Externalities Flashcards
1
Q
Negative Externalities of Production
A
Social Costs > Private Costs in Production
2
Q
Positive Externalities of Production
A
Social Costs < Private Costs in Production
3
Q
Negative Externalities of Consumption
A
Social Benefits < Private Benefits in Consumption
4
Q
Positive Externalities of Consumption
A
Social Benefits > Private Benefits in Consumption
5
Q
What Does the Supply Line Equal?
A
Costs (Production)
6
Q
What Does the Demand Line Equal?
A
Benefits (Consumption)
7
Q
Negative Externalities Welfare Loss Triangle Points Left or Right?
A
Left
8
Q
Positive Externalities Welfare Loss Triangle Points Left or Right?
A
Right
