Market Failure

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  • Created by: samstarrz
  • Created 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

Other cards in this set

Card 2

Front

Third party costs of benefits ignored by the price mechanism

Back

Externalities

Card 3

Front

Demonstrate non-excludability and non rivalry

Back

Preview of the front of card 3

Card 4

Front

Once a public good has been provided for one, it's provided for all

Back

Preview of the front of card 4

Card 5

Front

Where consumers and producers have imperfect and unequal knowledge upon which to base their economic decisions

Back

Preview of the front of card 5
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