In a free market system rationing occurs when there are increases in ?

Related Mcqs:

1. Economics say that there has to be some from of rationing whenever ?

   A. inflation occurs
   B. there are externalities
   C. merit goods are produced
   D. there is excess demand

2. If a producer has market power (can influence the price of the product in the market) then free market solutions ?

   A. are equitable.
   B. are efficient
   C. maximize consumer surplus
   D. are inefficient

3. If a market generates a side effect or externlity then free market solutions ?

   A. maximize producer surplus
   B. are efficient
   C. are inefficient
   D. are equitable

4. There is a decentralized market where geographically dispersed dealers are linked by telephones and computer screens. The market is for securities not listed on a stock or bond exchange. Name the market ?

   A. Grey market
   B. Over-the counter (OTC)
   C. Open market
   D. Back market

5. If all firms in a market have identical cost structures and if inputs used in the production of the good in that market are readily available, then the long-run market supply curve for that good should be ?

   A. downward sloping
   B. perfectly inelastic
   C. upward sloping
   D. perfectly elastic

6. Total increases from Rs500 to Rs600 when output increases from 20 to 30 units. Fixed costs are Rs200 Which of the following is true ?

   A. Marginal cost is Rs20
   B. Average cost falls
   C. Variable cost rises by Rs100
   D. Average fixed cost is Rs10

7. ________ occurs when a firm disposes on foreign markets a temporary increases in inventories caused by unforeseen changes in supply and demand conditions in the home economy?

   A. sporadic dumping
   B. predatory dumping
   C. persistent dumping
   D. foreign dumping

8. The normal rate of profit for relatively risk-free firms will be _________ the interest rate on risk-free government bonds?

   A. approximately one-half
   B. smaller than
   C. larger than
   D. approximately equal to

9. Income inequality can be high in the free market and should be reduced This is an example of What ?

   A. Judicial economic statement
   B. Positive economic statement
   C. Formative economic statement
   D. Normative economic statement

10. When the market operates without interference, price increases will distribute what is available to those who are willing and able to pay the most. This process is known as ?

    A. Quantity setting
    B. price fixing
    C. price rationing
    D. quantity adjustment.