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.Management Sciences
Category: Market
Where a tax can be shifted, the incidence depends on ?
A. Whether there is perfect or imperfect information
B. elasticities of demand and supply
C. how many producers there are:
D. who is legally obliged to pay the tax
If the price in a market is fixed by the government above equilibrium ?
A. There is excess equilibrium
B. There is excess supply
C. There is excess demand
D. There is equilibrium
An allocation is Pareto-efficient if no reallocation of resources would make some people _______ without making others ________?
A. worse off; worse off
B. better off; better off
C. better off; worse off
D. equal, unequal
The allocation of resources is not efficient if ?
A. the marginal cost of production does not equal society’s marginal benefit
B. the distribution is inequitable
C. economic growth is low
D. unemployment is high
A decrease in demand for a products should ?
A. increase equilibrium price and quantity
B. Decrease equilibrium price and quantity
C. Increase equilibrium price and decrease quantity
D. Decrease equilibrium price and increase quantity
When a market is contestable, incumbent firms must __________ to avoid the entry of new competitors?
A. behave like competitive firms
B. agree to act together
C. differentiate their products
D. practice price discrimination
An increase in demand for a product should ?
A. Increase equilibrium price and quantity
B. Decrease equilibrium price and quantity
C. Increase equilibrium price and decrease quantity
D. Decrease equilibrium price and increase quantity
Except for taxes to offset ______ taxes are ______?
A. imperfect competition popular
B. externalities , distortionary
C. inequality , a first best option
D. poor health, unnecessary
A shift in supply will have a bigger effect on price than output if demand is ?
A. income elastic
B. income inelastic
C. Price elastic
D. Price inelastic
Economics say that there has to be some from of rationing whenever ?
A. inflation occurs
B. there are externalities
C. merit goods are produced
D. there is excess demand
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