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.Management Sciences
Category: Market
The price mechanism cannot ?
A. Act as a signal
B. Act as a incentive
C. Act as a rationing device
D. shift the demand curve
Moral hazard means that the act of insuring ____ that the desired outcome will occur?
A. reduces the likelihood
B. increases the likelihood
C. guarantees
D. none of the above
The law of supply states that an increase in the price of a good ?
A. none of these answers
B. increases the quantity supplied of that good
C. increase the supply of that good
D. decrease the demand for the good
E. decrease the quantity demanded for that good
Assuming a downward sloping demand curve and upward sloping supply curve a higher equilibrium price may be caused by ?
A. An fall in demand
B. An increase in supply
C. improvements in production technology
D. An increase in demand
The reason for the kinked demand curve is that ?
A. The oligopolist believes that competitors will match output increase but not output reduction
B. The oligopolist believes that competitors will match price increase but not output reduction
C. The oligopolist believers that competitors will match price cuts but not price rises
D. The oligopolist believes that competitors will match price increase but not output increase
All of the following are types of imperfect competition except ?
A. monopolistic competition
B. oligopoly
C. monopoly
D. unfair competition
A good example of a public good is ?
A. public transport
B. the national health service
C. national defence
D. rail transport
An increase in income will ?
A. Lead to a movement along the demand curve
B. Shift the supply curve
C. Shift the demand curve
D. Lead to an extension of demand
A monopoly may be self-perpetuating because profits may be used for ?
A. research
B. cost-saving
C. technical advance
D. all of the above
If an increase in consumer incomes leads to a decrease in the demand for camping equipment, then camping equipment is ?
A. a normal good
B. none of these answers
C. an inferior good
D. a substitute good
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