Market Failure (AQA A-Level Economics): Flashcards
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Market failure definition
Market failure definition
Market mechanism doesn't allocate resources efficiently
Complete market failure result
Complete market failure result
Missing market
Partial market failure result
Partial market failure result
Wrong quantity (too much or too little)
SIRA memory aid meaning
SIRA memory aid meaning
Signalling, Incentives, Rationing, Allocation
Private goods two characteristics
Private goods two characteristics
Excludable and rival (ER)
Excludability definition
Excludability definition
Owners can prevent use without payment
Rivalry in goods definition
Rivalry in goods definition
One's consumption reduces quantity for others
Consumer sovereignty
Consumer sovereignty
Consumers hold most power (competitive markets)
Producer sovereignty
Producer sovereignty
Producers hold most power (imperfect/monopoly markets)
Public goods characteristics
Public goods characteristics
Non-excludable and non-rival