5 Questions
Market failures occur when selfish consumers do not have to pay producers for benefits.
True
Externalities undermine the social benefits of individual selfishness.
True
Positive externalities are costs that are infeasible to charge to not provide.
False
Negative externalities are benefits that are infeasible to charge to provide.
False
Market failures occur when selfish producers are not paid.
True
Test your knowledge on market failures, public goods, and externalities with this quiz. Explore the definitions and basics of market failure, positive and negative externalities, and the challenges they pose in economic systems.
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