Micro Economics quiz

microeconomicsquiz.docx

An item or event that results in a third part receiving a benefit or incurring a cost to a third party is called an externality.

Question 1 options:

	True
	False

Save

Question 2 (1 point)

A private good is a good that is neither excludable nor rival in consumption.

Question 2 options:

	True
	False

Save

Question 3 (1 point)

A budget deficit is an excess of government spending over government revenues.

Question 3 options:

	True
	False

Save

Question 4 (1 point)

The average tax rate is the extra taxes paid on additional dollar of income.

Question 4 options:

	True
	False

Save

Question 5 (1 point)

A progressive tax is a tax for which high-income taxpayers pay a larger fraction of their income tan o lower-income taxpayers.

Question 5 options:

	True
	False

Save