The Production Possibility Curve (Grade 10 NSC Matric Economics): Flashcards
📚Flashcards
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Practise the cards
10 cards from this deck
Market failures
Market failures
Free market fails to allocate resources efficiently
Four main types of market failures
Four main types of market failures
Income inequality, monopolies, instability, environmental
Absolute poverty
Absolute poverty
Can't afford basic needs like food, shelter, clothing
Monopoly
Monopoly
Only one company supplies a product/service
Purpose of welfare grants
Purpose of welfare grants
Give poor people money to spend on basic needs
Economies of scale
Economies of scale
Lower costs when producing large quantities
Inflation
Inflation
Prices rising rapidly, making everything more expensive
Purpose of competition laws
Purpose of competition laws
Prevent monopolies and encourage market competition
PPC impact of addressing income inequality
PPC impact of addressing income inequality
Shifts right - shows economic growth
PPC impact of environmental protection
PPC impact of environmental protection
May shift left initially due to higher production costs