Examples of Market Failure and Government Intervention

role of government in correcting market failure

Role of government in correcting market failure, includes ways the government applies to correct problems of market failure in an economy associated with the purchase of public goods, external costs and benefits, and imperfect competition. Previous article addresses Government intervention methods used to correct market failure in today’s society and always ensures they provide a potential …

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Examples of Market Failure

What are examples of market failures

Investopedia defines market failure as “the economic situation defined by an inefficient distribution of goods and services in the free market.” Britannica defines it as the “failure of a market to deliver an optimal result”. From the two definitions above, the market happens in a situation where the allocation of resources in the free market …

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Characteristics of Monopolistic Competition

Monopolistic competition characteristics

By definition, Monopolistic competition is “a type of market structure where there are many firms in the market, but each offers a slightly different product. In Economics, it is characterized by Monopolistic competition characteristics which include low barriers to entry and exit, which creates fierce competition” (Boyce, 2021). Below we answer which is a characteristic …

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Types Of Demand And Supply

Types Of Demand And Supply

The ability of companies and consumers to purchase goods is crucial to the economy. By lowering inflation and interest rates, consumer demand drives production. This article explains types of demand and supply and how economic demand works, the seven types and factors that affect it, and the relationship between supply-demand. What is the definition for demand in …

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Supply in Economics

Supply in economics

What is Supply? and What is supply in economics with examples? these are some of the mostly asked questions from the study of economics. In Macro or Micro economics, supply refers to an economic term that describes the quantity of a product or service suppliers are willing and able to offer consumers at a certain …

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Types of Managerial Economics

Types of Managerial Economics

The commercial world keeps extending my horizons the more I engage its topics. You may have heard in passing about economics and while you are trying to figure out the fundamentals someone utters the phrase, “Managerial economics.” This should never bring confusion to your innocent mind as it simply refers to applying economics to decision-making, …

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Advantages of Debt Financing

Advantages of Debt Financing

It is common knowledge in the business circle that those who have access to credit lines are in a better position to start successful businesses than those who do not. Before we even go deeper with the aspect of advantages of debt financing over equity financing that come with debt financing, we already have an …

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Similarities Between Micro and Macro Economics

similarities of microeconomics and macroeconomics

What is the similarities of micro and macro environment? In the previous article we ascertained the definition of economics as a whole, where we discovered it is a social science that is concerned with production, distribution and consumption of products and services, now we dive into similarities of microeconomics and macroeconomics environment. This social science …

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Differences Between Micro and Macro Economics

Differences Between Micro and Macro Economics

What is the difference between microeconomics and macroeconomics? Economics is known to many as a social science that is concerned with production, distribution and end use of products and services. It is an area of study that is divided into two branches, micro- and macro-economics. The term micro refers to smaller phenomena while macro talks …

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Human Development

What Is Human Development? Human development is a branch of study in economics. Moreover, it’s a theory that integrates the social, political, and economic approaches in social science. It measures individual wealth as opposed to economic development being a measure of wealth. Chiefly, it improves individual choices and enlarges people’s capabilities. Human development covers two …

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