Economics Mcqs — Test 45
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Question 1
The problem posed by a natural monopoly is that it faces a _____ This means that _______?
Question 2
If an increase in the price of blue jeans leads to an increase in the demand for tennis shoes, then blue jeans and tennis shoes are ?
Question 3
The law of supply states that an increase in the price of a good ?
Question 4
Externalities arise because there is a divergence between ________ and _________?
Question 5
Markets sometimes fail to exist because of________?
Question 6
If the consumption of good by one person does not reduce the quantity available by others and nobody can be easily excluded from consumption, we are referring to a ?
Question 7
Except for taxes to offset ______ taxes are ______?
Question 8
Taxes creates a wedge between the sales price and purchase price that prevents the price system equating ____ and ______?
Question 9
The effect of a tax to offset a negative externality will be to ____ price and ______ quantity?
Question 10
We cannot say whether one allocation of resources is better than another allocation because ?