... are the costs (negative externalities) for an individual or firm involved in a transaction
Private Costs
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... (negative externalities) are costs suffered by a third party as a result of an economic transaction, also known as spillover effects
External costs
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... = Private costs + External costs
Social Costs
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... are the benefits that the individual of firm receive when directly involved in a transaction
Private Benefits
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... (Positive externalities) are the benefits enjoyed by the third party of an economic transaction
External Benefits
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... = Private Benefits + External Benefits
Social Benefits
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Another term for externalities is ...
Spillover effects
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... are a type of market failure because the market puts out the wrong signals
Externalities
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Negative externalities in ... include: Factories creating pollution and The use of Pesticides
Production
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Negative externalities in ... include: Excessive alcohol drinking and Passive smoking
Consumption
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... private benefit is the extra benefit derived from consuming one more item
Marginal
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... private costs are the costs of producing the next item( which can also be the supply curve)
Marginal
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... is the the loss of economic efficiency that can occur when the free market equilibrium for a good or a service is not achieved
Welfare loss
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Government ... to tackle negative externalities: Bans and regulation, Taxes, Education providing information, Subsidising alternatives and Pollution permits
Policies
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The ... principle is when the people who create pollution, have to pay more money
Polluter pays
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... is an application of polluter pays principle because it charges people depending on how much pollution they produce, the idea to keep a clean environment
Green Taxes
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Examples of ... externalities include: Renewable energy supply, Public transport, Vaccinations, Education, Electric Vehicles, Fire Alarms, Insurance, New motorways and Inventions
Positive
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Other cards in this set
Card 2
Front
... (negative externalities) are costs suffered by a third party as a result of an economic transaction, also known as spillover effects
Back
External costs
Card 3
Front
... = Private costs + External costs
Back
Card 4
Front
... are the benefits that the individual of firm receive when directly involved in a transaction
Back
Card 5
Front
... (Positive externalities) are the benefits enjoyed by the third party of an economic transaction
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