青岛ap网上培训班

Please highlight critical terms;
*=not important for exam but you should know

Chapter Eight Public sector

Externality -when a decision imposes a cost (negative externality) or imparts a benefit (positive externality) to people not involved in the decision making. Public Goods- goods for which the consumption by one person does not exhaust the amount available for others, and for which prevention of consumption is difficult

social cost-those costs which are incurred by the public,. Polluted waterways; those are costs not captured by the market

social benefits-those benefits which are realized by the public or outside the buyer/seller exchange

pure Private Good a good that has exclusion and distributive characteristics

Technological efficiency-the identification of those inputs that have the greatest effect on output per $ of input expenditure