Market weakness 2 -Externalities Flashcards Preview

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Flashcards in Market weakness 2 -Externalities Deck (4)
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1
Q

The problem

A

The cost or benefit to a third party

2
Q

weakness

A
  1. disregard for third party effects
  2. Goods or services involving
    - external costs
    - internal costs
3
Q

intervention

A
  1. Define and enforce
  2. Tax subsidize
  3. Direct
4
Q

Evaluation

A
  1. Effective but sometimes

2. difficult to calculate the right level of