AP (Advanced Placement) Microeconomics: Questions 221 - 224 of 398

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Question 221

Appeared in Year: 2019 (NET)

Question

MCQ▾

The compensation principle which says that state A is socially preferable to state B, if those who gain from the change can compensate the losers and yet end up with surplus welfare gain is attributed to: (December)

Choices

Choice (5)Response

a.

W Pareto

b.

T. Scitovsky

c.

N. Kaldor

d.

Bergson

e.

All of the above

Question 222

Question

MCQ▾

Charging a different price in different markets is called

Choices

Choice (5)Response

a.

Price discrimination

b.

Third degree price discrimination

c.

Perfect price discrimination

d.

Second degree price discrimination

e.

None of the above

Question 223

Appeared in Year: 2019 (NET)

Question

MCQ▾

Which of the following is not an example of “market failure” ? (December)

Choices

Choice (5)Response

a.

Externalities

b.

Asymmetric information

c.

Economies of scale

d.

Monopolies

e.

Question does not provide sufficient data or is vague

Question 224

Appeared in Year: 2019 (NET)

Question

Assertion-Reason▾

Assertion(Ꭺ)

In classical model, investment demand is regarded as autonomous of changes in income or employment. (December)

Reason(Ꭱ)

It is wage price flexibility which brings full employment in the classical model.

Choices

Choice (5)Response

a.

Both Ꭺ and Ꭱ are true and Ꭱ is the correct explanation of Ꭺ

b.

Both Ꭺ and Ꭱ are true but Ꭱ is NOT the correct explanation of Ꭺ

c.

Ꭺ is true but Ꭱ is false

d.

Ꭺ is false but Ꭱ is true

e.

Both Ꭺ and Ꭱ are false

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