A. common resources are overconsumed
B. public goods are underproduced
C. private goods are under consumed
D. natural monopolies overproduce goods.
Related Mcqs:
- Which of the following is an example of tragedy of commons ?
A. over fishing
B. smoking in a public place
C. excessive rain
D. common use of public toilets - The parable of Riding a Switchback suggest that stabilizing policy ?
A. is not sufficiently stimulating or contracting the economy at any time
B. is effective
C. is stimulating or contracting the economy at the wrong times
D. is desirable - The original Phillips curve illustrates ?
A. the trade-off between inflation and unemployment
B. The trade-off between output and unemployment
C. The positive relationship between output and unemployment
D. The positive relationship between inflation and unemployment - Boeing aircraft company was able to over its production costs of the first – jumbo jetll in the seventies because Boeing could market it to several foreign airlines in addition to domestic airlines. This illustrates ?
A. How economies of scale make possible a larger variety of products in international trade
B. A transfer of wealth from domestic consumer to domestic producer as the result of trade
C. How a natural monopoly is forced to behave more competitively with international trade
D. How a natural monopoly is forced to behave less competitively with international trade - The curve that illustrates the negative relationship between the equilibrium values of aggregate output and the interest rate in the goods market is the ?
A. aggregate supply curve
B. LM curve
C. aggregate demand curve
D. IS curve - The curve that illustrates the positive relationship between the equilibrium values of aggregate output and the interest rate in the money market is the ?
A. money supply curve
B. LM curve
C. money demand curve
D. IS curve - Which of the following is not a reason why some workers are paid above the equilibrium wage ?
A. minimum-wage laws
B. efficiency wages
C. unions
D. beauty - During the era of dollar appreciation from 1981 to 1985 a main reason why the dollar did not fall in value was ?
A. flows of foreign investment into the United States
B. rising price inflation in the United States
C. a substantial decrease in U.S imports
D. a substantial increase in U.S exports - Under a pegged exchange rate system which does not explain why a country would have a balance of payments deficit ?
A. very high rates of inflation occur domestically
B. foreigners discriminate against domestic products
C. technological advance is superior abroad
D. the domestic currency is undervalued relative to other currencies - Why has the growth of the German and Japanese economies after World War|| not been repeated in LDCs ?
A. low interest rates
B. political instability inhibits world-wide investment
C. human capital or technical skills were lacking
D. real domestic currency depreciation exists
