Economics Practice Test 7
Deadweight Loss of Taxation Quiz PDF: Questions and Answers - 7
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Deadweight Loss of Taxation Questions and Answers PDF Download: Quiz 7
MCQ 31: When a market transaction is taxed, the seller receives
- high price
- zero price
- high tax rate
- 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
- free rider problem
- rivalry
- revealed preference
- 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
- game theory
- Nash equilibrium
- prisoner's dilemma
- dominant strategy
MCQ 34: Taxes are efficient when they are imposed for a
- longer period
- 1 month
- shorter period
- 10 days
MCQ 35: Externalities can also not be cured by government intervention but by developing
- people
- money
- private solutions
- inflation
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