Economics revision

1. happens when a market does not efficiently allocate resources to achieve the greatest possible consumer satisfaction. the allocation of resources is such that a reallocation would make some people better of. allocative efficiency hasn't been achieved (6, 7)
4. an incentive is any factor that enables or motives a particluar course of action, or counts as a reason for preferring one choice to the alternatives. (9)
5. A cartel is any agreement between businesses to reduce competition or not to compete with each other. The agreement is usually secret and may be implemented in various ways. (6)
6. is a public authority or government agency responsible for exercising (10, 4)
7. is an expression used to describe the onset and spread of inflation throughout an economy. (11)
10. in economics is concerned with fairness, the idea that all citizens have the same opportunities and chances in life. it does not mean that there are equal outcomes in terms of income and wealth distribution. (6)

2. occurs when government intervention makes the situation worse rather then better. in competition policy this can mean that one source of market imperfection is dealt with but replayed by another. (10, 7)
3. street lights- the free market wouldn't supply it. (6, 4)
8. total benefits of producing goods and services and are calculated by adding together the private and external benefits (6, 8)
9. are unexpected events that effect that effect the economy and often come from outside of it. they are unexpected and unpredictable. (8, 6)

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