Price Mechanism and Private Goods Quiz
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Price Mechanism and Private Goods Quiz

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@ComprehensiveRabbit

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Questions and Answers

What defines a private good?

  • It is a good that generates externalities
  • It is an excludable, rival good (correct)
  • It is a product of the public sector
  • It is a non-excludable, non-rival good

    • Which term describes the legal ownership of a resource?

  • Quasi-public good
  • Public good
  • Regulation
  • Property right (correct)

    • What does the productivity gap measure?

  • Difference in public and private good production
  • Difference in productivity of UK labor compared to other countries (correct)
  • Difference in property rights protection
  • Difference in regulation between countries

    • Which term refers to goods that are non-excludable and non-rival?

    <p>Public good</p> Signup and view all the answers

    What does regulatory capture refer to?

    <p>Decrease in economic welfare due to industry dominance in regulatory bodies</p> Signup and view all the answers

    What term best describes goods where the social costs in consumption exceed the private costs in consumption?

    <p>Merit goods</p> Signup and view all the answers

    Which term refers to resources not being distributed optimally?

    <p>Misallocation of resources</p> Signup and view all the answers

    What is the term for a good or service where you are unable to prevent non-paying consumers from benefiting or using it?

    <p>Non-excludable good</p> Signup and view all the answers

    When workers find it difficult to transfer between different occupations due to a lack of transferable skills, what situation is this known as?

    <p>Occupational immobility of labour</p> Signup and view all the answers

    What term describes the situation where the market is producing a good or service, but at the wrong quantity or price?

    <p>Partial market failure</p> Signup and view all the answers

    Which term refers to positive external effects imposed on society derived from the production or consumption of a good or service?

    <p>Positive externality</p> Signup and view all the answers

    What is the term used to describe goods where the social costs in consumption exceed the private costs in consumption?

    <p>Demerit good</p> Signup and view all the answers

    Which government intervention reduces monopoly power and introduces competition to reduce consumer exploitation?

    <p>Competition policy</p> Signup and view all the answers

    What do we call external effects imposed on society derived from the production or consumption of a good or service?

    <p>Externality</p> Signup and view all the answers

    Which organization aims to enhance UK industry performance by promoting innovation and business development?

    <p>Department for Business, Innovation and Skills</p> Signup and view all the answers

    What are taxes that are a percentage of price called?

    <p>Ad valorem taxes</p> Signup and view all the answers

    Which term is used when one party knows more or has better information than the other party in a transaction?

    <p>Asymmetric information</p> Signup and view all the answers

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