6. Market Case Studies. Flashcards
1
Q
Sustainable.
A
An activity carried out today which doesn’t stop future generations maximising their welfare.
2
Q
Market failure.
A
Where the market fails to allocate resources at lowest possible costs.
3
Q
Government failure.
A
When government intervention to correct market failure doesn’t improve the allocation of resources or leads to a worsening of the situation.
4
Q
Buffer stocks.
A
An intervention system that aims to limit the fluctuations of the price of a commodity.
5
Q
Inflationary pressure.
A
Occurrences which are likely to lead to increased prices.
6
Q
Investment good.
A
A product that will increase in value over time.
7
Q
Negative externalities
A
Costs imposed on a third party not involved with with consumption or production of the good.
