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Market failure
Understand the concept of market failure and recognize key terms related to it, including public goods, merit goods, demerit goods, social benefits, external benefits, private benefits, social costs, external costs, and private costs.
3
Objectives
30
Flashcards
21
Questions
90 min
Study time
CambridgeIGCSEEconomicsThe allocation of resources
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Market failure outcomes3 objectives
- Understand the concept of market failure and recognize key terms related to it, including public goods, merit goods, demerit goods, social benefits, external benefits, private benefits, social costs, external costs, and private costs.
- Identify the factors that lead to market failure, focusing on public goods, merit and demerit goods, external costs and benefits, monopoly power abuse, and factor immobility, along with relevant examples.
- Examine the effects of market failure, particularly how it results in the overconsumption of demerit goods and goods with external costs, as well as the underconsumption of merit goods and goods with external benefits.
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