Micro Economics MCQ (GK Set-1) with Answers

Both 1 and 2

1 only

2 only

Neither 1 nor 2

The fish may be driven to extinction

The efficient yield may be more than the maximum sustainable yield

More boats may fish in it than are needed for the maximum sustainable yield

Fewer boats may fish in it than are needed for the maximum sustainable yield

1 and 2 and 3

1 and 2 only

1 and 3 only

2 and 3 only

Investing in pension schemes may be regarded as a merit good because many people underestimate the need to save for retirement.

Controlled substances may be seen as demerit goods because people may become addicted to them, despite the damage to their health

If healthcare was provided by private suppliers, and people financed it by taking out private insurance, then unhealthy people might end up facing the highest premiums

It is fair for students to meet the full cost of higher education, because they get all the benefits

The median voter theorem states that competing parties select their policies on any issue to meet the preferences of the median voter on that issue.

It is rational for voters to be ignorant

Bureaucrats may push for government spending at levels above the efficient level

Rent-seekers may push for government spending at levels below the efficient level.