Unit 2: Microeconomics
Topic 2.8: Market Failure — Externalities and Common Pool Resources Questions
Practice 20 exam-style questions for IB Economics Topic 2.8. Review the question stems below, then unlock the full Question Bank to access markschemes, model answers, and AI grading.
11 mark
Education is often cited as a good with positive externalities because:
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An example of a negative externality of consumption is:
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Define negative externality and give one example of a negative externality of production and one of consumption.
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Define positive externality and give one example of a positive externality of production and one of consumption.
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Define negative externality and give one example of a negative externality of production and one of consumption.
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A negative externality of production occurs when:
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Overfishing in international waters is an example of:
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Define positive externality and give one example of a positive externality of production and one of consumption.
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A positive externality of consumption occurs when:
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Overfishing in international waters is an example of:
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An example of a negative externality of consumption is:
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A negative externality of production occurs when:
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Education is often cited as a good with positive externalities because:
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A positive externality of consumption occurs when:
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When negative externalities of production exist, the free market will:
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When positive externalities exist, the free market will:
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A government response to the overuse of a common pool resource could include:
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A government subsidy to correct the underconsumption of a good with positive externalities aims to:
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When positive externalities exist, the free market will:
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