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Partial Market Failure Quiz

Grace McClain 11 questions

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Questions in this quiz (11)

  1. 1What are the causes of partial market failure
    1. AMarket instability
    2. BNegative externalities
    3. CFree rider problem
    4. DFactor immobility
    5. EMarket concentration
    6. FTragedy of the commons
    7. GImperfect information
  2. 2Meaning of Market Instability
    1. AFluctuations caused by movements in the business cycle
    2. BReduction in the number of firms in the market
    3. CWhen consumers or firms don't have enough information
    4. DThe inability of capital and labour to move freely
    5. EThe production and use of goods and services that are harmful for society (but good for the individual)
  3. 3Meaning of Market Concentration
    1. AFluctuations caused by movements in the business cycle
    2. BReduction in the number of firms in the market
    3. CWhen consumers or firms don't have enough information
    4. DThe inability of capital and labour to move freely
    5. EThe production and use of goods and services that are harmful for society (but good for the individual)
  4. 4Meaning of Factor Immobility
    1. AThe production and use of goods and services that are harmful for society (but good for the individual)
    2. BThe inability of capital and labour to move freely
    3. CWhen consumers or firms don't have enough information
    4. DReduction in the number of firms in the market
    5. EFluctuations caused by movements in the business cycle
  5. 5Meaning of Imperfect Information
    1. AFluctuations caused by movements in the business cycle
    2. BReduction in the number of firms in the market
    3. CWhen consumers or firms don't have enough information
    4. DThe inability of capital and labour to move freely
    5. EThe production and use of goods and services that are harmful for society (but good for the individual)
  6. 6Meaning of Negative Externalities
    1. AThe production and use of goods and services that are harmful for society (but good for the individual)
    2. BThe inability of capital and labour to move freely
    3. CWhen consumers or firms don't have enough information
    4. DReduction in the number of firms in the market
    5. EFluctuations caused by movements in the business cycle
  7. 7What are the effects of market concentration?
    1. ASecurity of firms position and absence of need to innovate (dynamic)
    2. BFirms complacency (productive)
    3. CLack of competitive pressure (productive)
    4. DRestriction of entry of new firms (allocative)
    5. EHigh prices set by firms with market power (allocative)
    6. FLimited competition provides restriction on choice (allocative)
    7. GSub optimal levels of production (allocative)
    8. HAbuse of market power harms consumers (allocative)
    9. IWasteful advertising (allocative)
    10. JExploitation of consumers in an uneven market (allocative)
  8. 8What are the effects of imperfect information?
    1. AExploitation of consumers in an uneven market (allocative)
    2. BThe under-production of merit goods (allocative)
    3. CThe over production of demerit goods (allocative)
    4. DThe under production of demerit goods (allocative)
    5. EThe over production of merit goods (allocative)
    6. FFirms not being aware of more productive technology or production methods (productive)
    7. GFirms not being aware of workers skill (productive)
    8. HFirms not responding or innovating due to lack of knowledge of consumers needs and business opportunities (dynamic)
    9. IThe market is not using it's resources (allocative)
    10. JThere would be a need to train new staff reducing output/worker (productive)
  9. 9What are the effects of factor immobility?
    1. AThe most suitable and efficiency labour and capital goods are unavailable (productive)
    2. BThere would be a need to train new staff reducing the output/worker (productive)
    3. COutput quantity and variety suffers from the missallocation of resources (allcoative)
    4. DThe market is not using resources in the correct production areas (allocative)
    5. EOver-production of demerit goods (allocative)
    6. FThe market fails to limit the creation of harmful production (environment)
    7. GPrice fluctuations lower allocative efficiency
  10. 10What are the effects of negative externalities?
    1. AOver-production of demerit goods. Too many resources are used to produce demerit goods (allocative)
    2. BConsumers get the benefits, society gets the harmful side-effects (allocative)
    3. CFirms don't bear the full cost of their actions (allocative)
    4. DFirms are unresponsive to changes in awareness and sensitivity of society to pollution issues (dynamic)
    5. EThe market fails to limit the creation of the harmful production or consumption side-effects (environment)
    6. FHealth issues may be associated with pollution (individual)
    7. GIndividuals lose well-being because they lose enjoyment of a clean environment (individuals)
    8. HThe most suitable and efficient labour and capital goods are unavailable (productive)
    9. IFirms not being aware of more productive technology or production methods (productive)

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Description
Quiz on the causes, meaning and effects of partial market failure [Economics Unit 2]
Language
English
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