8.1 Government policies to achieve efficient resource allocation and correct market failure Flashcards
1
Q
Regulations
A
a wide range of legal and other requirements that come from governments and other organisations
2
Q
Pollution permits
A
a form of licence given by governments that allows a firm to pollute up to a certain level
3
Q
Property rights
A
where owners have a right to decide how their assets may be used
4
Q
Privatisation
A
where there is a change in ownership from the public to the private sector
5
Q
Government failure
A
where government intervention to correct market failure causes further inefficiencies
6
Q
Tradable permit
A
A permit that allows the owner to emit a certain amount of pollution and that, if unused or only partially used, can be sold to another polluter
