9. HL Lenses

Market Failure And Externalities — Quiz

Test your understanding of market failure and externalities with 5 practice questions.

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Practice Questions

Question 1

What is market failure in environmental economics?

Question 2

What is an externality?

Question 3

Which example is a negative externality?

Question 4

Which example is a positive externality?

Question 5

Why do negative externalities often lead to overproduction?