Market imperfections (Micro) Flashcards
Cards detailing the types of market imperfection and potential causes. (4 cards)
1
Q
What is imperfect imperfection?
A
When economic agents don’t know everything they need to know in order to make informed decisions
2
Q
What is Asymmetric information?
A
When one economic agents has more knowledge than another, meaning one has more power in the market transaction
3
Q
What are other causes of imperfection?
A
Occupational immobilities of labour
Geographical immobilities of labour
Monopolies in general
4
Q
A
