General Concepts 2 min read
The supply of merit goods
Economic theory predicts that while markets may form to supply some merit goods, total supply will be insufficient to achieve…
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General Concepts 2 min read
Merit goods
The market for merit goods is an example of an incomplete market. Merit goods have two basic characteristics: Firstly, unlike a private good, the net…
General Concepts 2 min read
Turnpikes
In the UK, turnpikes were an increasingly common way of paying for the maintenance costs of major roads from the…
General Concepts 4 min read
Quasi public goods
The market for quasi-public goods is an important example of an incomplete market. A quasi-public good is one that resembles…
General Concepts 1 min read
Incomplete markets
An incomplete market is one where some of the necessary conditions for market formation exist, but not all of them.…
General Concepts 3 min read
Pure public goods
The market mechanism is likely to fail to supply pure public goods because entrepreneurs are unlikely to enter the market,…
General Concepts 1 min read
Missing markets
A significant market failure is the failure to produce some goods and services, despite being needed or wanted. Markets can…
General Concepts 1 min read
Index numbers
Economists frequently use index numbers when making comparisons over time. An index starts in a given year, the base year, at…
General Concepts 1 min read
Marginal analysis
Economic decisions are taken in a marginal way, which means that decisions to produce, or consume, are made one at a time.…
General Concepts 1 min read
Increasing opportunity cost
Opportunity cost can be thought of in terms of how decisions to increase the production of an extra, marginal, unit…
