government intervention in markets 1.4.1 Flashcards
1
Q
State provision
A
Direct provision of goods or services free at the point of consumption
2
Q
Information provision
A
To correct market failure caused by information gaps the Government may provide information. This could be through advertising (social media, leaflets, TV) or education
3
Q
Regulations
A
Regulations are rules (laws) in a market to influence behaviour of consumers and/or producers.
To correct market failure the government may introduce laws which prohibit certain behaviours and actions of consumers and/or businesses.
There will often be fines and/or prison sentences for breaching these laws.