1.3.1: Types Of Market Failure Flashcards
1
Q
What is market failure?
A
When resources are misallocated, causing a loss in social welfare.
2
Q
What are the three types of market failure?
A
•Externalities.
•Under-provision of public goods.
•Information gaps.
3
Q
What is partial market failure?
A
Not enough or too much of a good/service is produced.
4
Q
What is a missing market?
A
A good/service may not be produced at all.
