This quiz works best with JavaScript enabled. Home > Public Economics > Public Economics – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Public Economics Quiz 3 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. We would expect that in a community with mounting air and water pollution problems, the A) Economy of the region would decline. B) Unemployment rates would drop. C) Population would increase. D) Health care would become less important. Show Answer Correct Answer: A) Economy of the region would decline. 2. Which of the following is an example of a private good? A) School WiFi. B) Park bench. C) Netflix. D) Apples. Show Answer Correct Answer: D) Apples. 3. From an ecological economist's perspective, without sustainability, as economies grow, A) Gross national product grows too. B) Natural resources are renewed. C) The natural world is depleted. D) Natural ecosystems are replenished. Show Answer Correct Answer: C) The natural world is depleted. 4. Costs to producers of producing one more unit of a good A) Market Failure. B) Externality. C) Marginal Private Costs. D) Marginal Social Costs. Show Answer Correct Answer: C) Marginal Private Costs. 5. The installation costs of a new computer room is classified as A) Revenue Expenditure. B) Income Expenditue. C) Capital Expenditure. D) Reserve Expenditure. Show Answer Correct Answer: C) Capital Expenditure. 6. Government mostly provide the following services EXCEPT- A) Education. B) Entertainment. C) Healthcare. D) Infrastructure. Show Answer Correct Answer: B) Entertainment. 7. 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. 8. What is the tragedy of the commons? A) Finite resources of a private good. B) Finite resources, zero excludability. C) Unlimited resources, zero excludability. D) Never heard of it. Show Answer Correct Answer: B) Finite resources, zero excludability. 9. Free riders are examples of ..... A) Public sector. B) Public good. C) Externality. D) Market Failure. Show Answer Correct Answer: D) Market Failure. 10. How many purposes does CBA have in measuring efficiency of public expenditure? A) 1. B) 2. C) 3. D) 4. Show Answer Correct Answer: B) 2. 11. 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. 12. 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. 13. The part of the economy that involves the transactions of the government. A) Private sector. B) Free rider. C) Public sector. D) Externality. Show Answer Correct Answer: C) Public sector. 14. 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. 15. 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. 16. 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) Externality. C) Public good. D) Free rider. Show Answer Correct Answer: D) Free rider. 17. 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. 18. 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. 19. Which one of the follwing is a feature of indirect tax? A) Expenditure on tax collection is more. B) Paid by the person on whom itis imposed. C) Tax payer undertakes theburden of the tax. D) The tax is included in the pricepaid by the consumer. Show Answer Correct Answer: D) The tax is included in the pricepaid by the consumer. 20. Is a situation in which the market, on its own, does not distribute resources efficiently. A) Public good. B) Private sector. C) Externality. D) Market Failure. Show Answer Correct Answer: D) Market Failure. ← PreviousNext →Related QuizzesPublic Economics Quiz 1Public Economics Quiz 2Public Economics Quiz 4 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books