Market Failures and Structures

Front

Which best describes a public good?

Back

A good provided by the government 

Front

Apartment dwellers who buy fire alarms or fire extinguishers generate a

Back

positive externality.

Front

What is the free rider problem?

Back

Reaping all the benefits without contributing

Front

Example of a positive externality from an outdoor band concert:

Back

An elderly woman in her apartment hears a song that she liked as a child.

Front

An Economic side effect of a good or service that generates benefits or costs to someone other than the person deciding how much to produce or consume.

Back

Externalities

Front

Tragedy of the _____ is the idea that common goods that everyone has access to are often misused and exploited.

Back

Commons

Front

If a student volunteers at a food pantry on Fridays after school, what might be a negative externality?

Back

The student's parents have to drive him or her to the food pantry.

Front

Which of the following is NOT an example of a public good?

• Fireworks display
• National Defense
• Public transportation
• Lighthouse

Back

Public transportation

Front

Which of the following is most likely to be overconsumed due to unclear or unenforceable property rights? Cinnamon Toast Crunch Cereal in your dorm room, Reese's potato Sandwiches at the school café shop for purchase, Juice for sale in the vending machines, Donuts sitting out in the common study area in the PAC

Back

Donuts sitting out in the common study area in the PAC

Front

How many firms are there in a perfect competition?

Back

Many