3. Market Failures and Externalities

Environmental Externalities And Degradation — Quiz

Test your understanding of environmental externalities and degradation with 5 practice questions.

Read the lesson first

Practice Questions

Question 1

What is an environmental externality?

Question 2

Why do environmental externalities often lead to market failure?

Question 3

Which example best describes a negative environmental externality?

Question 4

What does environmental degradation mean in economics?

Question 5

What is one reason firms may ignore pollution costs when making production decisions?
Environmental Externalities And Degradation Quiz — Economics Of Sustainability | A-Warded