Summary
Summary AQA a level economics market failure and structures notes
- Course
- Institution
Mind map style aqa alevel economics notes focused on market structures and failures
[Show more]
Seller
Follow
hollymount205
Content preview
The meaning of market failure Positive and negative exterMarket failure: occurs whenever a market leads to a misallocation of resources
Complete market failure: occurs when market exists, a missing market Externalities: spill over effects arising
appropriate compensation is made
Partial market failure: occurs where a market does exist but fails to provide the
optimal quantity or the price is wrong NEG externalities caus
-
cost > private cost
&
Deadweight loss: ma
*
Reasons for market failure:
↑
output supplied is h
-
Externalities- than the social opti
Overconsumption-
-
Underconsumption-
D
"
Information gaps-
Missing markets-
Merit and demerit goods
Merit goods: goods that contain Examples:
certain positive consumption • healthcare
externalities which people usually • Museums
underestimate the benefit of • Education Market
consumption and are often under Imperfe
consumed
Market failure
• makin
• Don’t
Demerit goods: goods that Examples: • Not m
contain negative consumption • alcohol • Not a
externalises, which people • Cigarettes Asymme
often fail to understand the • Gambling • wher
danger of over consuming • Failur
Government intervention
State provision
• redistributes income + wealth
Public goods, private goods and quasi-public goods • Increase consumption
• No profit incentive
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller hollymount205. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.63. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79271 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now