Which of the following is Cottage Industry ?

Related Mcqs:

1. Suppose an industry emits a negative externality such a pollution and the possible methods to internalize the externality are command-and-control policies, pigovian taxes, and tradable pollution permits. If economists were to rank these methods for internalizing a negative externality based on efficiency ease of implementation and the incentive for the industry to further reduce pollution in the future, they would probably rank them in the following order (from most favored to least favored) ?

   A. Pigouvian taxes, command-and-control policies, tradable pollution permits.
   B. tradable pollution permits, Pigouvian taxes, command-and-control policies
   C. tradable pollution permits command-and-control policies, Pigovian taxes.
   D. command-and-control policies, tradable pollution permits, Pigovian taxes.
   E. They would all rank equally high because the same result can be obtained from any one of the policies

2. A firm in perfectly competitive industry is producing 50 units, its profit-maximising quantity. Industry price is £2 and total fixed costs and total variable cost are £25 and £40 respectively. The firm’s economic profit is ?

   A. £35
   B. £15
   C. £30
   D. £60

3. The agro based industry is ?

   A. Woodwork
   B. Dairy farms
   C. Carpets
   D. Iron work

4. The biggest Industry of Pakistan is ?

   A. cement
   B. Sugar
   C. Textile
   D. Paper

5. Industry is the second largest sector of the economy. How much of GDP it accounts for ?

   A. 16.5%
   B. 18.2%
   C. 19.7%
   D. 20.5%

6. Assume That the firms operate as purely competitive sellers (a purely competitive industry) In the long run, equilibrium price equals _________ quantity equals _________ and profits total _________?

   A. $100, 2 million barrels per day $60 million
   B. $80, 4 million barrels per day $70 million
   C. $60, 6 million barrels per day, $20 million
   D. $40, 8 million barrels per day, $0 million

7. If you were running a firm in a perfectly competitive industry, you would be spending your time making decisions on ?

   A. how much to spend on advertising?
   B. how much of each input to use?
   C. What price to charge
   D. none of these

8. The cosmetics industry is not considered by economists to be a good example of perfect competition because ?

   A. there are many EU and government health controls on cosmetic products
   B. there are a very large number of firms in the industry
   C. firms spend a large amount of money on advertising
   D. profit margins are very high for both producers and retailers

9. In the insurance industry, high-risk customers are more likely to take out insurance. This is an example of ?

   A. moral hazard
   B. risk aversion
   C. adverse selection
   D. a poor gamble

10. In a competitive industry each buyer and seller ?

    A. is a price taker
    B. Producer different products
    C. Believes that can influence price
    D. Prevents the entry of competitors