Across
- 2. In mixed economy, government intervention is necessary for several reasons. One of them being to correct market failure by influencing the level of production or ___________ .
- 4. Government intervention can help reduce the opportunity gap between the rich and the poor. This is also known as ______ .
- 6. The higher the government intervention, the more the economy will lean towards operating like a _______ economy.
- 9. Government intervention is necessary to support poorer households. Intervention seeks to _________ income.
- 10. Competition encourages ______ and product development.
- 11. What kind of market is a market economy also called as?
- 12. increases ________ such that the gap between the rich and the poor continues to grow.
- 14. Market failure occurs due to the _______ allocation of resources.
Down
- 1. The _______ of demerit goods causes the over allocation of the resources used to make these goods/services.
- 3. _________ occurs when the Government takes control & ownership of firms which were in the private sector.
- 5. Earn government revenue: governments need money to provide essential services, public and ______ goods.
- 7. An external cost occurs when the _______ costs are greater than the private costs, for example, environmental damage.
- 8. An advantage of market economy is that competition leads to ______ prices of goods/services.
- 13. Resource depletion and environmental degradation are often ignored is a ________ of market economy.
- 15. _______ occur when there is an external impact on a third party not involved in the economic transaction in the market.