Governments and the Regulation of Markets (Grade 10 NSC Matric Economics): Flashcards
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Three reasons govts intervene in markets
Three reasons govts intervene in markets
Protect national interests, promote growth, fund services
Free market system characteristics
Free market system characteristics
Private businesses decide, minimal govt interference
Mixed economy definition
Mixed economy definition
Combines free market principles with govt intervention
Externalities
Externalities
Costs/benefits affecting people not in the transaction
Negative externality example
Negative externality example
Factory pollutes river; society bears environmental cost
Positive externality example
Positive externality example
Education benefits individual and society as a whole
Govt response to negative externalities
Govt response to negative externalities
Regulations, fines, taxes on polluting activities
Why private cos don't provide positive externalities
Why private cos don't provide positive externalities
Can't capture all social benefits they create
How govts collect revenue
How govts collect revenue
Taxation, govt bonds, fees and charges
South Africa's economic system type
South Africa's economic system type
Mixed economy