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Economics Chapter 13 Test Bank
Multiple Choice Questions
1. The term "basic research" applies specifically to research pertaining to fundamental scientific
breakthroughs that may offer commercial applications in the _____________________ .
A. distant future
B. near future
C. immediate future
D. short run
Answer: A
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Remember
2. The term "applied research" refers to research that is focused on a particular product that
promises
A. to offer commercial applications in the short-term.
B. to offer commercial applications in the long-term.
C. an economic payoff in the short or medium-term.
D. an economic payoff in the medium or long-term.
Answer: C
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Remember
3. When it is costly or impossible to exclude someone who hasn't paid to use a particular good
from using it, then that good is classified as being
A. unexcludable
B. free rider
C. public good
D. nonexcludable
Answer: D
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
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4. A public good is a good that is _____________________, and thus is difficult for market
producers to sell to individual consumers.
A. excludable or rivalrous
B. nonexcludable and nonrivalrous
C. excludable and rivalrous
D. unexcludable or unrivaled
Answer: B
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Remember
5. In order for a good to be classified as _____________________, when one person uses the
good, others are also able to use it.
A. nonrivalrous
B. unrivalrous
C. unexcludable
D. nonexcludable
Answer: A
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
6. An individual who wants others to pay for public goods, but plans to use those goods for their
own purposes, is often referred to as a _____________________.
A. tax evader
B. excludable
C. free rider
D. nonexcludable
Answer: C
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Remember
7. If large numbers of individuals choose to behave as free riders,
A. more of the public good will be available for paying riders.
B. the public good may never be provided.
C. public goods will quickly be privatized.
D. public domain technologies become more difficult to obtain.
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Answer: B
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
8. The difference between playing a board game and a playing a video game is the
A. elimination of free riders
B. involvement of fewer rivals
C. involvement of free riders
D. technology of the video game
Answer: D
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
9. It is commonly understood that every invention
A. has its own story of discovery and development.
B. often involved a parade of characters and firms.
C. has a unique story that develops over years or decades.
D. often results in new technology and all of the above.
Answer: D
Reference:
Explanation:
Type: Multiple Choice Difficulty: Medium Category: Understand
10. Government has a variety of policies that allow inventors to _____________________, such
as the granting patents and _____________________.
A. receive an increased rate of return; subsidization of research and development
B. protect their inventions; limited copyrights during the inventor's lifetime
C. register their inventions; unlimited copyrights during the inventor's lifetime
D. receive a reasonable rate of return; lifetime intellectual property rights.
Answer: A
Reference:
Explanation:
Type: Multiple Choice Difficulty: Medium Category: Understand
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Economics Chapter 13 Test Bank
Multiple Choice Questions
1. The term "basic research" applies specifically to research pertaining to fundamental scientific
breakthroughs that may offer commercial applications in the _____________________ .
A. distant future
B. near future
C. immediate future
D. short run
Answer: A
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Remember
2. The term "applied research" refers to research that is focused on a particular product that
promises
A. to offer commercial applications in the short-term.
B. to offer commercial applications in the long-term.
C. an economic payoff in the short or medium-term.
D. an economic payoff in the medium or long-term.
Answer: C
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Remember
3. When it is costly or impossible to exclude someone who hasn't paid to use a particular good
from using it, then that good is classified as being
A. unexcludable
B. free rider
C. public good
D. nonexcludable
Answer: D
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
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4. A public good is a good that is _____________________, and thus is difficult for market
producers to sell to individual consumers.
A. excludable or rivalrous
B. nonexcludable and nonrivalrous
C. excludable and rivalrous
D. unexcludable or unrivaled
Answer: B
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Remember
5. In order for a good to be classified as _____________________, when one person uses the
good, others are also able to use it.
A. nonrivalrous
B. unrivalrous
C. unexcludable
D. nonexcludable
Answer: A
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
6. An individual who wants others to pay for public goods, but plans to use those goods for their
own purposes, is often referred to as a _____________________.
A. tax evader
B. excludable
C. free rider
D. nonexcludable
Answer: C
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Remember
7. If large numbers of individuals choose to behave as free riders,
A. more of the public good will be available for paying riders.
B. the public good may never be provided.
C. public goods will quickly be privatized.
D. public domain technologies become more difficult to obtain.
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Answer: B
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
8. The difference between playing a board game and a playing a video game is the
A. elimination of free riders
B. involvement of fewer rivals
C. involvement of free riders
D. technology of the video game
Answer: D
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
9. It is commonly understood that every invention
A. has its own story of discovery and development.
B. often involved a parade of characters and firms.
C. has a unique story that develops over years or decades.
D. often results in new technology and all of the above.
Answer: D
Reference:
Explanation:
Type: Multiple Choice Difficulty: Medium Category: Understand
10. Government has a variety of policies that allow inventors to _____________________, such
as the granting patents and _____________________.
A. receive an increased rate of return; subsidization of research and development
B. protect their inventions; limited copyrights during the inventor's lifetime
C. register their inventions; unlimited copyrights during the inventor's lifetime
D. receive a reasonable rate of return; lifetime intellectual property rights.
Answer: A
Reference:
Explanation:
Type: Multiple Choice Difficulty: Medium Category: Understand
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