

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57. What is the labor supply?

The relationship between labor demand and labor supply.

The relationship between the quantity of labor supplied by individuals and the wage.

The quantity of labor demanded by businesses

The quantity of labor available in the economy

Answer

Correct Answer: The relationship between the quantity of labor supplied by individuals and the wage.

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58. What is labor productivity?

Output per capita

Output per hour of rest

Output per hour of study

Output per hour of work

Answer

Correct Answer: Output per hour of work

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59. What is the labor market equilibrium?

A state of unemployment

When the number of workers exceed the number of jobs

When the number of jobs exceed the number of workers

The situation in which the quantity of labor supplied equals the quantity of labor demanded.

Answer

Correct Answer: The situation in which the quantity of labor supplied equals the quantity of labor demanded.

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60. What is the labor market?

The market in which individuals supply their labor time to other individuals in exchange for wages and salaries.

The market in which individuals supply their labor time to the government in exchange for wages and salaries.

The market in which firms supply labor to individuals in exchange for wages and salaries.

The market in which individuals supply their labor time to firms in exchange for wages and salaries.

Answer

Correct Answer: The market in which individuals supply their labor time to firms in exchange for wages and salaries.

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61. What is a hostile takeover?

A situation in which investors buy a large share of a company and replace the managements.

A situation in which two companies merge in order to better compete in their marketplace

A situation in which a company is bought by another company in order to eliminate competition

Answer

Correct Answer: A situation in which investors buy a large share of a company and replace the managements.

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62. What is a horizontal merger?

A combining of two firms that produce the same good or the same type of good.

A combining of two firms that provide the same service or the same type of service.

A combining of two firms that sell different goods or different types of goods.

A combining of two firms that sell the same good or the same type of good.

Answer

Correct Answer: A combining of two firms that sell the same good or the same type of good.

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63. What does HHI stand for?

Heritage-Hirschman index

Herfindahl-Hirschman index

Horizontal-Hierarchical index

Highly-concentrated index

Answer

Correct Answer: Herfindahl-Hirschman index

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64. For which value does the Gini coefficient indicate perfect equality?

1.5

0.5

Answer

Correct Answer: 0

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65. The Gini coefficient is an index of ____________.

Employment

Poverty

Economic growth

Income inequality

Answer

Correct Answer: Income inequality

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66. What is flat tax?

A tax system in which there is a constant marginal tax rate for all levels of taxable income.

A tax system in which there is no tax on taxable income

A tax system in which the tax rate decreases as the amount of taxable income increases

A tax system in which the tax rate increases as the amount of taxable income increases

Answer

Correct Answer: A tax system in which there is a constant marginal tax rate for all levels of taxable income.

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67. What are fixed costs?

Costs of production that do not depend on the quantity of production.

Semi-variable costs.

Variable costs

Costs of production that depend on the quantity of production.

Answer

Correct Answer: Costs of production that do not depend on the quantity of production.

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68. Which of the following is NOT true about the First Theorem of Welfare Economics?

It is also known as the "invisible hand theorem."

It concludes that a competitive market results in an efficient outcome.

It was developed by economist Adam Smith.

The definition of efficiency used in the theorem is Pareto efficiency.

Answer

Correct Answer: It is also known as the "invisible hand theorem."

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69. What does the efficient market hypothesis state?

The idea that there are always profit opportunities in markets.

The idea that markets take a long time to adjust to new information.

The idea that markets adjust rapidly enough to eliminate profit opportunities immediately.

The idea that markets are never efficient.

Answer

Correct Answer: The idea that markets adjust rapidly enough to eliminate profit opportunities immediately.

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70. What is meant by economies of scale?

A situation in which short-run average total cost declines as the output of a firm increases.

A situation in which short-run average total cost rises as the output of a firm increases.

A situation in which long-run average total cost declines as the output of a firm increases.

A situation in which long-run average total cost rises as the output of a firm increases.

Answer

Correct Answer: A situation in which long-run average total cost declines as the output of a firm increases.

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71. What is economics?

The study of how people earn money.

The study of how people produce and consume goods and services.

The study of how people deal with scarcity.

The study of how people use money.

Answer

Correct Answer: The study of how people deal with scarcity.

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72. What is an economic variable?

A economic situation in which there is little or no economic activity.

An economic system in which the government controls all aspects of the economy.

Any economic measure that can vary over a range of values.

Answer

Correct Answer: Any economic measure that can vary over a range of values.

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73. What is economic rent?

