EXTERNALITIES.

Externalities

Costs or benefits resulting from activities of economic units (firms or consumers) but for which no compensation is made.

Spill over

The effect that one situation or problem has on another situation.

Private cost

The cost of an activity paid for by the individuals, a firm, an area or a country that engages in that particular activity.

Social cost

Costs suffered by society as a whole due to the actions of one party.

Negative externality

An action or event that causes harm or adverse side effects to be felt by others.

Private benefits

Benefits received by individuals, firms, areas or countries from engaging in a particular activity.

Social benefits

Benefits or gains to society as a whole resulting from production activities.

Subsidy

A financial grant given by the government to businesses to reduce the cost of production.

Fine

A compulsory payment intended to punish or deter certain behaviors or activities.

Pollution permit

A government document issued to businesses allowing them to discharge a certain quantity of polluted material into the environment.

Taxation

A compulsory fee paid by individuals or businesses to the government.

Government Regulation

Laws imposed by the government to reduce negative externalities.

External cost

Costs that arise due to negative externalities affecting third parties.

Positive externality

A benefit that affects a third party positively as a result of an economic activity.

Elastic demand

A situation where demand for a product changes significantly with a change in price.

Opportunity cost

The loss of potential gain from other alternatives when one alternative is chosen.

Monopoly

A market structure where a single seller controls the entire supply of a product or service.

Misleading advertisements

Promotional content that deceives consumers about the true nature of a product.

Job opportunities

Positions available for employment that provide income and benefits to individuals.