Navigation » List of Schools » Pierce College » Economics » Economics 002 – Principles of Economics II » Spring 2021 » Chapter 5 Practice Quiz
Below are the questions for the exam with the choices of answers:
Question #1
A the consumer of the product.
B neither the producer nor the consumer of the product.
C the firm or producer of the product which generates pollution.
D the supplier of the raw material used by the firm.
Question #2
A increased until ten years ago, and then decreased steadily.
B increased over the last fifty years.
C decreased over the last fifty years.
D been constant over the last fifty years.
Question #3
A underproduces the good or service.
B minimizes public welfare.
C reaches the most efficient solution.
D overproduces the good or service.
Question #4
A the additional funds are being siphoned off by dishonest school board members.
B students are so unmotivated that no amount of spending will ever improve scores.
C most parents do not support the schools or their children’s educational activities.
D some of the funds are going to social services rather than to enhance learning activities.
Question #5
A profit rule.
B government rule.
C majority rule.
D proportional rule.
Question #6
A impose a tax on the producers to stimulate supply.
B impose taxes on consumers to stimulate demand.
C grant subsidies to producers to reduce supply.
D grant subsidies to consumers to stimulate demand.
Question #7
A has been almost constant this century.
B peaked during the Reagan administration.
C peaked during World War II.
D has been steadily climbing since 1850.
Question #8
A can be consumed by one individual without affecting the consumption of another individual.
B the political process has deemed socially undesirable.
C the political process has deemed socially desirable.
D is not subject to the principle of mutual exclusivity.
Question #9
A Neither I nor II
B Both I and II
C I only
D II only
Question #10
A we can only vote in the public sector.
B scarcity exists only in the market sector.
C the cost of private goods to society is zero.
D government can use force, while the market does not.
Question #11
A an underground market develops.
B firms produce more than what consumers want.
C all resources are allocated to the highest-valued uses.
D it fails to have the goods that consumers want.
Question #12
A a reduction in the price that providers of medical care receive for each unit of care provided.
B the market supply curve to shift upward.
C an increase in the quantity of medical care demanded above the quantity demanded in the absence of the subsidy.
D the market demand curve to shift downward.
Question #13
A taxing production of the good.
B subsidizing consumption of the good.
C requiring all producers of the good to be licensed.
D imposing taxes on the good.
Question #14
A to the right; to the left
B to the right; to the right
C to the left; to the right
D to the left; to the left
Question #15
A There would be no correlation between the price students pay and the cost of providing the educational services.
B More students would enroll in school.
C The price students pay to attend school would equal the value of an additional unit of education consumed.
D The quality of education would deteriorate.
Question #16
A Too much of good X is being produced.
B Resources are over-allocated in the production of good X.
C An external benefit is associated with good X.
D The good is priced too low.
Question #17
A the political system is run by proportional rule.
B the cost of the goods is the value of the resources used to produce the good.
C the cost to society is zero.
D people are getting something for nothing.
Question #18
A fast food services
B requiring drivers to undergo periodic eye examinations
C education
D health care