The price of something that has an scarce supply

The price of something that has a fixed supply

The price of something that has a limited supply

The price of something that has a plentiful supply

Answer

Correct Answer: The price of something that has a fixed supply

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74. Diminishing returns to labor refers to a situation in which the ______

Increase in output due to a unit increase in labor increases with increasing labor input

Increase in output due to a unit increase in labor declines with increasing labor input

Decrease in output due to a unit increase in labor declines with increasing labor input

Decrease in output due to a unit increase in labor increases with increasing labor input

Answer

Correct Answer: Increase in output due to a unit increase in labor declines with increasing labor input

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75. What is derived demand?

The portion of total demand that is notinelastic

The quantity demanded of a good or service at a given price

Demand for an input derived from the demand for the product produced with that input.

The amount of a good or service that buyers are willing and able to purchase

Answer

Correct Answer: Demand for an input derived from the demand for the product produced with that input.

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76. What is the deregulation movement?

The drive to reduce the government regulations controlling prices and entry in many industries.

The drive to reduce the government regulations controlling environmental issues.

The drive to reduce the government regulations controlling taxes.

The drive to increase the government regulations controlling prices and entry in many industries.

Answer

Correct Answer: The drive to reduce the government regulations controlling prices and entry in many industries.

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77. What is depreciation?

The increase in an asset's value over time

A measure of how much an asset is used over time

The amount of money an asset generates over time

The decrease in an asset's value over time

Answer

Correct Answer: The decrease in an asset's value over time

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78. What is a demand schedule?

A tabular presentation of demand showing the price and quantity demanded for a particular good, all else being equal.

A tabular presentation of supply showing the price and quantity demanded for a particular good, all else being equal.

A tabular presentation of demand showing the price and quantity supplied for a particular good, all else being equal.

A graphical representation of demand showing the price and quantity demanded for a particular good, all else being equal.

Answer

Correct Answer: A tabular presentation of demand showing the price and quantity demanded for a particular good, all else being equal.

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79. What does a demand curve show?

The relationship between quantity demanded and quantity supplied.

The upward-sloping relationship between price and quantity demanded.

The relationship between price and quantity supplied.

The downward-sloping relationship between price and quantity demanded.

Answer

Correct Answer: The downward-sloping relationship between price and quantity demanded.

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80. What is the consumer surplus?

The area below the market price

The difference between what a person is willing to pay and the market price

The market price of the good

The sum of all the individual consumer surpluses

Answer

Correct Answer: The difference between what a person is willing to pay and the market price

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81. What does constant returns to scale mean?

A situation in which long-run average total cost is constant as the output of a firm changes.

A situation in which short-run average total cost is constant as the output of a firm changes.

A situation in which there are decreasing returns to scale.

A situation in which economies of scale are present.

Answer

Correct Answer: A situation in which long-run average total cost is constant as the output of a firm changes.

Note: This Question is unanswered, help us to find answer for this one

82. What is a complement?

A good that is usually consumed instead of another good.

A good that is usually not consumed at all.

A good that is usually consumed or used together with another good.

A good that is usually not consumed with another good.

Answer

Correct Answer: A good that is usually consumed or used together with another good.

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83. What is a competitive market?

A market in which all firms have the power to affect the market price of a good.

A market in which two or more firms have the power to affect the market price of a good.

A market in which no firm has the power to affect the market price of a good.

A market in which one firm has the power to affect the market price of a good.

Answer

Correct Answer: A market in which no firm has the power to affect the market price of a good.

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84. What assumption does the competitive equilibrium model make about firms?

Cost minimization

Market domination

Sales maximization

Profit maximization

Answer

Correct Answer: Profit maximization

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85. Compensating wage differential is difference in wages for people with similar skills based on what?

Some characteristic of the job, such as riskiness, discomfort, or convenience of the time schedule.

Qualifications

The number of hours worked per week.

Previous work experience

Answer

Correct Answer: Some characteristic of the job, such as riskiness, discomfort, or convenience of the time schedule.

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86. Which of the following is an example of comparative advantage?

A person can produce one good at a higher quantity than another person.

Two countries can both produce the same good.

A person can produce one good at a higher quality than another person.

A person can produce one good at a lower opportunity cost than another person.

Answer

Correct Answer: A person can produce one good at a lower opportunity cost than another person.

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87. What does the commerce clause in the U.S. Constitution prohibit?

Regulating interstate commerce

Establishing a national currency

Restraint of trade between states

Setting tariffs on imported goods

Answer

Correct Answer: Restraint of trade between states

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88. What is the commerce clause?

The clause in the U.S. Constitution that requires states to tax interstate commerce.

The clause in the U.S. Constitution that prohibits restraint of trade between states.

The clause in the U.S. Constitution that promotes free trade between states.

The clause in the U.S. Constitution that gives Congress the power to regulate interstate commerce.

