externalities Flashcards
.
what does externalities means?
a effect to a third side from the production or consumption of a good
what is external costs?
a negative effect (externalities)
what is external benefits ?
a positive effect (externalities)
What are the examples of a negative externalities?
pollution, congestion and environmental damage
What are the examples of a positive externalities?
education, healthcare and vaccinations
what is the formula of social costs?
social costs= private costs + external costs
what is the formula of social benefit?
social benefit = private benefit + external benefit
which type of goods is it?
Free goods, Private goods, Public goods and Quasi-public goods
what does free goods mean?
product that is available for everyone in great quantity that they want
what the demerit products is?
products that bad for people but the are over-consumed
what the merit products is?
products that benefit for people but they are under-consumed