government intervention (slides five)

Question 1

what is a free market?

Answer 1

supply and demand determine price of goods/services

Question 2

why is free market an efficient way of allocating resources?

Answer 2

owners of resources always seek to maximise profits + incomes

Question 3

what happens if free market results in negative outcomes for society/environment

Answer 3

government will need to intervene to reduce problems

Question 4

how can governments intervene in environmental degradation?

Answer 4

introduce things like’
littering bans
control chemical use in manufacturing
restrict how/where building development can take place

Question 5

what are challenges the government faces for conservation of natural resources?

Answer 5

trade off between short term exploitation of natural resources for economic gain and long term needs of both society and the economy

Question 6

whats essential for long term economic growth?

Answer 6

sustainably managed enviornment