Public Goods and Information Gaps (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
Which two characteristics define a private good?
Which two characteristics define a private good?
Excludability and rivalry
What is a public good?
What is a public good?
A good that is non-excludable & non-rival
What is the free-rider problem?
What is the free-rider problem?
Consumers have no incentive to pay for it
Why is street lighting considered a public good?
Why is street lighting considered a public good?
It is non-excludable and non-rivalrous
What is asymmetric information?
What is asymmetric information?
Some traders have better info than others
How does asymmetric information affect the healthcare market?
How does asymmetric information affect the healthcare market?
Sellers have better info than buyers
What is adverse selection in insurance?
What is adverse selection in insurance?
High-risk people more likely to insure
What is moral hazard?
What is moral hazard?
Insured people take more risks
Why is education under-consumed due to information gaps?
Why is education under-consumed due to information gaps?
Perceived private benefits < social benefits
What are merit goods?
What are merit goods?
Goods undervalued by consumers