Markets: Mechanism, Failure & Intervention (AQA A-Level Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What are the two main ways market failure can occur?
What are the two main ways market failure can occur?
Complete failure or wrong quantity
What does complete market failure result in?
What does complete market failure result in?
A missing market
What characterises partial market failure?
What characterises partial market failure?
Market provides wrong quantity
Which scenario typically leads to under-production and under-consumption?
Which scenario typically leads to under-production and under-consumption?
Goods with positive externalities
What does the acronym SIRA stand for in the four functions of prices?
What does the acronym SIRA stand for in the four functions of prices?
Signalling, Incentives, Rationing, Allocation
When does market failure occur in relation to the price mechanism?
When does market failure occur in relation to the price mechanism?
When one or more price functions break down
What are the two defining characteristics of private goods?
What are the two defining characteristics of private goods?
Excludable and rival
What does excludability mean for private goods?
What does excludability mean for private goods?
Owners can prevent use without payment
What is meant by rivalry in the context of private goods?
What is meant by rivalry in the context of private goods?
Consumption by one reduces quantity for others
What happens in imperfectly competitive markets and monopolies?
What happens in imperfectly competitive markets and monopolies?
Producer sovereignty prevails