10 min read
This study guide covers market failure and government intervention, focusing on social efficiency, externalities (positive and negative), public vs. private goods, and the effects of government intervention on market structures. It also discusses inequality measurement using the Lorenz Curve and Gini Coefficient, and the impact of different tax types. The guide includes practice questions and emphasizes key exam topics.
Give us your feedback and let us know how we can improve
Question 1 of 13
🎉 What is the socially optimal quantity of a good or service?
The quantity where private benefit equals private cost
The quantity where total revenue is maximized
The quantity where Marginal Social Benefit (MSB) equals Marginal Social Cost (MSC)
The quantity determined by government regulations only