McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Arts in Economics (BA Economics) .
Chapters
| 1. |
The Tragedy of the Commons is a theory put forth by |
| A. | Garrelt-Hardin |
| B. | Adam Smith |
| C. | W.C Clark |
| D. | Samuelson |
| Answer» A. Garrelt-Hardin | |
| 2. |
Environmental economics attempts to study the inter relationship between |
| A. | Environment and resource allocation |
| B. | Economic agents and environment |
| C. | Economic problems and environment |
| D. | Environment and ecology |
| Answer» B. Economic agents and environment | |
| 3. |
Ecology deals with the household of nature while economics deals with |
| A. | Household of goods |
| B. | Household of service |
| C. | Household of man |
| D. | All of the above |
| Answer» C. Household of man | |
| 4. |
Which of the following is environment theory that has developed with the integration of economics |
| A. | Environment resource planning |
| B. | Sustainable environment |
| C. | Environment cost analysis |
| D. | Environment pricing |
| Answer» A. Environment resource planning | |
| 5. |
Market failure occurs when market do not maximize |
| A. | Production |
| B. | Utility |
| C. | Welfare |
| D. | Resource utilization |
| Answer» C. Welfare | |
| 6. |
Environment good is |
| A. | Car |
| B. | House |
| C. | Air, water, sunlight |
| D. | Wheat |
| Answer» C. Air, water, sunlight | |
| 7. |
Environmental Economics is |
| A. | Social Science |
| B. | Positive & normative science |
| C. | Micro economics |
| D. | Macro economics |
| Answer» B. Positive & normative science | |
| 8. |
Public goods are |
| A. | Non-excludables |
| B. | Public bads |
| C. | Free riders |
| D. | Externalities |
| Answer» A. Non-excludables | |
| 9. |
There is rivalry and exclusiveness in the use of |
| A. | Public good |
| B. | Private good |
| C. | Public bad |
| D. | None of them |
| Answer» B. Private good | |
| 10. |
If A imposed externality on B and B has not imposed externality on A, thent the externality is |
| A. | Unidimensional |
| B. | Bidimensional |
| C. | Multidimentional |
| D. | Complex dimensional |
| Answer» A. Unidimensional | |
| 11. |
Which one is not the cause of market failure |
| A. | Externalities |
| B. | Imperfect market |
| C. | Indivisibilities |
| D. | Pareto optimality |
| Answer» D. Pareto optimality | |
| 12. |
The Paretian condition for a public good is that |
| A. | its marginal social benefit(MSB) should be greater than marginal social cost(MSC) |
| B. | its MSB should be less than MSC |
| C. | its MSB should be equal to MSC |
| D. | MSB should be divided by MSC |
| Answer» C. its MSB should be equal to MSC | |
| 13. |
An increase in the consumption of a good or service which affects favourably the consumption patterns and desires of other consumers is |
| A. | An externality of consumption |
| B. | An externality of production |
| C. | An externality of exchange |
| D. | An externality of allocation of resources |
| Answer» A. An externality of consumption | |
| 14. |
If A imposed an externality on B and if B imposed externality on A as well |
| A. | It is unidirectional |
| B. | It is reciprocal |
| C. | It is multidirectional |
| D. | It is marginal unidirectional |
| Answer» B. It is reciprocal | |
| 15. |
Which is not a measure for solution of market failure |
| A. | Implementation of Property Rights |
| B. | Direct Control Policy of Govt. |
| C. | Sale of Pollution Permits |
| D. | Negative Externalities |
| Answer» D. Negative Externalities | |
| 16. |
Which is not amomg the three types of Property Rights |
| A. | Private Property Rights |
| B. | Human Rights |
| C. | Common Property Rights |
| D. | Open-access common property |
| Answer» B. Human Rights | |
| 17. |
What is the Tragedy of the Common |
| A. | It results from an inherent tension between collective and individual responsibility |
| B. | It can always be resolved through privatization and nationalization of the commons |
| C. | It is independent of the carrying capacity of the commons |
| D. | All of the above |
| Answer» A. It results from an inherent tension between collective and individual responsibility | |
| 18. |
In case of negative externality, the social marginal cost will |
| A. | Exceed the private marginal cost |
| B. | Be equal to private marginal cost |
| C. | Fall short of private marginal cost |
| D. | Bear no significant relation to private marginal cost |
| Answer» A. Exceed the private marginal cost | |
| 19. |
In case of positive externality social marginal cost |
| A. | exceed private marginal cost |
| B. | be equal to private marginal cost |
| C. | have no specific relation to private marginal cost |
| D. | fall short of private marginal cost |
| Answer» D. fall short of private marginal cost | |
| 20. |
Common property |
| A. | Is owned by specific people |
| B. | Is inexhaustible |
| C. | Refers strictly to land resources |
