If one person’s consumption of a good diminishes other people’s use of the good, the good is said to be ?

Related Mcqs:

1. If the consumption of good by one person does not reduce the quantity available by others and nobody can be easily excluded from consumption, we are referring to a ?

   A. Private good
   B. merit good
   C. public good
   D. abundant good

2. If one person’s enjoyment of the benefits of a good does not interfere with another’s consumption of it, the good is said to be ?

   A. limitless in utility
   B. non-rival in consumption
   C. congestible in consumption
   D. non-excludable

3. A linear consumption function with a positive slope less than one means that if income increases consumption will ?

   A. fall
   B. not change
   C. fluctuate
   D. increase

4. If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 total consumption is what ?

   A. 0.8
   B. 800
   C. 810
   D. 0.81

5. If in Pakistan real GDP/person in 2004 is Rs18,073 and real GDP/person is 2005 is Rs18,635 What is the growth rate of real output per person over this period ?

   A. 3.1 percent
   B. 3.0 percent
   C. 18.6 percent
   D. 18.0 percent

6. When you consume good Q, not only do you benefit form consuming the good but other people benefit from your consumption as well, if firms produce good Q where P = MC, firms will be producing ?

   A. less than the efficient level of output
   B. more than the efficient level of output
   C. so that consumer surplus is zero
   D. the efficient level of output

7. If a person can be prevented from using a good, the good is said to be ?

   A. excludable
   B. a common resource
   C. a public goods
   D. rival

8. If a person who works in coal mine gets paid more than a person with a similar background and skills who works in a safer job, then ?

   A. coal miners must have greater human capital than others
   B. we have observed a compensating differential
   C. coal miners must be more attractive than other workers
   D. we have evidence of discrimination against workers outside the coal mine

9. In the ultimatum game, what split would be rational for both the person proposing the split and the person who must accept or reject the split ?

   A. There is no rational solution
   B. 75/25
   C. 99/1
   D. 1/99
   E. 50/50

10. People are said to have rational expectations if they ?

    A. assume that this year’s inflation rate will be the same as last year’s inflation rate
    B. merely guess at the inflation rate.
    C. assume that this year’s inflation rate will be equal to the average inflation rate over the past 10 years
    D. Use all available information in forming their expectations.