Chapter 6 - Market Case Studies Flashcards
0
Q
Define Sustainable
A
An activity carried out today that does not stop future generations maximising their welfare.
1
Q
Define Investment Good
A
A product that will increase in value over time.
2
Q
Define Market Failure
A
Where the market fails to produce what consumers require at the lowest possible cost.
3
Q
Define Government Failure
A
When government intervention to correct market failure does not improve the allocation of resources or leads to a worsening of the situation. The costs of government intervention may therefore exceed the benifits.