Kluck_Market-Failure
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Last updated over 3 years ago
13 questions
5
Identify if the following examples represent a market failure or not.
Identify if the following examples represent a market failure or not.
Market Failure | Not a Market Failure | |
|---|---|---|
Polution | ||
Fire department | ||
High Gas Prices | ||
Price Ceilings | ||
Public Education |
1
Which of the following is NOT an example of a positive externality?
Which of the following is NOT an example of a positive externality?
1
What are the four types of market failures?
What are the four types of market failures?
1
Which of the following is a public good?
Which of the following is a public good?
1
Which of the following describe a public good?
Which of the following describe a public good?
1
A merit good is a good that has _______
1
Which of the following is a possible example of a social marginal cost?
Which of the following is a possible example of a social marginal cost?
1
What sort of market failure might a government attempt to resolve through subsidies?
What sort of market failure might a government attempt to resolve through subsidies?
1
What sort of market failure might a government attempt to resolve through a per unit tax?
What sort of market failure might a government attempt to resolve through a per unit tax?
1
What sort of market failure might a government attempt to resolve through regulation?
What sort of market failure might a government attempt to resolve through regulation?
5
Using the following scenario, determine the type of market failure that is present, what the proposed government solution for that market failure would be, and shift the supply curve, demand curve, or both in the provided graph to show the desired equilibrium that the government intervention would have. Include your answer to the type of failure and proposed solution in a text box underneath the graph.
Scenario: A new type of lightbulb gets discovered that uses half the energy and lasts 10 times as long as a standard incandescent bulb. The invention could revolutionize lighting and reduce our energy output to boot. The problem is that no firm is willing to manufacture it because the long life of the bulb would prevent continual profits from their production.
Using the following scenario, determine the type of market failure that is present, what the proposed government solution for that market failure would be, and shift the supply curve, demand curve, or both in the provided graph to show the desired equilibrium that the government intervention would have. Include your answer to the type of failure and proposed solution in a text box underneath the graph.
Scenario: A new type of lightbulb gets discovered that uses half the energy and lasts 10 times as long as a standard incandescent bulb. The invention could revolutionize lighting and reduce our energy output to boot. The problem is that no firm is willing to manufacture it because the long life of the bulb would prevent continual profits from their production.
5
Using the following scenario, determine the type of market failure that is present, what the proposed government solution for that market failure would be, and shift the supply curve, demand curve, or both in the provided graph to show the desired equilibrium that the government intervention would have. Include your answer to the type of failure and proposed solution in a text box underneath the graph.
Scenario: A soft drink company develops a new recipe that has taken the market by storm. The popularity of the new drink has spread across the country but as time goes on its becoming clear that there are negative health consequences to consuming the beverage. The information is available, but the price of the drink has remained as low as it was prior to the discovery of its negative health effects.
Using the following scenario, determine the type of market failure that is present, what the proposed government solution for that market failure would be, and shift the supply curve, demand curve, or both in the provided graph to show the desired equilibrium that the government intervention would have. Include your answer to the type of failure and proposed solution in a text box underneath the graph.
Scenario: A soft drink company develops a new recipe that has taken the market by storm. The popularity of the new drink has spread across the country but as time goes on its becoming clear that there are negative health consequences to consuming the beverage. The information is available, but the price of the drink has remained as low as it was prior to the discovery of its negative health effects.
5
Using the following scenario, determine the type of market failure that is present, what the proposed government solution for that market failure would be, and shift the supply curve, demand curve, or both in the provided graph to show the desired equilibrium that the government intervention would have. Include your answer to the type of failure and proposed solution in a text box underneath the graph.
Scenario: A software company develops a new type of mail client that allows e-commerce websites to double their productivity. As a result the company becomes wildly successful. However, after several years of business a bug is found in their software that allows third parties to read correspondence between users. The issue is fixed but by that time consumer confidence has waned enough to allow other mail client startups to begin to enter the market. In response the larger company begins buying out the hosting services that platform its competitors forcing the smaller companies to leave the market.
Using the following scenario, determine the type of market failure that is present, what the proposed government solution for that market failure would be, and shift the supply curve, demand curve, or both in the provided graph to show the desired equilibrium that the government intervention would have. Include your answer to the type of failure and proposed solution in a text box underneath the graph.
Scenario: A software company develops a new type of mail client that allows e-commerce websites to double their productivity. As a result the company becomes wildly successful. However, after several years of business a bug is found in their software that allows third parties to read correspondence between users. The issue is fixed but by that time consumer confidence has waned enough to allow other mail client startups to begin to enter the market. In response the larger company begins buying out the hosting services that platform its competitors forcing the smaller companies to leave the market.