Additional content for SAC 2 not covered by Flash cards

extra content not covered in other fladhcards

Indirect Taxation

A government policy tool used to reduce negative externalities by increasing the cost of goods or services.

Subsidies

Government financial support to promote positive externalities.

Public Goods

Goods that are non-rivalrous and non-excludable, such as defense and street lights.

Private Goods

Goods that are rivalrous and excludable, such as a Mars bar.

Negative Externalities

Over-allocation of resources leading to harmful effects, addressed through government interventions like taxes and bans.

Positive Externalities

Under-allocation of resources resulting in beneficial effects, addressed through government incentives like tax breaks.

Consumer Protection Laws

Laws designed to protect consumers from misleading advertising and unethical business practices.

Tragedy of the Commons

The overexploitation of shared resources due to individuals acting in self-interest.

Carbon Tax

A tax imposed on carbon emissions to encourage polluters to reduce their environmental impact.

Government Failure

Occurs when government interventions lead to reduced efficiency rather than improvement.

Price Ceilings

Maximum prices set by the government, which can lead to shortages and black markets.

Price Floors

Minimum prices set by the government, which can lead to higher unemployment.

'No Jab, No Play' policy

A regulation aimed at ensuring children receive vaccinations.

Mandatory Disclosure

A requirement for companies to provide key product details to consumers.

Tax Incentives for R&D

Financial benefits offered to firms to encourage investment in research and development.

Asymmetric Information

A situation where one party in a transaction has more information than the other, leading to market failures.

Fishing/Hunting Limits

Regulations to prevent the depletion of common access resources.

Fuel Tax Credit Scheme

A government initiative intended to support businesses but may result in inefficient fossil fuel use.

Jakarta’s 'Jockey' Problem

A case where high-occupancy lanes led to a black market for transportation services instead of reducing congestion.