market MCQs – Page 3

A. The oligopolist believes that competitors will match price increase but not output increase

B. The oligopolist believes that competitors will match price increase but not output reduction

D. The oligopolist believes that competitors will match output increase but not output reduction

A. produce less at a lower price

B. produce more at a lower price

C. produce less at a lower price

A. shifts the demand curve

C. Leads to a contractions in supply

D. Leads to an extension of supply

A. Act as a signal

B. Act as a incentive

C. Act as a rationing device

A. the equilibrium quantity to rise and the equilibrium price to rise

B. the equilibrium quantity to rise and the change in the equilibrium price to be ambiguous

C. the equilibrium quantity to rise and the equilibrium price to remain constant

E. the change in the equilibrium quantity to be ambiguous and the equilibrium price to fall.

A. supply exceeds demand

B. a surplus exists

D. there is perfectly inelastic demand for the good

A. An increase in supply

C. improvements in production technology

D. An fall in demand

A. This tax will not raise much revenue either in the short term or the long term since demand is price inelastic

C. This a very good way to raise revenue both in the short term and in the long term, because there are no substitutes for cigarettes.

D. No tax revenue can be raised in this way because sellers of cigarette will just lower their price by the amount of the tax and therefore, the price of cigarettes to consumers will not change

A. cost-saving

B. research

C. technical advance

A. a decrease in the wage of workers employed to manufacture watches

C. an increase in the price of watches

D. a decrease in consumer incomes if watches are a normal good

E. a decrease in the price of watch batteries if watch batteries and watches are complements

A. a minimum price that consumers are willing to pay for a good.

B. a minimum price usually set by government that sellers must charge for a good

D. the different between the initial equilibrium price and the equilibrium price after a decrease in supply

A. none of these answers

B. a decrease in the equilibrium price and an increase in the equilibrium quantity

C. a decrease in the equilibrium price and quantity.

D. an increase in the equilibrium price and a decrease in the equilibrium quantity

A. There is over consumption in the free market

C. Society could be made off it less was produced

D. The government may tax to decrease production

A. price will decrease, quantity is ambiguous

B. The impact on both price and quantity is ambiguous.

C. Price will increase, quantity will increase

D. price will increase, quantity will decrease

A. Supply is price elastic

B. Supply is stable

C. Demand is price elastic

A. externality

B. deadweight burden

D. market imperfection

A. long run marginal cost

B. long run marginal cost

C. short run marginal cost

A. the national health service

B. public transport

C. rail transport

A. Lead to a movement along the demand curve

B. Lead to an extension of demand

C. Shift the supply curve

A. the equilibrium quantity to rise and the equilibrium price to remain constant

B. the change in the equilibrium quantity to be ambiguous and the equilibrium price to rise

D. the equilibrium quantity to rise and the equilibrium price to fall

E. the equilibrium quantity to rise and the equilibrium price to rise