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6. A monopoly is:
- A market made up of one firm
- A type of board game
- A market made up of multiple firms
7. Externalities are:
- Costs or benefits inflicted on third parties outside of the market
- Costs of benefits for the consumer of a good
- Costs or benefits for the producer of a good
8. Governments can enter markets to correct market failure. This is known as government intervention.
9. Social costs are equal to:
- Private costs + external costs
- Private costs - external costs
- External costs - private costs
10. What is the production possibility frontier?
- Where large companies specialise staff into departments and can achieve large discounts for bulk-buying
- A diagram that shows all the combinations of two goods that can be produced when all factors of production are being used
- A diagram that shows clearly where equilibrium price is changing.
