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Public Sector Economics 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!

Page 1

Question 1 1. A general is preparing to hold military exercises in order to display the arsenal the United States has at its disposal. What policy is this most associated with?

Question 2 2. Which of the following policies is primarily focused on the general welfare of a country's citizens?

Question 3 3. There is a series of anti-drug TV ads that are part of a larger crime-prevention campaign. Which policy is that campaign associated with?

Question 4 4. Public goods used by individuals that do not diminish their use by others are known as what?

Question 5 5. A public good that is unable to be halted from being used by others is known as what?

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Question 6 6. What is a public good?

Question 7 7. What are some examples of a positive externality that may be subsidized by a government?

Question 8 8. In the image below, where D-1 is the buyers quantity demanded and D-T is the quantity demanded that includes positive externality, at what point will you find the optimal equilibrium?

Question 9 9. Which answer best describes the effect of positive externality to the demand curve?

Question 10 10. When facing the possibility of depletion of a common good, which of the following options could ensure proper management?

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Question 11 11. Street lights are an example of a(n) _____ good.

Question 12 12. Which of the following is a common good?

Question 13 13. The term used to describe when only one company controls the market causing a partial market failure

Question 14 14. What is an example of a public good?

Question 15 15. What type of market failure occurs when the market does not make any products at all?

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Question 16 16. Which one is not considered a third party in regards to negative externality?

Question 17 17. In a trasaction involving negative externality, how many parties are involved?

Question 18 18. The outcome suffered by a third party after a producer and consumer complete a transaction is the definition of what?

Question 19 19. What term does this define: a product or service with a use that is not decided by any one person or persons, but by the society as a whole and good is typically financed by the government, through the use of tax revenues.

Question 20 20. Which of the following is the best example of the marriage between a private good and a public good?

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Question 21 21. Which of the following is a set of public goods?

Question 22 22. Which of the following is an example of a private good?

Question 23 23. Which one of the following is not a characteristic of a private good?

Question 24 24. Which one of the following choices describes rejectability?

Question 25 25. Which of the following would be considered a positive externality?

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Question 26 26. A nearby factory has begun increasing production dramatically, generating excessive pollution. Negotiations to reduce the pollution have yielded nothing.

Question 27 27. Which of the following policies can be used to both offset a negative externality and boost a positive externality?

Question 28 28. Which of the following is an example of a foreign policy goal?

Question 29 29. The method by which things are taxed is known as what?

Question 30 30. Equilibrium in economics is where the supply meets the quantity demanded to set a market price. What is the optimal equilibrium point with the external influence of positive externality?

Public Sector Economics 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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