ECO210 Quiz 3

Which of the following is NOT correct about how tariffs impact consumers and domestic producers?

Consumers benefit because they are able to buy imports they value above domestic versions at a cheaper price.

Which of the following is NOT true about the cooperative form of business organization?

Cooperatives are always formed as Chapter J subsidiaries of preferred stock companies.

Which type of good is most likely to be provided by the government because it is valued by society but very unlikely to ever be provided by a private sector firm?

Public Good.

Which of the following is NOT correct about Public Goods?

Public Goods are provided by publicly held corporations with massive subsidies from the government.

Which of the following is NOT true about private and public goods?

Public goods are those whose consumption by one party precludes consumption by another. Also, public goods are those whose consumption can be denied to nonpayers.

Which of the following is NOT true about the impact of tariffs and quotas?

Tariffs and quotas allow consumers to save money.

Which of the following is correct about the sole proprietorship?

The sole proprietorship is the most common business form but it only generates a tiny portion of all business sales.

Which of the following is correct about the top 1% of income earners?

The top 1% of income earners pay over a third of all tax revenues.

Which of the following is NOT true?

A quota is one fourth of a dollar.

Which of the following correctly describes a Regressive Tax?

A regressive tax hits low income earners harder than high income earners.

Which of the following is NOT true about taxation?

A regressive tax is one that places a higher tax rate on upper income earners and a very low or nonexistent tax on very lower earners.

Which of the following is NOT true about corporations?

Although the most common form of business organization, corporations account for less than half of all output and revenue.

Which of the following is NOT true about an externality?

An externality is a benefit or cost that impacts only the parties directly involved in a transaction, i.e., the buyer and the seller.

Which of the following correctly defines an Externality?

An externality is a cost or benefit that accrues to third parties not directly involved in an economic transaction.

Which of the following is NOT correct about a progressive tax?

As income rises, the progressive tax rate falls. Therefore, lower income earners pay a higher tax RATE than higher income earners.

Which of the following is the correct definition of a co-op?

A cooperative or "co-op" is a group of people who pool their resources to buy and sell more efficiently than they could on their own. Co-ops are recognized by the government as legitimate business operations and most receive tax exempt status as a result.

Which of the following provides the correct definition of Progressive Taxation?

In progressive taxation, tax as a percentage of income increases as income level increases. The tax rate rises as certain income levels are surpassed.

Which of the following is correct about the partnership form of business organization?

Partnerships are the least common business form.

Which of the following is the correct definition and description of Private Goods?

Private goods are exclusive because sellers have the legal right to exclude those who refuse to pay. Private goods are said to be rival in consumption because the amount consumed by one party is unavailable to another for consumption.

Which of the following is NOT true about private and public goods?

To be a public good, it need only be nonrival or nonexcludable, not both.