17 Questions
What defines a private good?
It is an excludable, rival good
Which term describes the legal ownership of a resource?
Property right
What does the productivity gap measure?
Difference in productivity of UK labor compared to other countries
Which term refers to goods that are non-excludable and non-rival?
Public good
What does regulatory capture refer to?
Decrease in economic welfare due to industry dominance in regulatory bodies
What term best describes goods where the social costs in consumption exceed the private costs in consumption?
Merit goods
Which term refers to resources not being distributed optimally?
Misallocation of resources
What is the term for a good or service where you are unable to prevent non-paying consumers from benefiting or using it?
Non-excludable good
When workers find it difficult to transfer between different occupations due to a lack of transferable skills, what situation is this known as?
Occupational immobility of labour
What term describes the situation where the market is producing a good or service, but at the wrong quantity or price?
Partial market failure
Which term refers to positive external effects imposed on society derived from the production or consumption of a good or service?
Positive externality
What is the term used to describe goods where the social costs in consumption exceed the private costs in consumption?
Demerit good
Which government intervention reduces monopoly power and introduces competition to reduce consumer exploitation?
Competition policy
What do we call external effects imposed on society derived from the production or consumption of a good or service?
Externality
Which organization aims to enhance UK industry performance by promoting innovation and business development?
Department for Business, Innovation and Skills
What are taxes that are a percentage of price called?
Ad valorem taxes
Which term is used when one party knows more or has better information than the other party in a transaction?
Asymmetric information
Test your knowledge on price mechanism, private benefits, private costs, and private goods with this quiz. Learn about the concepts of price floor, private benefits, private costs, and the privatization of goods.
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