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11 Cards in this Set
- Front
- Back
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Market Response Model
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A model that predicts economic responses to scarcity of a resource will lead to increases in prices that will result either in decreased demand for that resources of increased supply, or both
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Jevon's Paradox
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The somewhat counterintuitive observation, rooted in modern economic theory, that a technology that increases the efficiency of a resource actually increases, rather than decreases, the rate of consumption for that resource
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Coase Theorem
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A thesis based on neoclassical economics, holding that externalities (pollution) can be efficiently controlled through contracts and bargaining between parties, assuming the transaction costs of reaching a bargain are not excessive.
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Externality
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The spillover of a cost or benefit, as where industrial activity at a plant leads to pollution off-site that must be paid for by someone else
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Market Failure
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A situation or condition where the production or exchange of a good or service is NOT efficient; this refers to a range of perverse economic outcomes stemming from market problems like monopoly or uncontrolled externalities
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Transaction Costs
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In economics, the cost associated with making an exchange, including, for example, drawing a contract, traveling to market, or negotiating a price; while most economic models assume low transaction costs, in reality these costs can be quite high, especially for systems with high externalities
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Monopoly
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A market condition where there is one seller for many buyers, leading to perverted and artificially inflated pricing of goods
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Monopsony
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A marked where there is one buyer for many sellers, leading to perverted and artificially deflated pricing of the good.
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Cap and Trade
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A marked-based system to manage environmental pollutants where a total limit is placed on all emissions in a jurisdiction (state, country, worldwide, etc.) and individual people or firms possess transferable shares of that total, theoretically leading to the most efficient overall system to maintain and reduce pollution levels overall
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Greenwashing
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The exaggerated or false marketing of a product, good, or service as environmentally friendly
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Green Certification
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Programs to certify commodities for the purposes of assuring their ecological credentials, such as organically grown vegetable or sustainably harvested wood products
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