3.8 Limitations of markets Flashcards
1
Q
Externality
A
An effect of an economic activity on a third party
2
Q
Subsidy
A
A sum of money that the government gives to a firm in encourage production and consumption
3
Q
Information provision
A
The government provides information to encourage people and organisations to change their behaviour
4
Q
Tax
A
A sum of money paid to the government by individuals or firms
5
Q
State provision
A
Goods and services provided directly by the government
6
Q
Legilisation
A
Laws to control the way people and organisations behave
7
Q
Regulations
A
Rules, directives or government orders to control the way people and organisations behave
