the failure of markets to produce at the point where community surplus (consumer + producer surplus) is maximised.
1 of 8
Positive externalities
beneficial effects that are enjoyed by a third party when a good or service is produced or consumed.
2 of 8
Negative extrenalities
the "bad" effects that are suffered by a thrid party when a good or service is produced or consumed.
3 of 8
Sustainable development
the development needed to meet the needs of the present generation without compromising the ability of future generations to meet their own needs.
4 of 8
Public goods
goods or ervices which would not be provided at all by the market. They have the characteristics of non-rivalry and non-diminish-ability, e.g. flood barriers.
5 of 8
Merit goods
goods or services considered to be beneficial for people that would be under-provided by the market and so under-consumed.
6 of 8
Demerit goods
goods or services considered to be harmful to people that would be over-provided by the market and so over-consumed.
7 of 8
Tradable permits
permits to pollute, issued by a governing body, which sets a maximum amount of pollution allowable. Firms may trade these permits for money.
8 of 8
Other cards in this set
Card 2
Front
beneficial effects that are enjoyed by a third party when a good or service is produced or consumed.
Back
Positive externalities
Card 3
Front
the "bad" effects that are suffered by a thrid party when a good or service is produced or consumed.
Back
Card 4
Front
the development needed to meet the needs of the present generation without compromising the ability of future generations to meet their own needs.
Back
Card 5
Front
goods or ervices which would not be provided at all by the market. They have the characteristics of non-rivalry and non-diminish-ability, e.g. flood barriers.
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