2. Microeconomics

Market Failure — Quiz

Test your understanding of market failure with 5 practice questions.

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Practice Questions

Question 1

What is meant by market failure in economics?

Question 2

Which of the following is an example of a negative externality of consumption?

Question 3

What is an external cost?

Question 4

Which market failure is most directly associated with goods that are non-rival and non-excludable?

Question 5

What is the usual effect of a positive externality on the free market outcome?