Welcome to your Grade 12 Economics chapter 3
After carefully reading the following 30 questions, choose the correct answer.
1.
What is defined as an inefficient distribution of goods and services in a free market?
2.
Which type of goods are characterized as being non-excludable and non-rivalrous?
3.
What term describes a situation where it is costly or impossible to prevent someone from using a good?
4.
Which of the following is an example of a non-excludable good?
5.
What is an unintended cost or benefit imposed on a third party who did not choose to be subject to it?
6.
What occurs when some parties in a market have more information than others?
7.
A good that is rival but non-excludable is known as a:
8.
Which problem arises because people can benefit from public goods without paying for them?
9.
What is the term for the absence of incentives to prevent overuse of common resources?
10.
Which of the following is a solution to negative externalities proposed by A.C. Pigou?
11.
The Coase theorem states that optimum outcomes can be reached through:
12.
When a city street becomes congested, it is treated as a:
13.
What refers to safeguarding the interests and rights of consumers from unethical malpractices?
14.
Which of the following is NOT a cited type of market failure?
15.
What does "non-rivalrous" consumption mean?
16.
According to the text, a "socially optimal output" accounts for:
17.
One of the main objectives of the Consumer Protection Act in Ethiopia is to:
18.
Assigning and selling property rights is a method to address:
19.
Which of the following is a characteristic of a private good?
20.
"Symmetric information" means that:
21.
What is the limitation of assigning property rights mentioned in the text?
22.
Consumers in Ethiopia should be protected from:
23.
Positive externalities occur when one person's consumption:
24.
Marginal Social Cost (MSC) includes both Private Cost and:
25.
Why is national defence considered a public good?
26.
The per unit tax to correct a negative externality should be equal to the:
27.
In the Coase theorem, transaction costs are assumed to be:
28.
What does "optimum pollution" imply according to the text?
29.
Consumer protection measures include providing "speedy redressal" of:
30.
A common resource is characterized as being:
