Government microeconomic intervention (A level) Flashcards
Regulations
a wide range of legal and other restrictions that come from government or regulatory bodies
Property rights
where owners have a right to decide how their assets may be used
Pollution permit
a form of license given by governments that allows a firm to pollute up to a given level
Provision of information
when governments directly provide information to correct market failure
Production Quota
a physical limit on what can be produced
“Nudge” theory
influencing choice by “nudging” individuals towards making more effective decisions
Nationalisation
when government takes over a private sector business and transfers it to state ownership
Government failure
where government intervention to correct market failure leads to a net loss of economic welfare
Equality
where everyone is treated i the same way
Extreme poverty
where a household exists on less than $1.90 a day
Relative poverty
where households income is 50% or less than the average income
Means-tested benefits
benefits that are paid only to those whose incomes fall below a certain level
Poverty trap
where an individual or a family are better off on means-tested benefits rather than working
Universal benefits
benefits available to all irrespective of income or wealth
Universal basic income
a regular unconditional cash payment made by the government
