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Market Failure Flashcards | StudBud

Explore/Market Failure

Market Failure

10 terms·StudBud Administration·259 plays

#marketfailure #aseconomics #supply #demand

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Questions 10

Answers

1
What is the market equilibrium otherwise known as?
Market clearing price
Excess demand
Excess supply
Where all products are equal
2
How can we reduce Market Failure?
Subsidies
Legislation and force
Through taxation
All of the above
3
What is excess supply
When companies which to sell more than consumers want to buy
When consumers which to buy more than companies able to sell
4
What is asymmetric information?
Grimsby
Having a bad teacher
A lack of balance between excess supply and excess demand
Lack of balance between knowledge of buyer and seller
5
What are subsidies?
A way the government wastes money
A way of correcting market failure
Grimsby
6
What is a Merit Good?
Something which we should never consume
Something which causes harmful effects
Something which we over-consume
Something that we under-consume
7
What is a monopoly?
Something which we under-consume
Where a market has many suppliers
Where one supplier or few suppliers dominates the market
Something which is good for consumer welfare
8
How are public goods funded?
Legislation
Taxation
Subsidies
Force
9
What Is a Positive Externality?
Consumption of a good which benefits the individual
Consumption of a good which benefits third parties
Harmful effects on the individual
Harmful effects on third parties
10
What is a Demerit Good
Expensive goods
Something which we over-consume
Something we should consume more
Biddulph