CHAPTER 56 GOVERNMENT INTERVENTION AND PRODUCT MARKETS Flashcards
Competitive tendering
Introducing competition among private sector firms which put in bids for work which has been contracted out by the public sector.
Contracting out
Getting private sector firms to produce the goods and services which are then provided by the state for its citizens.
Deregulation
The process of removing government controls from markets.
Regulatory capture
An example of government failure, it occurs when firms in an industry are able to influence to their advantage a regulatory body which is supposed to be regulating the behaviour of those firms.
Nationalisation
The transfer of firms or assets from private sector ownership to state ownership. It is the opposite of privatisation.
Privatisation
The transfer of organisations or assets from state ownership to private sector ownership. It is the opposite of nationalisation.