ECO MCQs Questions

1. A tax imposed on imports is called:
 
 A tariff
 
 A quota
 
 A comparative advantage
 
 An excise tax
10 points  
Question 2
1. This result proposes that private parties (consumers and producers) can solve the problem of externalities on their own.
 
 A tariff
 
 Scarce Theorem
 
 Social Optimum Theorem
 
 Coase Theorem
10 points  
Question 3
1. Two important characteristics of a public good are:
 
 Non-excludable and non-rival in consumption
 
 Excludable but non-rival in consumption
 
 Non-excludable but rival in consumption
 
 excludable and rival in consumption
10 points  
Question 4
1. The Tragedy of The Commons is a parable that illustrates:
 
 resources commonly owned are used more than is desirable
 
 resources that are privately owned are used efficiently
 
 resources that are owned by the government are more efficiently used
 
 resources that are privately owned are used more than desirable
10 points  
Question 5
1. The impact of one person's actions on the well-being of a bystander is called a(n):
 
 Supply
 
 Market
 
 Externality
 
 Property Rights
10 points  
Question 6
1. What criterion could you use to determine whether a small country named "Isoland" is a net importer of oil?
 
 The world price is below the domestic price in Isoland
 
 The world price is above the domestic price in Isoland
 
 The world price equals the domestic price in Isoland
 
 THe world price fluctuates above and below the domestic price in Isoland
10 points  
Question 7
1. For a net importer country, a tax on imports causes:
 
 more imports and gains in total surplus
 
 more imports and loss of total surplus
 
 less imports and loss of total surplus
 
 less imports and gains in total surplus
10 points  
Question 8
1. If you as an economic adviser recommend the government of Isoland (a small country) to allow free trade and steel to be imported from other countries, the steel industry at Isoland most likely will oppose your decision arguing:
 
 trade destroys domestic jobs
 
 steel is used to produce guns and tanks, therefore it is a threat to national security to allow imports from other countries
 
 other countries that export to us are subsidizing their own industry and Isoland does not
 
 any of the above
10 points  
Question 9
1. Which one below applies to an industry that produces a negative externality?
 
 the social cost and private cost are the same
 
 the social cost exceeds the private cost
 
 the private cost exceeds the social cost
 
 the social cost is unrelated to the private cost
10 points  
Question 10
1. What explains that marginal cost increases as production of a product increases?
 
 inreasing cost law
 
 decreasing average cost property
 
 diminishing marginal product property
 
 law of increasing marginals