Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Economics Edexcel A Theme 1 (New Spec) > Government intervention > Flashcards

Government intervention Flashcards

1
Q

What does it mean if the UK is a mixed economy

A
  • Both private enterprise and the government allocate resources
  • To solve the economic problem of what, how and for whom to produce
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

When is there government intervention in a market

A

When there is a market failure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What do governments attempt when intervening

A

They try to correct market failure so that resources are allocated more efficiently

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What measures could a government undertake to correct market failure

A
  • Indirect taxation
  • Subsidies
  • Maximum prices
  • Minimum prices
  • Trade pollution permits
  • Regulation
  • Provision of public goods
  • Provision of market information
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What are indirect taxes

A

Taxes levied on the expenditure of goods and services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What type of goods do the government impose taxes on

A

Goods which have significant external costs (tobacco, alcohol)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Indirect tax on a good diagram

A

(real card 37)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What does the diagram show

A

The MPC(marginal private cost) and the MSC (marginal social cost curve)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is the equilibrium price and quantity in a free market

A

OPe and OQe

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is the social optimum price and quantity

A

OP1 and OQ1 where MSC=MSB for the last unit produced

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What does the vertical distance ZY represent

A

The external cost for each unit consumed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

How can the government successful internalise an external cost

A

By placing a tax equal to the external cost of ZY per unit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is shown by the area P1YZW

A

The total tax collected

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Who pays the total tax

A

Producers and consumers depending on the relative elasticities of demand and supply

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is the consumer tax area

A

YP1PeT

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is the producer tax area

A

PeTZW

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Advantages of indirect taxes to correct market failure
(LIE WIT)
Level of pollution

A
  • Level of pollution should fall as output of the good or service is reduced and price is increased
  • Therefore social optimum position of MSB=MSC can be achieved
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Advantages of indirect taxes to correct market failure
(LIE WIT)
Internalisation of indirect tax

A
  • Internalisation of indirect taxes:
  • Indirect taxes force polluters (both producer and consumer) to pay for the external costs
  • This internalises the external costs in the case of pollution
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Advantages of indirect taxes to correct market failure
(LIE WIT)
Evasion is Difficult

A
  • Evasion is Difficult:
  • It is difficult to evade indirect taxes
  • They are often included in the market price
  • Sellers collect tax revenue and send it to government
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Advantages of indirect taxes to correct market failure
(LIE WIT)
Works with market forces

A
  • Works with market forces
  • So that choice still exists in terms of consumption and production
  • Unlike some regulation effects
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Advantages of indirect taxes to correct market failure
(LIE WIT)
Indirect taxes are convenient

A
  • Indirect taxes are convenient

* They tend to be paid in small amounts in a regular manner

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Advantages of indirect taxes to correct market failure
(LIE WIT)
Tax funds raised for the government

A
  • Tax funds raised for the government
  • This can be used to clean environment
  • This can be used to compensate pollution victims
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Disadvantages of indirect taxes to correct market failure

A
  • Difficult to quantify external costs and place a monetary value on them
  • So the social optimum position may not be achieved
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Disadvantages of indirect taxes to correct market failure

A
  • Increased costs of production for firms due to indirect taxes
  • This makes firms less competitive internationally
  • Compared to countries where these taxes are not applied
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Disadvantages of indirect taxes to correct market failure

A

•Widespread use of indirect taxes may be inflationary

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Disadvantages of indirect taxes to correct market failure

A

•Firms may relocate to other countries with less restrictive taxes on production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Disadvantages of indirect taxes to correct market failure

A

•Price inelastic demand for a good or service will mean the reduction in pollution levels may be small

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Disadvantages of indirect taxes to correct market failure

A

•Tax revenue raised may not be used to compensate victims or clean the environment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Disadvantages of indirect taxes to correct market failure

A
  • Unintended consequences may occur in the case of some goods
  • E.g development of illegal markets or smuggling of tobacco to avoid high taxes
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Disadvantages of indirect taxes to correct market failure

A
  • Regressive nature of indirect taxes lead to further unintended consequences
  • E.g burden of payment falls on low-income groups rather than high-income groups
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

What is a subsidy

A

A grant provided by the government to encourage the production and consumption of a good or service

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Where are subsidies often applied on

A
  • Goods or services with significant external benefits
  • E.g education and healthcare
  • E.g renewable energy to create less pollution
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Application of subsidy on market for renewable energies

