A. Spain
B. Belgium
C. USA
D. UK
Applied Microeconomics
Which city has the following transport policy ?
A. Car licenses are very expensive vehicle entry to the city center is very restricted road pricing is being introduced and modern cheap rail transport is being expanded.
B. London
C. Athens
D. Singapore
E. New York
Economists use the term regulatory capture to mean a situation where the private sector firms being regulated ?
A. Persuade the regulator to operate in the industry’s interests
B. Persuade the regulator to act in the firms interests.
C. Bribe the regulator.
D. Persuade the government to change the regulatory regime.
A merger in which firms at various stages in a production process combine is a ?
A. production merger
B. vertical merger
C. conglomerate merger.
D. horizontal merger
Sales staff are keen to sell extended warranties because ?
A. extended warranties offer value for money.
B. the cost of repair will usually exceed the cost of the warranty
C. they are paid commission on each extended warranty they sell.
D. They are concerned about customer satisfaction.
Spending on motoring as a % of household expenditure in the UK shows that motoring is ?
A. Environmentally damaging
B. an inferior good
C. a potential public good
D. a superior good
The theory of the second best suggests that in the absence of perfect competition a privatized industry should charge a price of ?
A. p = Z
B. P = MC + Z
C. p = MC
D. P = MC – Z
In the UK, electricity industry parts are a ____ and other parts are ___ ?
A. nationalized; privatized
B. natural monopoly; potentially competitive
C. cartel; a sellers’ market
D. monopolistic competition duopoly
Evidence suggests that the price elasticity of demand for motoring is ?
A. absolutely inelastic
B. Unitarily elastic
C. Elastic
D. inelastic
