F6: Market Failures

Last updated over 6 years ago

5 questions

Last updated over 6 years ago

5 questions

Question 1

Which of the following statements does not apply to an adequately functioning market?

Buyers and sellers engage in voluntary, non-fraudulent exchange.

There is a lot of competition among sellers, and buyers have choices.

Costs and benefits of a transaction stay between the buyer and seller.

One firm controls production and distribution of a necessary product.

Question 2

Costs are borne by parties outside of the transaction.

Benefits are obtained by free riders.

The producer faces no competition, giving them market power.

Monopolists typically provide false information to consumers.

Question 3

Public Good

Negative Externality

Monopoly

Inadequate Information

Question 4

a public good.

a lack of competition.

a negative externality.

inadequate information.

Question 5

Consumers are unaffected because producers will likely bear all costs.

Consumers may get safer products and conditions, but they will likely cost more.

Consumers have a false sense of safety in their products.

Consumers will likely pay less for much safer goods.

Question 1

Buyers and sellers engage in voluntary, non-fraudulent exchange.

There is a lot of competition among sellers, and buyers have choices.

Costs and benefits of a transaction stay between the buyer and seller.

One firm controls production and distribution of a necessary product.

Question 2

Costs are borne by parties outside of the transaction.

Benefits are obtained by free riders.

The producer faces no competition, giving them market power.

Monopolists typically provide false information to consumers.

Question 3

Public Good

Negative Externality

Monopoly

Inadequate Information

Question 4

a public good.

a lack of competition.

a negative externality.

inadequate information.

Question 5

Consumers are unaffected because producers will likely bear all costs.

Consumers may get safer products and conditions, but they will likely cost more.

Consumers have a false sense of safety in their products.

Consumers will likely pay less for much safer goods.