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Public Sector and Efficiency

Quiz by LPL

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5 questions
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  • Q1

    What justifies public intervention in the allocation of resources in an economy?

    Only in planned economies where the public sector controls everything 

    The economic efficiency

    The public intervention is always justified

    It depends on the country

  • Q2

    The intervention of the Public Sector should archive:

    The production efficiency

    The global efficiency


    The consumption efficiency

  • Q3

    The case of energy sector is a typical example of:

    Public good

    Moral hazard

    Natural monopoly

    External effects

  • Q4

    The environmental taxes are the typical example of a market failure because:

    Public good

    External effects

    Moral hazard

    Adverse selection

  • Q5

    The case of OBAMACARE could be an example of market failure because:

    Adverse selection

    Natural monopoly

    Imperfect competition

    Moral hazard


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