Market failure Flashcards
What is the role of the market
To allocate scarce resources
What is market failure
When resource are inefficiently allocated due to imperfections in the working of the market
How many different types of market failure are there
8
What are the different types of market failure
What two ways can a market fail
What is partial market failure
what is complete market failure
What is Factor immobility
What is underprovision of merit good and overprovision of demerit goods how does it lead to market failure?
What is underprovision of public goods how does this lead to market failure?
how does inequality lead to market failure
how do externalities lead to market failure
What are information gaps how do they lead to market failure
What is asymmetric information
How does a lack of competition in the market lead to market failure
