1.3. Market Failure Flashcards
(5 cards)
1
Q
Market failure
A
When the free market leads to a misallocation of resources
2
Q
Public good
A
A good which possesses the characteristics of non-rivalry and non-excludability
3
Q
non-rival
A
The consumption of a good/service does not restrict the consumption by other people
4
Q
non-excludable
A
When the benefits of a good/service cannot be confined solely to those who paid for it
5
Q
A
