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