Market Failures
Government Regulation
Types of Goods
Taxes
100

These are two types of market failures we have studied

What are externalities and public goods?

100
Give an example of a government regulation.
Multiple answers.
100
These goods have low rivalry and are non-excludable.
What are public goods?
100

When it comes to taxes- economists want to minimize this

dead weight loss

200
These types of externalities lead to market failures. HINT (positive, negative, neither, both)
What are negative and positive externalities?
200

A numerical limit on what maximum price can be charged.

What is a price ceiling?

200
These goods are held by society.
What are public goods?
200

The government taxes goods that are *______* to maximize it revenues

relatively Inelastic

300
These types of externalities lead to sub-optimal situations. HINT (positive, negative, neither, both)
What are positive and negative externalities?
300

The primary reason that externalities go unresolved.

social costs are different from private costs

OR

lack of property rights

300
A fishing pond is in an example of this type of good.
What are common goods?
300

Study of Taxes on the market is called this.

What is Tax incidence

400
A way for externalities to enter the competitive market model.
What is internalizing the externality?
400
These are the two main implementations of government regulation.
What are taxes and subsidies?
400

Hiking on a trail after paying a user fee is an example of this type of good.

What are club goods?

400

Who bears the burden of a tax?

What are Both consumers and producers

500
According to this theorem, private parties should be able to resolve inefficiencies created by externalities. BONUS: Name the person who developed this theory.
What is the Coase Theorem? -- Ronald Coase
500
A social cost of production for negative externalities.
What is a left shift in the supply curve?
500
These types of goods can be consumed (not simply restricted to eating).
What are private goods and common resources?
500

If the government levies a $1 tax on potato chips, and equilibrium price in the market goes up by $0.75, we know this is true.

Consumers pay $0.75 of the tax, and hence are more inelastic in their behavior

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