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3 Cards in this Set
- Front
- Back
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Causes of market failure
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-Unstable commodity markets -Public goods -Imperfect market information -Labour immobility -Externalities |
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Minimum price Schemes
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+Foreign aid for to LEDC (from surpluses) +Farm incomes are stabilised (higher incomes) +EU self sufficient in food from stockpiles -Higher food prices -Storage and security costs for surpluses -Opportunity cost of gov' spending on surpluses |
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Buffer Stocks
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Good harvest supply goes too high, agency buys Bad harvest supply too low, agency sells. +farm incomes stabilised +Surpluses foreign aid to LEDCs +Easier for consumers to budget -Series of good harvests agency has to keep buying (very expensive) -Stocks are perishable -Foreign may disrupt foreign recovery |
