Animals MCQ Multiple Choice Questions Answers - Page 2 | Quiz for Practice

Q: 17. If there is a price ceiling, which of the following is NOT likely to occur?

Correct Answer is: sellers providing goods for free that were formerly not free

Q: 19. Which of the following is a characteristic of pure monopoly?

Correct Answer is: one seller of the product

Q: 20. In pure monopoly, what is the relation between the price and the marginal revenue?

Correct Answer is: the price is greater than the marginal revenue

Q: 21. In order to maximize profits, a monopoly company will produce that quantity at which the:

Correct Answer is: marginal revenue equals marginal cost

Q: 22. Compared to the case of perfect competition, a monopolist is more likely to:

Correct Answer is: all of the above

Q: 23. Which of the following best defines price discrimination?

Correct Answer is: selling a certain product of given quality and cost per unit at different prices to different buyers

Q: 24. In order to practice price discrimination, which of the following is needed?

Correct Answer is: all of the above

Q: 25. In price discrimination, which section of the market is charged the higher price?

Correct Answer is: the section with the most inelastic demand

Q: 26. The demand for labor is the same as the

Correct Answer is: marginal revenue product

Q: 27. The demand for labor slopes down and to the right because of

Correct Answer is: the law of diminishing marginal returns

Animals MCQ Questions for Practice

16. If there is a price ceiling, there will be

shortages
surpluses
equilibrium

17. If there is a price ceiling, which of the following is NOT likely to occur?

rationing by first-come, first-served
black markets
gray markets
sellers providing goods for free that were formerly not free

18. The goal of a pure market economy is to best meet the desires of

consumers
companies
workers
the government

19. Which of the following is a characteristic of pure monopoly?

one seller of the product
low barriers to entry
close substitute products
perfect information

20. In pure monopoly, what is the relation between the price and the marginal revenue?

the price is greater than the marginal revenue
the price is less than the marginal revenue
there is no relation
they are equal

21. In order to maximize profits, a monopoly company will produce that quantity at which the:

marginal revenue equals average total cost
price equals marginal revenue
marginal revenue equals marginal cost
total revenue equals total cost

22. Compared to the case of perfect competition, a monopolist is more likely to:

charge a higher price
produce a lower quantity of the product
make a greater amount of economic profit
all of the above

23. Which of the following best defines price discrimination?

charging different prices on the basis of race
charging different prices for goods with different costs of production
charging different prices based on cost-of-service differences
selling a certain product of given quality and cost per unit at different prices to different buyers

24. In order to practice price discrimination, which of the following is needed?

some degree of monopoly power
an ability to separate the market
an ability to prevent reselling
all of the above

25. In price discrimination, which section of the market is charged the higher price?

the section with the richest people
the section with the oldest people
the section with the most inelastic demand
the section with the most elastic demand

26. The demand for labor is the same as the

marginal revenue product
marginal physical product
marginal cost
wage

27. The demand for labor slopes down and to the right because of

the law of demand
the iron law of wages
the law of diminishing marginal returns
economies of scale

28. The demand for labor will be more elastic if:

there are few substitutes for labor
there is a short time under consideration
labor is a large percent of the total cost of production
the demand for the product is relatively inelastic

29. Skills that can be transferred to other employers are called:

general skills
specific skills
non-pecuniary skills
all of the above

30. Which skills are most likely to be paid for by the employer?

General skills
Specific skills
Educational skills