1
Q
negative externality
A
external cost
2
Q
positive externality
A
external benefit
3
Q
marginal damage cost
A
cost of damage caused by emitting an additional unit of pollution
4
Q
marginal abatement cost
A
cost of eliminating an additional unit of pollution
5
Q
coase theorem
A
in the presence of externalities an economy can always reach an efficient solution provided that the transaction costs of making a deal are sufficiently low
6
Q
optimal tax
A
where MAC and MDC meet
7
Q
3 types of government intervention
A
environmental standards, emissions tax (pigouvian tax), tradable emissions permits
8
Q
environmental standard
A
not cost effective
Econ 101
flashcards
Decks in class (14)
# Cards
-
Chapter 2 Economic Models7
-
Chapter 9 Making Decisions8
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Chapter 3 Supply and Demand5
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Chapter 4 Consumer and Producer Surplus3
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Chapter 6 Elasticity7
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Chapter 5 and 7 Government Controls7
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Chapter 8 International Trade5
-
Chapter 16 Externalities8
-
Chapter 11 Behind the Supply Curve: Inputs and Costs2
-
Ch.12 Perfect Competition and the Supply Curve12
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Ch.13 Monopoly12
-
Ch.14 Oligopoly17
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Ch. 17 Public Goods and Common Resources7
-
Ch. 10 Consumer Choice16
