Economics MCQs

Page No. 270

Coginitive dissonance occurs in which stage of the buyer decision process model ?


aNeed recognition


b Information search


c Evaluation of alternative


dPostpurchase behaviour



Which of the following information forms available to the marketing manager can usually be accessed more quickly and cheaply than other information sources ?


aMarketing intelligence


bMarketing research


cCustomer profiles


dInternal databases


View Answer Internal databases

The Coase theorem states that ?


a public goods should be produced up to the point where the additional benefit received by society equals the additional cost of producing the good


bunder certain conditions, private parties can arrive at the efficient solution without government involvement


cthe private sector will fail to produce the efficient amount of a public good because of the free-rider problem.


d if there are external costs in production the government must intervene in the market to assure that the efficient level of output is produced



The optimal level of provision of public goods is where society total willingness to pay per unit is equal to the ?


a variable cost of producing the good


baverage cost of producing the good


c marginal cost of producing the good


d total cost of producing the good



The whole class of goods that will be under produced or not produced at all in a completely unregulated market economy are referred to as ?


aPareto goods


bpublic goods


cprivate goods


dfree goods


View Answer public goods

imperfect competition occurs ?


aWhen firms are not profit maximisers


bWhen firms have some control over price and competition


cWhen the consumption of the good involves an external benefit


dWhenever firms are losing money.



The statement everything affects everything else reflects the principle behind ?


aefficiency analysis


bpartial equilibrium analysis


cgeneral equilibrium analysis


dequity analysis



Externalities are a problem only if ?


a decision makers do not take them into account


b all firms are perfectly competitive


c the externalities are negative


dall firms are monopolistic



A person will continue to pursue an activity up to the point where ?


aMarginal benefit equals marginal damage cost


bmarginal benefits equals marginal social cost


cmarginal benefit equals marginal private cost


dmarginal social cost equals marginal external cost



If some gain and some lose as the result of a proposed change and it can be demonstrated that the value of the gains would exceed the value of the losses then the change is said to be ?


atechnically efficient.


binefficient.


cpotentially efficient


dunequivocally Pareto optimal


View Answer potentially efficient

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