Public Goods and Externalities

Public Goods and Externalities

Assessment

Interactive Video

Business, Social Studies

11th Grade - University

Hard

Created by

Quizizz Content

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The video explains the concept of public goods, highlighting their importance in a free market economy. It discusses how public goods like bridges are funded through taxes and the challenges of excluding non-payers. The debate over what should be public goods is explored, using education as an example. The free-rider problem is introduced, illustrating the issues with voluntary contributions for public goods. Externalities, both positive and negative, are explained, showing their impact on society and the economy.

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7 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why is it impractical to exclude non-payers from using a public good like a bridge?

Because it would not reduce the benefits to any user

Because it would increase the cost of the bridge

Because it would cause traffic congestion

Because it is difficult to monitor who uses the bridge

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a common reason for political debate regarding public goods?

The efficiency of private companies

The alignment of tax spending with personal values

The cost of maintaining public goods

The environmental impact of public goods

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the free-rider problem?

When people pay more than their fair share for public goods

When public goods are underutilized

When people benefit from public goods without paying for them

When public goods are overfunded

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How might the free-rider problem affect public goods if taxes were not collected?

Public goods would lack funding and become unavailable

Public goods would be overfunded

Public goods would become more efficient

Public goods would be privatized

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is an externality in economic terms?

A direct cost paid by consumers

A side effect that affects a third party

A benefit received by the government

A tax imposed on public goods

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is a positive externality of building a bridge?

Increased traffic congestion

Disruption of local businesses

Creation of construction jobs

Increased air pollution

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why do some economists believe the private sector generates positive externalities more efficiently?

Because it focuses on public goods

Because it is less regulated

Because it operates at a lower cost to taxpayers

Because it has more resources