Section 2 Unit 14 Market Failure

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Across
  1. 2. They are goods and services that are non-excludable and non-rivalrous, and which are a cause of market failure as there is a lack of profit motive to produce them.
  2. 5. They are the true (or full) benefits of consumption or production, I.e. the sum of private benefits and external benefits.
  3. 6. It occurs when the market forces of demand and supply are unsuccessful in allocating resources efficiently and cause external costs or external benefit.
  4. 7. costs It is the actual costs of a firm, individual or a government. It is the production and consumption that are the actual costs of a firm.
  5. 8. They are goods or services which when consumed create positive spillover effects in the economy.
  6. 9. They are goods or services which when consumed cause negative spillover effects in an economy.
Down
  1. 1. They are the negative side-effects of production or consumption incurred by third parties for which no compensation is paid.
  2. 2. They are the benefits of production and consumption enjoyed by a firm, individual or government.
  3. 3. They are the positive side-effects of production and consumption experienced by third parties for which no money is paid by the beneficiary.
  4. 4. They are the true (or full) costs of consumption or production to society as a whole, I.e. the sum of private costs and external costs.