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Flashcards in Week 5 Deck (22):
1

Externality

The uncompensated impact of one person's actions on the well-being of a bystander

2

The uncompensated impact of one person's actions on the well-being of a bystander

Externality

3

Internalising an externality

Altering incentives so that people take into account the external affects of their actions, such as carbon taxes. laws and regulations.

4

Altering incentives so that people take into account the external affects of their actions, such as carbon taxes. laws and regulations.

Internalising an externality

5

Coase Theorem

The proposition that if private parties can bargain without cost over the allocation of resources, they can solve the problem of externalities on their own.

6

Altering incentives so that people take into account the external affects of their actions, such as carbon taxes. laws and regulations.

Internalising the externality

7

Transaction costs (Externalities)

The costs that parties incur in the process of agreeing and following through on a bargain

8

A tax enacted to correct the effects of a negative externality.

Corrective tax

9

Excludable good

The property of a good whereby a person can be prevented from using it

10

The property of a good whereby a person can be prevented from using it

Excluadble good

11

Rival in consumption

The property of a good whereby one person's use diminishes other people's use

12

The property of a good whereby one person's use diminishes other people's use

Rival in consumption

13

Private goods

Goods that are both excludable and rival in consumption

14

Goods that are both excludable and rival in consumption

Private goods

15

Public goods

Goods that are neither excludable nor rival in consumption

16

Goods that are neither excludable nor rival in consumption

Public goods

17

Common resources (goods)

Goods that are rival in consumption but not excludable

18

Goods that are rival in consumption but not excludable

Common resources

19

Club goods

Good that are excludable but not rival in consumption

20

Good that are excludable but not rival in consumption

Club goods

21

Cost-benefit analysis

A study that compares the costs and benefits to society of providing a public good

22

A study that compares the costs and benefits to society of providing a public good

Cost-benefit analysis