Micro Economics MCQ (GK Set-1) with Answers

If the government reduces output below the free market level, consumer surplus will fall

If the government reduces output below the free market level, producer surplus will fall.

If the government raises output above the free market level, consumers will get no benefit from the extra units of output.

If the government raises output above the free market level, some units of output will cost more to produce than the value placed on them by consumers

The number of buyers who gain from the ceiling is smaller than the original number of buyers.

The ceiling creates an excess demand

The ceiling generates losers as well as gainers

To have any effect, the price ceiling must be set at a higher level than the original market price

The imposition of an effective price ceiling

The removal of an effective price floor

The imposition of a supply-side quantity control

The imposition of a demand-side quantity control

The gap between S+tax and S will be higher at high quantities than at low quantities

The gap between S+tax and S will be higher at low quantities than at high quantities

The gap between S+tax and S will be Rs.5 at each quantity

The gap between S+tax and S will be whatever is needed to show that the equilibrium price for consumers increases by Rs.5

At the point on S below the point where S+tax intersects D

At the point where S intersects D

At the point where S+tax intersects D

At the initial price minus the amount of the tax