Externalities

Question 1

Consumption externalities

Answer 1

When the social costs of consumption are different from the private costs of consumption

Question 2

Positive consumption externalities

Answer 2

If social benefits exceed private benefits

Question 3

Marginal social and private costs and benefits

Answer 3

The social and private costs and benefits of the last unit either produced or consumed

Question 4

Private cost and benefit

Answer 4

The cost or benefit of an activity to an individual economic unit such as consumer or firm

Question 5

Positive production externalities

Answer 5

If social costs are less than private costs

Question 6

Social cost and benefit

Answer 6

The cost or benefit of an activity to society as a whole

Question 7

Externality

Answer 7

The difference between social cost and benefits and private costs and benefits

Question 8

Negative production externalities

Answer 8

If social costs exceed private costs

Question 9

Negative consumption externalities

Answer 9

If social benefits are less than private benefits