A private good is ?

Related Mcqs:

1. Public goods are difficult for a private market to provide due to ?

   A. the rivalness problem
   B. the public goods problem
   C. the Tragedy of the Commons.
   D. The free-rider problem.

2. What is called when a private company first offers shares to the public market and investors ?

   A. Public offering
   B. Public floating
   C. going public
   D. Coming public

3. The idea the government spending causes a reduction in private investment is called ?

   A. fiscal drag
   B. investment blight
   C. crowding-out
   D. the Thatcher effects

4. If banks and the private sector decide to hold less cash the money multiplier will be ?

   A. Unchanged
   B. Larger
   C. Smaller
   D. Unstable

5. _______ states that as real GNP per capita rises, people demand relatively more social goods and relatively fewer private goods?

   A. incomes policy
   B. Moral hazard
   C. Wagner’s law
   D. Fiscal policy

6. If a large number of individuals are affected by an external benefit, private bargaining will not work because of ?

   A. non-rivalry
   B. the free-rider problem
   C. the Coase theorem
   D. the fallacy of composition

7. According to the Coase theorem, private parties can solve the problem of externalities if ?

   A. there are no transaction costs.
   B. each affected party has equal power in the negotiations.
   C. the party affected by the externality has the initial property right to be left alone.
   D. There are a large number of affected parties.
   E. the government requires them to negotiate with each other

8. Which of the following is not a public policy to promote the private sector ?

   A. Investigating development potential through scientific and market research and natural resources surveys
   B. Providing adequate infrastructure for public and private agencies
   C. Creating markets, including commodity markets, security exchanges, banks credit facilities and insurance companies
   D. Increasing market monopolies and oligopolies to help producers

9. An increase in Pakistan’s private saving ?

   A. increase Pakistan’s net exports and Pakistan’s net capital outflow the same amount
   B. Increase Pakistan’s net exports and decrease Pakistan’s net capital outflow
   C. decreases Pakistan’s net exports and Pakistan’s net capital outflow the same amount
   D. decrease Pakistan’s net exports and increase Pakistan’s net capital outflow

10. Which of the following must be true about a signal that is used to reveal private information in order for the signal to be effective ?

    A. It must be “as seen on TV”
    B. It must be free to the signaling party
    C. It must be costly to the signaling party but less costly to the party with higher-quality product
    D. It must be applied to an inexpensive product