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.Management Sciences
Category: Market
A dominant strategy is ?
A. a wining strategy
B. a losing strategy
C. a players best strategy when moving first
D. a player’s best strategy whatever the strategies adopted by rivals
If a maximum price is set below equilibrium there will be ?
A. A price fall
B. A price increase
C. Excess supply
D. Excess demand
If the price was fixed below the equilibrium price there would be ?
A. Excess supply
B. Excess demand
C. Equilibrium
D. Downward pressure on prices
A subsidy paid to producers ?
A. Shifts the supply curve
B. shifts the demand curve
C. Leads to a contractions in supply
D. Leads to an extension of supply
If an increase in the price of blue jeans leads to an increase in the demand for tennis shoes, then blue jeans and tennis shoes are ?
A. Complements
B. inferior goods
C. normal goods
D. none of these answers
E. Substitutes
An inferior good is one for which an increase in income causes a(n) ?
A. decrease in supply
B. increase in demand
C. increase in supply
D. decrease in demand
Taxes creates a wedge between the sales price and purchase price that prevents the price system equating ____ and ______?
A. marginal costs, marginal benefits
B. demand, supply
C. marginal cost, marginal revenue
D. marginal cost, average cost
If my neighbour burns garden waste causing my house to fill with smoke this is an example of ?
A. a production externality
B. a second-best solution
C. transaction costs
D. a consumption externality
The price mechanism does not act as a ?
A. Signal
B. Incentive
C. Rationing device
D. Indicator of income
If the price of good is equal to the equilibrium price ?
A. there is a shortage and the price will fall
B. the quantity demanded is equal to the quantity supplied supplied and the price remains unchanged
C. there is surplus and the price will rise
D. there is a shortage and the price will rise
E. there is a surplus and the price will fall
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