__________ will be under produced in a free market situation.
Merit goods
De-merit goods
Public goods
None of these.
____________ are used by government as a means of redistributing income or transferring income from one group in society to another group.
Regulation
Income transfers
Production
None of these
___________ intervention in the form of taxes and subsidies has been widely advocated for use in markets.
Financial
A __________ such as defence need to be financed by the government but they do not necessarily need to be produced by the government.
__________ will not necessarily be provided by the market.
_________ can be an important aid to decision making.
Positive externalities
Negative externalities
Cost benefit analysis
An __________ is said to arise if a third party is effected by the decisions and actions of others.
Externalities
The role of the ___________ is to intervence is markets that are not seen to be allocating resources in the most efficient or the most equitable manner.
Private
Public
Government
Positive externaliity is also known as _____________ .
External cost
Social cost
External benefit
____________ will take the form of taxes or subsidies.
Financial intervention
