Market Case Studies

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Investment good
a product that will increase in value over time
1 of 7
Sustainable
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

Preview of the back of card 3

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

Preview of the back of card 4

Card 5

Front

an intervention that aims to limit the fluctuations of the price of a commodity

Back

Preview of the back of card 5
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