MCQOPTIONS

Explore topic-wise MCQs in Master of Arts in Economics (M.A. Economics).

This section includes 113 Mcqs, each offering curated multiple-choice questions to sharpen your Master of Arts in Economics (M.A. Economics) knowledge and support exam preparation. Choose a topic below to get started.

101.	Points on the utility possibility frontier are
A.	inefficient.
B.	points of incomplete preferences.
C.	not producible.
D.	pareto efficient.
Answer» E.

102.	Externalities can be positive because
A.	marginal damages do not last over time.
B.	utility can be impacted positively as well as negatively.
C.	there is no concept for marginal benefit.
D.	positive externalities are subsidies.
Answer» C. there is no concept for marginal benefit.

103.	Movement from an inefficient allocation to an efficient allocation in the Edgeworth Box will
A.	increase the utility of all individuals.
B.	increase the utility of at least one individual, but may decrease the level of utility of another person.
C.	increase the utility of one individual, but cannot decrease the utility of any individual.
D.	decrease the utility of all individuals.
Answer» C. increase the utility of one individual, but cannot decrease the utility of any individual.

104.	A public good is
A.	a good that the public must pay for.
B.	nonrival in consumption.
C.	more costly than a private good.
D.	paid for by the government.
Answer» C. more costly than a private good.

105.	Market failure can occur when
A.	monopoly power exists in the market.
B.	markets are missing.
C.	consumers can influence prices.
D.	all of the above.
Answer» E.

106.	The First Fundamental Theorem of Welfare Economics requires
A.	producers and consumers to be price takers.
B.	that there be an efficient market for every commodity.
C.	that the economy operate at some point on the utility possibility curve.
D.	all of the above.
Answer» E.

107.	The slope of the production possibilities curve is the
A.	marginal rate of substitution.
B.	contract curve.
C.	marginal rate of transformation.
D.	offer curve.
Answer» D. offer curve.

108.	The marginal rate of substitution is
A.	the slope of the pareto curve.
B.	the slope of the contract curve.
C.	the slope of the utility possibilities curve.
D.	the slope of the indifference curve.
Answer» E.

109.	The Coase theorem has problems because
A.	generally, bargaining costs are not zero.
B.	individuals are not concerned with others.
C.	markets always exist.
D.	all of the above.
Answer» B. individuals are not concerned with others.

110.	Positive economics
A.	does not depend on market interactions.
B.	only looks at the best parts of the economy.
C.	examines how the economy actually works (as opposed to how it should work).
D.	is very subjective.
Answer» D. is very subjective.

111.	Points outside the production possibility frontier are
A.	producable.
B.	endowment points.
C.	consumer equilibrium points.
D.	unattainable.
Answer» E.

112.	The M RTS L,K between any two inputs be equal in the production of all commodities. 3. The MRPTx,y be equal to the MRSx,y for any two goods.
A.	condition 1&2 are satisfied
B.	condition 1 &3 are satisfied
C.	condition 2 &3 are satisfied
D.	condition 1, 2 &3 are satisfied
Answer» E.

113.	A pure private good is
A.	nonrival in consumption and subject to exclusion.
B.	rival in consumption and subject to exclusion.
C.	rival in consumption and not subject to exclusion.
D.	all of the above
Answer» C. rival in consumption and not subject to exclusion.

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