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GK Set-1
Economics
Micro Economics
188

Micro Economics MCQ (GK Set-1) with Answers

188) Refer to Exhibit 4. If a tax is placed on the product in this market, total surplus is the area

A + B + C + D + E + F.

A + B + C + D

A + D

B + C + E + F

Answer is:

A + B + C + D

Micro Economics MCQ (GK Set-1) with Answers

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Related Micro Economics MCQ (GK Set-1) with Answers

189) Refer to Exhibit 4. If a tax is placed on the product in this market, deadweight loss is the area

B + C + E + F.

E + F

B + C

A + B + C + D

Answer is:

E + F

190) Refer to Exhibit 4. Which of the following is true with regard to the burden of the tax in Exhibit 4?

The buyers pay a larger portion of the tax because demand is more inelastic than supply.

The sellers pay a larger portion of the tax because supply is more elastic than demand.

The buyers pay a larger portion of the tax because demand is more elastic than supply.

The sellers pay a larger portion of the tax because supply is more inelastic than demand

Answer is:

The sellers pay a larger portion of the tax because supply is more inelastic than demand

191) choose the correct option :1.In general, a tax raises the price the buyers pay, lowers the price the sellers receive, and reduces the quantity sold. 2.If

1-T,2-T,3-F

1-F,2-T,3-F

1-T,2-F,3-F

1-F,2-F,3-T

Answer is:

1-T,2-T,3-F

192) choose the correct option :1.When a tax is placed on a good, the revenue the government collects is exactly equal to the loss of consumer and producer surplus from the tax. 2.If John values having his hair cut at Rs.20 a

1-T,2-T,3-F

1-F,2-T,3-F

1-T,2-F,3-F

1-F,2-F,3-T

Answer is:

1-F,2-F,3-T

Micro Economics MCQ (GK Set-1) with Answers

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