1.3.1 Types of market failure Flashcards
(5 cards)
1
Q
What is market failure?
A
When the market is unable to efficiently allocate scarce resources to meet the needs of society
2
Q
Why does the government intervene?
A
To eliminate market failure
3
Q
What is complete market failure?
A
There is no supply at all/ there is no market.
4
Q
What is partial market failure?
A
The market existas but there is a misallocation of resources
5
Q
A
