Market Failures – Inefficiencies (Grade 10 NSC Matric Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
ShowHide
Practise the questions
10 questions from this quiz
What are market failures?
What are market failures?
Unbalanced resource distribution & income
What is absolute poverty?
What is absolute poverty?
Unable to afford basic needs
Why does government provide welfare grants to poor people?
Why does government provide welfare grants to poor people?
Gives money to spend, creates more consumers
What is a monopoly?
What is a monopoly?
Only one company supplies a product
Why are monopolies especially harmful for essential goods?
Why are monopolies especially harmful for essential goods?
Consumers forced to pay any price set
What is the SA Reserve Bank's annual inflation target?
What is the SA Reserve Bank's annual inflation target?
3-6%
How does government smooth out business cycles?
How does government smooth out business cycles?
Spend during downturns, save during booms
What is the initial PPC impact of environmental protection laws?
What is the initial PPC impact of environmental protection laws?
PPC shifts left due to higher costs
How does preventing monopolies affect the PPC?
How does preventing monopolies affect the PPC?
Shifts PPC right through better efficiency
What are mixed economies?
What are mixed economies?
Free markets + government intervention