A

(real card 38)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

What is the effect of the subsidy for the renewable energy good

A

To lower the price of each unit from Pe to P1 and to increase quantity from Qe to Q1

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

What is the subsidy per unit

A

AB

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

What is the total subsidy area

A

ABCP1

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

How is the subsidy passed on to consumers

A

In the form of lower price elasticity equal to the area AGPeP1

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

What is the other portion of the subsidy

A

GBCPe

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

What does this portion of the subsidy remain with

A

The producer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

What will the lower price of the renewable energy sources help decrease

A

The demand for non-renewable sources from D to D1

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

Impact of the subsidy on renewable energy sources to the non-renewable energy market

A

(real card 39)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

Advantages of subsidies applied to renewable energy markets

(RISE) Reduced external costs

A

•Reduce air pollution and other external costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

Advantages of subsidies applied to renewable energy markets

(RISE) Internalising external benefits

A
  • Internalises external benefits from renewable forms of energy by working with market forces
  • So social optimum level of output can be reached
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

Advantages of subsidies applied to renewable energy markets

(RISE)Subsidies on renewable energies

A

•Subsidies on renewable energy generation promote sustained economic growth

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

Advantages of subsidies applied to renewable energy markets

(RISE)Reduction of non-renewable energy

A

•Reduction of consumption of non-renewable energy resources

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

Disadvantages of subsidies

(DUO WE)Difficult to quantify external benefits

A
  • Difficult to quantify external benefits and place a monetary value on them
  • The social optimum position might not be achieved
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

Disadvantages of subsidies

(DUO WE)Unintended consequences

A
  • Unintended consequences may occur
  • E.g firms may become dependent on subsidies
  • This may make them inefficient in production without subsidies
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

Disadvantages of subsidies

(DUO WE)Opportunity cost

A
  • Opportunity cost to government subsidies
  • May lead to higher taxes or cuts in government spending
  • They may be a waste of money
  • E.g many subsidised bus services operate with hardly any passengers
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

Disadvantages of subsidies

(DUO WE)Wind power and solar power

A
  • Wind power and solar power may be less reliable sources of energy
  • Compared to traditional fossil fuels
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

Disadvantages of subsidies

(DUO WE)External costs

A
  • External costs associated with provision of renewable energy sources
  • E.g noise and visual pollution from wind farms
  • They can also reduce property prices nearby
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

evaluation of indirect taxes

A
  • depends on impact on different interest groups
  • e.g an increase in petrol may have a bigger impact on consumers than on petrol producers
  • since demand is price inelastic petrol firms can pass on most of the tax to consumers
  • the government is also likely to benefit from increased tax revenue
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

evaluation of subsidies

A
  • depends on magnitude of the event
  • e.g government subsidies in the renewable energy market
  • this will depend on how large the subsidies are as a proportion of total production costs for firms
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

Define maximum price

A
  • A ceiling price set by the government on a good or service above which it cannot rise
  • It may be enforced through government legislation
54
Q

Examples of maximum price schemes

A
  • These schemes have been used in house rental markets
  • This was to protect residents fro being exploited by landlords
  • In WW2 the government imposed maximum prices on basic food items
  • E.g milk eggs and meat
  • This ensured a fairer distribution
55
Q

Examples of recent price caps

A
  • Price caps were applied on various utilities
  • E.g gas and electricity
  • Currently there are price caps on selected rail fares and postal services
  • There have been calls for the government to impose maximum wages on highly paid public sector workers
56
Q

Where is the maximum price usually set

A
  • Below the free market price

* This causes shortages or excess demand

57
Q

Maximum price diagram

A

(real card 40)

58
Q

What does a maximum price of P1 cause

A
  • Demand extends from Qe to Q2
  • Supply contracts from Qe to Q1
  • Leads to an excess demand of Q1Q2
59
Q

What does the shortage of private rental housing lead to

A
  • Housing may be allocated on a first-come, first-served basis or by the sellers’ preference
  • Both forms of allocation have undesirable consequences
60
Q

How may the government intervene in the housing markets

A
  • The government may impose regulations on the type of consumers to who private landlords can rent
  • E.g vulnerable people or young mothers
  • However it is more likely that this type of legislation will be used for public sector housing
61
Q

