37. What is the reason behind the existence of free-ridership for the public good?
A. The indivisibility of the public good.
B. The existence of a zero marginal cost in the public good provision.
C. The presence of the diseconomies of scale in the production..
D. Non-excludability of the public good.
38. What kind of market failure is it if a company producing steel also pollutes the air?
A. Tragedy of commons
C. Positive externality
B. Negative Externality
D. Asymmetric Information
39. refers to a situation in which a buyer cannot observe the actions of the seller in the market.
A. Adverse selection.
C. Asymmetric information
B. Market signaling
D. Moral hazard
40. Of the following business malpractices, which is the most prevalent and has a serious implication for the health of the consumer?
A. Sale of adulterated goods
C. Charging unfair price
B. False Weight
D. Hoarding and Black Marketing
41. The Ethiopian Consumer Proclamation No. 813/2013 has provided the following rights to consumers except;
A. The right to receive sufficient and accurate information about the quality and type of goods or services they purchase
B. The right to bargain for the best price
C. The right to buy goods and services on the basis of their own choice
D. The right to be received humbly and respectfully by any business person
Economics