Information failure (OCR A-Level Economics): Quizzes
📚Quizzes
Practise the questions
12 questions from this quiz
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Practise the questions
12 questions from this quiz
What is information failure?
What is information failure?
When all parties lack same info in trade
What is asymmetric information?
What is asymmetric information?
When one party has more/better info
What is moral hazard?
What is moral hazard?
Taking risks without bearing full costs
What are merit goods?
What are merit goods?
Goods under-consumed by the market
What are demerit goods?
What are demerit goods?
Goods over-consumed by the market
When does adverse selection occur?
When does adverse selection occur?
Before a transaction occurs
When does moral hazard occur?
When does moral hazard occur?
After a transaction
Which are examples of merit goods?
Which are examples of merit goods?
Education and healthcare
Which are examples of demerit goods?
Which are examples of demerit goods?
Tobacco and excessive alcohol
How might governments intervene with merit goods?
How might governments intervene with merit goods?
Subsidize or provide them
How might governments intervene with demerit goods?
How might governments intervene with demerit goods?
Impose taxes, regulations, or bans
What characteristics does information have as a public good?
What characteristics does information have as a public good?
Non-excludable and non-rivalrous