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6 Cards in this Set
- Front
- Back
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State provision |
The state provides public goods for free using taxpayers money |
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Information provision |
Providing information that can help prevent market failure |
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Regulation |
Government rules in markets used to influence consumers/producers |
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Three limitations of information provision |
-hard to target the correct groups -cost -people can ignore it |
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Three Advantages of regulation as a way of stopping market failure |
-overcomes information failure -can target externality directly -prevent the activity all together |
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4 disadvantages of increased regulation |
-enforcement cost -may be too lax -harmful effect on industry and competitiveness -may do it illegally |
