Micro Economics MCQ (GK Set-1) with Answers

Micro Economics MCQ (GK Set-1) with Answers

166) An increase in the price of a good along a stationary supply curve

Answer is:

increases producer surplus

167) Adam Smith’s "invisible hand" concept suggests that a competitive market outcome

Answer is:

maximizes total surplus

168) In general, if a benevolent social planner wanted to maximize the total benefits received by buyers and sellers in a market, the planner should

Answer is:

allow the market to seek equilibrium on its own

169) If buyers are rational and there is no market failure,

Answer is:

free market solutions are efficient and free market solutions maximize total surplus

170) If a producer has market power (can influence the price of the product in the market) then free market solutions

Answer is:

are inefficient

31
32
33
34
35
36
37