IGCSE Econ 1.2.4 Market Failure

Front

Public sector

Back

The part of the economy controlled by the government

Front

State-owned enterprises (SOEs)

Back

Organisations owned by the government which sell products

Front

Privatisation

Back

The sale of public assets to the private sector

Front

Price mechanism

Back

The system by which the market forces of demand and supply determine prices

Front

Market failure

Back

Market resources resulting in an inefficient allocation of resources

Front

Free rider

Back

Someone who consumes a good or service without paying for it

Front

Allocative efficiency

Back

When resources are allocated to produce the right products in the right quantities

Front

Productively efficient

Back

When products are produced at the lowest possible cost and making full use of resources

Front

Dynamic efficiency

Back

Efficiency occurring over time as a result of investment and innovation

Front

Third parties

Back

Those not directly involved in producing or consuming a product