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Edexcel Economics 3 Market Failure & Government Intervention

In this quiz the answers change every time you play! Guess the terms that fit these definitions
Answer must correspond to highlighted box!
Quiz by robalot39
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Last updated: May 29, 2019
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First submittedMay 27, 2019
Times taken30
Average score35.0%
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Description
Term
A positive or negative externality that is caused by the supply side of the market
Production Externality
Where a government policy is implemented without full knowledge of, or with incorrect information on a certain factor
Information Gaps
The loss in producer and consumer surplus due to an inefficient level of production
Deadweight Loss
The term for the amount of tax absorbed by both consumers and producers
Burden
Composed of both productive efficiency and allocative efficiency
Economic Efficiency
Where resources are distributed in a way that maximises consumer satisfaction, and where the price of a product is equal to the marginal cost of producing it
Allocative Efficiency
Where a market does not supply any of a product at all
Complete Market Failure
A tax that takes a larger percentage from high-income earners than from low-income earners
Progressive Tax
A product which has negative effects on people and their communities
Public Bad
Where consumption of a product cannot be made dependent on payment thus giving firms little or no incentive to produce it
Free Rider Problem
Where a market does not achieve an efficient allocation of scarce resources
Market Failure
An indirect tax or subsidy levied at a percentage of the pre-tax or pre-subsidy price causing a non-parallel shift in the supply curve
Ad Valorem
Where governments set maximum or minimum prices
Price Controls
A good or service that is semi non-rivalrous and semi non-excludable, like wifi, the signal of which may become slower as more people use it
Quasi-Public Good
Where the social benefits of production and/or consumption exceed the private benefits
Positive Externality
The difference in area between the pre-tax surplus and the post-tax surplus on a demand and supply curve
Deadweight Welfare Loss
The total of both private cost and external cost
Social Cost
Where people may support something as long as it does not affect and/or inconvenience them
NIMBY Syndrome
A tax levied on expenditure on goods or services such as VAT
Indirect Tax
The way in which the benefit of receiving a subsidy is divided between consumers and producers
Incidence of a Subsidy
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