Top 50+ Solved Economics of Network Industries MCQ Questions Answer
Q. An externality is defined as
a. an additional cost imposed by the government on producers.
b. a cost or benefit caused by a producer that is not financially incurred or received by that producer.
c. an additional gain received by consumers from decisions made by the government.
d. the additional amount consumers have to pay to consume an additional amount of a good or service.
Q. Which of the following is NOT an issue involving network externalities?
a. the market may be too small
b. the market may be to
c. problem of monopol
d. None of the above
Q. Which of the following is a general policy issue surrounding the issue of network externalities?
a. Issues of private property rights and intellectual property issues
b. Issues of monopoly re
c. None of the Above
d. Both A & B
Q. Which one of the following goods is nonexcludable?
a. the Sunshine
b. a Cab
c. an art gallary
d. a toll bridge
Q. A common resource is
a. nonrival and nonexclud
b. nonrival and excludabl
c. rival and nonexcludable.
d. regulated and exclu
Q. Cable television and air-traffic control are similar to each other because both of them are
a. nonexcludable.
b. nonrival.
c. excludable.
d. rival.
Q. A natural monopoly is
a. nonrival and excludable
b. rival and nonexcludable.
c. nonrival and nonexcl
d. regulated and exclu
Q. A good that is rival and nonexcludable is a
a. common resource.
b. private good.
c. public good.
d. government good
Q. Supply-side economies of scale arise:
a. when a buyer's willingness to pay for a product increases.
b. when the demand for a firm's product keeps fluctuating.
c. when the number of buyers for a firm's product decreases.
d. when a firm manufactures products in high volumes.
Q. Public goods are provided by government because
a. governments are more efficient than private firms at producing public goods.
b. people value national defence very highly.
c. private firms will make an economic profit.
d. free-rider problems result in underproduction by private markets.
Q. Network effects also known as _
a. Network goods
b. Network Management
c. Network Externalities
d. Network Diagnosis
Q. The second theorem of _ states that any Pareto optimum can be supported as a competitive equilibrium for some initial set of endowments.
a. Public Choice
b. Social Interest
c. Welfare Economics
d. Keynesian Economi
Q. Economies of scale result from
a. large fixed costs and/or weakly increasing variable costs
b. low fixed costs and/or strongly decreasing variable costs
c. large fixed costs and decreasing variable costs
d. low fixed costs and weakly increasing variable costs
Q. _ network effects arise when there are "at least two different customer groups that are interdependent, and the utility of at least one group grows as the other group(s) grow".
a. Direct
b. Indirect (or cross-grou
c. Two-sided
d. Local