Market Failure: Private Benefits and Social Costs (HSC SSCE Economics): Quizzes
📚Quizzes
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Practise the questions
10 questions from this quiz
What is the critical weakness of the price mechanism regarding environmental sustainability?
What is the critical weakness of the price mechanism regarding environmental sustainability?
It fails to account for long-term impacts
What are externalities?
What are externalities?
Spillover costs/benefits affecting society
What is a negative externality?
What is a negative externality?
A cost imposed on society not paid for
What are goods that generate negative externalities called?
What are goods that generate negative externalities called?
Demerit goods
What is the tragedy of the commons?
What is the tragedy of the commons?
Overuse of unowned resources to depletion
How long does single-use plastic take to decompose in landfill?
How long does single-use plastic take to decompose in landfill?
Up to 500 years
What happens to goods with negative externalities in a free market?
What happens to goods with negative externalities in a free market?
They are overproduced
What is a positive externality?
What is a positive externality?
A benefit to society not in market price
What are goods that generate positive externalities called?
What are goods that generate positive externalities called?
Merit goods
What happens to goods with positive externalities in a free market?
What happens to goods with positive externalities in a free market?
They are underproduced