Have an account?
Skip to Content
Build your own quiz
10 questions
Show Answers
See Preview
- 1. Multiple ChoiceWhich best describes a public good?A good provided by the governmentA good purchased by individualsA good that exists only in a free marketA good that produces no externalites
- 2. Multiple ChoiceA market failure is best described asThe idea that market forces of supply and demand always provide the maximum benefit for societyThe idea that market forces of supply and demand do not always provide the maximum benefit for societyThe concept that a decision made by one party can have negative effects on another partyThe concept that a decision made by one party can have positive effects on another party
- 3. Multiple ChoiceThe following statements are true of government regulations exceptThey limit economic freedomThey seek to limit negative externalitiesThey exist to protect consumersThey are always popular with private businesses
- 4. Multiple ChoiceSafety nets, in the context of market failure, areGoods that are not safe, equitable, and profitable in the marketDesigned to minimize external costs and shift the costs back to the producersPayments given by the government to private companies as an incentive for them to produce a certain goodPrograms that help people who are struggling
- 5. Multiple ChoiceGovernment regulations exist toIncrease economic freedomProtect consumers from negative externalitiesPunish people who intervene in the free marketProvide incentives to privatize
- 6. Multiple ChoiceGovernment regulation may negatively affect businesses in the following ways byIncreasing input costsIncreasing profitsLowering consumer pricesAll of the above
- 7. Multiple ChoicePrivate businesses cannot always provide goods and servicesProfitablyFairlySafelyAll of the above
- 8. Multiple Choice
The ups and downs of the economy, which the government must sometimes step in to stabilize due is known as the
Regulatory cycle
Business cycle
Fiscal Policy
Monetary Policy
- 9. Multiple Choice
Which is not an example of a publicly owned industry intended to provide goods and services more efficiently to the public?
Postal service
Public transportation
Airline industry
Utilities such as gas, water, electric
- 10. Multiple Choice
Market failures occur when
the accumulation of wealth in the free market is shared between a large group of people
a command economy increases production
the economy has a strong GDP and low interest rates
the distribution of goods and services in the free market is not efficient and leads to loss of social wellbeing
- Answer choicesTagsAnswer choicesTags