Micro Economics MCQ (GK Set-1) with Answers

341) A drunken passenger on a train sets off the alarm for no good reason, and the train comes to a halt. There is then a long delay before it sets off again. This delights a small boy who enjoys the kerfuffle, but it irritates the other passengers and holds up

Answer is:

An external benefit to producers

342) suppose both the production and the consumption of a product generate externalities. At which of the following outputs would output be at the Pareto-efficient level

Answer is:

Where marginal social cost equals marginal social benefit

343) Suppose a large city has several power stations which all emit CO2. The government wants to reduce CO2 emissions, but knows that it will cost some power stations more than others to reduce their emissions. In order to secure the most reduction from the sta

Answer is:

A tax on emissions of CO2

344) Return to the city in the last question. Suppose the government wishes to reduce CO2 emissions but does not want to measure them. Which of the following policies would be best?

Answer is:

A tax on electricity

345) Which of the following statements is true?

When Wimbledon’s Centre Court has the legal maximum number of 15,000 spectators, watching a match there is non-rival because so many people are watching it

A tennis racket is non-rival, because one person can use it today while another can use it tomorrow

All motorways are excludable, because people could be charged tolls for using them

National Health Service hospitals are non-excludable, because patients are not charged for using them

Answer is: