X inefficiency occurs when ?

Related Mcqs:

1. The inefficiency associated with monopoly is due to ?

   A. underproduction of the good
   B. the monopoly’s profits
   C. the monopoly’s losses
   D. overproduction of the good

2. One source of inefficiency in monopolistic competition is that since price is above marginal cost, some units are not produced that buyers value in ?

   A. Since price is above marginal cost surplus is redistributed from buyers to sellers
   B. monopolistically competitive firms earn economic profits in the long run
   C. monopolistically competitive firms produce beyond their efficient scale
   D. excess of the cost of production and this causes a deadweight loss.

3. A welfare loss occurs in monopoly where ?

   A. The price is greater than the marginal cost
   B. The price is greater than the marginal benefit
   C. The price is greater than the average revenue
   D. The price is greater than the marginal revenue

4. What occurs when a firm’s business is terminated Assets are sold, proceeds are used to pay creditors, and any leftovers are distributed to shareholders ?

   A. Solvency
   B. Crash
   C. Bankruptcy
   D. Liquidation

5. A contraction in supply occurs when ?

   A. Demand shifts outwards
   B. The supply curve shifts inwards
   C. The quantity supplied falls when the price falls
   D. The supply curve shifts outwards

6. Normal profit occurs when ?

   A. Average revenue equals average variable cost
   B. Marginal revenue equals marginal cost
   C. Average revenue equals marginal cost
   D. Average revenue equals average cost

7. Nationalisation occurs when ?

   A. The government sells assets to a the private sector
   B. The government bans a product
   C. The government takes control of an industry
   D. The government taxes a product to a raise its price

8. Under a system of floating exchange rates the pound would depreciate in value if there occurs ?

   A. Price inflation in the United States
   B. an increase in U.S real income
   C. a decrease in the British money supply
   D. falling interest rates in Britain

9. The negative effect on the economy that occurs when average tax rates increase because taxpayers have moved into higher income brackets during an expansion is ?

   A. debt burden
   B. the Laffer curves
   C. bracket creep
   D. fiscal drag

10. Fiscal drag occurs when ?

    A. Tax bands do not increase with inflation
    B. Tax rates move inversely with inflation
    C. Government spending falls to reduce aggregate demand
    D. Tax banks increase with inflation