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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

  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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