CHAPTER 16 TYPES OF MARKET FAILURE Flashcards
1
Q
Complete market failure
A
When a market fails to supply any of a good which is demanded, creating a missing market.
2
Q
Market failure
A
Where resources are inefficiently allocated due to imperfections in the working of the market mechanisms.
3
Q
Missing markets
A
A market where the market mechanism fails to supply any of the good
4
Q
Partial market failure
A
When a market for a good exists but there is overproduction or underproduction of the good.
