8 Externalities Flashcards
1
Q
Define External Costs
A
Negative Spill over effect 3 parties.
2
Q
Defien external Benifits
A
Positive spillover effects thrid party.
3
Q
Define Private Costs
A
Cost of economic activity for individual and firms
4
Q
Define social costs
A
Cost of economic activity to society
5
Q
How does the government deal with Externalities?
A
Taxation
Subsidies
Fines
Pollution permit
