1/17
Looks like no tags are added yet.
Name | Mastery | Learn | Test | Matching | Spaced | Call with Kai |
|---|
No analytics yet
Send a link to your students to track their progress
Market failure
When the market mechanism fails to allocate resources efficiently.
External costs
Costs imposed on those not involved in consumption or production activities by others directly.
Private cost
Costs borne by those directly consuming or producing a product.
Private benefits
Benefits received by those directly consuming or producing a product.
Social cost
The total cost to society of an economic activity.
Social benefits
The total benefits to society of an economic activity.
Merit goods
Goods that are under-consumed and under-produced if left to market forces.
Demerit goods
Products that are more harmful to consumers than they realize or are considered harmful by the government.
Public goods
Products that are non-rival and non-excludable and need to be financed by taxation.
Private goods
Products that are both rival and excludable.
Monopoly
A single firm industry or single seller for a product.
Price fixing
When two or more firms agree to sell a product at the same price.
Free rider problem
When a person or organization receives benefits without making any contribution themselves.
Subsidy
A payment to increase production, lower price, and increase consumption of merit goods.
Non-rival
A characteristic of public goods where one person's consumption does not reduce availability for others.
Non-excludability
A characteristic of public goods where it is difficult to exclude individuals from consuming the good.
Government intervention
Measures taken by the government to correct market failures, such as providing subsidies, imposing maximum prices, or establishing publicly run firms.
Occupational mobility of labor
Measures taken by the government to promote the ability of workers to change jobs or industries, such as improving education or providing training and investment grants.