Market Failure (Edexcel A-Level Economics A): Flashcards
📚Flashcards
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10 cards from this deck
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Practise the cards
10 cards from this deck
Private goods traits
Private goods traits
Excludable and rivalrous
Public goods traits
Public goods traits
Non-excludable and non-rivalrous
Free-rider problem
Free-rider problem
No incentive to pay if can't be excluded from consuming
Non-excludability meaning
Non-excludability meaning
Can't provide to one without others consuming too
Asymmetric information
Asymmetric information
Some traders have better info than others
Symmetric information
Symmetric information
All market participants have equal information
Adverse selection
Adverse selection
High-risk person more likely to buy insurance
Moral hazard
Moral hazard
Insured person takes more risks
Merit goods
Merit goods
Undervalued by consumers; too little consumed
Demerit goods
Demerit goods
Overvalued by consumers; too much consumed