The optimal level of provision of public goods is where society total willingness to pay per unit is equal to the ?

Related Mcqs:

1. If a buyer’s willingness to pay for a new Honda is Rs20,000 and she is able to actually buy it for Rs18,000 her consumer surplus is ?

   A. Rs18,000
   B. Rs20,000
   C. Rs2,000
   D. Rs0.

2. A buyer’s willingness to pay is that buyer’s ?

   A. minimum amount they are willing to pay for a good
   B. producer surplus.
   C. consumer surplus
   D. maximum amount they are willing to pay for a good
   E. none of these answers

3. Suppose there are three identical vases available to be purchased. Buyer 1 is willing to pay Rs30 for one, buyer 2 is willing to pay Rs25 for one, and buyer 3 is willing to pay Rs20 for one. If the price is Rs25, how many vases will be sold and what is the value of consumer surplus in this market ?

   A. Three vases will be sold, and consumer surplus is Rs80
   B. One vase will be sold, and consumer surplus is Rs5.
   C. One vase will be sold, and consumer surplus is Rs30.
   D. Three vases will be sold, and consumer surplus is Rs0.
   E. Two vases will be sold, and consumer surplus is Rs5.

4. The consumer’s optimal purchase of any two goods is the point where ?

   A. the budget constraint crosses the indifference curve
   B. the two highest indifference curves cross
   C. the consumer reaches the highest indifference curve subject to remaining on the budget constraint
   D. the consumer has reached the highest indifference curve

5. An optimal tariff is one which reduces imports to the level at which ____ equals ____?

   A. imports, exports
   B. the balance of trade, zero
   C. The demand for currency the supply of currency
   D. social marginal cost, social marginal benefit

6. In an economy measuring (1) total value added (2)total spending on final goods and (3)total factor earning gives the result that ?

   A. 3>2>1
   B. 3=2=1
   C. 3<2<1
   D. any measure can be larger or smaller than any other

7. Naila owns a small pottery factory. She can make 1000 pieces of pottery per year and sell them for Rs 100 each. It costs Naila Rs 20,000 for the raw materials to produce the 1,000 pieces of pottery She has invested Rs100,000 in her factory and equipment: Rs50,000 from her savings and Rs50,000 borrowed at 10 per cent. (Assume that she could have loaned her money out at 10 her per cent, too) Naila can work at a competing pottery factory for Rs40,000 per year. The accounting profit at Naila’s pottery factory is ?

   A. Rs30,000
   B. Rs35,000
   C. Rs75,000
   D. Rs70,000

8. Naila owns a small pottery factory. She can make 1000 pieces of pottery per year and sell them for Rs 100 each. It costs Naila Rs 20,000 for the raw materials to produce the 1,000 pieces of pottery She has invested Rs100,000 in her factory and equipment: Rs50,000 from her savings and Rs50,000 borrowed at 10 per cent. (Assume that she could have loaned her money out at 10 her per cent, too) Naila can work at a competing pottery factory for Rs40,000 per year. The economics profit at Naila’s pottery factory is ?

   A. Rs80,000
   B. Rs30,000
   C. Rs75,000
   D. Rs70,000

9. The total cost to society of producing an additional unit of a good or service is the ?

   A. marginal damage cost
   B. marginal social cost
   C. marginal private cost
   D. marginal external cost

10. _______ 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