Term
| Private Goods and Services |
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Definition
| Any good or service that satisfies both the exclusivity and rivalry conditions and thus gives satisfaction only to the direct consumer. |
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Term
| Semiprivate Goods and Services |
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Definition
| Any good or sevice that fails to fully satisfy either the exclusivity or rivalry condition and thus yeilds the primary benefit of consumption to the direct consumer, but also influences the satisfaction of others. |
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Term
| Public Goods and Services |
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Definition
| A good or service that fails to satisfy both the exclusivity and rivalry conditions and thus, if provided to one, yeilds benefits to all. |
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Term
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Definition
| An individual who consumes benefits from a public good or service but who pays no part of its cost. |
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Term
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Definition
| A technique of determining the optimal level of an economic activity by considering the relationship between the costs and benefits of the activity. In general, an economic activity should be expanded so long as the resulting increase in benefits is at least as great as the resulting increase in costs. |
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Term
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Definition
| An effecient allocation of a budget exists when the last dollar spent of any one facet of the budget yeilds the same marginal social benefit as the last dollar spent on any other facet. |
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Term
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Definition
| Benefits an individual recieves from a business endeavor in the form of personal satisfaction rather than in the form of money. |
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Term
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Definition
| Costs an individual incurs in pursuing a business in the form of negative personal satisfaction rather than in the form of money. |
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