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Economics Practice Test 7

Deadweight Loss of Taxation Quiz Answers PDF - 7

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Economics: Deadweight Loss of Taxation Quiz Questions PDF Download

MCQ: When a market transaction is taxed, the seller receives

A) high price
B) zero price
C) high tax rate
D) low price

MCQ: 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

A) free rider problem
B) rivalry
C) revealed preference
D) deficit resources

MCQ: 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

A) game theory
B) Nash equilibrium
C) prisoner's dilemma
D) dominant strategy

MCQ: Taxes are efficient when they are imposed for a

A) longer period
B) 1 month
C) shorter period
D) 10 days

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

A) people
B) money
C) private solutions
D) inflation

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