market failure Flashcards
1
Q
main causes of market failure
A
merit and demerit goods the externalities public goods monopoly inequalities in the distribution of wealth
2
Q
market failure definition
A
occurs when the free market fails to deliver an efficient allocation of resources
3
Q
public goods
A
a good that posses the characteristics of non-rivalry, non-excludability and is non- rejectable.
4
Q
what is an incidence of tax
A
the part of the tax that is passed on to consumers
5
Q
inelastic demand…
A
incidence of tax is high
