A. benefits if each acts in his/her own interest
B. will increase their profits in a free market
C. should act to maximize economic growth
D. should act to promote the public interest
Related Mcqs:
- Adam smith’s invisible hand concept suggests that a competitive market outcome ?
A. maximizes total surplus
B. generates equality among the members of society
C. minimizes total surplus
D. both maximizes total surplus and generates equality among the members of society - Adam Smith advocated ?
I- laissez faire
II- the invisible hand
III- free trade policy
IV- competitive marketsA. I and II only
B. II and III only
C. I , II and III only
D. I , II , III and IV - Adam Smith was __________?
A. An Economist
B. A scientist
C. A philosopher
D. None of theseSubmitted by: Shahbaz Jiskani
- The market power effect of an international joint venture can lead to welfare losses for the domestic economy unless offset by cost reductions. Which type of cost reduction would not lead to offsetting welfare gains for the overall economy ?
A. R&D generating welfare improved technology
B. development of more productive machinery
C. new work rules promoting workers efficiency
D. lower wages extracted from workers - Assume That the firms operate as purely competitive sellers (a purely competitive industry) In the long run, equilibrium price equals _________ quantity equals _________ and profits total _________?
A. $100, 2 million barrels per day $60 million
B. $80, 4 million barrels per day $70 million
C. $60, 6 million barrels per day, $20 million
D. $40, 8 million barrels per day, $0 million - Which of the following is true regarding the production and pricing decisions of monopolistically competitive firms? Monopolistically competitive firms choose the quantity at which marginal cost equals ?
A. marginal revenue and then use the demand curve to determine the price consistent with this quantity
B. average total cost and then use the supply curve to determine the price consistent with this quantity
C. marginal revenue and then use the supply curve to determine the price consistent with this quantity
D. average total cost and then use the demand curve to determine the price consistent with this quantity - Which of the following is true with regard to monopolistically competitive firms scale of production and pricing decisions Monopolistically competitive firms produce ?
A. at the efficient scale and charge a price equal to marginal cost
B. at the efficient scale and charge a price above marginal cost
C. With excess capacity and charge a price above marginal cost
D. With excess capacity and charge a price equal to marginal cost - In a competitive economy, a worker earns an income equivalent to ?
A. The amount of brain drain
B. Marginal utility
C. Marginal Product
D. The substitutability of labor to capital - Refer to Exhibit 6.If People in the economy expect inflation to be 6 percent but inflation turn out to be 3 percent the economy is operating at point ?
A. H
B. c
C. d
D. F - Refer to Exhibit 6. Suppose the economy is Operating in long-run equilibrium at point E. An unexpected monetary contraction will move the economy in the direction of point ?
A. H
B. F
C. E
D. c
