Unit 16 Flashcards
1
Q
What is complete market failure?
A
Complete market failure is when a market fails to supply any amount of a product which is demanded, creating a missing market.
2
Q
Define market failure.
A
Market failure is where resources are inefficiently allocated due to imperfections in the working of the market mechanism.
3
Q
What is a missing market?
A
A missing market is where the market mechanism fails to supply any amount of a product.
4
Q
Define partial market failure.
A
Partial market failure is when a market for a product exists but there is overproduction or underproduction of the product.