Advantages of maximum prices

A
  • Reduce exploitation of consumers especially where a lack of competition exists
  • E.g the EU has capped the price of mobile phone calls across member states
  • Reduce inequality as in the case of a salary cap on highly paid public sector workers
  • Help people on low incomes to afford key products
  • E.g rental housing
62
Q

Disadvantages of maximum prices
(DURPP)
Difficult for the government to monitor and enforce maximum price controls in markets

A
  • Difficult for the government to monitor and enforce maximum price controls in markets
  • Danger of shadow markets being created
  • Some may be prepared to pay more for the good to ensure they obtain it
  • E.g tickets at popular football matches
63
Q

Disadvantages of maximum prices
(DURPP)
Unintended consequences may occur

A
  • Unintended consequences may occur
  • E.g government intervention distorts operation of price mechanism
  • This leads to an excess demand
  • This also leads to an inefficient allocation of resources
64
Q

Disadvantages of maximum prices
(DURPP)
Reduced supply of rental property in terms of the house rental market

A
  • Reduced supply of rental property in terms of the house rental market
  • This worsens the shortage in the long run
65
Q

Disadvantages of maximum prices
(DURPP)
Producer surplus falls

A
  • Producer surplus falls

* Landlords would have less income with which to invest in and maintain their property

66
Q

Disadvantages of maximum prices
(DURPP)
Problems arise over how to allocate supply

A
  • Problems arise over how to allocate supply
  • In order to meet the excess demand in the market as price cannot increase
  • This may involve a first-come, first-served basis or sellers’ preference
  • Both options are deemed to be unfair
67
Q

Evaluation of maximum prices

A
  • Depends on the difference between short-run and long-run effects of an event
  • E.g a maximum rent control may have few short term effects
  • In the long run it is likely to lead to a serious deterioration in the quality of properties
  • This is because landlords lack the funds to maintain them properly
68
Q

What is a minimum price

A
  • A floor price set by the government on a good or service below which it cannot fall
  • May be enforced through government legislation
69
Q

Where have minimum price schemes been used

A

•In commodity markets to protect incomes of farmers
•In labour markets to prevent market exploitation
(e.g national minimum wage)

70
Q

Where have there been calls for minimum prices

A
  • On goods which create high external costs

* E.g alcohol and sugar

71
Q

Minimum price effect on agriculture

A
  • EU farmers are guaranteed a minimum price for many commodities
  • E.g sugar and wheat
72
Q

Where is the minimum price usually set

A

Above the free market price, causing excess supply or surpluses

73
Q

How does a government agency respond to excess supply

A

They purchase the excess supply at the guaranteed minimum price

74
Q

What will happen if a minimum price is set below the free market equilibrium price

A

There will be no effect

75
Q

Define guaranteed minimum price

A
  • Where the surplus output created is purchased by a government agency at the minimum price
  • The main aim is to protect producer incomes
76
Q

Minimum price scheme diagram

A

(real card 41)

77
Q

How will a minimum price of P2 affect demand

A

Demand will contract from Qe to Q1

78
Q

How will a minimum price of P2 affect supply

A

Supply will extend to Qe to Q2 leading to an excess supply of Q1Q2

79
Q

What is the government expenditure area on the diagram

A

The area Q1Q2YW

80
Q

What would happen to the total producer revenue on the diagram

A

The revenue would increase from OPeXQe to OP2YQ2

81
Q

Advantages of minimum prices
(NEGR(O) FC)
1.National minimum wage

A

A national minimum wage can reduce labour exploitation while increasing incentives to work

82
Q

Advantages of minimum prices
(NEGR(O) FC)
2.Encourages producers to switch

A

Encourages producers to avoid producing goods containing alcohol and sugar

83
Q

Advantages of minimum prices
(NEGR(O) FC)
3.Guaranteed minimum price

A
  • Guaranteed minimum price can stabilise and increase producer incomes
  • This would lead to greater investment and employment
  • E.g in agriculture
84
Q

Advantages of minimum prices
(NEGR(O) FC)
4.Reduced fluctuations in food prices

A
  • Reduced fluctuations in prices would be caused
  • So it is easier for consumers to budget their income
  • Ensures food supplies even in times of poor harvest:
  • Due to availability of surplus stockpiles
85
Q

Advantages of minimum prices
(NEGR(O) FC)
5.Food surpluses

A

Food surpluses can be used as a form of international aid to developing countries

