This quiz works best with JavaScript enabled. Home > Microeconomics > Failures > Market Failures – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Failures Quiz 6 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. 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. 2. Negative side effects from a good or service that effect a 3rd party A) Positive Externality. B) Negative Externality. C) Positive Economics. D) Negative Economics. Show Answer Correct Answer: B) Negative Externality. 3. 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. 4. Selling your old computer on Amazon 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. 5. Patents are an example of a A) Natural monopoly. B) Government monopoly. C) Geographic monopoly. D) Technological monopoly. Show Answer Correct Answer: D) Technological monopoly. 6. "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. 7. A demand curve for a product shows the relationship between its price and A) Cost of production. B) Population changes. C) The income of the consumer. D) The quantity of the product consumed. Show Answer Correct Answer: D) The quantity of the product consumed. 8. 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. 9. 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. 10. The pleasure you receive from listening to your iTunes download A) Private costs. B) External costs. C) Private benefits. D) External benefits. Show Answer Correct Answer: C) Private benefits. 11. 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. 12. The inputs used to produce goods and services A) Union. B) Human Capital. C) Factors of Production. D) Negative Income Tax. Show Answer Correct Answer: C) Factors of Production. 13. 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. 14. "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. 15. Which is not an example of a government safety net? A) Unemployment Insurance. B) Social Security. C) Consumer Safety. D) Medicaid. Show Answer Correct Answer: C) Consumer Safety. 16. A product is non-excludable if: A) It's price is zero. B) It's supplied by the government rather than the free-market. C) It is not possible to prevent non-paying customers from enjoying it. D) One person's use affects the quantity available for others. Show Answer Correct Answer: C) It is not possible to prevent non-paying customers from enjoying it. 17. 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 social costs. C) Private costs exceed their private benefits. D) Social benefits exceed their private benefits. Show Answer Correct Answer: D) Social benefits exceed their private benefits. 18. The safety you enjoy as a result of having the security system A) Private costs. B) External costs. C) Private benefits. D) External benefits. Show Answer Correct Answer: C) Private benefits. 19. This type of market structure uses product differentiation and brand name/advertising is the most important. A) Perfect competition. B) Pure competition. C) Monopolistic competition. D) Monopoly. Show Answer Correct Answer: C) Monopolistic competition. 20. 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. ← PreviousNext →Related QuizzesMicroeconomics QuizzesMarket Failures Quiz 1Market Failures Quiz 2Market Failures Quiz 3Market Failures Quiz 4Market Failures Quiz 5Market Failures Quiz 7Market Failures Quiz 8Market Failures Quiz 9Market Failures Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books