Public Economics MCQs
Public Economics MCQs
Answer these Public Economics MCQs and assess your grip on the subject of Public Economics. Scroll below and get started!
1: _____ is a private good, _____ is a public good, and _____ is a common resource.
A. A seat on a bus at rush hour; national defense
B. Voters are well informed about the effects of policies
C. A camera; a concert in the park
D. A​ car; a​ freeway; oxygen in the atmosphere
2: During the great depression, union promoters _____
A. Renewed their efforts because hard times united workers.
B. ​stopped organizing labor because the economy slowed.
C. ​tried to organize labor but workers refused to cooperate.
D. ​had no success because most people did not have jobs.
3: What is public economics?
A. The study of economic systems in the private sector
B. The study of economic policies and their impact on the public sector
C. The study of consumer behavior in the marketplace
D. The study of international trade and globalization
4: What is the role of public economics in government decision-making?
A. To analyze and evaluate the economic impact of government policies
B. To maximize government revenue through taxation
C. To minimize government spending and budget deficits
D. All of the above
5: What is a public good?
A. A good that is provided by the government and funded through taxes
B. A good that is non-excludable and non-rivalrous in consumption
C. A good that is produced and sold by private firms
D. A good that is available only to a limited number of people
6: What is the free-rider problem in relation to public goods?
A. The issue of individuals benefiting from a public good without contributing to its provision
B. The problem of government intervention in the economy
C. The challenge of pricing public goods in the marketplace
D. The issue of scarce resources in the production of public goods
7: Which of the following is an example of a public good?
A. Private healthcare services
B. Public parks
C. Cable television subscriptions
D. Luxury goods
8: What is the concept of externalities in public economics?
A. The benefits or costs imposed on third parties by the actions of economic agents
B. The distribution of income and wealth in society
C. The efficiency of resource allocation in the marketplace
D. The impact of government regulation on economic activities
9: What is a progressive tax system?
A. A tax system in which individuals with higher incomes pay a higher proportion of taxes
B. A tax system in which individuals with lower incomes pay a higher proportion of taxes
C. A tax system that is flat and applies the same tax rate to all individuals
D. A tax system that exempts certain income levels from taxation
10: What is the concept of income redistribution in public economics?
A. The transfer of wealth from high-income individuals to low-income individuals
B. The promotion of economic growth and efficiency
C. The provision of public goods and services
D. The reduction of government spending and budget deficits
11: What is the concept of market failure in public economics?
A. The inefficient allocation of resources in the marketplace
B. The absence of competition in certain industries
C. The inability of the market to provide public goods and address externalities
D. The excessive control of the government in the economy
12: What is the concept of public debt in public economics?
A. The accumulation of government spending exceeding revenue over time
B. The borrowing of funds by the government to finance its expenditures
C. The payment of taxes by individuals and businesses
D. The provision of public goods and services by the government
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