86
Q

Advantages of minimum prices
(NEGR(O) FC)
6.Consumption of harmful goods reduced

A
  • Consumption of goods which are harmful to consumers are reduced
  • E.g goods which have high external costs such as alcohol and sugar
87
Q

Disadvantages of minimum price(RUM GIF END)

RUM

A
  • Reduced consumer surplus

* Price of some goods will increase leading to hardship for consumers on low incomes

88
Q

Disadvantages of minimum prices(RUM GIF END)

RUM

A
  • Unintended consequences may occur
  • E.g government intervention distorts price mechanism operation
  • This leads to an inefficient allocation of resources and excess supply
89
Q

Disadvantages of minimum prices(RUM GIF END)

RUM

A
  • Minimum prices may be less effective in reducing consumption of inelastic goods with high external costs
  • E.g alcohol
90
Q

Disadvantages of minimum prices(RUM GIF END)

GIF

A
  • Guaranteed minimum price schemes lead to government buying surpluses
  • This involves an opportunity cost or raising taxes or cutting government spending elsewhere
91
Q

Disadvantages of minimum prices(RUM GIF END)

GIF

A
  • Increased storage and security costs for food surpluses

* Food surpluses may have to be destroyed due to their perishability

92
Q

Disadvantages of minimum prices(RUM GIF END)

GIF

A
  • Food surpluses may be sold in overseas markets at low prices
  • This could damage farmers in developing countries who struggle to compete against cheap imports
93
Q

Disadvantages of minimum prices(RUM GIF END)

END

A
  • Efficiency of farmers on guaranteed incomes may decline

* Due to less incentive for farmers to improve the quality of food or keep production costs down

94
Q

Disadvantages of minimum prices(RUM GIF END)

END

A

National minimum wage may cause unemployment among workers in low-skilled labour markets

95
Q

Disadvantages of minimum prices(RUM GIF END)

END

A

Difficult for the government to monitor and enforce a minimum wage policy

96
Q

What are tradable pollution permits

A
  • Pollution permits that can be bought and sold in a market

* They are an attempt to solve the problem of pollution by creating a market for it

97
Q

Why did the European Commission(EC) set up the ETS (emissions trading system)

A

To limit greenhouse gas emissions from heavy industry

98
Q

What is the ETS

A
  • A cap and trade scheme
  • An amount of carbon dioxide permits to national governments is set each year
  • Governments divide up allowances among firms covered by the scheme
99
Q

Why are pollution permits tradable

A
  • So firms can buy and sell the allowances between themselves
  • Any surplus on their permit can be traded
100
Q

How were tradable pollution permits given before the scheme

A
  • The permits were given free to the industry

* They were allocated on the basis of the amount of pollution created

101
Q

How much of carbon permits are retained by national governments

A

•They are able to retain up to 10% of carbon permits

They can offer them for sale depending on the level of scarcity

102
Q

How does the ETS reduce carbon emissions

A
  • They give incentives to firms to invest in clean technology
  • This reduces carbon emissions in the long run
103
Q

Why are carbon permits reserved

A
  • To enable new firms to enter the industries within the trading scheme
  • Firms can invest in schemes that reduce carbon emissions outside the EU
104
Q

Disdvantages of tradable pollution permits(FUC DIE)

FUC

A
  • Firms may pass costs of purchasing pollution permits to consumers
  • This leads to higher prices of commodities
  • E.g electricity
  • This is likely if demand is price inelastic
105
Q

Disadvantages of tradable pollution permits(FUC DIE)

FUC

A
  • Unintended consequences may occur
  • E.g less pressure on major polluting firms to clean up their act if they can buy extra permits elsewhere
  • Firms may relocate outside of the EU to reduce production costs
106
Q

Disadvantages of tradable pollution permits(FUC DIE)

FUC

A

Cost to government of monitoring pollution emissions from many companies within the scheme

107
Q

Disadvantages of tradable pollution permits(FUC DIE)

DIE

A
  • Disputes have arisen over allocation of carbon permits to firms
  • Some companies believe they should receive larger allowances
  • Some companies have taken legal action against the EC
108
Q

Disadvantages of tradable pollution permits(FUC DIE)

DIE

A
  • Information gaps may cause the EC to issue too many carbon permits
  • This means there is little incentive for firms to reduce pollution
  • Information gaps may also cause the EC to issue to little carbon permits
  • This means production costs for EU firms rise rapidly
  • This reduces their international competitiveness
109
Q

