an activity carried out today that doesn't stop future generations maximising their welfare
2 of 7
Market failure
where the market fails to produce what consumers require at the lowest possible cost
3 of 7
Government failure
when government intervention to correct market failure does not improve the allocation of resources or leads to a worsening of the situation. The costs of government intervention may therefore exceed the benefits
4 of 7
Buffer stocks
an intervention that aims to limit the fluctuations of the price of a commodity
5 of 7
Inflationary pressure
occurrences that are likely to lead to rises in prices
6 of 7
Negative externalities
costs imposed on a third party not involved with the consumption or production of the good
7 of 7
Other cards in this set
Card 2
Front
an activity carried out today that doesn't stop future generations maximising their welfare
Back
Sustainable
Card 3
Front
where the market fails to produce what consumers require at the lowest possible cost
Back
Card 4
Front
when government intervention to correct market failure does not improve the allocation of resources or leads to a worsening of the situation. The costs of government intervention may therefore exceed the benefits
Back
Card 5
Front
an intervention that aims to limit the fluctuations of the price of a commodity
Comments
No comments have yet been made