| D. | Refers to goods owned by society at large and freely used by anyone |
| Answer» D. Refers to goods owned by society at large and freely used by anyone | |
| 21. |
When consumption of a good is non-rival and non-excludable the good is |
| A. | public good |
| B. | mixed good |
| C. | private good |
| D. | service |
| Answer» A. public good | |
| 22. |
An example of a public good is |
| A. | a loaf of bread |
| B. | national defence service |
| C. | a ford truck |
| D. | a home computer |
| Answer» B. national defence service | |
| 23. |
Public goods are those goods for which consumption is |
| A. | Rival |
| B. | Regulated |
| C. | Non-rival |
| D. | Unregulated |
| Answer» C. Non-rival | |
| 24. |
Non-rivalry is a feature of |
| A. | Public good |
| B. | Goods but not service |
| C. | Excludable good |
| D. | All non-excludable goods |
| Answer» A. Public good | |
| 25. |
Non-excludability is a feature of |
| A. | Goods but not service |
| B. | Goods with an external cost |
| C. | Public goods |
| D. | All non-rival goods |
| Answer» C. Public goods | |
| 26. |
Pure private goods are those for which consumption is |
| A. | Non-rival and excludables |
| B. | Rival and excludable |
| C. | Rival and non-excludable |
| D. | Non-rival and non-excludable |
| Answer» B. Rival and excludable | |
| 27. |
When consumption is rival and excludable, the product is |
| A. | Private good |
| B. | Service not a good |
| C. | Mixed good |
| D. | Public good |
| Answer» A. Private good | |
| 28. |
A good or service or a resource is non-rival if |
| A. | It is not possible to prevent someone from enjoying the benefit |
| B. | It is possible to prevent someone from enjoying the benefit of it |
| C. | Its use by one person decreases the quantity available for someone else |
| D. | Its use by one person does not decrease the quantity available for someone else |
| Answer» D. Its use by one person does not decrease the quantity available for someone else | |
| 29. |
If consumption of a good A by one person does not decrease the consumption of good A by another person, then the good is said to be |
| A. | Non-excludable |
| B. | Excludable |
| C. | Non-rival |
| D. | Rival |
| Answer» C. Non-rival | |
| 30. |
If I increase my consumption of a good and this has no impact on your ability to consume the same good, then the good is |
| A. | A free good |
| B. | Non-rival |
| C. | Both non-rival and non-exclusive |
| D. | Non-exclusive |
| Answer» B. Non-rival | |
| 31. |
If one person’s consumption of a good decreases other people’s use of a good, the good is said to be |
| A. | Rival |
| B. | A good produced by a natural monopoly |
| C. | A common resource |
| D. | Excludable |
| Answer» A. Rival | |
| 32. |
A public good is |
| A. | Neither rival nor excludable |
| B. | Rival but not excludable |
| C. | Both rival but excludable |
| D. | Not rival but excludable |
| Answer» A. Neither rival nor excludable | |
| 33. |
A private good is |
| A. | Rival but not excludable |
| B. | Not rival but excludable |
| C. | Both rival but excludable |
| D. | Neither rival nor excludable |
| Answer» C. Both rival but excludable | |
| 34. |
A common resource is |
| A. | Not rival but excludable |
| B. | Both rival and excludable |
| C. | Rival but not excludable |
| D. | Neither rival nor excludable |
| Answer» D. Neither rival nor excludable | |
| 35. |
Public goods are difficult for a private market to provide due to |
| A. | The rivalness problem |
| B. | The public goods problem |
| C. | The Tragedy of the commons |
| D. | The free rider problem |
| Answer» D. The free rider problem | |
| 36. |
A free rider is a person who |
| A. | Receives the benefits of a good but avoids paying for it |
| B. | Pays for a good but fails to receive any benefit from the good |
| C. | Fails to produce good but is allowed to consume goods |
| D. | Produces a good but fails to receive payment for the good |
| Answer» A. Receives the benefits of a good but avoids paying for it | |
| 37. |
Which of the following is an example of a public good |
| A. | Hot dogs at a picnic |
| B. | Whales in the ocean |
| C. | National defence |
| D. | Apples on a tree in a public park |
| Answer» D. Apples on a tree in a public park | |
| 38. |
A positive externality affects market efficiency in a manner similar to a |
| A. | Rival good |
| B. | Public good |
| C. | Private good |
| D. | Common resource |
| Answer» B. Public good | |
| 39. |
A negative externality affects market efficiency in a manner similar to |
| A. | An excludable good |
| B. | A private good |
| C. | A common resource |
| D. | A public good |
| Answer» C. A common resource | |
| 40. |
Which of the following is an example of a common resource |
| A. | A fire works display |
| B. | A national defence |
| C. | Iron ore |
| D. | A national park |
| Answer» D. A national park | |
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