Edexcel Economics 3 Market Failure & Government Intervention - Statistics

General Stats
  • This quiz has been taken 31 times
  • The average score is 6 of 20
Answer Stats
Description Term % Correct
The way in which the benefit of receiving a subsidy is divided between consumers and producers Incidence of a Subsidy
100%
Where a person is willing to take more risks because someone else must bear the costs Moral Hazard
100%
A tax that falls uniformly upon all consumers thus taking a larger percentage of income from low-income earners than from high-income earners Regressive Tax
100%
The total of both private cost and external cost Social Cost
100%
A tax charged directly to an individual based on a component of income Direct Tax
50%
A misallocation of resources arising from government intervention Government Failure
50%
A tax levied on expenditure on goods or services such as VAT Indirect Tax
50%
Where the social costs of production and/or consumption exceed the private costs as a result of no appropriate compensation being paid Negative Externality
50%
Who shoulders the greater tax burden when demand is relatively inelastic? The Consumer
50%
The difference in area between the pre-tax surplus and the post-tax surplus on a demand and supply curve Deadweight Welfare Loss
33%
A good or service that a consumer can decide against using Rejectable
33%
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
0%
Where a person is more likely to selectively engage in trades that benefit them the most to others' disadvantage Adverse Selection
0%
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
0%
Where one party to a transaction has more information than the other Asymmetric Information
0%
The branch of economics that combines a psychological approach with traditional models to understand decision making and its effects on economic participants Behavioural Economics
0%
The term for the amount of tax absorbed by both consumers and producers Burden
0%
The sum of consumer and producer surplus Community Surplus
0%
Where a market does not supply any of a product at all Complete Market Failure
0%
Where the implementation of one government policy will adversely affect another Conflicting Policy Objectives
0%
A positive or negative externality that is caused by the demand side of the market Consumption Externality
0%
The loss in producer and consumer surplus due to an inefficient level of production Deadweight Loss
0%
Composed of both productive efficiency and allocative efficiency Economic Efficiency
0%
The area of the consumer and producer surpluses combined plus any tax revenue on a demand and supply curve Economic Welfare
0%
Where the costs of implementing, and/or regulating a policy are too high Excessive Administation Costs
0%
A sudden event effecting an economy that is outside of a government's control Exogenous Shock
0%
A benefit enjoyed by a third party External benefit
0%
The cost incurred by an individual or firm as a result of its activities but which is borne by a third party External Cost
0%
Where consumption of a product cannot be made dependent on payment thus giving firms little or no incentive to produce it Free Rider Problem
0%
Where a person lacks crucial information to make rational decisions Imperfect Information
0%
The way in which the burden of paying a sales tax is divided between buyers and sellers Incidence of a Tax
0%
Where a government policy is implemented without full knowledge of, or with incorrect information on a certain factor Information Gaps
0%
Attempting to deal with an externality by absorbing its external costs and benefits into the price system Internalising an Externality
0%
That the actions of consumers, producers, and governments will always have effects that are unintended or unanticipated Law of Unintended Consequences
0%
The reforms of the EU's Common Agricultural Policy in 1992 MacSharry Reforms
0%
What should a subsidy equal when there are external benefits? Marginal External Benefit
0%
What should a tax equal when there are external costs? Marginal External Cost
0%
Where a market does not achieve an efficient allocation of scarce resources Market Failure
0%
A price above which producers cannot charge for their product Maximum Price
0%
A price below which consumers cannot pay for a product Minimum Price
0%
Where resources are not put to use efficiently Misallocation of Resources
0%
Where people may support something as long as it does not affect and/or inconvenience them NIMBY Syndrome
0%
A good or service that a consumer cannot decide against using due to collective supply Non-Rejectable
0%
Where a functional market produces at the wrong quantity or price Partial Market Failure
0%
Where a government designs policies for their own political benefit Political Self Interest
0%
Where the social benefits of production and/or consumption exceed the private benefits Positive Externality
0%
Where governments set maximum or minimum prices Price Controls
0%
A benefit enjoyed by an individual or firm Private Benefit
0%
A cost incurred and borne by an individual or firm as a result of its activities which is reflected in market price Private Cost
0%
A positive or negative externality that is caused by the supply side of the market Production Externality
0%
Where there is an optimal allocation of inputs producing maximum output for minimum cost Productive Efficiency
0%
A tax that takes a larger percentage from high-income earners than from low-income earners Progressive Tax
0%
That which confers legal ownership of a good and legal control over how it is used Property Rights
0%
A product which has negative effects on people and their communities Public Bad
0%
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
0%
Where a government focuses on quick fixes to problems Short-Termism
0%
The total of both private benefit and external benefit Social Benefit
0%
An indirect tax or subsidy levied at the same amount regardless of price causing a parallel shift in the supply curve Specific
0%
A payment made by the government to a supplier of products that are considered to be essential or which provide beneficial effects Subsidy
0%
Where both sides of the market have access to a similar amount of information Symmetric Information
0%
Who benefits more from a subsidy when demand is relatively inelastic? The Consumer
0%
Who shoulders the greater tax burden when supply is relatively inelastic? The Producer
0%
Where circumstances may change between the recognition of a problem and the designing, and implementation of a policy Time Lags
0%
Permits allowing a firm to emit a certain amount of pollution which can be traded between firms Tradable Pollution Permits
0%
Where social costs exceed social benefits welfare loss
0%
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