This quiz works best with JavaScript enabled. Home > Public Economics > Public Economics – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Public Economics Quiz 1 (20 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) Consumers. B) Producers. C) Chief Executive Officer (CEO). 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) Appropriations. B) Transfer payments. C) Grants-in-aid. D) Discretionary spending. Show Answer Correct Answer: A) Appropriations. 3. Which is not a GST slab in India at present? A) 5%. B) 25%. C) 12%. D) 18%. Show Answer Correct Answer: B) 25%. 4. Public goods scale is optimal when A) MRT=MRS1-MRS2. B) MRT=MRS1xMMRS2. C) MST= MRS2/MRS1. D) MRT=MRS1+MRS2. Show Answer Correct Answer: D) 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) In-Kind Benefits. C) Welfare. D) Social security. Show Answer Correct Answer: B) In-Kind Benefits. 7. A good that is rival but non-excludable will be a: A) Private good. B) Club good. C) Common good. D) Public good. Show Answer Correct Answer: C) Common good. 8. The part of the economy that is owned by individuals and is operated for their personal benefit is known as ..... A) Private Sector. B) Public Sector. C) Profit. D) Individual Decision Making. Show Answer Correct Answer: A) Private Sector. 9. Unlike high-income countries, low-income countries rely most on their A) Human resources. B) Produced capital. C) Natural capital. D) Intangible capital. Show Answer Correct Answer: C) 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) The adoption of economic policies widespread in the former Soviet Union. D) A switch to free-market policies. Show Answer Correct Answer: D) A switch to free-market policies. 11. A good that is non-rival but excludable is considered a: A) Private Good. B) Club Good. C) Public Good. D) Common Good. Show Answer Correct Answer: B) 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) Public goods. B) Common goods. C) Club goods. D) Private goods. E) Inferior goods. Show Answer Correct Answer: C) 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, excludable. B) Non rival, non 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) Charity. D) Socialism. 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. Next →Related QuizzesPublic Economics Quiz 2Public Economics Quiz 3Public Economics Quiz 4 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books