PODAR INTERNATIONAL SCHOOL (IB & CAMBRIDGE)

Market Failure Assignment

Grade:-9

Topic:- Market Failure

Learning Objective:-

Students will be able to

1. Define Market Failure

2. Explain the causes of Market Failure

Assignment

Q1. Define market failure

Q2. Explain the causes of market failure

Q3. Analyse why the social costs of oil extraction may be greater than the private costs. [6]

MCQ on Market failure (Quiz)

i)-What is an example of market failure?

A- a growth of competition
B- an existence of scarcity
C- a spread of pollution
D- a surplus of production in the short-term

ii)-What is an example of market failure?

A- a monopoly making abnormal profit
B- prices charged to cover social cost
C- the closure of small, independent shops in a rural area
D- the inability of a car producer to achieve economies of scale
iii)-Which is a type of market failure?
A- a general increase in the price of hotel rooms in busy summer seasons
B- an increase in house prices caused by easier borrowing for house buyers
C- an increase in travel time caused by a road accident
D- an increase in unsold goods because of a change in tastes

iv)-What is an example of market failure

A-a balance of trade deficit
B-monopoly profits
C-rapidly rising price level
D-the production of non essential goods

Ebook Activities- Group Activities 1 and 2 page number 106

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