Exam Flashcards
1
Q
Market failure
A
When there is misallocation of resources in a free market
2
Q
Substitute goods
A
Goods that are very similar to eachother
3
Q
Demerit good
A
A good that has negative consumption effects on a consumer
4
Q
Government intervention
A
An action carried out by the government that affects the markets with the objective of changing the free market equilibrium
5
Q
Draw substitute good graph
A
…
6
Q
Draw a negative consumption consumption externalities graph
A
…
7
Q
Aggregate demand
A
…
8
Q
Economic growth
A
…
