The Public Sector (Grade 10 NSC Matric Economics): Flashcards
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Practise the cards
10 cards from this deck
Reason for public sector intervention
Reason for public sector intervention
When free market fails to deliver optimal outcomes
Effect of monopolies on prices
Effect of monopolies on prices
Companies charge unfairly high prices and reduce competition
Essential services often provided by government
Essential services often provided by government
Healthcare and education
Government laws protecting workers from exploitation
Government laws protecting workers from exploitation
Minimum wage laws and maximum working hour regulations
Examples of strategic enterprises controlled by government
Examples of strategic enterprises controlled by government
Electricity generation and water supply
How governments fund their interventions
How governments fund their interventions
Taxes from individuals and businesses
Foundation of a functioning economy (legal)
Foundation of a functioning economy (legal)
Stable legal system protecting property rights
Price ceiling definition
Price ceiling definition
Maximum prices government sets that companies can charge
Price floor definition
Price floor definition
Minimum prices government sets to protect producers
Purpose of government subsidies
Purpose of government subsidies
Make goods cheaper or encourage specific economic activities