Market Failure 0.0 / 5 ? EconomicsMarket failureASEdexcel Created by: samstarrzCreated on: 11-04-14 14:50 When the price mechanism causes an inefficient allocation of resources Market failure 1 of 10 Third party costs of benefits ignored by the price mechanism Externalities 2 of 10 Demonstrate non-excludability and non rivalry Public goods 3 of 10 Once a public good has been provided for one, it's provided for all Free rider problem 4 of 10 Where consumers and producers have imperfect and unequal knowledge upon which to base their economic decisions Asymmetric information 5 of 10 the ability of workers to change from one job to another both occupationally and geographically Mobility of labour 6 of 10 A tax levied on expenditure Indirect tax 7 of 10 A grant from the government to encourage consumption Subsidy 8 of 10 Scheme to reduce price fluctuations of commodities Buffer stock 9 of 10 If government intervention leads to a net welfare loss Government failure 10 of 10
Comments
No comments have yet been made