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Market failure GapFill

Target Level
C
Running Total
0
0%
Attempt
1 of 3

You must fill all the gaps before clicking ‘Check Answers!’

Public goods such as defence, lighthouses and flood control systems possess two distinct characteristics of   non-diminishabilitynon-exclusivityrivalryexcludability and non-rivalry in  consumptiondemandmarket production . Consumption by any additional user does not   increasesustainbenefit fromreduce the amount of the good available to others. Non-exclusivity means that we cannot separate payers from  non-payersfirmsgovernmentconsumers. Thus there is a  free-bad-public-good- rider problem. The  directmarginalprivateexternal cost of an additional consumer is zero.   NegativeInformationPrivatePublic gaps occur when either   firmsconsumersgovernmentthe public or sellers have incomplete, uncertain or inaccurate information.  It is sometimes called information  perfectionsymmetrywaiverasymmetry.

This is your 1st attempt! You get 3 marks for each one you get right. Good luck!

Pass Mark
72%