Economics MCQs

Page No. 162

A merger in which firms at various stages in a production process combine is a ?


aproduction merger


bvertical merger


cconglomerate merger.


dhorizontal merger


View Answer vertical merger

A merger between a paper producer and a book publisher is an example of?


aa conglomerate merger.


ba horizontal merger


ca complementary products merger.


d a vertical merger


View Answer a vertical merger

A horizontal merger is a merger of?


a firms producing unrelated products


bfirms producing complementary products


cfirms at various stages in a production process.


dfirms producing the same product



Supporters of antimonopoly enforcement argue that the real gain from such enforcement ?


ais that if encourages firms to engage in research which leads to new products


b is the revenue generated from the fines paid by those individuals who are found guilty of antitrust violation?


cIs that this policy serves to deter firms from engaging in such practices as collusion, price-fixing and deceptive advertising


d is that it forces firms to produce efficiently.



Which city has the following transport policy ?


a Car licenses are very expensive vehicle entry to the city center is very restricted road pricing is being introduced and modern cheap rail transport is being expanded


bLondon


cAthens


dSingapore


View Answer Singapore

Evidence suggests that the price elasticity of demand for motoring is ?


aabsolutely inelastic


bUnitarily elastic


cElastic


dinelastic


View Answer Unitarily elastic

Spending on motoring as a % of household expenditure in the UK shows that motoring is ?


aEnvironmentally damaging


ban inferior good


ca potential public good


da superior good


View Answer a superior good

Which of the following help explain why firms pay bonuses to workers during particularly profitable years to prevent workers from becoming disgruntled ?


a people are rational maximizers


b People are reluctant to change their minds


c People are inconsistent over time


d People care about fairness



Which of the following is not true about how people make decisions ?


a people give too much weight to a small number of vivid observations


b People are sometimes too sure of their own abilities


cAll of these answers are actually true statements about how people make decisions.


dPeople are always rational maximizers



Suppose that 40 percent of the voting population wish to spent Rs1,000 for artwork in City Hall, 25 percent wish to spent Rs20,000 and 35 percent wish to spend Rs 22,000 What is the median preferred outcome, the average preferred outcome and the modal preferred outcome ?


a Rs20,000; Rs20,000; Rs22,000


b Rs1,000; Rs14,333; Rs1,000


cRs20,000; Rs13,100; Rs1,000


d Rs1,000; Rs20,000; Rs22,000



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