Economics - Revision market mechanism and failure

Economics - Revision market mechanism and failure

11th - 12th Grade

12 Qs

quiz-placeholder

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Economics - Revision market mechanism and failure

Economics - Revision market mechanism and failure

Assessment

Quiz

Other

11th - 12th Grade

Hard

Created by

Sabrina Schmidt

Used 105+ times

FREE Resource

12 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

When the free market leads to a misallocation of resources in an economy it is...

Market failure

public good

a positive externality

a negative externality

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Positive externalities are present if:

social costs exceed private costs

private benefits exceed private costs

production leads to private benefits

private benefits are less than social benefits

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A good which exhibits some, but not all, of the characteristics of a public good

non-excludable good

non-rival good

quasi-public good

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Partial market failure exists when:

a product is both non-excludable and non-rival

there is excess supply in a market at the current market price

a market exists but there is under-production

the market can only be competitive with government subsidies

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The rationing function of prices means that:

a rise in price will worsen any shortage of a product

changes in prices provide information to producers and consumers about changes in demand and supply

an increase in prices will encourage more firms to enter an industry

when there is a shortage of a product, prices will rise and put some consumers off buying the product

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A good is non-excludable if

its price is zero

it is not possible to prevent non-paying customers from enjoying it

it is supplied by the government rather than the free market

one person's use affects the quantity available for others

7.

MULTIPLE SELECT QUESTION

30 sec • 1 pt

The free market has no incentive to provide certain goods as people are awaiting others reactions/moves. This is:

the signalling function

the free-rider problem

the tragedy of the commons

imperfect information

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