ECO 365 WEEK 4 Market Failures Worksheet

ECO 365 WEEK 4 Market Failures Worksheet

ECO 365 WEEK 4 Market Failures Worksheet

Complete the Market Failures Worksheet.

Click the Assignment Files tab to submit your assignment.

Fill in the blanks with the correct word or phrase.

The three sources of market failure include (1) ___________________________________,

(2) ______________________________, and (3) ___________________________________.

The free market equilibrium is likely to correspond to a level of output that is lower than the

socially efficient quantity when there is a (4) _________________________ externality.

The free market equilibrium is likely to correspond to a level of output that is higher than the

socially efficient quantity when there is a (5) _________________________ externality.

Pure public goods have the characteristics of being (6) ______________________________

and (7) _________________________________________.

A(n) (8) ______________________________ problem exists when buyers and sellers have

different amounts of information and use that information to the detriment of the other.

A(n) (9) ______________________________ problem exists when people don’t have to bear the

negative consequences of their actions.

ECO 365 WEEK 4 Market Failures Worksheet