Types of Market Failure Flashcards
1
Q
Market Failure
A
Where resources are inefficiently allocated due to imperfections in the working of the market mechanism.
2
Q
Complete Market Failure
A
When a market fails to supply any of a good which is demanded, creating a missing market.
3
Q
Partial Market Failure
A
When a market for a good exists, but there is overproduction or underproduction of the good
4
Q
Types of Market Failure
A
Information Gaps
Externalities
Under-provision of public goods
