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Worksheets

Market Failure: Externalities (MRU Based)

Total questions: 15

Worksheet time: 11mins

Name
Class
Date
1.

The price you pay for an iTunes download

a)

Private costs

b)

External costs

c)

Private benefits

d)

External benefits

2.

The benefit your neighbor receives from hearing you play your pleasant music

a)

Private costs

b)

External costs

c)

Private benefits

d)

External benefits

3.

The annoyance of your neighbor because she doesn’t like your achingly conventional music

a)

Private costs

b)

External costs

c)

Private benefits

d)

External benefits

4.

The pleasure you receive from listening to your iTunes download

a)

Private costs

b)

External costs

c)

Private benefits

d)

External benefits

5.

The price you pay for a security system for your home

a)

Private costs

b)

External costs

c)

Private benefits

d)

External benefits

6.

The safety you enjoy as a result of having the security system

a)

Private costs

b)

External costs

c)

Private benefits

d)

External benefits

7.

The crime that is more likely to occur to your neighbor once a criminal sees a “Protected by alarm” sticker on your window.

a)

Private costs

b)

External costs

c)

Private benefits

d)

External benefits

8.

The extra safety your neighbor might experience because criminals tend to stay away from neighborhoods that have a lot of burglar alarms

a)

Private costs

b)

External costs

c)

Private benefits

d)

External benefits

9.

The extra safety your neighbor might experience because criminals tend to stay away from neighborhoods that have a lot of burglar alarms

a)

Private costs

b)

External costs

c)

Private benefits

d)

External benefits

10.

The bad reputation your entire class receives because of a few misbehaving pupils.

a)

Private costs

b)

External costs

c)

Private benefits

d)

External benefits

11.

The bees from your neighbour's apiary (bee collection) pollinating your fruit trees

a)

Private costs

b)

External costs

c)

Private benefits

d)

External benefits

12.

The costs borne by the producer or consumer directly involved in a transaction

a)

Private costs

b)

External costs

c)

Private benefits

d)

External benefits

13.

The benefits experience by the producer and/or consumer directly involved in an economic transaction.

a)

Private costs

b)

External costs

c)

Private benefits

d)

External benefits

14.

The benefits received by third parties.

a)

Private costs

b)

External costs

c)

Private benefits

d)

External benefits

15.

The negative effect received by third parties

a)

Private costs

b)

External costs

c)

Private benefits

d)

External benefits