Studied by 4 peopleNegative Externalities
________: are the ‘ bad effects that are suffered by the third party, for which.
Sustainability Sustainable development
________ is where consumption needs of the present.
Tradable permits
________ is a market- based solution to negative externalities of production.
Generation
________ are met without reducing the ability to meet the needs of future ________.
maximum amount of pollution
Are permits to pollute, issued by government, which sets a(n) ________.
Public goods
________ are goods or services which would be under- provided or not provided at all.
Market failure
________ occurs when resources arent allocated in an optimal manner, meaning.
Merit goods
________ are goods or services considered to be beneficial for people who use them.
Demerit goods
________ are goods or services considered to be harmful to people who consume.
Private cost
cost on you, as a consumer
Private benefit
benefit for you, as a consumer
External cost
cost on other people because of you
External benefit
other peoples benefit because of you
Social cost
private and external cost
Social benefit
private and external benefit
Marginal social cost (MSC)
total cost society pays for the production of another unit of taking further action in the economy
Marginal social benefit (MSB)
individuals social benefit, plus overall benefit to society from one additional unit of production
Externalities
when a production or consumption of a good has an effect on third party occurrence
Negative Externalities
are the ‘bad effects that are suffered by the third party, for which
Market failure
occurs when resources aren’t allocated in an optimal manner, meaning
that the market isn’t allocatively efficient, and community surplus isn’t maximized.
Public goods
are goods or services which would be under-provided or not provided at all
by the free market.
Note 
Flashcard (54)