This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Failures > Market Failures – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Failures Quiz 4 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following defines a Quasi-Public Good? A) Semi Non Rival & Semi Non Excludable. B) Semi Non Excludable & Non Rival. C) Non Rival & Non Excludable. D) Non Excludable & Semi Non Rival. Show Answer Correct Answer: A) Semi Non Rival & Semi Non Excludable. 2. A merit good, such as healthcare, is A) Non-excludable with positive externalities in production. B) Non-rival with positive externalities in consumption. C) Rival with positive externalities in production only. D) Excludable with positive externalities in consumption. Show Answer Correct Answer: D) Excludable with positive externalities in consumption. 3. The Government seeks to encourage ..... Externalities. A) Negative. B) Neutral. C) Positive. D) None of above. Show Answer Correct Answer: C) Positive. 4. Not excludable & Not rival in consumption A) Private Goods. B) Club Goods. C) Public Goods. D) Common Resources. Show Answer Correct Answer: C) Public Goods. 5. What is Negative Externality? A) Altering incentives so that people take account of the external effects of their actions. B) External benefits. C) External costs. D) None of above. Show Answer Correct Answer: C) External costs. 6. The PUBLIC SECTOR (government) makes all economic decisions. A) Command. B) Mixed. C) Market. D) None of above. Show Answer Correct Answer: A) Command. 7. The price you pay for an iTunes download A) Private costs. B) External benefits. C) External costs. D) Private benefits. Show Answer Correct Answer: A) Private costs. 8. Private benefits plus external benefits is A) External benefit. B) Social benefits. C) Private benefits. D) None of above. Show Answer Correct Answer: B) Social benefits. 9. Negative side effects from a good or service that effect a 3rd party A) Positive Economics. B) Negative Externality. C) Positive Externality. D) Negative Economics. Show Answer Correct Answer: B) Negative Externality. 10. Public goods are A) Nonexcludable and nonrival in consumption. B) Excludable and rival in consumption. C) Nonexcludable and rival in consumption. D) Excludable and nonrival in consumption. Show Answer Correct Answer: A) Nonexcludable and nonrival in consumption. 11. Selling your old computer on Amazon could be an example of A) Public goods. B) Negative externalities. C) Common access resources. D) Asymmetric information. Show Answer Correct Answer: D) Asymmetric information. 12. Patents are an example of a A) Government monopoly. B) Geographic monopoly. C) Technological monopoly. D) Natural monopoly. Show Answer Correct Answer: C) Technological monopoly. 13. "Consumption by one person does not reduce the availability of a good to others" . This means ..... A) Non-excludability. B) Non-rivalry in consumption. C) Non-excludability. D) None of above. Show Answer Correct Answer: B) Non-rivalry in consumption. 14. A demand curve for a product shows the relationship between its price and A) The income of the consumer. B) Population changes. C) Cost of production. D) The quantity of the product consumed. Show Answer Correct Answer: D) The quantity of the product consumed. 15. Products that society deems as bad for you A) Merit goods. B) Demerit goods. C) Something with a positive impact on others. D) None of above. Show Answer Correct Answer: B) Demerit goods. 16. A firm owns a bridge and charges all vehicle users who cross it. How might the charge be classified? A) A private benefit and a private cost. B) An external benefit and an external cost. C) A private benefit and an external cost. D) An external benefit and a private cost. Show Answer Correct Answer: A) A private benefit and a private cost. 17. The pleasure you receive from listening to your iTunes download A) Private benefits. B) Private costs. C) External benefits. D) External costs. Show Answer Correct Answer: A) Private benefits. 18. When social costs are greater than private costs, there is a; A) Positive externality. B) Negative externality. C) Less than socially optimal output. D) Socially optimal output. Show Answer Correct Answer: B) Negative externality. 19. The inputs used to produce goods and services A) Union. B) Human Capital. C) Negative Income Tax. D) Factors of Production. Show Answer Correct Answer: D) Factors of Production. 20. Market failure arises whenever firms A) Make a loss. B) Replace machines with workers. C) Create externalities. D) Reduce expenditure on research and development. Show Answer Correct Answer: C) Create externalities. 21. "Benefits cannot be confined to those who have paid for it" . This means ..... A) Non-excludability. B) Non-rivalry in consumption. C) Non-excludability. D) None of above. Show Answer Correct Answer: A) Non-excludability. 22. Which is not an example of a government safety net? A) Social Security. B) Consumer Safety. C) Unemployment Insurance. D) Medicaid. Show Answer Correct Answer: B) Consumer Safety. 23. A product is non-excludable if: A) It is not possible to prevent non-paying customers from enjoying it. B) It's supplied by the government rather than the free-market. C) One person's use affects the quantity available for others. D) It's price is zero. Show Answer Correct Answer: A) It is not possible to prevent non-paying customers from enjoying it. 24. Merit goods are likely to be underprovided in a free market economy because their A) Private benefits exceed their social benefits. B) Social benefits exceed their private benefits. C) Private costs exceed their private benefits. D) Social benefits exceed their social costs. Show Answer Correct Answer: B) Social benefits exceed their private benefits. 25. The safety you enjoy as a result of having the security system A) External benefits. B) Private benefits. C) Private costs. D) External costs. Show Answer Correct Answer: B) Private benefits. 26. This type of market structure uses product differentiation and brand name/advertising is the most important. A) Perfect competition. B) Monopoly. C) Monopolistic competition. D) Pure competition. Show Answer Correct Answer: C) Monopolistic competition. 27. Public goods are both ..... A) Non-rival and non-excludable. B) Rival and excludable. C) Rival and non-excludable. D) Non-rival and excludable. Show Answer Correct Answer: A) Non-rival and non-excludable. 28. Which of the following is an example of a private good? A) Apples. B) Park bench. C) Post office. D) Public park. Show Answer Correct Answer: A) Apples. 29. Asymmetric information means A) Producers and consumers have equal information. B) Producers and consumers do not have the same information about a good/service. C) Incorrect information. D) Advanced information. Show Answer Correct Answer: B) Producers and consumers do not have the same information about a good/service. 30. Which is not an example of a publicly owned industry intended to provide goods and services more efficiently to the public? A) Airline industry. B) Postal service. C) Public transportation. D) Utilities such as gas, water, electric. Show Answer Correct Answer: A) Airline industry. ← PreviousNext →Related QuizzesMicroeconomics QuizzesEconomics QuizzesMarket Failures Quiz 1Market Failures Quiz 2Market Failures Quiz 3Market Failures Quiz 5Market Failures Quiz 6Market Failures Quiz 7Market Failures Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books