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