Economics MCQs

A. Shift the aggregate supply curve to the right
B. Shift the aggregate supply curve to the left
C. Shift the aggregate demand curve to the left
D. Shift the aggregate demand curve to the right

A. Externality
B. Market imperfection
C. Deadweight burden
D. Free rider

A. Aggregate supply and aggregate demand
B. The supply and demand for loanable funds
C. The supply and demand for money
D. The supply and demand for labor

A. imperfect competition
B. taxation
C. externalities
D. missing markets

A. Public transport
B. The national health service
C. National defence
D. Rail transport

A. A production externality
B. A second-best solution
C. Transaction costs
D. A consumption externality

A. producers are price takers
B. consumers and producers face the same prices
C. marginal costs and benefits are equal
D. prices equal marginal cost and benefit

A. Behave like competitive firms
B. Agree to act together
C. Differentiate their products
D. Practice price discrimination

A. Assuming other players move first
B. Dominated by the other players
C. Given the strategies of other players
D. That is a credible threat

A. Moral hazard
B. Risk aversion
C. Adverse selection
D. A poor gamble