Evidence suggests that the price elasticity of demand for motoring is ?

A. absolutely inelastic
B. unitarily elastic
C. elastic
D. inelastic

Which city has the following transport policy ?

A. car licenses are very expensive vehicle entry to the city center is very restricted road pricing is being introduced and modern cheap rail transport is being expanded.
B. london
C. athens
D. singapore

Refer to Figure 1 What percent of the population vote for A when the choice is between A and B ?

A. 75 percent
B. 35 percent
C. 60 percent
D. 40 percent

hich of the following is not a property required of a perfect voting system ?

A. The median voter always wins
B. No dictators
C. Independence of irrelevant
D. Transitivity

Which of the following is true under pairwise majority rule if people vote for the outcome closest to their most preferred outcome ?

A. The average preferred outcome wins
B. There is no clear winner due to arrow’s impossibility theorem.
C. The outcome preferred by the median voter wins
D. The outcome preferred by the greatest number of voters wins.

In the ultimatum game, what split would be rational for both the person proposing the split and the person who must accept or reject the split ?

A. There is no rational solution
B. 75/25
C. 99/1
D. 1/99

Jamil’s friend dies of a sudden heart attack. Jamil rushes to his doctor for an expensive physical examination. This response demonstrates that ?

A. People give too much weight to a small number of vivid observations
B. People easily change their minds when confronted with new information
C. People enjoy going to the doctor
D. People tend to plan ahead and follow through on their plans

Which of the following is a response to People’s inconsistent behavior over time ?

A. All of these answers
B. Forced contributions to a retirement plan
C. Year-end bonuses
D. Efficiency wages

Nicole wants to avoid buying a car that is a lemon. She takes a car she would like to buy to her mechanic before she purchases it. This is known as ?

A. Screening
B. Signaling
C. Moral hazard
D. Adverse selection

Which of the following statements is true ?

A. all costs are fixed in the short run.
B. all costs are variable in the long run
C. all costs are variable in the short run
D. all costs are fixed in the long run