Statistics for Edexcel Economics 3 Market Failure & Government Intervention

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General Stats

This quiz has been taken 29 times
The average score is 7 of 20

Answer Stats

Description	Term	% Correct
A misallocation of resources arising from government intervention	Government Failure	100%
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%
Where the social costs of production and/or consumption exceed the private costs as a result of no appropriate compensation being paid	Negative Externality	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%
A good or service that a consumer can decide against using	Rejectable	100%
The total of both private cost and external cost	Social Cost	100%
The difference in area between the pre-tax surplus and the post-tax surplus on a demand and supply curve	Deadweight Welfare Loss	50%
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%
A tax charged directly to an individual based on a component of income	Direct Tax	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%
A tax levied on expenditure on goods or services such as VAT	Indirect 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 shoulders the greater tax burden when demand is relatively inelastic?	The Consumer	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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