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A Level Economics - Edexcel > EXTERNALITY DIAGRAMS > Flashcards

EXTERNALITY DIAGRAMS Flashcards

1
Q

Welfare loss in the market when there is a negative consumption externality (MSB<MPB)

A
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2
Q

Welfare loss in the market when there is a positive consumption externality (MSB>MPB)

A
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3
Q

Welfare loss in the market when there is a negative production externality (MSC>MPC)

A
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4
Q

Welfare loss in the market when there is a positive
consumption externality (MSB>MPB)

A
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5
Q

Welfare loss in the market when there is a negative production externality (MSC>MPC)

A
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6
Q

Welfare loss in the market when there is a positive production externality (MSC<MPC)

A
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7
Q

Market equilibrium compared to social optimum equilibrium a market with both negative production externality (MSC>MPC) and negative consumption externality (MSB<MPB)

A
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8
Q

Market with negative consumption externality (MSB< MPB) and negative production externality (MSC>MPC)

A
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9
Q

Market equilibrium compared to social optimum equilibrium a market with both a negative production externality (MSC>MPC) and a positive consumption externality (MSB>MPB)

A
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10
Q

Using a specific/unit indirect tax to internalise a negative production externality

A
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11
Q

Market where the best government intervention option is to ban the good/service; social optimum at zero output

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12
Q

Information failure (i) Demand increases when consumer have full information (merit good) and (ii) demand decreases when consumers have full information (demerit good)

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13
Q

Positive consumption externality of vaccines

A
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14
Q

Positive consumption externality showing welfare loss area at market equilibrium

A
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15
Q

Underproduction in market with a positive production externality (MSC< MPC), with constant externalities

A
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16
Q

Overproduction in market with a negative production externality (MSC>MPC), with constant marginal external cost

A
17
Q

Overproduction in market with a negative production externality (MSC>MPC), with increasing marginal external costs

A

A Level Economics - Edexcel (23 decks)

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