Economics Practice MCQ Page 20

Multiple Choice questions for Economics in the sets of 10 each on one page with questions and answers. All sets are useful in the preparation of subject tests for employment or admission.
Question: 1566   Which of the following is not an example of nonprice competition?
  1. Lobbying for stricter licensing laws.
  2. Advertising.
  3. Offering a reduced scale price.
  4. Repackaging the produce as "new and improved."
  5. Offering longer warranties on a product.
Question: 1568   Which of the following is consistent with economic efficiency?
  1. Everyone can be made better off by real-locating resources.
  2. The marginal cost of a good is large than its price.
  3. Some goods are produced by profit-maximizing monopolies.
  4. The marginal utility of the last dollar spent is equal for any good on which it could be spent.
  5. Price exceeds marginal cost for some goods.
Question: 1570   Perfect competition may be inefficient if
  1. firms are price searchers.
  2. monopoly profits are earned.
  3. there are externalities.
  4. price equals marginal cost.
  5. properly rights are present.
Question: 1572   Which of the following is not a weakness of perfect competition?
  1. The income distribution may be highly unequal.
  2. Incentives to innovation may be lower without entry-impeding patent laws.
  3. Externalities lead to inefficient allocation of resources.
  4. Only b is a weakness; neither a .nor c is
  5. Each of the above is a weakness of perfect competition.
Question: 1574   Social costs equal private costs when
  1. marginal cost is zero.
  2. marginal cost equals average cost.
  3. external cost are zero .
  4. average cost are zero.
  5. firms maximize profits.
Question: 1575   Compared to perfect competition,a monopoly will
  1. change a higher price.
  2. produce more output.
  3. have lower average costs.
  4. have higher marginal revenue.
  5. increase economic efficiency.
Question: 1576   Lobbying costs incurred by large corporations are an example of
  1. external costs .
  2. implicit costs.
  3. rent costs .
  4. contrive costs .
  5. X-inefficiency.
Question: 1577   Unlike competition ,in a monopoly,a price ceiling often does not
  1. reduce profits.
  2. reduce price.
  3. cause shortages.
  4. reduce costs.
  5. increase inefficiency.
Question: 1578   Which of the following is inconsistent with profit-maximization?
  1. X-inefficiency.
  2. Deviation of private cost from social cost.
  3. Externalities.
  4. Lump-sum taxes.
  5. Contrived scarcity.
Question: 1579   The one industry where patents do apparently protect inventions from competition is
  1. prescription drugs.
  2. McDonal 's hamburgers.
  3. bioebgineering.
  4. electronics.
Question: 1581   When the patents on prescription drugs expire,it is normal for
  1. quantity produced to all.
  2. price to drop.
  3. firms to leave the industry .
  4. consumers to use less of the product.
Question: 1582   When rent seeking reaches its greatest possible extent,then it result in
  1. greater profits for monopolists.
  2. zero profits and no dead - weight loss.
  3. greater consumer surplus.
  4. maximum X-inefficiency.
  5. zero profits and a large dead -weight loss.