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.

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1
Q

Define Investment Good

A

A product that will increase in value over time.

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2
Q

Define Market Failure

A

Where the market fails to produce what consumers require at the lowest possible cost.

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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.

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