Economics MCQs

A. Freely fluctuating exchange rates
B. Adjustable pegged exchange rates
C. Managed floating exchange rates
D. Pegged or fixed exchange rates

A. Dual exchange rate
B. Adjustable pegged exchange rates
C. Managed floating exchange rates
D. Crawling pegged exchange rates

A. U.s exports tend to rise, and imports tend to fall
B. U.s imports tend to rise, and exports tend to fall
C. U.s foreign exchange reserves tend to rise
D. U.s foreign exchange reserves remain constant

A. Pigouvian taxes, command-and-control policies, tradable pollution permits.
B. Tradable pollution permits, pigouvian taxes, command-and-control policies
C. Tradable pollution permits command-and-control policies, pigovian taxes.
D. Command-and-control policies, tradable pollution permits, pigovian taxes.

A. A social cost curve that is below the supply curve (private cost curve) for a good
B. None of these answers
C. A social cost curve that is below the supply curve (private cost curve) for a good
D. A social value curve that is above the demand curve (private value curve) for a good

A. Optimal quantity to exceed the equilibrium quantity.
B. Equilibrium quantity to be either above or below the optimal quantity
C. Equilibrium quantity to equal the optimal quantity
D. Equilibrium quantity to exceed the optimal quantity

A. Have the government take over the production of the good causing the externality
B. Ban the production of all goods creating negative externalities
C. Tax the good
D. Subsidize the good

A. A positive externality
B. A technology spillover
C. An efficient market outcome.
D. A negative externality

A. Costs incurred due to lawyers’ fees
B. Costs incurred to reduce the pollution
C. Costs incurred to enforce the agreement
D. Costs incurred due to a large number of parties affected by the externality

A. Thomas will pay roberto between €100 and €150 and roberto will continue to play loud music
B. Roberto will pay thomas €150 and roberto will continue to play loud music
C. Thomas will pay roberto between €100 and €150 and roberto will stop playing loud music
D. Roberto will pay thomas €100 and roberto will stop playing loud music