NSC Exam | Verified Exam Questions and Answers | Latest Updated Study Material 2026

NSC Exam | Verified Exam Questions and Answers | Latest Updated
Study Material 2026

Question:

People engage in optimization, which is doing the best one can with available resources
Answer:

True

Question:

What is an externality in a market?
Answer:

All of the costs and benefits
of production of a good are not internalized in the price

Question:

What is not an example of a market failure?
Answer:

Taxes

Question:

What is the law of demand?
Answer:

When the price of a good rises, the
quantity demanded will decline

Question:

What is the primary disadvantage of a Pigovian tax?
Answer:

It reduces
the quantity produced of the agricultural good.

Question:

In a cap-and-trade system, industry groups set standards on pollution in a particular industrial
sector, which can be bought and sold

, Answer:

False

Question:

What kind of tax is implemented to achieve specific environmental, social, or economic goals
that are hampered by externalities?
Answer:

Pigovian Tax

Question:

What is an example of a positive externality?
Answer:

Ecosystem
Services of Agriculture

Question:

What term describes a market in which there are many buyers but only one seller?
Answer:

Monopoly

Question:

Why have corn prices risen in recent years?
Answer:

There has been a
demand expansion for corn due to quota set by the ethanol industry.

Question:

Policy, or institutional rules, have little influence over human behavior.
Answer:

Fasle

Question:

Appropriation Bill
Answer:

Bills passed annually to allocate federal funds