This quiz works best with JavaScript enabled. Home > Finance > Public Economics > Public Economics – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Public Economics Quiz 2 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Goods and Services Tax (GST) wasintroduced in India on ..... A) 1st July 2017. B) 1st June 2017. C) 21st July 2017. D) 21st may 2018. Show Answer Correct Answer: A) 1st July 2017. 2. The World Trade Organization A) Mainly regulates the use of global environmental resources. B) Guards human rights and the environmental resources of the world. C) Is widely recognized as the leader of global trade regulation. D) Has steadily lost the power to regulate international trade. Show Answer Correct Answer: D) Has steadily lost the power to regulate international trade. 3. Revenue is the money that the government brings in for use on government expenditures. The term used to define the source of revenue is A) Money stream. B) Revenue base. C) Tax base. D) Money base. Show Answer Correct Answer: C) Tax base. 4. Sustainable development and the protection of public health require A) The generation of electricity from fossil fuels. B) Governments to recognize personal liberties as the highest priority. C) The independence of private landowners to develop individual policies. D) Public policies that protect the environment. Show Answer Correct Answer: D) Public policies that protect the environment. 5. A market is expected to have no distortion at all. What is this market called? A) Efficient market. B) Night market. C) Morning market. D) Goods market. E) Free market. Show Answer Correct Answer: A) Efficient market. 6. The fiscal year for the US government runs A) January-December. B) July-June. C) October-September. D) February-January. Show Answer Correct Answer: C) October-September. 7. Which following answer is A) Needs a common measurement unit. B) Analysis of a project should not include a comparison. C) It is important to avoid double counting benefits and costs. D) The benefits are often judged by market choice. Show Answer Correct Answer: B) Analysis of a project should not include a comparison. 8. Which of the following is a method of providing public goods and services? A) The State only provides finance and the State does not organize public provision goods and services. B) The private sector is not financed and the private sector must organize itself. C) The state and the private sector work together to finance and provide public goods and services. D) None of above. Show Answer Correct Answer: C) The state and the private sector work together to finance and provide public goods and services. 9. The United States government provides the following services EXCEPT- A) Interstate highways. B) Postal service. C) National defense. D) Satellite radio. Show Answer Correct Answer: D) Satellite radio. 10. A tax that takes a higher percentage of money from higher incomes is what type of tax? A) Sales tax. B) Progressive tax. C) Proportional tax. D) Regressive tax. Show Answer Correct Answer: B) Progressive tax. 11. We would expect that in a community with mounting air and water pollution problems, the A) Health care would become less important. B) Population would increase. C) Unemployment rates would drop. D) Economy of the region would decline. Show Answer Correct Answer: D) Economy of the region would decline. 12. Which of the following is an example of a private good? A) Apples. B) Netflix. C) School WiFi. D) Park bench. Show Answer Correct Answer: A) Apples. 13. From an ecological economist's perspective, without sustainability, as economies grow, A) Natural resources are renewed. B) Gross national product grows too. C) The natural world is depleted. D) Natural ecosystems are replenished. Show Answer Correct Answer: C) The natural world is depleted. 14. Costs to producers of producing one more unit of a good A) Marginal Social Costs. B) Externality. C) Marginal Private Costs. D) Market Failure. Show Answer Correct Answer: C) Marginal Private Costs. 15. The installation costs of a new computer room is classified as A) Income Expenditue. B) Reserve Expenditure. C) Capital Expenditure. D) Revenue Expenditure. Show Answer Correct Answer: C) Capital Expenditure. 16. Government mostly provide the following services EXCEPT- A) Entertainment. B) Infrastructure. C) Education. D) Healthcare. Show Answer Correct Answer: A) Entertainment. 17. A public good is1 rival2 nonrival3 excludable4 nonexcludable A) 1 and 3. B) 1 and 4. C) 2 and 3. D) 2 and 4. Show Answer Correct Answer: D) 2 and 4. 18. What is the tragedy of the commons? A) Never heard of it. B) Finite resources of a private good. C) Unlimited resources, zero excludability. D) Finite resources, zero excludability. Show Answer Correct Answer: D) Finite resources, zero excludability. 19. Free riders are examples of ..... A) Public good. B) Public sector. C) Market Failure. D) Externality. Show Answer Correct Answer: C) Market Failure. 20. How many purposes does CBA have in measuring efficiency of public expenditure? A) 1. B) 4. C) 2. D) 3. Show Answer Correct Answer: C) 2. 21. Environmental public policy is intended to A) Promote the harvesting of natural resources. B) Improve human welfare and protect the natural world. C) Ensure access to natural resources for industry. D) Measure the impact of industrial wastes on the environment. Show Answer Correct Answer: B) Improve human welfare and protect the natural world. 22. Which are the GSTs collected by Central Govt? A) CGST alone. B) SGST alone. C) CGST and SGST. D) CGST and IGST. Show Answer Correct Answer: D) CGST and IGST. 23. The part of the economy that involves the transactions of the government. A) Public sector. B) Private sector. C) Free rider. D) Externality. Show Answer Correct Answer: A) Public sector. 24. The national demand for public goods easily ..... because every locality wants to be allocated more or earlier budget than other places. A) Correct and distorted. B) Misleading and increase. C) Misleading and distorted. D) Increase rapidly. Show Answer Correct Answer: C) Misleading and distorted. 25. Natural capital includes ecosystem capital plus A) Natural forms of energy, such as solar, wind, and flowing water. B) Nonrenewable resources such as fossil fuels. C) Money available to invest in growing industry. D) All of the products of photosynthesis in the biosphere. Show Answer Correct Answer: B) Nonrenewable resources such as fossil fuels. 26. Someone who would not choose to pay for a certain good or service, but who would get the benefits of it anyway if it were provided as a public good. A) Market failure. B) Public good. C) Externality. D) Free rider. Show Answer Correct Answer: D) Free rider. 27. Which is not an effect of public expenditure A) Foreign trade effect. B) Encourage or inhibit an economic activity. C) Solve market failures. D) Impact on the supply-demand relationship. Show Answer Correct Answer: A) Foreign trade effect. 28. A government might subsidies education because the subsidy ..... A) Reduces production cost and therefore encourages consumption. B) Means the firm receives money to spend on what it wants. C) Benefits may be lower than its costs. D) Might correct government failure. Show Answer Correct Answer: A) Reduces production cost and therefore encourages consumption. 29. Which one of the follwing is a feature of indirect tax? A) Paid by the person on whom itis imposed. B) Expenditure on tax collection is more. C) The tax is included in the pricepaid by the consumer. D) Tax payer undertakes theburden of the tax. Show Answer Correct Answer: C) The tax is included in the pricepaid by the consumer. 30. Is a situation in which the market, on its own, does not distribute resources efficiently. A) Externality. B) Market Failure. C) Private sector. D) Public good. Show Answer Correct Answer: B) Market Failure. ← PreviousNext →Related QuizzesFinance QuizzesPublic Economics Quiz 1Public Economics Quiz 3 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books