This quiz works best with JavaScript enabled. Home > Finance > Public Economics > Public Economics – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Public Economics Quiz 1 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Individuals who take the risk of producing a product for a profit are ..... A) Producers. B) Chief Executive Officer (CEO). C) Consumers. D) Entrepreneurs. Show Answer Correct Answer: D) Entrepreneurs. 2. Money that is set aside for a specific purpose, such as defense spending, is called A) Grants-in-aid. B) Appropriations. C) Transfer payments. D) Discretionary spending. Show Answer Correct Answer: B) Appropriations. 3. Which is not a GST slab in India at present? A) 25%. B) 18%. C) 5%. D) 12%. Show Answer Correct Answer: A) 25%. 4. Public goods scale is optimal when A) MRT=MRS1-MRS2. B) MRT=MRS1+MRS2. C) MST= MRS2/MRS1. D) MRT=MRS1xMMRS2. Show Answer Correct Answer: B) MRT=MRS1+MRS2. 5. What is the problem with public goods? A) Lacks rivalry. B) Lacks a excludability. C) Lacks consumer and producer surplus. D) None of the above. Show Answer Correct Answer: B) Lacks a excludability. 6. Goods and services provided at free or reduced prices like medicaid, medicare, HUD housing, food stamps, etc ..... A) Cash transfers. B) Welfare. C) In-Kind Benefits. D) Social security. Show Answer Correct Answer: C) In-Kind Benefits. 7. A good that is rival but non-excludable will be a: A) Private good. B) Public good. C) Club good. D) Common good. Show Answer Correct Answer: D) Common good. 8. The part of the economy that is owned by individuals and is operated for their personal benefit is known as ..... A) Public Sector. B) Individual Decision Making. C) Profit. D) Private Sector. Show Answer Correct Answer: D) Private Sector. 9. Unlike high-income countries, low-income countries rely most on their A) Natural capital. B) Human resources. C) Produced capital. D) Intangible capital. Show Answer Correct Answer: A) Natural capital. 10. The recent rise of the Chinese economy is associated with A) The adoption of rigid centralized planning. B) The elimination of economic systems. C) A switch to free-market policies. D) The adoption of economic policies widespread in the former Soviet Union. Show Answer Correct Answer: C) A switch to free-market policies. 11. A good that is non-rival but excludable is considered a: A) Private Good. B) Common Good. C) Public Good. D) Club Good. Show Answer Correct Answer: D) Club Good. 12. Which one of the following is not an example for direct tax? A) Personal Income Tax. B) Corporate tax. C) Goods andServices Tax (GST). D) Land tax. Show Answer Correct Answer: C) Goods andServices Tax (GST). 13. Which type of goods would be over produced if left to market forces? A) Public Goods. B) Goods with positive consumption externality. C) Goods with negative consumption externality. D) Private goods. Show Answer Correct Answer: C) Goods with negative consumption externality. 14. See a friend's account story on Instagram A) Private goods. B) Public goods. C) Common goods. D) Club goods. E) Inferior goods. Show Answer Correct Answer: D) Club goods. 15. Goods that lack a price tend to result in a market failure. The market failure can be attributed to a lack of: A) Rivalry. B) Equity. C) Excludability. D) None of the above. Show Answer Correct Answer: C) Excludability. 16. Common goods are: A) Non rival, non excludable. B) Non rival, excludable. C) Rival, excludable. D) Rival, non excludable. Show Answer Correct Answer: D) Rival, non excludable. 17. In some cases, states and the federal government make direct payments to the poor such as welfare, social security, unemployment benefits and worker's compensation. These are called. A) Cash transfers. B) In-Kind Benefits. C) Socialism. D) Charity. Show Answer Correct Answer: A) Cash transfers. 18. Government programs that provide people with services as long as they qualify are referred to as A) Mandatory spending. B) Entitlements. C) Discretionary spending. D) Appropriations. Show Answer Correct Answer: B) Entitlements. 19. Which one of the following is not a non-tax revenue of Govt? A) Grant. B) Fines and penalties. C) Surcharge. D) Profit. Show Answer Correct Answer: C) Surcharge. 20. The private sector is primarily controlled by ..... A) Public decision makers. B) Public and individual decision makers. C) Individual choice. D) Government. Show Answer Correct Answer: C) Individual choice. 21. Large stocks of fish in the great lakes represent A) Nonrenewable natural capital. B) Renewable natural capital. C) Intangible capital. D) Produced capit. Show Answer Correct Answer: B) Renewable natural capital. 22. Which of the following are characteristics of public goods? A) Rivalry dan excludable. B) Non-rivalry dan excludable. C) Non-rivalry dan non-excludable. D) Rivalry dan non-excludable. E) Paid and Limited quantity. Show Answer Correct Answer: C) Non-rivalry dan non-excludable. 23. A transfer payment is one in which the government A) Directly purchases goods and services. B) Provides states or local governments with money for things like education, infrastructure, etc. C) Loans given to foreign countries for a variety of reasons. D) Money given to people that do not provide goods or services, such as Social Security checks. Show Answer Correct Answer: D) Money given to people that do not provide goods or services, such as Social Security checks. 24. How many principles of project evaluation according to CBA method? A) 3. B) 4. C) 2. D) 5. Show Answer Correct Answer: C) 2. 25. Which of the following is a Central Govt Tax? A) Land Tax. B) * Property tax. C) * Personal Income Tax. D) Professional Tax. Show Answer Correct Answer: C) * Personal Income Tax. 26. A percentage of money taken from individuals or businesses is referred to as A) Property tax. B) Income tax. C) Excise tax. D) Sales tax. Show Answer Correct Answer: B) Income tax. 27. A shared good and service for which would be impractical to make consumers pay individually and to exclude nonpayers. A) Public good. B) Externality. C) Private sector. D) Public sector. Show Answer Correct Answer: A) Public good. 28. Most governments are likely to pay for public goods and services through- A) Donations from wealthy politicians. B) Donations from abroad. C) Revenue from sales and income taxes. D) Borrowings from abroad. Show Answer Correct Answer: C) Revenue from sales and income taxes. 29. Which one of the following tax is collected by Local Self Governments? A) GST. B) Professional Tax. C) Stamp duty. D) Corporate tax. Show Answer Correct Answer: B) Professional Tax. 30. The part of the economy that involves the transactions of individuals and businesses. A) Externality. B) Public good. C) Public sector. D) Private sector. Show Answer Correct Answer: D) Private sector. Next →Related QuizzesFinance QuizzesPublic Economics Quiz 2Public Economics Quiz 3 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books