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 ?

Related Mcqs:

1. 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

2. If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 the average propensity to consume is what ?

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

3. If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 the marginal propensity to consume is what ?

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

4. If goods are exported for less than society’s marginal production cost and the marginal benefit to domestic consumers, it is likely that they benefit from?

   A. an import subsidy
   B. a quota
   C. comparative advantage
   D. an export subsidy

5. Market price adjusted to consider differences between social cost-benefit and private cost-benefit calculations are ?

   A. price distortions
   B. consumer surplus
   C. shadow prices
   D. exchange rates

6. Mention the name for economic theory that the support of business that allows them to flourish will eventually benefit middle- and lower-income people in the form of increased economic activity and reduced unemployment?

   A. End benefit
   B. Trickle down
   C. Free market
   D. Capitalism

7. Medical care clearly enhance people’s lives. Therefore, we should consume medical care until ?

   A. everyone has as much as they would like
   B. the benefit buyers place on medical care is equal to the cost of producing it
   C. buyers receive no benefit from another unit of medical care.
   D. we must cut back on the consumption of other goods.

8. Economics assumes that people consume goods and services to achieve ?

   A. Status
   B. Prestige
   C. Utility
   D. Self-esteem

9. 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

10. 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