Government intervention and government failure

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Government failure
A misalloctaion of resources arising from governmnet intervention that causes a divergence between marginal social benefit and marginal social cost.
1 of 5
Indirect tax
A tax levied on expenditure on goods or services.
2 of 5
internalising an externality
An attempt to deal with an externality by bringing an external cost or benefit into the price system
3 of 5
NIMBY(Not In My Back Yard).
A syndrome under which people are happy to support the construction of an unsightly or unsocial facility, so long as it is not in their own area.
4 of 5
Prohibition
An attempt to prevent the consumption of a demerit good by declaring it illegal.
5 of 5

Other cards in this set

Card 2

Front

A tax levied on expenditure on goods or services.

Back

Indirect tax

Card 3

Front

An attempt to deal with an externality by bringing an external cost or benefit into the price system

Back

Preview of the back of card 3

Card 4

Front

A syndrome under which people are happy to support the construction of an unsightly or unsocial facility, so long as it is not in their own area.

Back

Preview of the back of card 4

Card 5

Front

An attempt to prevent the consumption of a demerit good by declaring it illegal.

Back

Preview of the back of card 5

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