Question 1
Public goods are:
A.
Only taxed B.
Always free C.
Non-rival and non-excludable D.
Rival and excludable
Question 2
What is meant by market failure?
A.
People consume without paying — underprovision. B.
Private sector underprovides. C.
Have one characteristic of public goods. D.
Classic public good example.
Question 3
What is meant by non-excludability?
A.
Private sector underprovides. B.
Cannot stop non-payers from consuming. C.
People consume without paying — underprovision. D.
Classic public good example.
Question 4
What is meant by free-rider problem?
A.
Private sector underprovides. B.
People consume without paying — underprovision. C.
Classic public good example. D.
Have one characteristic of public goods.
Question 5
What is meant by defence?
A.
Classic public good example. B.
Cannot stop non-payers from consuming. C.
Government may supply public goods. D.
Non-rival once provided.
Question 6
What is meant by street lighting?
A.
Private sector underprovides. B.
Cannot stop non-payers from consuming. C.
Non-rival once provided. D.
One person's use does not reduce availability to others.
Question 7
What is meant by public goods?
A.
Non-rival and non-excludable. B.
Difficult to exclude ships from benefit. C.
Cannot stop non-payers from consuming. D.
People consume without paying — underprovision.
Question 8
The free-rider problem causes:
A.
Overproduction B.
Lower taxes C.
Underprovision D.
Higher PED
Question 9
What is meant by state provision?
A.
One person's use does not reduce availability to others. B.
Cannot stop non-payers from consuming. C.
Government may supply public goods. D.
Classic public good example.
Question 10
What is meant by quasi-public goods?
A.
Non-rival once provided. B.
One person's use does not reduce availability to others. C.
Have one characteristic of public goods. D.
Government may supply public goods.
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