Curve showing the maximum potential level of output of one good in an economy, given the level of output for all other goods in the economy
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Basic Economic Problem
Wants are infinite but resources are scarce
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Barriers to Entry
Factors which make it difficult or impossible for firms to enter an industry
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Government Failure
Occurs when government intervention leads to a net welfare loss compared to the free market solution. Will occur when the cost of government intervention exceeds the benefit
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Externality
Spillover costs or benefits to third parties
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Public Good
A good that would not be provided by the market mechanism as it is non rival and non excludable
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Other cards in this set
Card 2
Front
Wants are infinite but resources are scarce
Back
Basic Economic Problem
Card 3
Front
Factors which make it difficult or impossible for firms to enter an industry
Back
Card 4
Front
Occurs when government intervention leads to a net welfare loss compared to the free market solution. Will occur when the cost of government intervention exceeds the benefit
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