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Economics Cerification Guide: Mock Test 7

Deadweight Loss of Taxation Notes Questions with Answers PDF Download - 7

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Deadweight Loss of Taxation Quiz with Answers PDF Download: MCQs 7

MCQ: 31

When a market transaction is taxed, the seller receives

  1. high price
  2. zero price
  3. high tax rate
  4. low price
MCQ: 32

If enough people can enjoy a good without paying for the cost then there is a danger that, in a free market, the good will be under-provided or not provided at all, this results in

  1. free rider problem
  2. rivalry
  3. revealed preference
  4. deficit resources
MCQ: 33

A type of activity performed like why two individuals might not cooperate, even if it appears that it is in their best interest to do so is the best example for

  1. game theory
  2. Nash equilibrium
  3. prisoner's dilemma
  4. dominant strategy
MCQ: 34

Taxes are efficient when they are imposed for a

  1. longer period
  2. 1 month
  3. shorter period
  4. 10 days
MCQ: 35

Externalities can also not be cured by government intervention but by developing

  1. people
  2. money
  3. private solutions
  4. inflation

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