Why Governments Intervene (HSC SSCE Economics): Quizzes
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Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is a laissez-faire economy?
What is a laissez-faire economy?
Markets operate without govt interference
Which problem may emerge in a purely free market economy?
Which problem may emerge in a purely free market economy?
Essential community needs may remain unmet
What are the three key objectives of government intervention in markets?
What are the three key objectives of government intervention in markets?
Resources, income equity, & stability
What do markets excel at determining?
What do markets excel at determining?
Which goods to produce & in what quantity
What type of interests do markets respond to?
What type of interests do markets respond to?
Private economic interests
What happens with too much government intervention?
What happens with too much government intervention?
Stifles innovation & reduces efficiency
What is market failure?
What is market failure?
Market forces produce inefficient outcomes
How many main types of market failure are identified?
How many main types of market failure are identified?
Five
What are externalities?
What are externalities?
Costs/benefits for third parties
What happens with too little government intervention?
What happens with too little government intervention?
Instability, inequality & inadequate needs