Quizzes & Activities
Market Failure (Quizlet Revision Activity)
- AS, A-Level, IB
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 10 Apr 2022
Here is a short matching terms quiz on aspects of market failure. Who can come top of the leaderboard?
We have created a playlist of market failure videos on the You Tube Channel - click here for the link!
Here are some key market failure terms to revise:
Occurs when somebody knows more than somebody else in the market.
A group of firms that collude in order to increase their joint profits
Government policy and laws to limit monopoly power and prevent cartels
Loss in producer and consumer surplus due to an inefficient level of production
Third party effects arising from production and consumption for which no appropriate compensation is paid
A way to evaluate an allocation based on one's conception of justice
Benefiting from the contributions of others to some cooperative project without contributing oneself.
Economic reward or punishment, which influences the benefits and costs of alternative courses of action
A graphical representation of inequality of some quantity such as wealth or income
When markets allocate resources in a Pareto-inefficient way.
Ability of a firm to influence or control the terms and condition on which goods are bought and sold.
Goods and services that should be available to everyone, independent of their ability to pay.
A market in which there is an exchange that would be mutually beneficial. This does not occur due to asymmetric or non-verifiable information
Barriers to moving easily between jobs
A market with a small number of sellers, giving each seller some market power.
A change that at least benefits one person without making anyone else worse off.
The negative equivalent of a public good
Goods that are are non-rival and non-excludable
External effects of economic activity, which have an impact on outsiders who are not producing or consuming a product
Outcomes that are not the ones foreseen and intended by a government intervention