Economics Practice MCQ Page 21

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: 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.
Question: 1584   Important technological innovations are developed.
  1. almost exclusively in laboratories of large companies.
  2. mostly by firms in highly competitive industries.
  3. almost entirely in universities.
  4. mostly by private inventors.
  5. in large measure in each of the above situations.
Question: 1586   Which of the following is not a characteristic of cf competitive markets?
  1. The price of a measures its marginal benefit to society .
  2. Marginal private costs always equal marginal social costs.
  3. Goods are produced at minimum cost.
  4. Goods are produced where marginal benefit just balances marginal cost.
Question: 1587   As a matter of definition externalities affect
  1. only producers whose products create external costs or benefits.
  2. only producers whose products create external costs.
  3. only consumers of products that produce external costs or benefits.
  4. those uninvolved in an activity .
Question: 1588   If a chemical plant produces a ton of plastic by paying its inputs $12,000 while doing $3,000 damage to a river when wastes are dumped,the marginal social costs per ton are
  1. $3,000.
  2. $9.,000.
  3. $12,000.
  4. $15,000.
Question: 1589   In the absence of externalities ,which of the following is an incorrect statement?
  1. Marginal private benefits equal marginal social benefits.
  2. Competitive markets promote economic efficiency .
  3. Price measures only marginal private cost.
  4. Marginal private costs equal marginal social costs.
Question: 1590   By saying that monopolists create a contrived scarcity ,economists mean they
  1. restrict output to increase price.
  2. produce where MC exceeds price.
  3. create a gap between quantity demanded and quantity supplied.
  4. do not sell consumers all they want at the monopoly price.
Question: 1591   What size firm is best suited for promoting new inventions and market innovations.?
  1. Relatively small ,including signal individuals.
  2. Medium-size firms with small research facilities.
  3. Grant corporations with extensive R&D labs.
  4. No one size is best.
Question: 1593   Maroeconomics is the study of
  1. large firms and consumers.
  2. industries as a whole rather then individual firms.
  3. the economy as a whole.
  4. large groups of firms and households.
  5. individual firms and households.
Question: 1595   Which of the following is least important in the study of macroeconomics ?
  1. The general price level .
  2. Relative prices level.
  3. The unemployment rate.
  4. The interest rate.
  5. Total output of goods and services.
Question: 1596   If the total adult population is 22 million and 99 million workers are employed and 11 million unemployed,then the total labor force is
  1. 220 million.
  2. 110 million.
  3. 99 million.
  4. 11 million .
  5. impossible to determine from the data given.