IB Docs (2) Team
Unit 2.7-2.10 Government failure revision quiz
1. Which one of the following illustrates the incentive functions of price to alter economic behaviour?
2. Complete market failure is defined as circumstances in which
3. Public goods have a number of characteristics, for example:
4. A private good is unlike public good because
5. Which one of the following is best described as a common access good?
6. A social cost is defined as all cost
7. The existence of a negative externality means that
8. A merit good is defined as a good which
9. Demerit goods represent a source of market failure because
10. A competitive market is more likely to lead to a misallocation of resources because the industry
11. A market is said to operate socially efficiently at the point where
12. Factor immobility is a source of market failure because
13. Which one of the following statements is correct?
14. In order to correct market failure, a government may intervene if
15. Governments are keen to address market failure and, therefore, are most likely to tax
16. Which one of the following pairs of government objectives would not be said to be conflicting?
17. The government wants to reduce the external costs associated with traffic congestion. Which one of the following combinations would be most likely to achieve this objective?
18. Government failure occurs when
19. The most significant reason why governments may fail to address market failure is because
20. Rent controls reduced the amount of rented accommodation in the UK. This was because
The revision quiz can be downloaded as a PDF file at: 
unit 2.7-2.10 market failure
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