Quiz for:
7.1 Understanding Market Efficiency and Failures

Question 1

What is a misconception about market failure?

Question 2

Which of the following is an externality in market failure?

Question 3

What is required for market prices to reflect accurate costs and benefits?

Question 4

What can be a consequence of monopolistic pricing power?

Question 5

In what way can irrationality lead to market failure?

Question 6

What defines allocative efficiency in a competitive market?

Question 7

How can government interventions inadvertently worsen market situations?

Question 8

How can government failure contribute to market inefficiencies?

Question 9

What role can the government play regarding market efficiency?

Question 10

Which is NOT a cause of market failure?

Question 11

How does asymmetric information affect the market?

Question 12

What is the impact of market power on efficiency?

Question 13

What can excessive government regulation lead to?

Question 14

What is deadweight loss?

Question 15

Which economic theory explores systematic decision-making errors?