Market failure Flashcards

1
Q

What is the role of the market

A

To allocate scarce resources

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2
Q

What is market failure

A

When resource are inefficiently allocated due to imperfections in the working of the market

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3
Q

How many different types of market failure are there

A

8

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4
Q

What are the different types of market failure

A
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5
Q

What two ways can a market fail

A
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6
Q

What is partial market failure

A
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7
Q

what is complete market failure

A
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8
Q

What is Factor immobility

A
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9
Q

What is underprovision of merit good and overprovision of demerit goods how does it lead to market failure?

A
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10
Q

What is underprovision of public goods how does this lead to market failure?

A
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11
Q

how does inequality lead to market failure

A
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12
Q

how do externalities lead to market failure

A
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13
Q

What are information gaps how do they lead to market failure

A
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14
Q

What is asymmetric information

A
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15
Q

How does a lack of competition in the market lead to market failure

A
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16
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Q
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24
Q
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