Economics MCQs

Page No. 164

Which of the following is not a method firms use to avoid the moral hazard problem in the employment relationship ?


aThey pay employees with delayed compensation such as a year-end bonus

✖


bThey buy life insurance on their workers

✓


c They pay above equilibrium wages

✖


dThey put hidden video cameras in the workplace

✖



Which of the following is an example of a signal that is used to reveal private information ?


a Enzo carefully chooses a special gift for Josephine

✖


bJosephine earns her MBA from the Harvard Business School

✖


c Lexus advertises its cars during the football World Cup Final.

✖


d All of these answers are correct

✓



Markus is a travelling salesman for an apparel company. In this employment relationship, Markus is the ?


aagent

✓


bprinciple

✖


cscreener

✖


dsignaler

✖


View Answer agent

Jamil’s car is in need of repair, so John decides to sell it avoid the repair bill. Unaware of the problem, Shahab buys the car. This is an example of ?


ahidden actions

✓


badverse selection

✖


cmoral hazard

✖


dadverse selection

✖


View Answer hidden actions

If as the quantity produced increase a production function first exhibits increasing marginal product and later diminishing marginal product, the corresponding marginal-cost curve will ?


abe flat (horizontal)

✖


bslope upward

✖


cslope downward

✖


dbe U-shaped.

✓


View Answer be U-shaped.

Which of the following statements is true ?


aAll costs are fixed in the short run

✖


bAll costs are variable in the long run

✓


caverage total cost is raising

✖


daverage total cost is minimized

✖



If a production function exhibits diminishing marginal product. its slope ?


ais linear (a straight line)

✖


bbecomes steeper as the quantity of the input increase

✖


ccould be any of these answers

✖


d becomes flatter as the quantity of the input increase

✓



Naila owns a small pottery factory. She can make 1000 pieces of pottery per year and sell them for Rs 100 each. It costs Naila Rs 20,000 for the raw materials to produce the 1,000 pieces of pottery She has invested Rs100,000 in her factory and equipment: Rs50,000 from her savings and Rs50,000 borrowed at 10 per cent. (Assume that she could have loaned her money out at 10 her per cent, too) Naila can work at a competing pottery factory for Rs40,000 per year. The economics profit at Naila’s pottery factory is ?


a Rs80,000

✖


bRs30,000

✓


c Rs75,000

✖


d Rs70,000

✖


View Answer Rs30,000

Economic profit is equal to total revenue minus ?


avariable costs

✖


b implicit costs

✓


cexplicit costs

✖


d marginal costs

✖


View Answer implicit costs

The efficient scale of production is the quantity of output that minimizes ?


aaverage fixed cost

✖


baverage total cost

✓


caverage variable cost

✖


dmarginal cost

✖


View Answer average total cost

Goto Page No.

Page 164 of 444

Alphabetical MCQs Categories
—

Here below You find all kind of categories of MCQs in alphabetical order.


"Comprehensive Collection of MCQs: Alphabetically Organized by Subject"
—

"Discover an extensive collection of multiple-choice questions (MCQs) neatly categorized by subject from A to Z. This resource is designed for anyone eager to explore various topics in a straightforward and organized manner. Whether you're a student preparing for exams, an educator seeking supplementary materials, or simply curious about different subjects, this compilation offers a convenient way to learn and assess your knowledge. With questions arranged alphabetically, navigation is effortless, allowing you to delve into subjects of interest at your own pace. Engage, learn, and expand your understanding with this accessible and comprehensive repository of MCQs!"


BolPakistan

bolpakistan.com.pk includes Job Mcqs and Pak Mcqs is the Top Largest Mcqs Forum in World, in which you can read Mcqs of All Subjects, PPSC test preparation, FPSC, NTS and PPSC PAST PAPERS, PPSC PAST MCQS. A Collection of Repeated MCQs for JOBs seekers.

Copyright © 2024, Designed & Developed by BolPakistan