Consequences of Market Failures (Grade 12 NSC Matric Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is productive inefficiency?
What is productive inefficiency?
Resources not used to produce max goods
What does allocative inefficiency mean?
What does allocative inefficiency mean?
Wrong types/quantities produced
What is a Pareto optimum?
What is a Pareto optimum?
Can't improve one without harming another
What market problem do negative externalities create?
What market problem do negative externalities create?
Overproduction and underpricing
Which is an example of a negative externality?
Which is an example of a negative externality?
Factory air pollution affecting health
How do governments respond to negative externalities?
How do governments respond to negative externalities?
Campaigns, taxes, and regulations
What market problem do positive externalities cause?
What market problem do positive externalities cause?
Underproduction of beneficial goods
What happens when minimum wages are set above equilibrium?
What happens when minimum wages are set above equilibrium?
Higher pay but potential unemployment
What problem do maximum prices (price ceilings) create?
What problem do maximum prices (price ceilings) create?
Shortages and black markets
What occurs when minimum prices are set above equilibrium?
What occurs when minimum prices are set above equilibrium?
Surplus as supply exceeds demand