Market failure - where the free market does not make the best use of scarce resources, Regulation - various means by which government seeks to control production and consumption, Property rights - where owners have a right to decide how their assets may be used, Direct tax - one that taxes the income of people and firms and cannot be avoided, Indirect tax - a tax that is levied on goods and services, Subsidy - direct payments made by governments to the producers of goods and services, Maximum price - a price that is fixed; the market price must not exceed this price, Transfer payment - a hand out or payment made by the government to certain members of the community, Nationalisation - process by which governments take a private business into public ownership, Privatisation - refers to a change in ownership of an activity from the public sector to the private sector, Pollution permits - a form of licence given by governments that allows a firm to pollute up to a certain level, Progressive tax - where the rate of tax rises as people earn higher income, Transfer earnings - the amount that is earned by a factor of production in its best alternative use, Economic rent - a payment made to a factor of production above that which is necessary to keep it in its current use, Monopsony - where there is a single buyer in a market,

Activity 1

by
Print
Embed

Leaderboard

Visual style

Options

Switch template

Continue editing: ?