Narn ? fy, weeks Vv “/ POLYTECHNIC LOWER Six Wy "ECONOMICS a MARKET FAILURE ps we ¥ we poblic ecod (@) a good that the public must pay for. @nontival in consumption (©) more costly than a private good. (@ paid for by the government 2 Api .g00d is a good whose benefits are (a) diminished as it is consumed and whose benefits cannot be withheld from anyone 1ot diminished as it is consumed and whose benefits cannot be. withheld from anyone (c) not diminished as it is consumed and whose benefits can be withheld from anyone (@) concentrated among a select few Maret failure occurs when (@) Society chooses the optimal mix of output (©) Market prices signal what to produce (©) Society does not vote on what should be produced @ The market mechanism does not produce the optimal outcome ene of the following would meet an Economist's definition of a public good? (a) Solar panels on a house (b) Low pollution cars (c) Fruits and vegetables eaten to improve health Highways with wide shoulders to improve safety \¥0 A good with a negative externality is an example of market failure because @ A good can be consumed by many people without having to pay for it ‘The market is producing a good few people want The price of the product does not reflect all the costs to society The price does not change with demand and supply