Government Failure in Macroeconomics Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Assume that land can be used either for producing corn or producing beef. The opportunity cost of converting an acre from producing corn to raising cattle for beef is equal to which of the following?

Question 2 2. During the time Mary spent studying macroeconomics, she could have instead either made brownies or played the piano. She thinks to herself that if she wasn't studying, then she would have made brownies. In this case, her opportunity cost of studying is equal to which of the following?

Question 3 3. Assume that you have two hours to spend at the mall. You can either visit the bookstore or enjoy a movie at the theater. The opportunity cost of watching a movie is equivalent to which of the following?

Question 4 4. Josie decided to go to college full-time instead of working. Which of the following is the opportunity cost of going to college for Josie?

Question 5 5. Which of the following best describes opportunity cost?

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Question 6 6. Is it important for governments to be cost-conscious for the best benefits of the population?

Question 7 7. Should governments choose the least costly project regardless of how many people are served by the project?

Question 8 8. For the cost-benefit analysis process, can parameters be different depending on the situation?

Question 9 9. Is it possible for a government to choose after analysis, not the best cost-benefit option?

Question 10 10. In order to reach a conclusion as to the desirability of a project, should all aspects of the project, positive and negative, be expressed in terms of a common unit?

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Question 11 11. In the context of government failure, when we say that the government has made things worse what do we mean?

Question 12 12. Current economists have argued that government failure can also occur when….

Question 13 13. The invisible hand is a metaphor for what?

Question 14 14. What is government failure?

Question 15 15. Which of these is an example of government failure?

Government Failure in Macroeconomics Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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