AP (Advanced Placement) Microeconomics: Questions 139 - 141 of 398

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Question 139

Appeared in Year: 2017 (NET)

Question

MCQ▾

If economic agents perfectly anticipate policy changes and if all prices including wages are completely flexible, which of the following will be true in long run? (November Paper II)

Choices

Choice (5)Response

a.

The unemployment rate will be less than the normal unemployment rate.

b.

The price level will be constant.

c.

Changes in the money supply will not lead to changes in the price level.

d.

There will be no trade-off between inflation and unemployment.

e.

All of the above

Question 140

Appeared in Year: 2017 (NET)

Question

MCQ▾

Which of the following is a distinctive implication of the New Trade Theory developed by Melitz as different from the New Trade Theory? (November Paper II)

Choices

Choice (5)Response

a.

Trade encourage R & D and lead to new products

b.

Trade increases the average productivity as more productive firms expand

c.

A country may both export and import the goods from the same industry

d.

Helpful state intervention

e.

Question does not provide sufficient data or is vague

Question 141

Appeared in Year: 2017 (NET)

Question

MCQ▾

The government levying taxes on Polluters or charging a surcharge for pesticide use means: (November Paper-III)

Choices

Choice (5)Response

a.

Examples of Coase՚s theorem

b.

Internalization of negative spillover effects

c.

Examples of a free rider

d.

Marginal abatement cost

e.

All of the above

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