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 neither the producer nor the consumer of the product.
B the supplier of the raw material used by the firm.
C the firm or producer of the product which generates pollution.
D the consumer of the product.
Question #2
A decreased over the last fifty years.
B increased until ten years ago, and then decreased steadily.
C increased over the last fifty years.
D been constant over the last fifty years.
Question #3
A underproduces the good or service.
B reaches the most efficient solution.
C overproduces the good or service.
D minimizes public welfare.
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 some of the funds are going to social services rather than to enhance learning activities.
D most parents do not support the schools or their children’s educational activities.
Question #5
A profit rule.
B majority rule.
C government 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 peaked during World War II.
B has been almost constant this century.
C peaked during the Reagan administration.
D has been steadily climbing since 1850.
Question #8
A is not subject to the principle of mutual exclusivity.
B the political process has deemed socially undesirable.
C the political process has deemed socially desirable.
D can be consumed by one individual without affecting the consumption of another individual.
Question #9
A Both I and II
B I only
C II only
D Neither I nor II
Question #10
A scarcity exists only in the market sector.
B government can use force, while the market does not.
C we can only vote in the public sector.
D the cost of private goods to society is zero.
Question #11
A firms produce more than what consumers want.
B an underground market develops.
C it fails to have the goods that consumers want.
D all resources are allocated to the highest-valued uses.
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 the market demand curve to shift downward.
D an increase in the quantity of medical care demanded above the quantity demanded in the absence of the subsidy.
Question #13
A requiring all producers of the good to be licensed.
B taxing production of the good.
C imposing taxes on the good.
D subsidizing consumption of the good.
Question #14
A to the right; to the left
B to the right; to the right
C to the left; to the left
D to the left; to the right
Question #15
A More students would enroll in school.
B There would be no correlation between the price students pay and the cost of providing the educational services.
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 Resources are over-allocated in the production of good X.
B Too much of good X is being produced.
C The good is priced too low.
D An external benefit is associated with good X.
Question #17
A people are getting something for nothing.
B the political system is run by proportional rule.
C the cost of the goods is the value of the resources used to produce the good.
D the cost to society is zero.
Question #18
A requiring drivers to undergo periodic eye examinations
B fast food services
C education
D health care