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12 Cards in this Set
- Front
- Back
the economics doctrine that holds that an economy works best with the minimum amount of government intervention
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laissez-faire
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the defects in competitive markets that prevent them from achieving an efficient or equitable allocation of resources
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market failures
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goods or services whose benefits are not affected by he number of users and from which no one can be excluded
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public goods
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goods or services whose benefits can be denied to nonbuyers and whose consumption by one person reduces the amount available for others
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private goods
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a feature of certain goods that means one person's consumption does not reduce the amount available for others
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nonrival
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a feature of certain goods that means that it is impossible (or extremely costly) to prevent nonbuyers from enjoying the benefits
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non-excludable
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private goods that are provided by government because they involve extensive benefits for the general public
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quasi-public goods
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costs that are incurred by people other than the producers or consumers of a product
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external costs
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benefits that are enjoyed by people other than the producers or consumers of a product
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external benefits
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benefits or costs of a product experienced by people who neither produce nor consume that product
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externalities
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the extra internal (or private) costs to the producer of increasing production by one additional unit
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marginal private costs
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the additional costs to both the producer (internal costs) and society (external costs) of producing additional quantities of a product
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marginal social costs
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