3.1 Types of Market Failure Flashcards
1
Q
What is market failure?
A
Inefficient outcome of a market
2
Q
What is partial market failure?
A
When a market outcome is inefficient (usually through allocation)
3
Q
What is complete market failure?
A
When a market does not supply products at all
4
Q
Types of market failure?
A
1) Externalities
2) Public goods
3) Information failure
4) Monopoly power
5
Q
What is Tragedy of the Commons?
A
Failure to protect property rights (e.g. overfishing in the North Sea)
