Test yourself

 Quick  Navigation

  1. Introductory concepts
  2. Market mechanism
  3. Elasticities  
  4. Market structures
  5. Market failures
  6. Macro activity/eco growth
  7. Inflation
  8. Employment & unemployment
  9. External Stability
  10. Income distribution
  11. Factors affecting economy
  12. Fiscal/Budgetary policy
  13. Monetary Policy
  14. Aggregate Supply Policies
  15. The Policy Mix
  16. Course revision


Economicstutor..com.au

Copyright © All rights reserved. Site administered by CPAP and content provided by Romeo Salla    

Email: admin@economicstutor.com.au     romeosalla@economicstutor.com.au


 Course notes quick navigation

1 Introductory concepts 2  Market mechanism  3 Elasticities  4 Market structures 5  Market failures  6  Macro economic activity/eco growth  7 Inflation 8  Employment & unemployment  9  External Stability  10  Income distribution 11.Factors affecting economy  12  Fiscal/Budgetary policy  13  Monetary Policy   14 Aggregate Supply Policies  15 The Policy Mix

Next page


How you are marked


The maximum score for each question is 100%. For every hint used, your percentage score is reduced by the ratio of that letter to the total letters required in the answer. For example, if the total number of letters within the gaps is 50 across the whole response, then each letter is worth 2 percentage points. Each hint will therefore reduce your score by 2 percentage points.


Previous page

9. Define a market failure and provide one example to illustrate why they occur. 4 marks

10. Discuss two measures the government could take to minimise the problems associated with any negative externality in production, such as excessive emissions of Co2 into the atmosphere by big businesses. 5 marks

11. Distinguish positive externalities in consumption from positive externalities in consumption, citing one example for each. 4 marks

12. Explain how asymmetric information as a market failure leads to an inefficient allocation of resources and discuss one government action to account for the market failure. 5 marks

13. Explain why any two of the following services is generally regarded as an example of a public good: prisons, defence services or lighthouses. 4 marks

14. Define a monopoly and explain one way the government may seek to prevent any 'abuse of market power' in highly concentrated industries. 4 marks

15. In the presence of negative externalities, discuss why government intervention is justified to achieve a more efficient allocation of resources. Use an example to illustrate. 5 marks

16. With respect to public goods, discuss why government intervention is justified to achieve a more efficient allocation of resources. Use an example to illustrate. 5 marks