Quick Quiz (4) Market Failure

A topic from section 2 that is on both the higher and standard level syllabus.

1) Define negative externalities, give an example.

2) Define positive externalities, give an example.

3) Why is monopoly power an example of market failure?

4) Draw an appropriate diagram to show negative externalities in production. Mark on the diagram the welfare loss.

5) Draw an appropriate diagram to show positive externalities in production. Mark on the diagram the welfare loss.

6) What are the two major characteristics of a public good?

7) Give two real world examples of public goods.

8) Explain the difference between merit and demerit goods.

9) State and explain two possible policy solutions to negative externalities.

10) Explain two problems of using taxation as a solution to market failure.

Section 1 Market Failure - 6 types of Market Failure [13 Dec 2011]
The New IB Economics Course (3)- Microeconomics [8 Sep 2011]
The New IB Economics Course (1) [8 Sep 2011]
Diagrams [28 Apr 2011]
U6th IB Economists [21 Mar 2011]
The Final Countdown [19 Mar 2010]
Last minute advice… [11 May 2009]
Quick Quiz (6) [11 May 2009]
Quick Quiz (5) [10 May 2009]
Quick Quiz (3) Higher Level Only [10 May 2009]
Quick Quiz (2) [10 May 2009]
Quick Fire Quizzes [10 May 2009]
Paper 2 ( Standard) and Paper 3 (Higher) [4 May 2009]
Paper 2 Higher Level [3 May 2009]
Paper 1- The Essay [3 May 2009]
Common Exam Topic [29 Apr 2009]
Diagrams [29 Apr 2009]
IB Economics Exams - 2 Weeks to Go [26 Apr 2009]
Calling all Upper Sixth Economists [29 Mar 2009]

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