The mixed econonmy Flashcards
1
Q
Mixed economy
A
It involves both private (businesses) and public (government) sectors to aid resource allocation through the market mechanism
2
Q
6 private businesses
A
Hospitals, Louis Vuitton, pepsi, master card, swarovski, coco Chanel
3
Q
6 public (government) businesses
A
Post office, emirates, public buses, metro, Red Crescent, DU
4
Q
3 reasons why we need mix economy
A
- Certain needs cannot be met by a free market
- A government is needed to eradicate poverty
- Government protect property rights
5
Q
The free rider means
A
Rational consumer will let someone else pay for the provision of the good/service as a consequence no one will be prepared to pay for it there will be no demanded curve
6
Q
Public goods means
A
The free rider problem
7
Q
Non excludability means
A
Once it is created everyone benefits