Disadvantages of tradable pollution permits(FUC DIE)

DIE

A
  • EU is just one part of the world

* Unless all countries engage in a similar scheme global emissions will continue to increase

110
Q

Advantages of tradable pollution permits(PEN FAP)

PEN

A
  • Pollution permits can be reduced over time as a part of a coordinated plan
  • E.g in 2008 EC cut carbon allocations by 5%
111
Q

Advantages of tradable pollution permits(PEN FAP)

PEN

A
  • ETS may act as a foundation for a global-wide scheme

* It has attracted interest from developed countries outside of the EU

112
Q

Advantages of tradable pollution permits(PEN FAP)

PEN

A
  • National governments can raise funds by selling their reserve permits to the industry
  • The revenue could be used to clean up the environment or compensate victims
113
Q

Advantages of tradable pollution permits(PEN FAP)

FAP

A
  • Firms have an incentive to invest in clean technology

* Firms are able to bank their excess pollution permits for use in future years

114
Q

Advantages of tradable pollution permits(PEN FAP)

FAP

A
  • A market is created for buying and selling carbon permits

* In effect the price mechanism can internalise the external costs associated with carbon emissions

115
Q

Advantages of tradable pollution permits(PEN FAP)

FAP

A
  • Production costs will increase for firms that exceed their pollution allowances
  • This is because they have to purchase additional permits
  • This provides a source of revenue for cleaner firms that can sell their excess pollution permits
116
Q

What is the purpose of state provision of information

RED

A
  • Reminds and notifies people of laws for their own protection
  • E.g seatbelts in motor vehicles
  • E.g not consuming alcohol while driving
117
Q

What is the purpose of state provision of information

RED

A
  • Encourages production/consumption of underprovided goods and services that have benefits
  • E.g pensions that yield long-term benefits
  • E.g healthy goods such as fruit
118
Q

What is the purpose of state provision of information

RED

A
  • Discourages production/consumption of overprovided goods and services that have costs
  • E.g unhealthy goods such as alcohol
119
Q

Define regulation

A
  • Government rules in markets to influence behaviour of consumers and producers
  • E.g Environmental Protection Act
120
Q

What is the Environmental Protection Act

A
  • Minimum environmental standards for emissions were set
  • For over 3500 factories involved in waste incineration and oil refining
  • These firms are monitored by government pollution inspectors who can impose fines and close down factories
121
Q

Advantages of regulations

FLAIRS

A
  • Firms can deter consumers and producers to not break the law
  • Revenue collected from fines can compensate victims
122
Q

Advantages of regulations

FLAIRS

A
  • Limits can be imposed on operation of firms to protect consumers
  • E.g limit on number of night air flights from Heathrow airport
123
Q

Advantages of regulations

FLAIRS

A
  • Asymmetric information problem can be reduced
  • E.g restrictions on sale of tobacco will cause difficulty for young people to start smoking
  • If they do not understand the consequences
124
Q

Advantages of regulations

FLAIRS

A
  • It is possible to fine or close down companies that abused regulations
  • E.g for emitting dangerous levels of toxic waste
125
Q

Advantages of regulations

FLAIRS

A
  • Regulations require firms to restore and clean up the site after production
  • E.g in mining and quarrying operations
126
Q

Advantages of regulations

FLAIRS

A
  • Simple to understand

* E.g legal restrictions on the age at which people can buy alcohol

127
Q

Disadvantages of regulations

WISE U

A
  • Wrong level may be set for regulations to correct market failure
  • E.g difficult to attach a monetary value to pollution emissions
  • So social optimum position may not be reached
128
Q

Disadvantages of regulations

WISE U

A
  • Increased production costs of firms may be caused
  • This reduces competitiveness among global markets
  • Especially against firms with few restrictions
129
Q

Disadvantages of regulations

WISE U

A
  • Stopping of operation of price mechanism may occur

* Regulations may overrule the mechanism than work with it

130
Q

Disadvantages of regulations

WISE U

A
  • Expensive to monitor and enforce and administration costs can be high
  • E.g in the case of pollution levels imposed on firms
131
Q

Disadvantages of regulations

WISE U

A

•Unintended consequences may occur

Economics Edexcel A Theme 1 (New Spec) (5 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions