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Market Failure Definitions
Karten in diesem Stapel (13)
- 1Market Failurewhen the market forces do not result in the efficient allocation of resources
- 2Market forcesthe forces of demand and supply
- 3Externalitiesaffect parties that are not directly involved in a transaction and may be either costs or benefits
- 4Private costsdirect costs to producers and consumers for producing and consuming a product
- 5External coststhe costs in excess of private costs that affect third parties who are not part of the transaction
- 6Social coststhe sum of private costs and external costs
- 7Private benefitsdirect benefits to producers and consumers for producing and consuming a product
- 8External benefitsbenefits in excess of private benefits which affect third parties who are not part of the transaction
- 9Social benefitsthe sum of private benefits and external benefits
- 10Public goodsggoods that are non-rivalrous and non-excludable
- 11Free rider problemthe problem that once a product is provided it is impossible to prevent people from using it and, therefore, impossible to charge for it
- 12Symmetric informationwhere both parties in a transaction have the same information
- 13Asymmetric informationwhere one party in a transaction has more or superior information compared to another
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- Beschreibung
- 1.3 Market Failure definitions flashcards - Edexcel AS Economics
- Erstellt von
- Jesse McNab
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