MCQ Bank

In a perfectly competitive market, there are numerous buyers and sellers, each holding an insignificant market share. As a result, no single participant has the market power to significantly influence or set the price of a good.

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Q181

Which one of the following is not a moral criteria for perfectly free markets?

A) Rights
B) Justice
C) Demand
D) Utility

AI Explanation

The standard moral criteria for evaluating perfectly free markets are based on utilitarianism (maximizing utility), rights (respecting private property and exchange), and justice (fairness). Demand is an economic market force rather than an ethical or moral criterion.

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Q182

Which of the following social institution is an example of system of hierarchy?

A) Communism
B) None of the given options
C) Socialism
D) Capitalism

AI Explanation

Systems of hierarchy involve structured institutional inequalities of power, status, or dominance, such as racism, sexism, and class systems. Economic systems like communism, socialism, and capitalism do not inherently constitute social systems of hierarchy in this specific philosophical context.

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Q183

How many types of chemical compounds are currently being used in the USA?

A) 58,000
B) 55,000
C) 60,000
D) 50,000

AI Explanation

Regulatory inventories and industrial safety data indicate that roughly 58,000 different chemical compounds are actively used or processed in commercial and industrial applications across the United States.

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Q184

Environmental crises we face are rooted in the social systems of hierarchy and domination that characterizes our society is known as?

A) None of the above
B) Social ecology
C) Environmental ecology
D) Human ecology

AI Explanation

Social ecology is a philosophical framework asserting that contemporary environmental crises originate directly from underlying social systems of hierarchy and domination. It emphasizes that solving ecological problems requires addressing societal structures of oppression.

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Q185

Which of the following is NOT a feature of free market?

A) Price fixing
B) Price flexibility
C) Free choice
D) Free enterprise

AI Explanation

Price fixing involves collusive or illegal agreements among competitors to set prices, which distorts market mechanisms. In contrast, a free market relies on price flexibility, free choice, and free enterprise driven by decentralized supply and demand.

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Q186

Oil spills are a form of water pollution. Which of the following is/are cause(s) of oil spills?

A) Oil tanker accidents
B) Offshore drilling
C) All of the given options
D) Discharges of sludge from oil tankers

AI Explanation

Oil spills are caused by a variety of maritime and industrial activities, including offshore drilling blowouts, accidental collisions involving oil tankers, and the improper discharge of waste sludge during operations.

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Q187

The outcomes of antitrust laws result in highly concentrated industries come out in following except?

A) Decrease in collusion
B) Greater innovation
C) Lower prices
D) Low competition

AI Explanation

Antitrust laws are designed to prevent monopolies, reduce collusion, promote innovation, and maintain competitive pricing. Therefore, having low competition is the opposite of the intended outcomes and effects of antitrust enforcement.

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Q188

Which of the following includes the costs that the firm does not pay–the costs of pollution and medical care that result from the manufacture of the commodities?

A) Personal costs
B) Private costs
C) Public costs
D) Social costs

AI Explanation

Social costs encompass the sum of private internal costs incurred by a firm plus all external costs imposed on society, such as environmental pollution and associated public health and medical expenses.

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Q189

Which of the following is the combining of two or more independent bodies into a single body?

A) Management contract
B) Joint venture
C) Licensing
D) Merger

AI Explanation

A merger is the formal business combination of two or more previously independent corporate bodies into a single unified entity. This differs from joint ventures, licensing agreements, or management contracts.

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Q190

Which of the following is concerned with the issue of responsible personal conduct with respect to natural landscapes, resources, species, and non-human organisms?

A) Organizational ethics
B) None of the given options
C) Environmental ethics
D) Financial ethics

AI Explanation

Environmental ethics is the specialized branch of ethics that examines moral responsibilities regarding natural landscapes, resources, non-human species, and ecosystems. It guides how humans should interact with and preserve the natural world.

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Q191

Which of the following factor violates the utilitarian principles that underlie the market system?

A) None of the given options
B) Private cost
C) Pollution
D) Social cost

AI Explanation

Pollution acts as an external cost that bypasses market pricing, resulting in a net loss of societal utility and a misallocation of resources. This market failure directly violates the foundational utilitarian principles of a free market system.

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Q192

Which of the following views argues that prices and profits in highly concentrated industries are higher than they should be?

A) Unethical view
B) Discrimination view
C) Anti-trust view
D) Unlawful view

AI Explanation

The antitrust view contends that high market concentration in oligopolistic industries allows dominant firms to engage in anti-competitive behavior, leading to artificially inflated prices and excessive profits. Advocates argue that government intervention is necessary to restore competitive balance.

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Q193

Which of the following is NOT a moral outcome of perfectly competitive markets?

A) Faith
B) Justice
C) Utility
D) Rights

AI Explanation

The moral justification and outcomes of perfectly competitive markets are typically evaluated based on utilitarianism (utility), respect for moral and property rights (rights), and fairness (justice). Faith is a personal or religious belief rather than a standard moral outcome of economic market systems.

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Q194

Which of the following theory rests on the view that such contracts are free agreements that impose on each side the duty of complying with the terms of the agreement?

A) None of the given options
B) Contract view of business duties
C) The due care theory
D) The duty of disclosure

AI Explanation

The contract view of business firms' duties to consumers rests on the moral foundation of voluntary agreements. It posits that manufacturers and buyers enter into a binding contract where each side has a clear duty to comply with the agreed terms.

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Q195

According to which view both parties(Manufacturer,Consumer) are responsible for safety?

A) Contract view
B) Social cost view
C) None of the above
D) Due care view

AI Explanation

The due care view holds that because manufacturers possess superior expertise and knowledge regarding product safety, they have a heightened duty of care to protect consumers. However, consumers also bear a shared responsibility to exercise caution, making product safety a dual obligation.

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Q196

Under which duty a consumer is entered into an agreement under influence of fear or emotional stress?

A) Duty of misrepresentation
B) Duty of compliance
C) Duty of disclosing
D) Duty not to coerce

AI Explanation

The duty not to coerce requires that a consumer's agreement to a transaction is free and voluntary. When someone is influenced by fear, duress, or severe emotional stress, it directly violates this principle of non-coercion.

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Q197

When someone is under the influence of fear or emotional stress then it acts in?

A) Rationally
B) In both ways
C) Irrationally
D) None of the above

AI Explanation

When individuals experience intense fear or emotional stress, their cognitive and decision-making capabilities are impaired, leading them to act irrationally or make choices they would otherwise avoid.

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Q198

Which of the following justify the theory of contractual view of business’ duties?

A) Kant
B) Rawls
C) Both Kant and Rawls
D) Adam Smith

AI Explanation

Immanuel Kant's moral philosophy, which emphasizes treating people as ends in themselves rather than mere means, provides the ethical foundation for the contractual view of business duties. This perspective stresses informed consent, mutual respect, and honoring voluntary agreements.

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Q199

How many people get injured every year due to product related accidents?

A) 44 Million
B) 14 Million
C) 24 Million
D) 34 Million

AI Explanation

Consumer safety statistics and injury surveillance reports estimate that approximately 34 million people suffer product-related injuries annually. This high number underscores the critical importance of rigorous manufacturing standards and consumer protection laws.