Th4.4: ^^ Externalities Flashcards
1
Q
There are a number of costs placed on firms, individuals and the government that…
A
the financial market does not pay
2
Q
What is an example of this?
A
the cost to the taxpayer of bailing out the banks after the 2007/8 financial crisis
3
Q
What else shows some external costs?
A
moral hazard
