Top 80+ Solved MicroEconomics, Theory and Applications 2 MCQ Questions Answer
Q. A scientific paper titled “The Tragedy of the Commons” was written by
a. walras
b. kaldor
c. garrett hardin
d. pareto
Q. A negative externality from consumption occurs if there is a
a. bandwagon effect
b. snob effect
c. veblen effect
d. all the above z
Q. The tragedy of the commons results in
a. overconsumption
b. under investment
c. depletion of the resource
d. all the above
Q. An important mechanism through which sellers and buyers deal with the problem ofasymmetric information is
a. market signalling
b. insurance markets
c. moral hazard
d. principal-agent problem
Q. The concept of market signalling was first developed by
a. michael spence
b. kaldor
c. garrett hardin
d. pareto
Q. Non diversifiable risk arises because
a. a firm’s profits tend to depend on the overall economy
b. a firm’s profits tend to depend on that firm only
c. both a & b
d. none of them
Q. The risk premium for a capital investment by comparing the expected return on thatinvestment with the expected return on the entire stock market is measured by
a. diversifiable risk
b. non diversifiable risk
c. capital asset pricing model
d. none of the above
Q. The quantity of present goods that must be forgone to increase future consumption by 1 unit iscalled
a. the relative price of future goods
b. indifference curve
c. production possibility curve
d. contract curve