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
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Which feature correctly describes the main property of a non-rivalrous good?
- Rivalrous consumption
- Excludable consumption
- Non-diminishable consumption
- Rejectable consumption
-
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
-
Which of the following is the best example of a pure public good?
- Public transport
- Toll roads
- National defence
- State healthcare
-
Which issue occurs when consumers benefit from a good without paying for it?
- Adverse selection
- Tragedy of commons
- Moral hazard
- Free rider problem
-
Why might private firms fail to provide flood defences?
- Non-excludability
- Negative externalities
- Excess demand
- High rivalry
-
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
-
Which type of market failure justifies state provision of a public park?
- Immobility of labour
- Information asymmetry
- Monopoly power
- Missing market
-
How does the government typically finance the state provision of public goods?
- User charges
- Voluntary donations
- General taxation
- Export tariffs
-
Which situation best illustrates the free rider problem in a local neighbourhood?
- High council taxes
- Unfunded crime watch
- Overcrowded public buses
- Littering in parks
-
What term describes a good that is non-rivalrous but excludable?
- Common resource
- Pure public good
- Private good
- Club good
-
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
-
What is the main market outcome of the free rider problem?
- Under-provision of goods
- Allocative efficiency
- Excess market supply
- Over-consumption of goods
-
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
-
Which sector sometimes provides public goods despite the free rider problem?
- Foreign export sector
- Commercial banking sector
- Voluntary sector
- Private corporate sector
-
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
-
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
-
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
-
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
-
Which concept explains why private firms fail to provide public goods?
- Bounded rationality
- Negative externality
- Free-rider problem
- Moral hazard
-
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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