This quiz works best with JavaScript enabled. Home > Microeconomics > Failures > Market Failures – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Failures Quiz 4 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Selling your old computer on Gumtree could be an example of A) Public goods. B) Asymmetric information. C) Common access resources. D) Negative externalities. Show Answer Correct Answer: B) Asymmetric information. 2. The benefit your neighbor receives from hearing you play your pleasant music A) Private costs. B) External costs. C) Private benefits. D) External benefits. Show Answer Correct Answer: D) External benefits. 3. Which of the following is a characteristic of perfect competition? A) Barrier to entry. B) Produce homogenous product. C) Price maker. D) One seller in the whole industry. Show Answer Correct Answer: B) Produce homogenous product. 4. Which of the following can practice collusion?: A) A monopolistically-competitive firm. B) A perfectly-competitive firm. C) A monopoly. D) An oligopoly. Show Answer Correct Answer: D) An oligopoly. 5. Under what condition is allocative efficiency achieved? A) Marginal private benefits = marginal social costs. B) Marginal social benefits = marginal social costs. C) Marginal private benefits > marginal social costs. D) Marginal social benefits > marginal social costs. Show Answer Correct Answer: B) Marginal social benefits = marginal social costs. 6. Suppose there are a bunch of baby sitters in a neigborhood who all have different abilities, what is the market structure for babysitting in that neighborhood? A) Monopoly. B) Oligopoly. C) Perfect competition. D) Mnopolistic competition. Show Answer Correct Answer: D) Mnopolistic competition. 7. A market structure where a single producer supplies a unique product that has no substitutes A) Oligopoly. B) Natural monopoly. C) Monopoly. D) Nonprice competition. Show Answer Correct Answer: C) Monopoly. 8. A monopoly can best be summed up as A) Many producers, identical products. B) Few producers, similar products. C) Many producers, similar but varied products. D) One producer, a unique product. Show Answer Correct Answer: D) One producer, a unique product. 9. Which two market structures use non-price competition (use of advertising) the most? A) Monopoly and perfect competition. B) Monopolistic competition and oligopoly. C) Pure competition and monopoly. D) Pure monopoly and geographic monopoly. Show Answer Correct Answer: B) Monopolistic competition and oligopoly. 10. Getting a flu shot is an example of a ..... externality A) Negative. B) Neutral. C) Positive. D) None of above. Show Answer Correct Answer: C) Positive. 11. Why do polluted factories over produce products? A) Costs are not charged to the producer. B) Benefits of the producing facotry are wanted by the community. C) Stores stock more than they can sell. D) People might refuse to purchase the product. Show Answer Correct Answer: A) Costs are not charged to the producer. 12. Products that are offered are identical in A) Perfect competition. B) Monopolistic competition. C) Monopoly. D) Oligarchy. Show Answer Correct Answer: A) Perfect competition. 13. Market failure in which there is unintended harm or inconvenience to a third party. A) Positive externality. B) Negative externality. C) Economies of scale. D) Public goods. Show Answer Correct Answer: B) Negative externality. 14. Which of the following is least likely to be classed a merit good? A) Education. B) Heath care. C) Training and development. D) Fossil fuels. Show Answer Correct Answer: D) Fossil fuels. 15. A market structure in which a few firms or businesses dominate the market but produce similar goods A) Monopoly. B) Oligopoly. C) A market share. D) The free-rider problem. Show Answer Correct Answer: B) Oligopoly. 16. A difference in two or more parties' access to relevant knowledge A) Externalities. B) Public Goods. C) Information asymmetry. D) None of above. Show Answer Correct Answer: C) Information asymmetry. 17. Benefits to consumers from consuming one more unit of a good A) Marginal Private Benefits. B) Marginal Social Benefits. C) Negative Externality of Production. D) Tradable Permits/Cap and Trade Schemes. Show Answer Correct Answer: A) Marginal Private Benefits. 18. Market structure in which a few very large sellers dominate the industry. A) Perfect competition. B) Monopolistic competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: C) Oligopoly. 19. A rival good: A) Creates a free-rider problem. B) Can be consumed by only one person at a time. C) Is consumed more as income rises. D) Is open to the public. Show Answer Correct Answer: B) Can be consumed by only one person at a time. 20. Examples of market failure occur because A) Business and consumers value personal benefits over social costs. B) Businesses value personal benefits over social costs. C) Consumers value social benefits over personal costs. D) None of the above. Show Answer Correct Answer: A) Business and consumers value personal benefits over social costs. ← PreviousNext →Related QuizzesMicroeconomics QuizzesMarket Failures Quiz 1Market Failures Quiz 2Market Failures Quiz 3Market Failures Quiz 5Market Failures Quiz 6Market Failures Quiz 7Market Failures Quiz 8Market Failures Quiz 9Market Failures Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books