government intervention

Question 1

-reduce market failure
-provide welfare
-public goods
-subsidies
-collect taxes
-employ
-prevent/regulate the distribution of illegal or harmful goods/services.
-Medicare

Answer 1

why the government intevenes

Question 2

-more market failures
-preventable diseases
-poorer communities in contrast to richer communities
-less resources and public goods for more remote communities
-harmful goods/services are distributed more

Answer 2

what would happen if the government didn’t intervene

Question 3

when an enclosed purchase affects other people outside of the purchase

Answer 3

externalities

Question 4

when a product or service causes something extremely harmful or expensive

Answer 4

market failure

Question 5

discounts given to businesses when they protect the environment

Answer 5

subsidies

Question 6

-banning
-making them unattractive (hiding the product, bland packaging, confronting packaging)
-ban promoting advertisements
-strictly regulate
-education
-taxes to heighten prices

Answer 6

remedies to market failure

Question 7

land- the natural resources and where the business will be
labour- the people working for the business
capital- money, machinery, resources
enterprise- the ability to combine the above

Answer 7

allocation