Answer

Correct Answer: The clause in the U.S. Constitution that prohibits restraint of trade between states.

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89. What is a command economy?

An economy in which the government determines prices and production

An economy in which the government encourages competition

An economy in which the government does not intervene in business

An economy in which the government provides goods and services

Answer

Correct Answer: An economy in which the government determines prices and production

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90. What is the definition of "command and control?"

The government's control over the economy

The regulations and restrictions that the government uses to correct market imperfections.

Commanding and controlling the market

A system of government

Answer

Correct Answer: The regulations and restrictions that the government uses to correct market imperfections.

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91. Who put forth the idea of the Coase theorem?

Friedrich Hayek

Adam Smith

John Maynard Keynes

Ronald Coase

Answer

Correct Answer: Ronald Coase

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92. What was the Clayton Antitrust Act passed in 1914 in the United States aimed at preventing?

Antitrust offenses

To dissolve a monopoly

Unfair business practices

Monopolies from forming through mergers

Answer

Correct Answer: Monopolies from forming through mergers

Note: This Question is unanswered, help us to find answer for this one

93. What is the breakeven point?

The point at which quantity demanded equals quantity supplied.

The point at which average revenue equals average cost.

The point at which price equals the minimum of average total cost.

The point at which price equals the maximum of average total cost.

Answer

Correct Answer: The point at which price equals the minimum of average total cost.

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94. What is the point at which price equals the minimum of average total cost called?

Breakeven point

Economies of scope

Sunk cost

Economies of scale

Answer

Correct Answer: Breakeven point

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95. What is the definition of bilateral monopoly?

The situation in which there is one buyer and two sellers in a market.

The situation in which there is only one seller in a market.

The situation in which there are only two firms in a market.

The situation in which there is one buyer and one seller in a market.

Answer

Correct Answer: The situation in which there is one buyer and one seller in a market.

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96. What is the main idea of the content?

Different people have different levels of success in an economic interaction or exchange.

Asymmetric information refers to different levels of information available to different people in an economic interaction or exchange.

Everyone has the same level of information in an economic interaction or exchange.

People with more information are more likely to succeed in an economic interaction or exchange.

Answer

Correct Answer: Asymmetric information refers to different levels of information available to different people in an economic interaction or exchange.

Note: This Question is unanswered, help us to find answer for this one

97. What is the Arrow impossibility theorem?

A theorem that says that no democratic voting scheme can avoid a voting paradox.

A theorem that says that some democratic voting schemes can avoid a voting paradox.

A theorem that says that no voting scheme can avoid a voting paradox.

A theorem that says that all democratic voting schemes can avoid a voting paradox.

Answer

Correct Answer: A theorem that says that no democratic voting scheme can avoid a voting paradox.

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98. What is the goal of antitrust policy?

To prevent anyone from having too much power

To help monopolies

To promote competition among firms in the economy

To make sure big businesses don't get too big

Answer

Correct Answer: To promote competition among firms in the economy

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99. What is antitrust policy?

Actions designed to protect small businesses from large businesses

Actions designed to promote monopolies

Government actions designed to promote competition among firms in the economy

Actions designed to inhibit competition among firms in the economy

Answer

Correct Answer: Government actions designed to promote competition among firms in the economy

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100. Which of the following is true about the Antitrust Division of the Justice Department in the United States?

Its primary task is to investigate and prosecute federal criminal cases.

It is responsible for investigating and prosecuting organized crime in the United States.

It was established in 1892.

It enforces antitrust legislation, along with the Federal Trade Commission.

Answer

Correct Answer: It enforces antitrust legislation, along with the Federal Trade Commission.

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101. What is dumping?

Selling goods at a higher price in a foreign market than in the home market

Purchasing goods in a foreign market

Selling goods at a lower price in the home market than in the foreign market

Selling goods at a lower price in a foreign market than in the home market

Answer

Correct Answer: Selling goods at a lower price in a foreign market than in the home market

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102. What is a tariff imposed on a country as a penalty for dumping goods called?

Customs duty

Dumping duty

Tariff penalty

ANTIDUMPING DUTY

Answer

Correct Answer: ANTIDUMPING DUTY

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Manufacturing Engineering MCQs | Topic-wise

MCQ on Basic Manufacturing Engineering	MCQ on C/C++ Programming
MCQ on Manufacturing Processes	MCQ on Measurements and Instrumentation
MCQ on Mechanical and Manufacturing Engineering	MCQ on Principles of Microeconomics
MCQ on Product Design and Development	MCQ on Statistics
MCQ on Technical Writing	General Manufacturing Engineering MCQs