Market Failure (Leaving Cert Economics): Quizzes
📚Quizzes
Practise the questions
13 questions from this quiz
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Practise the questions
13 questions from this quiz
What does market failure result in regarding resource allocation?
What does market failure result in regarding resource allocation?
Wrong mix of goods and services produced
What happens when goods have negative externalities?
What happens when goods have negative externalities?
Market overproduces them
Why does the market underproduce goods with positive externalities?
Why does the market underproduce goods with positive externalities?
Benefits to society aren't fully captured
What is deadweight loss in monopoly power?
What is deadweight loss in monopoly power?
Reduction in economic welfare benefiting no one
Which two characteristics define public goods?
Which two characteristics define public goods?
Non-excludable and non-rivalrous
What is the free rider problem with public goods?
What is the free rider problem with public goods?
People benefit without paying for it
Which crisis demonstrates imperfect information causing market failure?
Which crisis demonstrates imperfect information causing market failure?
2008 financial crisis
What causes labour immobility?
What causes labour immobility?
Lack of skills or geographical barriers
How do carbon taxes address negative externalities?
How do carbon taxes address negative externalities?
Increase prices and reduce demand
What is the purpose of subsidies for solar panels and electric cars?
What is the purpose of subsidies for solar panels and electric cars?
Promote clean energy with positive benefits
Which is an example of direct government provision in Ireland?
Which is an example of direct government provision in Ireland?
Free primary education
What does the CCPC do in Ireland?
What does the CCPC do in Ireland?
Monitors markets for anti-competitive acts
What is a weakness of taxation as government intervention?
What is a weakness of taxation as government intervention?
Regressive nature hits low-income harder