A. inflation occurs
B. there are externalities
C. merit goods are produced
D. there is excess demand
Related Mcqs:
- Which economics doctrine opposes government regulation or interference in commerce beyond the minimum necessary for a free enterprise system to operate according to its own economics laws and non-interference in affairs of others ?
A. Free market economy
B. Laissez faire also Laisser faire
C. Open market economy
D. Liberal market economy - In a free market system rationing occurs when there are increases in ?
A. price
B. quantity
C. demand
D. supply - It is necessary to ration a good whenever ?
A. supply exceeds demand
B. a surplus exists
C. there is perfectly inelastic demand for the good
D. demand exceeds supply - We cannot say whether one allocation of resources is better than another allocation because ?
A. some people can’t count
B. some people may not be permanent resident
C. not all economic activity is legal
D. We can’t make value judgments to compare different people’s welfare - Normative economics Forms ________ based on ________?
A. positive statements, facts
B. opinions personal facts
C. positive statements values
D. opinions facts - Data are important in economics because _________ and ____________?
A. they suggest relationships for explanation, allow testing of hypotheses
B. they can be used for tables, they can be graphed
C. they can be used in computers governments use them
D. they provide interesting information can be summarized - The economics system planned economy is ?
A. In which economists control production
B. In which production and distribution of wealth is under government’s control
C. In which technocrats control production
D. In which government controls distribution - Rostow’s economics stages are ?
A. The preconditions for takeoff, the takeoff, the drive to maturity and the age of creative destruction
B. The traditional society the preconditions for takeoff, the takeoff, the drive to maturity and the age of high mass consumption
C. the preconditions for consumption the replication the drive to maturity and the age of high mass consumption
D. the learning curve the age of high mass consumption post takeoff, and the drive to maturity - Suppose that ABC publishing sells an economics textbook and accompanying study guide. Raheel is willing to pay Rs75 for the text and Rs15 for the study guide. Mariam is willing to spend Rs60 for the text and Rs25 for the study guide. Suppose both the book and study guide have a zero marginal cost of study production. If ABC publishing engages in tying the two products its best strategy is to charge a combined price of ?
A. Rs 60
B. Rs 90
C. Rs 85
D. Rs 75 - Which of the following could be considered critical s in development economics ?
A. How do the poorest 2/3 of the world live?
B. What are the major theories of economic development
C. what factors affect labor skills in the third world?
D. All of the above are correct
