Limitations Of Markets Flashcards
1
Q
Positive externalities
A
The benefit of an economic transaction for a third party
2
Q
Negative externalities
A
The cost of an economic transaction for a third party
3
Q
Taxation
A
Government collection of money from individuals and firms
4
Q
Subsidy
A
A sun of money given by government to firms to encourage production and consumption
5
Q
State provision
A
Government intervention in a market to supply a good or service direct to consumers
6
Q
Legislation
A
Law created by a government to control the way individuals or firms behave
7
Q
Regulation
A
A rule from the government that firms and consumers have to follow
8
Q
Information provision
A
Government intervention in a market to give knowledge that might change behaviour
