... is used as a method of government intervention because the government would like to internalise the externality so that the firms pay the tax rather than consumers and then socially optimum output level will be achieved
Indirect tax
1 of 9
... is used as a method of government intervention because the government would like to encourage the production and consumption of goods and services that have positive externalities
Subsidies
2 of 9
... failure is a method of government intervention because if people had all the ... about goods and services, then there would be less negative externalities as there would be lower demand for some products and higher demand for others
Information
3 of 9
... prices are designed to be below the equilibrium price in order to cap the price so products don't become too expensive. The are used a lot for maximising the interest for loans so companies don't receive large profits and consumers don't pay lots
Maximum
4 of 9
... prices are set above the equilibrium price in order for producers to get guaranteed higher prices for their products. This prevents them from having low incomes and being exploited
Minimum
5 of 9
Trade ... are used as a government intervention method because ... are allocated to businesses so they can only produce so much ... and if they want to produce more without being fined, they have to buy more ...
Pollution permits
6 of 9
State provision of ... is used for government intervention because the government provides certain goods because they benefit all people whether they pay or not; so it rules out the free rider problem
Public goods
7 of 9
Education and the NHS are not ... but the government provides them anyway so the country is equal and healthy
Public goods
8 of 9
... is a method of government intervention, and it is legally enforced rules set by the government to restrict or an specific activities and products
Regulation
9 of 9
Other cards in this set
Card 2
Front
... is used as a method of government intervention because the government would like to encourage the production and consumption of goods and services that have positive externalities
Back
Subsidies
Card 3
Front
... failure is a method of government intervention because if people had all the ... about goods and services, then there would be less negative externalities as there would be lower demand for some products and higher demand for others
Back
Card 4
Front
... prices are designed to be below the equilibrium price in order to cap the price so products don't become too expensive. The are used a lot for maximising the interest for loans so companies don't receive large profits and consumers don't pay lots
Back
Card 5
Front
... prices are set above the equilibrium price in order for producers to get guaranteed higher prices for their products. This prevents them from having low incomes and being exploited
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