Market failure and information failure

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  • Created by: Jade
  • Created on: 01-12-12 14:00
What is market failure?
Market failure is where the free market mechanism fails to meet economic efficiency with the result of an inefficient use of scarce resources
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What is information failure?
Information failure is a lack of information resulting in consumers and producers making decisions that do not maximise welfare.
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What is asymmetric information?
Asymmetric information is information not equally shared between two parties carrying out a transaction
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Card 2

Front

What is information failure?

Back

Information failure is a lack of information resulting in consumers and producers making decisions that do not maximise welfare.

Card 3

Front

What is asymmetric information?

Back

Preview of the front of card 3

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izzy

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pretty god quiz; very specific, but a bit short

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