Market Imperfections (AQA A-Level Economics): Flashcards
📚Flashcards
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Practise the cards
10 cards from this deck
Market imperfections
Market imperfections
Departures from perfect competition conditions
Imperfect information
Imperfect information
Buyers/sellers lack complete market knowledge
Asymmetric information
Asymmetric information
One party has significantly more info than the other
Effect of asymmetric info on quality car prices
Effect of asymmetric info on quality car prices
Drives down prices; sellers may withdraw from market
Why monopolies cause market failure
Why monopolies cause market failure
Restrict output & raise prices above competitive levels
Immobility of labour
Immobility of labour
Inability of workers to move from one job to another
Occupational immobility
Occupational immobility
Workers lack skills to move between different job types
Geographical immobility
Geographical immobility
Geographical barriers prevent workers moving for jobs
Main consequences of labour immobility
Main consequences of labour immobility
Unemployment, labour shortages, resource waste
How Uber reduced barriers to entry
How Uber reduced barriers to entry
Technology eliminated need for 'the knowledge' training