Economics unit 1

What are the main causes of market failure?

What are positive externalities?

What are negative externalities?

Why do markets fail to produce an optimal resource allocation from societies perspective?

What is a merit good?

What are a few examples of merit goods?

Draw a diagram to illustrate merit goods.

Draw a demerit good diagram.

What is a demerit good?

What are some examples of demerit goods?

What are the two key features of public goods?

What are the three main causes of government failure?

How can buffer stock schemes theoretically stabilise prices?

What are the equity related issues of buffer stock schemes?

What are potential downsides of buffer stock schemes?

What is the definition of price elasticity of demand?

Define cross elasticity of demand.

Define income elasticity of demand.

Define price elasticity of supply.