Question 1

1. A firm will spend less on pollution reduction equipment because of its marginal

Accepted Answer

Private benefit

Answer

Social cost

Answer

Social Benefit

Answer

private cost

Question 2

2. A systematic process of comparing the benefits of a project against its cost is called the

Accepted Answer

CBA

Answer

BCA

Answer

ABC

Answer

BCB

Question 3

3. The market tends to produce merit goods in … quantities.

Accepted Answer

Insufficient

Answer

Large

Answer

Excessive

Answer

Big

Question 4

4. The cost of a good or service to society at is known as…

Accepted Answer

Social Cost

Answer

Cost Benefit

Answer

Mutual Cost

Answer

Private Cost

Question 5

5. When forces of demand and supply fail to allocate resources efficiently…

Accepted Answer

Market Failure

Answer

Marginal Utility

Answer

Market Forces

Answer

Market Economy

Question 6

6. One of the characteristics of merit goods is that they are …

Accepted Answer

not highly rated

Answer

over-supplied

Answer

over-consumed

Answer

highly profitable

Question 7

7. The wage rate set by the government below which no employer can pay their workers is a/an…

Accepted Answer

minimum wage

Answer

bonuses

Answer

equilibrium wage

Answer

maximum wage

Question 8

7. The production of goods which does not reflect the wishes of the consumers is called…  Inefficiency

Accepted Answer

allocative

Answer

pareto

Answer

productive

Answer

double

Question 9

8. Market equilibrium occurs when the ...

Accepted Answer

quantity demanded is equal to quantity supplied.

Answer

individual producer becomes the price-maker.

Answer

individual business and consumer change the market price.

Question 10

9. Government intervention in the market ensures sufficient staple food for the poor by setting … prices.

Accepted Answer

maximum

Answer

minimum

Answer

limited

Question 11

10. Goods highly desirable for the general welfare of people, but often not highly rated by the market, are called ... goods.

Accepted Answer

merit

Answer

demerit

Answer

durable

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