Practice_Externalities_Public_goods

Practice_Externalities_Public_goods - Name Class Date ID A...

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Name: ________________________ Class: ___________________ Date: __________ ID: A 1 Practice_Externalities_Public_goods Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. The term market failure refers to a. a market that fails to allocate resources efficiently. b. an unsuccessful advertising campaign which reduces demand. c. ruthless competition among firms. d. a firm that is forced out of business because of losses. ____ 2. An externality is an example of ____ 3. An externality ____ 4. An externality is ____ 5. When externalities are present in a market, the well-being of market participants a. and market bystanders are both directly affected. b. and market bystanders are both indirectly affected. c. is directly affected, and market bystanders are indirectly affected. d. is indirectly affected, and market bystanders are directly affected. ____ 6. Which of the following represents a way that a government can help the private market to internalize an externality?
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Name: ________________________ ID: A 2 ____ 7. A negative externality arises when a person engages in an activity that has Figure 10-1 ____ 8. Refer to Figure 10-1 . This graph represents the tobacco industry. The industry creates ____
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