Information failure
What Information failure means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Information failure
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Check what you remember
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Reference: Pearson Edexcel
A situation where consumers underestimate the long-term private costs of consuming demerit goods to their own health or well-being.
A situation where consumers ignore long-term private benefits because they do not fully perceive them.
Topics that use Information failure
- Market failure in society (Pearson Edexcel A-Level)
Related terms
- Demerit goods
- Information gaps
- Market failure
- Positive externalities
- Rational decision making
- Resource allocation
- Resource misallocation
- Structural unemployment
Using Information failure in the exam
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