Practice Quiz

Praxis II: Economics Content Knowledge Exam Prep - Question List

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16. Which principle maintains that the government should tax individuals in accordance with the benefits they receive-no matter what their income level?
  1. Ability-to-pay principle
  2. Benefits-received principle
  3. Regressive tax principle
  4. Progressive tax principle
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17. In a free-market economy, the price of rice following a surplus is likely to:
  1. Increase
  2. Decrease
  3. Remain unchanged
  4. Require intervention
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18. What is the correct term for the ability to produce something with a lower opportunity cost?
  1. Comparative advantage
  2. Absolute advantage
  3. Opportunity cost advantage
  4. Efficiency
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19.

When looking at the determinants of demand, a(n) ________ in demand causes the curve to shift to the left, while a(n) _________ in demand causes the curve to shift to the right.

  1. Decrease; increase
  2. Increase; decrease
  3. Consumer shift; supplier shift
  4. None of the above
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20. Which of the following measures the benefit of a buyer in participating in a particular market for goods?
  1. Tax incidence
  2. Price elasticity of demand
  3. Producer surplus
  4. Consumer surplus
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