Externality, Public Good and Free Rider Problem 25 MCQs – Easy

Few MCQs regarding Externality, Public Good, and Free Rider Problem are as under. You can practice these MCQs frequently to prepare for your exams. Stay Connected for more.

Externality, Public Good and Free Rider Problem

0%

Externality, Public Good and Free Rider Problem

If you found any error, please highlight in Comments Section. Thanks

A public good

With a positive externality

Which of the following is the government most likely to subsidies?

Public goods differ from private goods on the basis of:

A public good will

In the absence of externalities which of the following is an incorrect statement?

As a matter of definition, externalities affect

A positive externality occurs when

If a person can be prevented from using a good, the good is said to be

Which of the following is an example of a common resource?

A negative externality affect market efficiency in a manner similar to

A positive externality affects market efficiency in a manner similar to a

A free rider is a person who

Public goods are difficult for a private market to provide due to

A good produced by a natural monopoly is

A public good is

A person who regularly watches BBC television programs in the UK but fails to pay their TV license fee is known as

A congested toll road is

When markets fail to allocate resources efficiently, the ultimate source of the problem is usually

Which of the following are potential solutions to the problem of air pollution?

The Tragedy of the Commons is a parable that illustrates why

Which of the following is an example of public good?

A common resource is

A private good is

If one person’s consumption of a good diminishes other people’s use of the good, the good is said to be

Your score is

The average score is 0%

0%

  1. A public good
    1. Is provided by the government
    2. Is free
    3. Has the properties of being non-excludable and non-diminishable
    4. Has external costs
  2. With a positive externality
    1. There is under-consumption in the free market
    2. There is over consumption in the free market
    3. The government may tax to decrease production
    4. Society could be made off if less was produced
  3. Which of the following is the government most likely to subsidies?
    1. Negative externalities
    2. Positive externalities
    3. Monopolies
    4. Oligopolies
  4. Public goods differ from private goods on the basis of:
    1. price
    2. delivery
    3. exclusion
    4. public interest
  5. A public good will
    1. Be underprovided in the free market
    2. Be overprovided in the free market
    3. Not be provided in the free market
    4. Has no opportunity cost
  6. In the absence of externalities which of the following is an incorrect statement?
    1. Marginal private benefits equal marginal social benefits
    2. Competitive markets promote economic efficiency
    3. Price measures only marginal private cost
    4. Marginal private costs equal marginal social casts
  7. As a matter of definition, externalities affect
    1. Only producers whose products create external costs or benefits
    2. Only producers whose products create external costs
    3. Only consumers of products that produce external costs or benefits
    4. Those uninvolved in an activity
  8. A positive externality occurs when
    1. The social marginal costs are higher than the private marginal costs
    2. A product is not provided in the free market
    3. The social marginal cost equals the social marginal benefit
    4. The social marginal benefits are higher than the private marginal benefits
  9. If a person can be prevented from using a good, the good is said to be
    1. excludable
    2. a common resource
    3. a public goods
    4. rival
  10. Which of the following is an example of a common resource?
    1. a firework displays
    2. national defense
    3. iron one
    4. a national park
  11. A negative externality affect market efficiency in a manner similar to
    1. an excludable good
    2. a private good
    3. a common resource
    4. a public good
  12. A positive externality affects market efficiency in a manner similar to a
    1. rival good
    2. public good
    3. private good
    4. common resource
  13. A free rider is a person who
    1. receives the benefits of a good but avoids paying for it
    2. pays for a good but fails to receive any benefit from the good
    3. fails to produce goods but is allowed to consume goods
    4. produces a good but fails to receive payment for the good
  14. Public goods are difficult for a private market to provide due to
    1. the rivalness problem
    2. the public goods problem
    3. the Tragedy of the Commons
    4. The free-rider problem
  15. A good produced by a natural monopoly is
    1. rival but not excludable
    2. neither rival nor excludable
    3. not rival but excludable
    4. both rival and excludable
  16. A public good is
    1. neither rival nor excludable
    2. rival but not excludable
    3. both rival but excludable
    4. not rival but excludable
  17. A person who regularly watches BBC television programs in the UK but fails to pay their TV license fee is known as
    1. excess baggage
    2. a free rider
    3. a common resource
    4. a costly rider
  18. A congested toll road is
    1. a good produced by a natural monopoly
    2. a private good
    3. a public good
    4. a common resource
  19. When markets fail to allocate resources efficiently, the ultimate source of the problem is usually
    1. government regulation
    2. that prices are not low enough so firms over produce
    3. that prices are not high enough, so people overconsume
    4. that property rights have not been well established
  20. Which of the following are potential solutions to the problem of air pollution?
    1. Grant right of the clean air to citizens so that firms must purchase the right to pollute
    2. Auctions off pollution permits
    3. Regulate the amount of pollutants that firms can put in the air
    4. all of these answers
  21. The Tragedy of the Commons is a parable that illustrates why
    1. common resources are overconsumed
    2. public goods are underproduced
    3. private goods are under consumed
    4. natural monopolies overproduce goods
  22. Which of the following is an example of public good?
    1. hot dogs at a picnic
    2. Whales in the ocean
    3. national defense
    4. apples on a tree in a public park
  23. A common resource is
    1. not rival but excludable
    2. both rival and excludable
    3. rival but not excludable
    4. neither rival nor excludable
  24. A private good is
    1. rival but not excludable
    2. not rival but excludable
    3. both rival excludable
    4. neither rival nor excludable
  25. If one person’s consumption of a good diminishes other people’s use of the good, the good is said to be
    1. rival
    2. a good produced by a natural monopoly
    3. a common resource
    4. excludable
Externality, Public Good, and Free Rider Problem MCQs
Externality, Public Good, and Free Rider Problem MCQs

Please support and share DarsoTadrees on your social networks like Facebook, Twitter, etc.

Leave a Reply

Your email address will not be published. Required fields are marked *

Economics

What are Merit Goods MCQs 826 to 830 Easy

Economics

What is Nationalization MCQs 836 to 840 Easy