Eco + GP Definitions

Negative externalities of production

They occur when the production of a good or service creates costs for a third party who is not involved in the economic transaction.

Market failure

This occurs when the condition for the market is allocatively inefficient, leading to a loss of social and economic welfare.

Negative externalities of consumption

They occur when the consumption of a good or service creates costs for a third party who is not involved in the economic transaction.

Demerit good

Demerit goods are goods that are over-consumed and result in harm to the consumer and society.

Price floor

A government-imposed minimum price set above the market equilibrium price

Price ceiling

A government-imposed maximum price limit set below the market equilibrium price

Stakeholders

Individuals or groups of individuals who have an interest in something and are affected by it.

Indirect tax

A compulsory levy imposed on the consumption of goods and services

Government regulation

Laws, rules or policies implemented by the government to achieve welfare objectives

Human rights

The fundamental claims and entitlements that every individual possesses simply by virtue of being a human being

Universalism

The belief that human rights apply equally to all individuals regardless of culture, religion or political structure, and that it should be upheld according to global standards.

Cultural relativism

The belief that norms and rights must be understood within their specific cultural contexts, rather than against a single universal standard