The role of markets (OCR A-Level Economics): Quizzes
📚Quizzes
Practise the questions
12 questions from this quiz
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Practise the questions
12 questions from this quiz
What does market failure lead to?
What does market failure lead to?
Net social welfare loss
What does marginal social cost (MSC) include?
What does marginal social cost (MSC) include?
Private & external costs
What does marginal private cost (MPC) include?
What does marginal private cost (MPC) include?
Raw materials, labour, expenses
What does marginal social benefit (MSB) comprise?
What does marginal social benefit (MSB) comprise?
Private & external benefits
Which example shows marginal external benefit?
Which example shows marginal external benefit?
Public vaccination program
What is marginal private benefit (MPB)?
What is marginal private benefit (MPB)?
Direct benefit to consumer
What are the two characteristics of public goods?
What are the two characteristics of public goods?
Non-excludable & non-rivalrous
What happens with merit goods in the market?
What happens with merit goods in the market?
They are underconsumed
Why is education a consumption positive externality?
Why is education a consumption positive externality?
Society benefits from skilled workforce
Which is a production negative externality?
Which is a production negative externality?
Factory pollution
With negative externalities, how does MSC relate to MPC?
With negative externalities, how does MSC relate to MPC?
MSC exceeds MPC
How can government address negative externalities?
How can government address negative externalities?
Taxes, regulations, permits