Cost carried by an individual or firm directly involved in a transaction.
1 of 10
Private Benefits
Benefit that comes by an individual or firm directly involved in a transaction, collectively 3rd parties
2 of 10
External Costs
Cost carried by an individual or firm not directly involved in a transaction, collectively by 3rd parties
3 of 10
External Benefits
Benefit gained by individuals or firm not directly involved in a transaction 3rd parties
4 of 10
Social Cost
Total cost to society includes private and external costs
5 of 10
Social Benefits
Gained by individuals directly involved in a transaction together with the external benefit gained by 3rd parties not directly involved in the transaction
6 of 10
Merit Good
A good which when consumed provides external benefits although it may not be fully recognised here for example healthcare and education
7 of 10
Demerit Good
Good when consumed provides external costs although it is not fully recognised as good as it is over consumed for example alcohol.
8 of 10
Government intervention
Regulatory action taken by government that interfere with decisions made by individuals, groups and organisations about social and economic matters
9 of 10
Free market
No intervention from government and businesses they're free to operate as wish without intervention into their actions
10 of 10
Other cards in this set
Card 2
Front
Private Benefits
Back
Benefit that comes by an individual or firm directly involved in a transaction, collectively 3rd parties
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