Information Provision Flashcards

1️⃣ Familiarise yourself with the flashcards:

  • Look through all the flashcards to see what's on both sides.
  • Make sure you understand the information on each card. If something's unclear, click the link to the revision notes at the bottom of the page for more details.

2️⃣ Test yourself:

  • Look at the question or prompt on each card and try to remember the answer before flipping it over.
  • Check the answer and make a note of any cards you find challenging and need to go over more.

3️⃣ Consistently Review and Practice:

  • Use spaced repetition: spend more time on the cards you struggle with and go over them more often.
  • Regularly review all the flashcards to help you better understand and retain the information over time.

Note: We may include questions that have multiple correct answers. It's useful to remember specific examples to understand these concepts better.

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What does “information provision” mean in economics?

When the government gives clear facts to help market choices.

What problem is information provision designed to fix?

Information gaps, when people do not know full costs or benefits.

How does information provision help markets work better?

It helps people choose wisely, so resources are used better.

Give two UK examples of information provision.

Food traffic light labels and Energy Performance Certificates for homes.

How do traffic light food labels help shoppers?

They show fat, sugar and salt with colours so you can compare.

If people learn a product has hidden harms, what happens to demand?

It falls; people buy less of that product.

If people learn a product has strong benefits, what happens to demand?

It rises; people buy more of that product.

What is one advantage of information provision?

It keeps free choice while guiding people to better decisions.

What is one drawback of information provision?

People may ignore, not trust, or not understand the message.

What are the three basic steps in how information provision works?

Give clear facts; people compare options; they change what they buy.