Government intervention (OCR A-Level Economics): Flashcards
📚Flashcards
Practise the cards
15 cards from this deck
ShowHide
Practise the cards
15 cards from this deck
Define taxation
Define taxation
Compulsory levies by govt to raise revenue for public spending
Define subsidies
Define subsidies
Financial aid by govt to encourage production/consumption
Define government expenditure
Define government expenditure
Total govt spending on goods, services, and public works
Define price controls
Define price controls
Govt-imposed limits on prices for goods and services
Define buffer stock systems
Define buffer stock systems
Schemes to stabilize commodity prices via buying/storing stock
Define public/private partnerships (PPPs)
Define public/private partnerships (PPPs)
Collaborative agreements between govt & private sector to finance/build/operate public projects
Define legislation
Define legislation
Laws enacted by govt to regulate and guide behaviour
Define regulation
Define regulation
Rules and standards by govt to control activities/industries
Define tradable pollution permits
Define tradable pollution permits
Allowances to emit pollution that can be bought and sold
Define information provision
Define information provision
Distribution of data/knowledge to inform and influence public
Define competition policy
Define competition policy
Laws to promote competition, prevent anti-competitive acts & protect consumers
Define government failure
Define government failure
Govt intervention leading to inefficiencies & misallocation
Inefficient allocation in govt failure
Inefficient allocation in govt failure
Interventions distort market signals, cause over/underproduction
Lack of information in govt failure
Lack of information in govt failure
Govt lacks info for optimal decisions, leads to unintended effects
Bureaucratic inefficiencies in govt failure
Bureaucratic inefficiencies in govt failure
Admin costs & red tape reduce policy effectiveness, cause delays