In a free market?

Related Mcqs:

1. If a producer has market power (can influence the price of the product in the market) then free market solutions ?

   A. are equitable.
   B. are efficient
   C. maximize consumer surplus
   D. are inefficient

2. If a market generates a side effect or externlity then free market solutions ?

   A. maximize producer surplus
   B. are efficient
   C. are inefficient
   D. are equitable

3. There is a decentralized market where geographically dispersed dealers are linked by telephones and computer screens. The market is for securities not listed on a stock or bond exchange. Name the market ?

   A. Grey market
   B. Over-the counter (OTC)
   C. Open market
   D. Back market

4. If all firms in a market have identical cost structures and if inputs used in the production of the good in that market are readily available, then the long-run market supply curve for that good should be ?

   A. downward sloping
   B. perfectly inelastic
   C. upward sloping
   D. perfectly elastic

5. The normal rate of profit for relatively risk-free firms will be _________ the interest rate on risk-free government bonds?

   A. approximately one-half
   B. smaller than
   C. larger than
   D. approximately equal to

6. The free market involves ?

   A. The free provision of products
   B. The Subsidizing of products by the government
   C. Market forces of supply and demand
   D. All trade via barter

7. In a free market system, the amount of goods and services that any one household gets depends upon its ?

   A. income
   B. income and wealth
   C. wealth
   D. wage and interest income

8. What is more likely to be found in a free market economy than in a planned economy ?

   A. an even distribution of income
   B. an incentive to innovate
   C. a wide range of public goods
   D. full employment of labor

9. Name the system in which the means of production and distribution are privately or corporate owned and development is proportionate to the accumulation and reinvestment of profits which are gained in a free market ?

   A. Capitalism
   B. Socialism
   C. Free market economy
   D. Liberalism

10. Income inequality can be high in the free market and should be reduced This is an example of What ?

    A. Judicial economic statement
    B. Positive economic statement
    C. Formative economic statement
    D. Normative economic statement