Economics Chapter 5 Flashcards
0
Q
Pollution from industry or firm
A
Negative externalty
1
Q
How does government correct externalities?
A
Subsidies and tax
2
Q
Flu shots help keep more people well so it results in everyone being healthier which lowers cost of healthcare and minimizes number of lost days
A
Positive externalty
3
Q
Value of the land or labor above its opportunity cost
A
Economic rents
4
Q
Total revenue less explicit costs less implicit costs
A
Economic profit
5
Q
Opportunity costs of the productive resources used in creation of the good or service of the business– costs by using resources for business
A
Implicit cost
6
Q
Expenses of the business
A
Explicit costs
