5. Business Economics

Market Failure — Quiz

Test your understanding of market failure with 5 practice questions.

Read the lesson first

Practice Questions

Question 1

Which of the following is an example of a public good?

Question 2

Which of the following best describes a positive externality?

Question 3

Which policy tool is most commonly used to correct negative externalities such as pollution?

Question 4

Which of the following is an example of asymmetric information in a market transaction?

Question 5

What is the primary reason that public goods are not provided efficiently by the free market?
Market Failure Quiz — IB Economics | A-Warded