Economics MCQs

A. three vases will be sold, and consumer surplus is rs80
B. one vase will be sold, and consumer surplus is rs5.
C. one vase will be sold, and consumer surplus is rs30.
D. three vases will be sold, and consumer surplus is rs0.

A. Above the supply curve and below the price
B. Below the demand curve and above the price
C. Below the demand curve and above the supply curve
D. Below the supply curve and above the price

A. Increase producer surplus
B. Does all the things describe in these answers
C. Decrease producer surplus
D. Improves market equity

A. Choose a price below the market equilibrium price
B. Allow the market to seek equilibrium on its own.
C. Choose any price the planner wants because the losses to the sellers (buyers) from any change in price are exactly offset by the gains to the buyers (sellers).
D. Choose a price above the market equilibrium price

A. Specific tariff
B. Ad valorem tariff
C. Compound tariff
D. Effective tariff

A. Be less than 12 percent and can be negative
B. Be less than 12 percent but must be greater than zero
C. Equal 6 percent
D. Exceed 30 percent

A. Economic downturn and recession generally result in greater protectionism
B. Because domestic consumers outnumber domestic producer’s policy markers usually enact free-trade policies to satisfy the consumer majority:
C. When domestic exporting companies are organized, policy tends to favor freer trade
D. Policy tends to favor freer trade in countries whose imports are inputs into critical industries

A. Progressive and thus bear down on the wealthy
B. Regressive and thus bear down on the poor
C. Proportional and thus bear down on all consumers in the same manner
D. Deflationary and thus result in reductions in the price of imports

A. $100,000 units
B. $400,000 units
C. $600,000 units
D. $800,000 units

A. 5 percent
B. 10 percent
C. 15 percent
D. 20 percent