12th Grade Externalities Quizzes, Questions & Answers

12th Grade

Top Trending Externalities Quizzes

Explore key microeconomic concepts through this engaging test. Assess your understanding of externalities, market behaviors, government interventions, and consumer responses to price changes. Perfect for learners seeking to...

Questions: 8 | Attempts: 133 | Last updated: Jul 22, 2025

Sample Question 1
A situation in which a benefit or a cost associated with an economic activity spills over to third parties is called:

A merit good

An externality

The free-rider problem

A public good

Sample Question 2
If production of an item results in negative external costs, then:

Market forces will always correct the problem

The market price is below the socially preferred price that reflects the external costs

The market price is above the socially preferred price that reflects the external costs

The market quantity is too low from society's point of view

Sample Question 3
Government can correct for negative externalities by:

Decreasing the costs to those responsible for the externality

Decreasing taxes

Increasing taxes or regulation

Allowing the market system to correct the problem

Recent Externalities Quizzes

Econ Chapter 31

This quiz titled 'Econ Chapter 31' assesses understanding of market failures, externalities, and their social impacts. It covers key economic concepts crucial for grasping how markets operate and the implications of their...

Questions: 70 | Attempts: 1730 | Last updated: Mar 21, 2025

Sample Question
1. Market failure is a situation in which

The market does not provide the ideal or optimal amount of a particular good.

There are too many buyers but not enough sellers.

Prices are too high for "average" people to buy necessities.

There is a question over the quality of a product for sale.