Market Failure (Edexcel A-Level Economics A): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is market failure?
What is market failure?
When markets fail to allocate resources
What is an externality?
What is an externality?
A cost/benefit affecting third parties
How is social cost calculated?
How is social cost calculated?
Private cost plus external cost
How is social benefit calculated?
How is social benefit calculated?
Private benefit plus external benefit
What happens when negative production externalities exist?
What happens when negative production externalities exist?
Markets produce too much of the good
What happens when positive consumption externalities exist?
What happens when positive consumption externalities exist?
Markets provide too little of the good
Where is MSC positioned relative to MPC in a negative production externality diagram?
Where is MSC positioned relative to MPC in a negative production externality diagram?
MSC lies above MPC
What type of externality do vaccination programmes demonstrate?
What type of externality do vaccination programmes demonstrate?
Positive consumption externality
Why does traffic congestion represent an externality?
Why does traffic congestion represent an externality?
Drivers impose costs on other road users
Why does education create a positive consumption externality?
Why does education create a positive consumption externality?
Educated workers cooperating are more productive