Lesson 1.3.3

1.3.3 Public goods Quiz: Pearson Edexcel Economics, Unit 1

20 questions

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Lesson 1.3.3, Public goods: 20 multiple choice questions for the Pearson Edexcel Economics (9EC0), Unit 1: Theme 1: Introduction to markets and market failure, written with Revision Ninja.

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The 20 questions

  1. Which feature correctly describes the main property of a non-rivalrous good?

    • Rivalrous consumption
    • Excludable consumption
    • Non-diminishable consumption
    • Rejectable consumption
  2. Which feature correctly describes the main property of a non-excludable good?

    • Cannot exclude non-payers
    • Rivalrous consumption
    • High production costs
    • Can exclude non-payers
  3. Which of the following is the best example of a pure public good?

    • Public transport
    • Toll roads
    • National defence
    • State healthcare
  4. Which issue occurs when consumers benefit from a good without paying for it?

    • Adverse selection
    • Tragedy of commons
    • Moral hazard
    • Free rider problem
  5. Why might private firms fail to provide flood defences?

    • Non-excludability
    • Negative externalities
    • Excess demand
    • High rivalry
  6. What type of good is a toll-free road that becomes congested at peak hours?

    • Pure public good
    • Merit good
    • Quasi-public good
    • Private good
  7. Which type of market failure justifies state provision of a public park?

    • Immobility of labour
    • Information asymmetry
    • Monopoly power
    • Missing market
  8. How does the government typically finance the state provision of public goods?

    • User charges
    • Voluntary donations
    • General taxation
    • Export tariffs
  9. Which situation best illustrates the free rider problem in a local neighbourhood?

    • High council taxes
    • Unfunded crime watch
    • Overcrowded public buses
    • Littering in parks
  10. What term describes a good that is non-rivalrous but excludable?

    • Common resource
    • Pure public good
    • Private good
    • Club good
  11. What combination of characteristics defines street lighting as a pure public good?

    • Non-rival and non-excludable
    • Non-rival and excludable
    • Rival and excludable
    • Rival and non-excludable
  12. What is the main market outcome of the free rider problem?

    • Under-provision of goods
    • Allocative efficiency
    • Excess market supply
    • Over-consumption of goods
  13. Which two features distinguish a pure public good from a private good?

    • Non-rivalry and non-excludability
    • Asymmetric and imperfect information
    • External and social costs
    • Rivalry and excludability
  14. Which sector sometimes provides public goods despite the free rider problem?

    • Foreign export sector
    • Commercial banking sector
    • Voluntary sector
    • Private corporate sector
  15. What is a good called if it is non-excludable but becomes rivalrous when overcrowded?

    • Merit good
    • Pure public good
    • Private good
    • Impure public good
  16. Which pair of characteristics makes a bar of chocolate a private good?

    • Non-rival and non-excludable
    • Rival and non-excludable
    • Rival and excludable
    • Non-rival and excludable
  17. Why is a lighthouse classified as a classic public good?

    • Non-excludable and non-rival
    • Rival but non-excludable
    • Excludable but non-rival
    • Excludable and rival
  18. What effect does free riding have on voluntary market funding for public goods?

    • Sub-optimal provision
    • Excess demand growth
    • Allocative efficiency
    • Over-provision of goods
  19. Which concept explains why private firms fail to provide public goods?

    • Bounded rationality
    • Negative externality
    • Free-rider problem
    • Moral hazard
  20. What condition determines the socially optimum level of public good provision?

    • MSB equals MSC
    • MPB equals MPC
    • MSB exceeds MSC
    • MSC equals zero

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