How markets fail? Flashcards
de merit goods definition
a good that is over consumed and can be unhealthy such as:alcohol and cigarettes
what is a monopoly
a market structured by one sole seller who have no competition
positive externalities
benefit for a third party by economic transaction
negative externalities
cost suffered by third party from an economics transaction
immobility
when there’s barriers for the factors of production between sectors of the economy
public goods
when a person can consume it without without reducing its availability to another consumer
merit goods
goods which government feel people will under consume
what is distribution of income and wealth
income - flow of money which is being earned such as wages, rental income if you let out a house etc.
wealth - these are the total assets all put together: house, car etc.
missing markets
the difficulties in providing pure public goods
