Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
9 Cards in this Set
- Front
- Back
|
What are private goods |
Good that are available in stores |
|
|
How are private good characterized |
Rivalry- when one person purchase a product it's not available for another
Excludability-sellers can keep people who did not pay from consuming the product |
|
|
What are public goods |
Good or service that can be simultaneously consumed by everyone |
|
|
Characteristic of public good |
Nonrivarly and non excludable |
|
|
Externalities |
Cost or benefit accruing to an individual or group |
|
|
Negative externality |
When producer does something that has negative impact on an individual or group. |
|
|
Positive externality |
When someone does something which as positive impact on individual or a group |
|
|
How to deal with negative externalities |
Direct control from government, pass laws, fines, taxes for each unit produce |
|
|
How to deal with positive extrenalities |
Subsidies to buyer or producers Government provision |
