Question 1
What is meant by market failure?
A.
Government may supply public goods. B.
Non-rival and non-excludable. C.
Private sector underprovides. D.
Non-rival once provided.
Question 2
What is meant by street lighting?
A.
Non-rival once provided. B.
Cannot stop non-payers from consuming. C.
Government may supply public goods. D.
People consume without paying — underprovision.
Question 3
What is meant by lighthouse?
A.
Government may supply public goods. B.
Difficult to exclude ships from benefit. C.
Cannot stop non-payers from consuming. D.
Classic public good example.
Question 4
Public goods are:
A.
Always free B.
Non-rival and non-excludable C.
Rival and excludable D.
Only taxed
Question 5
The free-rider problem causes:
A.
Overproduction B.
Underprovision C.
Lower taxes D.
Higher PED
Question 6
What is meant by non-rivalry?
A.
One person's use does not reduce availability to others. B.
Private sector underprovides. C.
Cannot stop non-payers from consuming. D.
Classic public good example.
Question 7
What is meant by public goods?
A.
Non-rival and non-excludable. B.
Difficult to exclude ships from benefit. C.
Private sector underprovides. D.
Non-rival once provided.
Question 8
What is meant by free-rider problem?
A.
Classic public good example. B.
Non-rival and non-excludable. C.
People consume without paying — underprovision. D.
Have one characteristic of public goods.
Question 9
What is meant by state provision?
A.
Classic public good example. B.
Government may supply public goods. C.
Cannot stop non-payers from consuming. D.
People consume without paying — underprovision.
Question 10
What is meant by non-excludability?
A.
Cannot stop non-payers from consuming. B.
People consume without paying — underprovision. C.
Classic public good example. D.
Private sector underprovides.
Back to practice 