Older MCQs might not have the typical A, B, C,
D
choices. They
have choices 1, 2, 3, and a combination of them is the answer. Below is the key that maps such
combinations to the answer.
A
1, 2 and 3 are correct
B
1 and 2 only are correct
C
2 and 3 only are correct
D
1 only is correct
performance of firms in different market structures: revenues and revenue curves, output in the short run and the long run, profits in the short run and the long run, shutdown price in the short run and the long run, derivation of a firm’s supply curve in a perfectly competitive market, efficiency and X-inefficiency in the short run and the long run, contestable markets: features and implications, price competition and non-price competition, collusion and the Prisoner’s Dilemma in oligopolistic markets, including a two-player pay-off matrix
AD/AS analysis of the impact of supply-side policy on the equilibrium national income and the level of real output, the price level and employment
application and effectiveness of measures to tackle different forms of market failure: specific and ad valorem indirect taxes, subsidies, price controls, production quotas, prohibitions and licences, regulation and deregulation, direct provision, pollution permits, property rights, nationalisation and privatisation, provision of information, behavioural insights and ‘nudge’ theory
