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Skill Assessments
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Economics & Development
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Microeconomics Skill Assessment
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Quiz # 12
Microeconomics Quiz # 12
Instructions
Quiz:
Microeconomics Quiz # 12
Subject:
Market Failure
Total Questions:
30 MCQs
Time:
30 Minutes
Note
Do not refresh the page while taking the test.
Results along with correct answers will be shown at the end of the test.
Start Quiz
Microeconomics Quiz # 12
End Quiz
Question
1
of 30
00:00
Benefiting from asymmetric information is known as ______.
Moral hazard
Adverse selection
Rival exclusion
Technological spillover
In the labor market, things like education level and grades are ______.
Warranties
Adverse selections
Moral hazards
Signals
What did government expenditures do between 1950 and 1975?
Rapidly shrink
Remain constant
Grow slowly
Rapidly expand
What event in 2008–2009 had a lasting influence on government expenditures?
Global expansion
Global recession
Global depression
Global boycott
Most federal taxes are aimed at ______.
Consumption
Sales
Property
Income
Payroll taxes are levied on ______-related income.
Work
Investment
Rent
Gambling
The current federal income tax is a ______ tax.
Regressive
Progressive
Flat
Consumption
What do we call a sales tax on individual products such as alcohol, tobacco, and gasoline?
Progressive tax
Payroll tax
Excise tax
Flat tax
The fraction of additional income paid in taxes is called the ______ tax rate.
Average
Marginal
Excise
Income
Historically, most state and local tax revenue has come from ______ taxes.
Property
Sales
Excise
Income
A flat tax is also called a ______.
Transfer
Grant
Sales tax
Proportional tax
Public choice economists believe that government actions are an outgrowth of ______.
Theoretical models
Individual behavior
Fiscal policy
Historical forces
The application of economics to politics is known as ______.
Public choice theory
Progressive taxation theory
Median voter model
Rational ignorance approach
The lack of incentive to be informed is known as ______.
Log rolling
Public choice
Rational ignorance
Irrational exuberance
Special interest groups ______.
Are theorists who study elections under the assumption that all political activity is motivated primarily by self-interest
Are unmotivated to spend the time and energy necessary to learn about the candidates and issues in an election
Try to judge public sentiment and align their views to what is publicly popular during a given election cycle
Have an intense interest in particular voting issues that may be different from the interests of the general public
When individuals and firms use resources, like money and lobbyists, to influence government to grant them special privileges, it is known as ______.
Rent seeking
Log rolling
Public choice
Individual consumption
When politicians trade votes for their legislation, it is known as ______.
Rational ignorance
Log rolling
Public choice
Median consumption
Which of the following is used to explain why the demand curve has a downward slope?
Consumer choice theory
Endowment effect
Law of diminishing marginal utility
Bounded rationality
Which of the following do economists define as equal to one unit of satisfaction?
One util
Total utility
Marginal utility
Anchor price
Economists recognize that it is not really possible to make ______ utility comparisons.
Total
Income-based
Intrapersonal
Interpersonal
As consumption increases, ______ also increases.
Total utility
The endowment effect
The income effect
The substitution effect
What happens to marginal utility as consumption increases?
It holds steady.
It decreases.
It increases.
It briefly decreases before increasing.
Extra satisfaction generated by consumption of an additional good or service during a specific time period is known as ______.
Total utility
Marginal utility
One util
Utility
Because of the law of diminishing marginal utility, the marginal utility curve has a(n) ______ slope.
Negative
Positive
Zero
Undefined
A consumer will stop buying one good and start buying a second good if she gets ______.
More total satisfaction from the first good
More total satisfaction from the second good
More satisfaction per dollar from the first good
More satisfaction per dollar from the second good
Consumer equilibrium occurs when all goods ______.
Are equally satisfying to all consumers
Cost the same regardless of how satisfying they are
Deliver the same “bang for the buck”
Are affordable to consumers with a fixed budget
If a movie ticket and a dance recital ticket cost the same, but the marginal utility of the dance recital ticket is greater than the marginal utility of the movie ticket, then consumers will buy ______.
More dance recital tickets
More movie tickets
Equal amounts of movie and dance recital tickets
Fewer tickets overall
At consumer equilibrium, the marginal utility per dollar for smartphones and tablets would be ______.
Equal
Zero
One
Infinite
Behavioral economics augments the traditional economic model by drawing on which of the following fields?
Sociology
Psychology
Anthropology
History
When consumers rely on decisions they feel have worked well enough in the past, they are using ______.
Anchoring
The endowment effect
Framing
Rules of thumb
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