Compare and Contrast Physical Assets and Financial Assets

question 4

Essay

Compare and contrast physical assets and financial assets.

---

Definitions:

Free-rider Problem

A situation in which some individuals consume more than their fair share of a public resource, or shoulder less than a fair share of the costs of its production, without contributing to its provision.

Market Failure

A situation where the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss.

Pollution

The introduction of harmful substances or products into the environment, leading to adverse effects on human health, ecosystems, or buildings.

Deadweight Loss

The decline in economic productivity that happens when a good or service does not reach or cannot reach its equilibrium.