The allocation of resources is not efficient if ?

A. The marginal cost of production does not equal society’s marginal benefit
B. The distribution is inequitable
C. Economic growth is low
D. Unemployment is high

A dominant strategy is ?

A. A wining strategy
B. A losing strategy
C. A players best strategy when moving first
D. A player’s best strategy whatever the strategies adopted by rivals

Moral hazard means that the act of insuring ____ that the desired outcome will occur?

A. Reduces the likelihood
B. Increases the likelihood
C. Guarantees
D. None of the above

An allocation is Pareto-efficient if no reallocation of resources would make some people _______ without making others ________?

A. Worse off; worse off
B. Better off; better off
C. Better off; worse off
D. Equal, unequal

Where a tax can be shifted, the incidence depends on ?

A. Whether there is perfect or imperfect information
B. Elasticities of demand and supply
C. How many producers there are:
D. Who is legally obliged to pay the tax

Comparing a monopoly and competitive firm, the monopolist will ?

A. Produce less at a lower price
B. Produce more at a lower price
C. Produce less at a higher price
D. Produce less at a lower price

A monopoly may be self-perpetuating because profits may be used for ?

A. Research
B. Cost-saving
C. Technical advance
D. All of the above

A natural monopoly has a declining _______ over a large range of output?

A. Long run marginal cost
B. Short run marginal cost
C. Long run average cost
D. Long run marginal cost

The reason for the kinked demand curve is that ?

A. The oligopolist believes that competitors will match output increase but not output reduction
B. The oligopolist believes that competitors will match price increase but not output reduction
C. The oligopolist believers that competitors will match price cuts but not price rises
D. The oligopolist believes that competitors will match price increase but not output increase

The prisoners Dilemma Game demonstrates that ?

A. Players are better of to act independently
B. Monopoly is better than competition
C. People will always cheat
D. Players are better off if they co-operate