Copyright

Market Failure: Definition, Types, Causes & Examples Video

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

When markets fail to allocate resources efficiently, what happens?

Create Your Account To Take This Quiz

As a member, you'll also get unlimited access to over 79,000 lessons in math, English, science, history, and more. Plus, get practice tests, quizzes, and personalized coaching to help you succeed.

Try it risk-free
Try it risk-free for 30 days. Cancel anytime
Already registered? Log in here for access

1. What type of market failure occurs when a market does not supply any products at all?

2. What type of market failure occurs when products are supplied but in the wrong quantity or price?

Create your account to access this entire worksheet
A Premium account gives you access to all lesson, practice exams, quizzes & worksheets
Access to all video lessons
Quizzes, practice exams & worksheets
Certificate of Completion
Access to instructors
Create an account to get started Create Account

About This Quiz & Worksheet

There are many issues regarding product supply that can lead to market failure. You can use this quiz to check your understanding of the consequences of different types of market failures.

Quiz & Worksheet Goals

With this quiz/worksheet combo, you can check how much you know about the following:

  • The consequence of improper allocation of resources
  • Which type of failure occurs when a market doesn't supply any products
  • The type of failure that happens when products are supplied in the wrong quantity or are priced incorrectly
  • A type of market failure that tobacco companies may be involved with
  • Market failure that occurs as a result of individuals neglecting how their actions affect others

Skills Practiced

See how well you can practice the following skills by completing this quiz:

  • Distinguishing differences - compare and contrast topics from the lesson, such as a type of market failure that involves no distribution of products versus the market failure type involving wrong quantity or price for products
  • Information recall - remember what you've learned regarding different types of market failure
  • Knowledge application - use your knowledge to answer questions about product supply and how improper allocation leads to specific market failures

Additional Learning

You can get more details on market failure by reviewing the accompanying lesson on Market Failure: Definition, Types, Causes & Examples. The following objectives are covered in the lesson:

  • Define market failure
  • Compare and contrast demand versus supply
  • Discuss common causes of market failure
Support